2015/16 ANNUAL REPORT - Ruapehu District...RUAPEHU DISTRICT COUNCIL - ANNUAL REPORT 2015/16 SECTION 1 – PAGE 3 STATEMENT OF COMPLIANCE Council completed and adopted its 30 June 2016

Ruapehu District Council

2015/16 ANNUAL REPORT

Front cover image: Looking towards Tongariro National Park, Ruapehu District, New Zealand

RUAPEHU DISTRICT COUNCIL - ANNUAL REPORT 2015/16 SECTION 1 – PAGE 1

CONTENTS

COUNCIL DIRECTORY.................................................................................................................................... 2

STATEMENT OF COMPLIANCE ..................................................................................................................... 3

WHAT IS AN ANNUAL REPORT? .................................................................................................................... 4

COUNCIL ORGANISATIONAL STRUCTURE ................................................................................................. 5

RUAPEHU DISTRICT MAP .............................................................................................................................. 6

MAYOR AND COUNCILLORS ......................................................................................................................... 7

COMMUNITY BOARDS .................................................................................................................................... 8

MESSAGE FROM THE MAYOR ...................................................................................................................... 9

THE CEO’S YEAR AT A GLANCE .................................................................................................................. 11

AUDITOR’S REPORT ..................................................................................................................................... 15

SECTION ONE: COUNCIL ACTIVITIES .......................................................................................................... 19

RUAPEHU’S OUTCOMES ............................................................................................................................. 21

OUTCOMES ................................................................................................................................................... 22

RUAPEHU’S STRATEGIC ACTIVITY GROUPS ............................................................................................ 23

COMMUNITY SUPPORT ............................................................................................................................... 25

LEADERSHIP ................................................................................................................................................. 37

REGULATION ................................................................................................................................................ 43

COMMUNITY FACILITIES.............................................................................................................................. 51

LAND TRANSPORT ....................................................................................................................................... 67

STORMWATER .............................................................................................................................................. 79

WASTEWATER .............................................................................................................................................. 87

WATER SUPPLY ............................................................................................................................................ 99

WASTE MANAGEMENT AND MINIMISATION ............................................................................................ 113

SECTION TWO: FINANCIAL INFORMATION

INDEXED SEPARATELY


COUNCIL DIRECTORY Postal Address: Private Bag 1001, Taumarunui 3946 Website: www.ruapehudc.govt.nz Email: [email protected] Locations: 59-63 Huia Street, Taumarunui Phone 07 895 8188 Fax 07 895 3256 37 Ayr Street, Ohakune Phone 06 385 8364 Fax 06 385 8628 Cr Duncan/Seddon Streets, Raetihi Phone 06 385 4447 Fax 06 385 4014 Bankers: Bank of New Zealand 101 Hakiaha Street, Taumarunui Auditors: Audit New Zealand on behalf of the Auditor General 280 Queen Street, Auckland Solicitors: Le Pine & Co PO Box 140, Taupo Major Contractors: Alf Downs Streetlighting Ltd Datacom Group Ltd Downer Edi Works Ltd Emmetts Civil Construction Ltd Envirowaste GHD J&J Walters Ltd Jilesen Contractors Ltd Lexel Systems Ltd Mulch & Mow Ltd Roadmarking Services Ltd Veolia Water Services (ANZ) Pty Ltd Visit Ruapehu


STATEMENT OF COMPLIANCE Council completed and adopted its 30 June 2016 Annual Report by 31 October 2016, as required by section 98(3) of the Local Government Act 2002. The Council and Management of the Ruapehu District Council confirm that all statutory requirements in relation to the Annual Report, as outlined in the Local Government Act 2002, have been complied with.

Dated this 7th day of October 2016.

Don Cameron JP Clive Manley MAYOR CHIEF EXECUTIVE


WHAT IS AN ANNUAL REPORT? The local authority is required to produce a plan showing how it will achieve the purpose of Local Government that is to meet the current and future needs of the community. The local authority demonstrates its contribution towards this purpose in the setting of Strategic Goals (SGs) and in the development of a Long Term Plan (LTP). The LTP describes what a local authority aims to achieve over a minimum period of ten years. The LTP must be produced once every three years, with an Exceptions Annual Plan (EAP) for the years in between. The EAP provides the budget for the coming year and explains any changes from the LTP. The first year of the LTP is the EAP for that year. The Annual Report is used to monitor the local authority’s progress against the SGs against work programmes identified in the LTP and against budgets contained within the EAP. Council’s current LTP is the Future Ruapehu Long Term Plan 2015-25 (LTP 2015-25). This LTP is being reported against in this Annual Report. The LTP 2015-25 includes a set of performance indicators and a list of major projects and activities. The 2015/16 Annual Report communicates the progress that has been made towards the SGs set out in the LTP 2015-25.

COUNCIL ORGANISATIONAL STRUCTURE

As at 30 June 2016

Residents of the Ruapehu District

Council

Mayor Don Cameron JP

Deputy Mayor Marion Gillard JP

Members Bruce Broderson QSM

Ron Cooke Graham Cosford JP

Cynthia Dowsett Ben Goddard QSM

Karen Ngatai David “Rabbit” Nottage

Pita Pehi Elaine Wheeler Rhonda Wood

Chief Executive Clive Manley

Executive Office Human Resources

Corporate Communications Information Technology

Group Manager Community Services

Margaret Hawthorne

• Community Property • Environmental Health &

Liquor • Recreation & Community

Facilities • Resource Management • Civil Defence & Emergency

Management • Solid Waste • Building • Compliance • Information Management

Financial ControllerAlan Young

• Financial & Management

Reporting • Annual & Long Term

Planning • Rating • Treasury • Services Asset Managers • Financial Analysis &

Decision Support Advice

Group Manager CustomerServices

Pauline Welch • Customer Services • District Libraries • Policy/Planning • Business Analysis • I-Site Visitor Information

Centres

Environmental Manager Anne-Marie Westcott

• Water, Wastewater &

Stormwater Services • DoC Whakapapa

Land Transport/ Economic Development Manager

Warren Furner • Land Transport • Economic Development • RTO (Visit Ruapehu)

Ward Committee Taumarunui/Ohura

Community Boards National Park

Waimarino-Waiouru

Audit & Risk Committee


RUAPEHU DISTRICT MAP


MAYOR AND COUNCILLORS

Don Cameron JP Mayor

135 Matapuna Road, RD 6 RAETIHI 4696 Phone 06 385 3033

Rhonda Wood Taumarunui Ward 11 West Street TAUMARUNUI 3920 Phone 07 895 7560

Marion Gillard JP Deputy Mayor/ Ohura Ward

336B River Road, RD 1 TAUMARUNUI 3991 Phone 07 893 8575

Elaine Wheeler National Park Ward 11 East Street TAUMARUNUI 3920 Phone 07 896 6048 Fax 07 896 6048

Bruce Broderson QSM Taumarunui Ward 55 Ward Street TAUMARUNUI 3920 Phone 07 896 7124 Fax 07 896 8014

Ben Goddard QSM Waimarino-Waiouru Ward PO Box 8 OHAKUNE 3660 Phone 06 385 8324 Fax 06 385 9137

Ron Cooke Taumarunui Ward 33 Miriama Street TAUMARUNUI 3920 Phone 07 895 6807

Cynthia Dowsett Waimarino-Waiouru Ward 30 Shannon Street OHAKUNE 4625 Phone 06 385 8086 Fax 06 385 8980

Graeme Cosford JP Taumarunui Ward 42 Reu Street TAUMARUNUI 3920 Phone 07 895 7572 Fax 07 895 7572

David “Rabbit” Nottage Waimarino-Waiouru Ward 32 Southridge Drive OHAKUNE 4625 Phone 021 111 6514

Karen Ngatai Taumarunui Ward 446 Echolands Road, RD 4 TAUMARUNUI 3994 Phone 07 896 6658

Pita Pehi Waimarino-Waiouru Ward 167 Pehi Road NATIONAL PARK 3948 Phone 07 892 2898 Mobile 021 025 6838


COMMUNITY BOARDS

National Park Community Board Waimarino-Waiouru Community Board

National Park Ward Councillor Elaine Wheeler is Council’s appointed representative on the Board. Mayor Don Cameron is an ex-officio member.

Jenni Pendleton

(Chair)

13 MacKenzie Street

NATIONAL PARK 3948

Phone 07 892 2774

Jim Paul

(Deputy Chair)

CMB 2

OWHANGO 3990

Phone 027 556 6660

Hamish Sinclair

8 Millar Street

NATIONAL PARK 3948

Phone 07 892 2825

Murray Wilson

(Co-opted on 3/02/16)

13 MacKenzie Street

NATIONAL PARK 3948

Phone 07 892 2774

William (Bill) Taylor

(Chair)

(Passed away 3/10/15)

288 Kaitieke Road, RD 2

OWHANGO 3990

Phone 07 892 2895

Waimarino-Waiouru Ward Councillors Pita Pehi and David “Rabbit” Nottage are Council’s appointed representatives on the Board. Mayor Don Cameron has speaking rights.

John Compton JP

(Chair)

(Passed away 18/09/16)

PO Box 3

RAETIHI 4626

Phone 06 385 4204

John (Luigi) Hotter

(Deputy Chair)

99 Ruapehu Road

OHAKUNE 4625

Phone 06 385 8312

Lucy Conway

36 Seddon Street

RAETIHI 4632

Phone 06 385 3123

Allan Whale

125 Ruapehu Road

OHAKUNE 4625

Phone 06 385 9139


MESSAGE FROM THE MAYOR

I am pleased to present the 2015/16 Annual Report on behalf of Ruapehu District Council.

Financially, Council is in sound shape and we are making good progress against our strategic goals and work programmes. Council is focused on supporting the development of safe, prosperous rural communities that are able to capitalise on our agriculture, business and tourism sectors while sustaining our beautiful environment.

We are aiming are to improve the well-being and quality of life for our communities through; creating and retaining jobs, growing incomes, increasing the ratepayer base, providing sustainable infrastructure, providing value for money and ensuring that the people who benefit from Council spending contribute their fair share of costs. In addition to Council’s normal course of business activities we have been actively supporting Local Government New Zealand (LGNZ) on sector issues and regionally as part of the Manawatu-Whanganui Regional Growth Study which has evolved into the Accelerate25 Action Plan as well as seeking shared service arrangements where appropriate. Council recognises that the District needs to take responsibility for our own economic regeneration and as such we have needed to rethink our approach to economic development and the level of investment required to attain the future we want for ourselves. This has seen Council reprioritise resources into the economic development area mostly to capitalise on co-investment opportunities with government under the Accelerate25 Manawatu-Whanganui Economic Action Plan and digital enablement. The Accelerate25 Action Plan identified tourism and visitor services as the “big opportunity” and Council’s tourism entities Visit Ruapehu and i-SITEs are playing a major part in supporting its development in Ruapehu. With Council’s limited resources we are seeking to secure Government financial support through the Tourism Growth Partnership Fund and Tourism Demand Infrastructure Fund our tourism development aspirations. Council has also been in discussions with the Department of Conservation and the Army Museum on developing tourism initiatives. The need for better internet and mobile services is well understood and under the brand of ‘Loading Ruapehu’ Council sought for Ruapehu to be included in the next stage of the Government funded broadband roll out. The involvement of Ruapehu communities was central to this process with local communities taking part in surveys, attending public meetings, performing internet speed tests and sharing their internet ‘war stories’ and aspirations for how they would make use of improved broadband and mobile services. Free public WIFI for Taumarunui, Ohakune and Raetihi is scheduled over the 2016/17 Financial Year.


In the area of Governance, Council undertook a review of representation arrangements which proposed dividing the Community Boards into smaller electoral areas called ‘subdivisions’ and the establishment of an Audit and Risk Committee. There was subsequently an objection to the Community Board proposals to the Local Government Commission which was upheld and as such the changes were not implemented. Council’s Management Committee was disestablished in January 2016 and the Audit and Risk Committee established in February. As Council’s largest area of expenditure the Land Transport activity is always an area of focus. In June 2015 the region was hit with a severe weather bomb which resulted in widespread flooding, under-slips, washouts and over-slips especially in the south of the District. Reinstatement work for this event worth $5.2 million has been submitted and approved by NZTA with works to date worth $4.2 million being completed. In addition to these emergency works the Land Transport activity completed 22.9km of reseals, installed 53 culverts, applied 57,900 tonnes of aggregate to the unsealed road network and completed 6.15km of pavement rehabilitation. A major focus for the foreseeable future will be bridge replacements with 90 bridges due for replacement by 2044 worth $15 million (2013 dollars). Storm, drinking and wastewater are another major area of Council activity. Council and Horizons Regional Council are working more closely together on strategic planning and the alignment of stormwater work programmes. Ohakune flood and erosion mitigation is a good example of this where Horizons has undertaken modelling work. Consultation with the community around a new river scheme is planned. Work has commenced on renewal of Taumarunui Water Supply Resource Consent that is due to expire in June 2017. The consent application needs to adhere to key polices from the Horizons One Plan and show reasonable, justifiable and efficient use of water. In wastewater the resource consent renewals for the Raetihi, Ohakune and National Park Wastewater Treatment Plants (WWTP) have been lodged. This involved the trialing of a new consultation process with Iwi under an umbrella called the Wai Group which considers the effects of WWTP on water systems and rivers. The Wai Group has been recognised as offering a framework for consultation with Iwi around water issues on a national scale. Council has also started to work a lot closer with the Ruapehu District Maori Council (RDMC) who has been looking to be more effective in their engagement with us. This is especially important as we move into co-governance arrangements around the Te Awa Tupua (Whanganui River Claims Settlement) Bill. Council is also meeting with Iwi leaders to see how we can assist and support them with any Treaty of Waitangi settlement issues as well as Kaumatua and northern Iwi to support township revitalisation and tourism initiatives. As an Organisation, Council has been working extremely well in support of its elected members and is delivering good value and service to its ratepayers, communities and other stakeholders. Ruapehu’s future is looking very exciting and Council is well placed to meet the current and future needs.

Don Cameron JP MAYOR


THE CEO’S YEAR AT A GLANCE

I have much pleasure in presenting the first Annual Report under my term as Chief Executive having joined Council late last year (2015). Council has put significant effort into improving our financial management and reporting following issues the Organisation had last financial year (2014/15) when the statutory Annual Report deadline was not achieved. This Annual Report was delivered ahead of our statutory timeframe requirements and marks an excellent effort by the Finance Team and other senior management to ensure last year’s situation did not repeat.

Over the last year we have rebuilt our Finance Team with the appointment of a new Financial Controller Alan Young along with new Financial and Management Accountants. The new Finance Team has done an excellent job in ensuring that Council meets all its statutory reporting obligations as well improving the quality of financial information to other managers to assist in decision making and planning. Council’s overall focus is to drive and support the development of safe, prosperous rural communities that are able to capitalise on our agriculture, business and tourism sectors while sustaining our beautiful environment. In support of this focus Council wants to be as business friendly as possible and have a culture where staff work hard to assist people achieve their objectives within the rules and regulations we need to comply with. Council recognises that we can always do better and as such we are committed to a programme of continual assessment and improvement. To help give our communities and other Ruapehu stakeholders confidence and belief in our direction and performance Council is taking part in an Excellence Programme being run by Local Government New Zealand. Ruapehu is one of the inaugural 21 Councils that have signed on to be part of the LGNZ Excellence Programme which is designed to share and encourage best practice and includes an independent evaluation of how well each Council is performing for its community. The LGNZ Excellence Programme is one of a number of measures we are carrying out to improve organisational performance that we are undertaking. This year has seen the introduction of new government legislation which has had a major impact on Council and how we undertake or deliver some key services. The major changes have been with the introduction of a new Food Act in March and the Health and Safety at Work Act that came into force in April. Due to Ruapehu’s large tourism, hospitality and producer sectors the new Food Act has affected a lot of local businesses as it applies to anyone involved in the selling, making or transportation of food.


Council’s environmental health team has been working hard to ensure that people understand how the Food Act applies to them and what their responsibilities are. The emphasis of the new Health and Safety at Work Act (HSWA) is on everyone in the workplace being responsible for health and safety. The new HSWA has required Council to look not just within our own operation but to ensure that any businesses that Council promotes or recommends through the i-SITE network or Visit Ruapehu is compliant with the Act. Internally Council has been working toward gaining ACC Workplace Safety Management Practices accreditation status which will recognise that Council has robust health and safety practices in place. Looking forward Ruapehu residents, ratepayers and other stakeholders can have every confidence that Council’s most important asset, its people, are committed to increasing the value we are delivering to our customers and communities in a safe and transparent way. I would encourage you to assist Council on this journey by engaging with us during consultation on specific issues as well as providing on-going feedback and thoughts on any other day-to-day issue as you see fit.

How We Performed Financially

Operational Result Our operational result for the 2015/16 Financial Year shows a net surplus of $2.884m against a budget of $2.183m.

Capital Works Programme We have completed a capital works programme in the last 12 months totalling $11.1m.

Activity Description $million

Community Support Various minor works 0.1

Recreation & Community Facilities Various minor works 0.9

Land Transport Renewals of various sorts 6.0

Various minor works 1.7

Wastewater Various minor works 0.6

Water Supply Various minor works 1.1

Overheads Computer Equipment, Software and Furniture 0.4

Plant and vehicles 0.1

Solid Waste Various minor works -

Stormwater Various minor works 0.2

Total 11.1


Debt Our overall debt was reduced by $1m during the 2015/16 Financial Year ($1.5m in 2014/15).

Key Financial Indicators – Comparative Table ($million)

Budget 2016 2015 2014 2013 2012 2011 2010

Income 34.0 36.9 31.6 31.8 30.0 31.8 32.1 32.3Less Expenditure

31.8 34.1 29.9 32.1 29.4 31.5 28.7 29.0

Surplus/(Deficit) 2.2 2.8 1.8 (0.3) 0.6 0.3 3.4 3.3

Weighted Average Interest Rates

2016 2015 2014 2013 2012

Short Term < 1 yr. 5.22% 5.43% 5.72% 6.80% 6.87%

Long Term > 1 yr. 4.95% 5.36% 5.45% 5.56% 6.17%

Key Treasury Management Indicators The table indicates the performance of Council’s Treasury Management against the Liability Management Policy limits on borrowing and interest rate exposures. Council is well placed against all financial indicators with two of the three being below the prescribed limits and the other being near the prudent lower limit.

Acceptable

Range 2016

Actual 2015

Actual 2014

Actual 2013

Actual 2012

Actual

Interest Expense/Operating Revenue 3 to 12% 3.7% 4.8% 5.4% 6.20% 5.7%

Total Liabilities /Total Assets <12% 8.1% 8.5% 8.7% 9.02% 8.9%

Net Debt /Operating Revenue 1 to 1.5 0.79 0.85 0.99 1.0 0.9

Interest Rate Exposure

<12 months 10% to 40% 21.3% 33.6% 21.2% 9.9% 35.8%

12 months – 2 years 10% to 40% 22.5% 20.5% 28.3% 26.4% 10.4%

2 - 4 years 20% to 50% 40.7% 32.8% 39.9% 44.6% 34.7%

Over 4 years 10% to 20% 15.5% 13.1% 10.6% 19.1% 19.1%


Key Performance Indicators Council records a variety of key performance indicators (KPIs) to report non-financial performance. Individual KPIs are reported in each activity area. Many of the KPIs for core infrastructure – (land transport, water, wastewater and stormwater) are new for the 2015/16 year. This is because the Government has issued regulations specifying mandatory non-financial performance measures for local authorities that must be used when reporting.

2016

Achieved Not Achieved Not Assessed

Community Support 6 1 -

Leadership 3 1 -

Regulation 12 - 1

Recreation and Community Facilities 6 5 -

Land Transport 3 4 -

Stormwater 8 - -

Wastewater 8 - -

Water 6 2 1

Waste Management and Minimisation 7 3 -

Total 59 16 2 The details behind these KPIs can be found on the pages for each activity.

Clive Manley CHIEF EXECUTIVE


AUDITOR’S REPORT




SECTION ONE: COUNCIL ACTIVITIES

Section One cover image: Ruapehu District, New Zealand


RUAPEHU’S OUTCOMES The purpose of Local Government, as set out in section 10 of the Local Government Act 2002 (LGA) is to:

(a) Enable democratic local decision making and action by, and on behalf of, communities.

(b) Meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses.

The role of Council is to lead and represent the community and to meet the needs of people now and in the future, by providing public and regulatory services. As well, Council is obliged, under the LGA, to listen to its communities and encourage community engagement in decision-making. This is a broad mandate. To define its role further, Council sets out Outcomes. These Outcomes explain, at a high level, what Council wants to achieve. This, in turn, influences the activities, projects or issues that Council is involved in. By identifying Outcomes, the community has an opportunity to influence Council direction and to indicate priorities for the District. All Council activities should contribute to meeting the Outcomes and purpose of Local Government in some way. Provision of regulatory services is well defined under legislation like the Building Act, Health Act, Sale and Supply of Liquor Act, Dog Control Act and Resource Management Act. Provision of local core infrastructure includes Water, Wastewater, Stormwater, Waste Management and Minimisation and local roading networks. Other public services provided include provision of Parks and Reserves, Cemeteries, Public Halls, Libraries, Swimming Pools and Social Housing. The LGA recognises that different organisations, individuals and Council must work together to achieve Outcomes. This Annual Report provides information to the community on what Council has done to promote the achievement of the Outcomes.


OUTCOMES


RUAPEHU’S STRATEGIC ACTIVITY GROUPS Council targets its activities to achieve Outcomes. There are nine groups of activity that Council reports against. These are grouped under two key areas – community services and facilities and assets.

Activities

Community Services

Community Support

Community Development (Grants, Agency)

Economic Development

Emergency Management

Library Services

Regional Tourism Organisation

and

Visitor Information Centres

Leadership

Council

Community Boards

Strategic Development

Regulation

Building Services

Compliance and Dog Control

Environmental Health

Liquor Licensing

Resource Management

Facilities and Assets

Community Facilities

Cemeteries

Community Buildings

Community Halls

Parks and Reserves

Public Toilets

Social Housing

Swimming Pools

Land Transport (Roading)

Stormwater and Flood Protection

Wastewater (Sewerage)

Water Supply

Waste Management and Minimisation


This section provides information on what Council did, and how much it cost, for each group of activities. The information is provided in the following format for each Activity:

1 What services and activities are included in the Group.

2 Why Council does these things and the contribution to Outcomes.

3 What Council achieved (KPIs).

4 What Council spent on major capital projects against planned expenditure.

5 Highlights of the year.

6 Funding summary including the operational result and rates allocated to fund the activity. This is compared to the budget for the 2015/16 Financial Year and the actual performance for the 2014/15 Financial Year. Any major variances between actual spend and budget are explained.


COMMUNITY SUPPORT

Introduction Community Support includes the functions of Community Development (Grants, Youth Development and Agency Services), Economic Development, Emergency Management (Civil Defence and Rural Fire), Library Services, Regional Tourism Organisation and Visitor Information Centres. Each function is outlined in more detail below. Council recognises the importance of partnerships in efficiently promoting the Outcomes related to Community Support and concentrates on these particularly in relation to the Community Development and Economic Development functions. Community Development - Grants

Council provides direct funding to specific community groups each year. Council also provides contestable funding for community halls pursuant to Council’s Community Grants Policy. More information in relation to grants is available on Council’s website, www.ruapehudc.govt.nz.

Community Development - Agency Services

Council provides agency services such as New Zealand Post, NZ Transport Agency (NZTA) and Registrar General of Births, Deaths and Marriages to the Waimarino area. This agency function ensures the community continues to have access to these services. It is a self-funded activity delivered by Council staff as part of its wider duties.

Community Development - Youth Development

Council actively supports youth development through facilitation and administration, co-ordination, applying for funding and in-kind support for the Ruapehu Youth Council (RYC). The RYC is made up of two groups of youth ambassadors representing both Taumarunui-Ohura and Waimarino–Waiouru. The RYC is active in promoting opportunities for youth, building capability and leadership skills and organising and steering local initiatives. Examples of 2015/16 work carried out by the RYC include:

various submissions to Council processes and reviews, a careers exposition, an overnight leadership development camp, supporting initiatives to reduce child poverty including the ‘Warm Your Whare’ insulation

initiative, preparations for community kai gardens, and youth in emergency services programme.

RYC actively engage with and support initiatives to reduce child poverty. One such project is the Ruapehu Warm Your Whare initiative that aims to insulate as many Ruapehu homes as possible. RYC facilitators worked with various philanthropic organisations to fund and facilitate the insulation of Ruapehu homes which also utilised government subsidies from the Energy Efficiency Conservation Authority (EECA). The project will end in August 2016 with the majority of the work being completed in the 2015/16 year. 146 applications for insulation assistance were received with approximately 38 homes to be insulated during phase one.


Economic Development

The aim of this function is to help realise the potential that Ruapehu District has to offer that:

capitalises on the agricultural, business, tourism sectors while maintaining the beautiful rural environment, and

provides better and more varied employment opportunities for our communities.

Council’s role in economic development is twofold. It ensures its own house is in order by adopting processes and policies that are user and business friendly and by ensuring infrastructure is sound. Council also has a role in influencing, facilitating and co-ordinating activities by working with the community, iwi, business, developers and providers and advocating for changes that are consistent with the aim of this function. Council has developed the ‘Growing Ruapehu 2015-2025’ strategy to direct its efforts. The purpose of this Strategy is to help Ruapehu communities focus on what actions can be taken through until 2025 to encourage economic development. It identifies key priorities and the role of Council in targeting these priorities. This includes the actions required to manage the competing pressures and issues in our different economic sectors, e.g. effect of tourism on infrastructure demands. In addition, Council has been actively working on projects to assist business and economic development in a practical way. These include:

the development of resources to assist business development, the development of business friendly information, involvement in regional development, facilitating sector cooperation, and promoting local and international investment in the District.

Council retains a budget to enable it to invest in worthy projects as they arise and has established a number of partnerships. In addition, Council works closely with business associations throughout the District, with the aim of facilitating and supporting economic development. While Council does not have a dedicated staff member responsible for this function, actions and projects are undertaken by various staff across the range of business units.

Emergency Management - Civil Defence

Council is an active member of the Manawatu-Wanganui Civil Defence Emergency Management (CDEM) Group, as required by the CDEM Act 2002. The Group comprises all local authorities in the Region and has a new vision adopted in 2015/16. The Group maintains a Plan that considers

all phases of emergency: reduction, readiness, response and recovery. A business plan is also managed by the Group, with each of the member councils contributing to achieving the goals of the Group. The Group has adopted a philosophy of centralised co-ordination and local delivery and works closely with emergency services, welfare agencies and other strategic partners for effective and comprehensive emergency management.

Storm events, the potential for increases in the occurrence and intensity of rural fires during hotter, drier summers and other climate-related natural disasters may increase the need for the Emergency Management function.

Civil Defence volunteers assist with catering for a Land

Search and Rescue exercise.


Emergency Management - Rural Fire

Council is a registered Rural Fire Authority under the Forest and Rural Fire Act 1977. This means that Council is responsible for permits and fire suppression in any rural area within the District not covered by the NZ Fire Service, Ministry of Defence or the Department of Conservation. Volunteer rural firemen/women provide the trained expertise required for rural fire suppression activity. On 1 July 2017 this function will transfer to the new government entity Fire Emergency New Zealand.

Library Service

Libraries are situated in Taumarunui, Ohakune and Raetihi. Council also supports the community libraries in Ohura and Waiouru with grants each year.

Regional Tourism Organisation (RTO) and Visitor Information Centres (branded i-SITES)

The RTO and i-SITES are tasked with stimulating growth in the tourism sector, as well as having local community support functions. The District is positioned as the North Island’s premier outdoor recreation centre with National and World Heritage Parks, rivers, ski fields and a growing network of walking and cycling trails. The RTO (Visit Ruapehu Inc.) supports the delivery of destination marketing under the umbrella of Tourism New Zealand and is a member of the Regional Tourism Association of New Zealand. Its primary role is to market and promote Ruapehu’s unique features and activities to potential domestic and international visitors. A group of dedicated Visit Ruapehu trustees lead the RTO linking the tourism infrastructure of Ruapehu to Taupo and Whanganui and highlighting to guests the significant features of all three regions.


Aim of Community Support and Contribution to Outcomes The Community Support activity aims to provide a safe environment for residents and visitors, support economic and youth development, provide modern library services to facilitate learning and enjoyment, and stimulate growth in the tourism sector by attracting more visitors and providing an efficient visitor information service. The Community Support activity targets the following Outcomes: Excellent standards of safety and welfare are promoted and respected. Traditions, values and history of all ethnic groups are respected. Preparation, planning and timely responses protect people and property from natural hazards. Economic diversity and core economic strengths are encouraged in partnership with others. Activities, facilities and opportunities for youth are provided and supported. Excellence and achievement in sport, arts/cultural pursuits, community service and business are

supported through provision of community facilities such as libraries, pools, halls and parks and reserves.

Events and festivals are encouraged and supported. The promotion of our District includes our natural rivers, bush and mountains, as well as the built

heritage, agriculture and railways. The sections “What We Achieved” and “Highlights for the Year” show how this area has performed this financial year.


What We Achieved

Level of Service Key Performance

Indicators 2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Emergency Management

Goal: Provide a safe environment for residents and visitors.

Council will provide Civil Defence and Emergency Management for the District.

Percentage of staff who are adequately trained in the Co-ordinated Incident Management Systems (CIMS).

100% 70% 90% Achieved.

The number of public education presentations given each year to schools, staff and community groups throughout the District.

21 >20 20 Not achieved.

As the Rural Fire Authority for the District, respond to all rural vegetation fires within one hour at all times.

100% 100% 100% Achieved.

Library Service

Goal: Provide a modern and consistent environment for learning and enjoyment.

Provide a library service that meets the needs of the community.

Percentage of users who are satisfied with the service provided.

65% 75% 91% Achieved. NRB survey June 2016.

Increase the number of active library members.

New measure 2015/16.

+1% on prior year.

7.7% Achieved. Increase in members from 6,723 in July 2015 to 7,245 in July 2016.




2015/16 Target

2015/16 Actual

Commentary

RTO and i-SITES

Goal: Provide an efficient visitor information service.

i-SITES are open 40 hours minimum per week.

Tourist numbers increase.

-0.4%

(427,549 bed nights).

+1% +3%

(11,837 increase).

Achieved.

Door numbers (visitors) at i-SITES.

-7%

(Taumarunui door count

51,501).

(Ohakune 39,141).

+1%

Taumarunui - 5.23%

2,691 decrease.

Ohakune + 16.97%

6,349 increase.

Achieved overall.

Capital Projects

Project Description

Carry Forward Budget

$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

Generator 1 11 LOS.

NZFS Radio Telephones 3 3 - Renewal.

Rural Fire Vehicle - 56 Renewal.

Rural Fire Pump 6 6 - Renewal.

Library Books & E Books 52 48 LOS.

New Rural Fire Station 10 - LOS.

Weather Station Upgrade - - 23 LOS.

Total 9 72 138

Work in Progress

Project Description

Opening Closing Notes WIP WIP

$000 $000 Weather Station Upgrade 23 -

Isuzu Fire Truck 5 -

NZFS Radio Telephones 2 -

Library Books Taumarunui - 1

Library Books Ohakune - 2

Total 30 3


Highlights for the Year Grants Direct grants totalling $32,000 were allocated to the Waiouru Library, Ohura Library, various

Community Halls (for maintenance activities), Neighbourhood Watch, and the Raetihi Information Centre. Grants also supported the Christmas parades which are held in Taumarunui and Raetihi.

Economic Development Development of an investment prospectus on Ruapehu. This prospectus is available on Council’s

website and has been used with visiting delegations including a delegation of government and high net worth Chinese investors in September 2015.

Ruapehu Cycle Tourism Summit and formation of a

cycle advocacy group that acts as an umbrella group to advance cycle tourism in the District.

Creation of a Broadband Investment Bid and Digital

Enablement Plan. The Economic Development function also focussed on supporting Accelerate 25 to implement the Manawatu-Whanganui Regional Growth Study initiatives. The tourism action planning team led by Ruapehu District Council developed the final draft Action Plan for presentation to the Regional Lead Team in May 2016. Work continues to refine the Action Plan as members of the team provide component information and advice.

The RDC Registration of Interest for the second roll out of ultra-fast broadband, rural broadband initiative and mobile blackspots was submitted to MBIE on 3 July 2015. The result from this process has not been announced by MBIE. Council’s continue to liaise with MBIE. The Ruapehu Digital Enablement Plan (DEP) was the next stage of this submission process. The DEP created includes a range of projects to support the Ruapehu communities to use the internet efficiently and effectively. Public Wi-Fi for Taumarunui, Ohakune and Raetihi is to be delivered through this plan. The projects and Wi-Fi will be undertaken in the 2016/17 Financial Year.

Visit Ruapehu RTO Destination Marketing - Visit Ruapehu (VR) delivered the final components of its committed

business plan. In addition, it also delivered an additional research project, the new website digital rebuild, and support on enablement of the Timber Trail marketing strategy.

VR has also made significant contribution to the Regional Growth Study. Progress against the

business plan has been reported regularly to industry in the form of industry updates.

Digital Re-build - The phase one launch of the new website was live in May 2016. The new site provides additional functionality, and a new look and feel. However, from the moment it went live the site has been evolving, responding to consumer demands and including more content.

TNS Global Research Project - The results of the research were delivered to VR in April 2016. Findings of the research will inform strategic investment in both domestic and inbound tourism sectors.

Timber Trail cycle trail.


Trade activity - Trade activity for the year focussed on engagement with both trade active and trade ready operators to stimulate growth in the trade supplier market. Trade relationships and marketing were advanced with Tourism New Zealand and by attendances at the Travel Trade Show in Sydney. In support of trade operators, the RTO attended TRENZ early May. VR was engaged in multiple trade engagements over TRENZ and with hosting visiting trade buyers following the event.

i-SITES The Manawatu-Whanganui Regional Growth Study (2015) highlighted tourism in the region as a

key area of potential development. i-SITEs are part of Council’s focus on implementing this strategy.

An economic impact analysis of the i-SITE visitor information network shows that nationally for

every $1 of public funds invested, they generate an average return of $8.70 in GDP value. Within the Manawatu-Whanganui region the impact is even greater with local i-SITEs generating an economic return of $11.70 per $1 of public funds invested.

A Charter of Engagement was agreed between the i-SITEs and VR to enable better co-operation

and effective deployment of resources. The focus for the i-SITEs is to support local operators by making more bookings for

accommodation, events or activities and encourage visitors to stay longer and experience more.

Table: Commercial Accommodation Monitor.

TRENZ 2016. Photo Credit: TIA.


Youth Development Ruapehu Youth Council (RYC) is made up of two groups of youth aged 12-24 who represent the

Youth of the Ruapehu District on the RYC; Taumarunui-Ohura Youth Ambassadors, and the Waimarino-Waiouru Youth Ambassadors. These two groups each meet once per month

facilitated by Council’s Youth Liaison Officer. Representatives actively promote opportunities for youth, build capability and leadership skills and organise and steer local initiatives. Youth Ambassadors submit on local and national issues and represent the Ruapehu District at national events such as the Festival for the Future and New Zealand Youth Council Conferences.

Youth Liaison Officer – In addition to facilitating the RYC, Council’s Youth Liaison Officer also works alongside local schools to promote goodwill, understanding of how local authorities work and to promote initiatives such as #VOTE2016. During the 2015/16 year, Council hosted two groups of high school students touring through Council offices to learn about Council functions. The Youth Liaison

Officer also worked with Taumarunui High School junior students to garner interest in local beautification initiatives where students redesigned important spaces within their communities. Emergency Management Emergency Management Training – The RDC Emergency Management Officer has been working

with Waikato and Manawatu-Wanganui Civil Defence around nationalised training. Ruapehu has presented introduction training to new staff over the past year. The Emergency Management Officer has facilitated training over the past six months with the view to train all local staff over the next year. Further training packages will be coming online shortly.

Weather Event – In June 2015 Wanganui, Southern Taranaki, Manawatu and the lower part of Ruapehu were affected by a damaging weather event. The floods that occurred in Wanganui caused widespread damage to the city and rural areas. In Ruapehu the Pipiriki area was badly affected with roads being cut by slips for many months. The Emergency Operations Centre was established for two days while welfare needs were being established in Pipiriki. Recovery efforts finished nine months later.

Taumarunui-Ohura Youth

Ambassadors (TOYA).

June 2015 flood damage on Pipiriki Raetihi Road.


Rural Fire The Ruapehu Rural Fire Authority took control of the Ohura Volunteer Fire Brigade from the New

Zealand Fire Service in November 2015 after the New Zealand Fire Service formally withdrew from providing a local presence in Ohura. A new locally built fire appliance was given to the brigade that better suits their needs. Training and volunteer numbers have increased since the handover.

New weather stations were installed in Kirikau, National Park and Waimarino Forest in October 2015. These automated weather stations calculate the fire danger automatically. The previous weather stations were installed in 1986 and had become too costly to repair.

Ruapehu Rural Fire Authority staff travelled to Masterton in February to assist with a 200Ha forest fire. Ruapehu assisted because it is part of the regional response team. Staff assisted with logistics, safety and sector command.

Youth in Emergency services (YES) – The YES programme is designed to strengthen and

encourage young people’s connection to the community by encouraging them to engage with a range of volunteer emergency services. This programme was held in Ruapehu District in 2015/16 and had significant input from a wide range of emergency services including Ruapehu Rural Fire, Taumarunui Fire Service, Civil Defence, Land Search and Rescue, NZ Police, Taumarunui St John and NZ Defence Force. With the support and guidance of these agencies, local young people participated in a range of activities such as a car accident, missing person exercise, aerial and rural fire fighting, a car fire and the establishment of a civil defence welfare centre. The activities were hands on and adrenaline

boosting. The participants of the programme had a fantastic and enjoyable time throughout the programme and a lot of them intend to join some of the services.

Libraries A number of new features, facilities and services have been

introduced in the libraries over this period. Council is now storing the microfilm for a majority of past copies of Taumarunui newspapers, dating from 1906-1987. A microfilm reader and printer, supplied by the Taumarunui Historical Trust, is located in the Taumarunui Library and available for public use and enquiry.

A self-issue kiosk has been installed in Taumarunui Library and the

GoGo self-booking service for the APNK computers is now being implemented in Ohakune Library. Both of these services are effectively enabling users to be more independent, so staff are more available for other duties.

A ‘weeded books’ sale in the old Taumarunui Library building raised

more than $2,000. This has been used to upgrade public seating in the new library.

Rural Fire volunteers tackle an excavator fire at Ongarue.

Youth in Emergency Services.

Ohakune Library Holiday Programme.


A toddler’s ‘Read and Rhyme’ programme in Ohakune Library has been running very successfully. The summer holiday period was much busier than usual, with 50-60% more children’s books issued than what is typical for this time.

There has been a significant reduction of outstanding books that are overdue for over 12-months. This is due to a modification of the system in place for book returns. There are currently significantly fewer books outstanding than at the same time last year.

Customer Services Council’s Customer Services function is an integral part and face of the overall customer

experience at Council. In order to achieve good outcomes for customer experience the Customer Service Team liaise with all departments to upskill on relevant information in order to assist customers, resolve issues or to provide responses quickly and efficiently in a professional but friendly approach.

In 2015/16 Council offices received 41,980 phone enquiries, 6,543 request for services. These include afterhours service requests. Council also took 20,190 cash receipting transactions at the front counters. There were 271 Land Information Memorandums and 129 Development Contributions processed.

Agency Services Council has three staffed offices within the District. All offices provide general Council services

plus additional services to individual offices. Raetihi office for example also provides NZTA and NZ Post agency services, while Ohakune office provides marriage licenses and experiences seasonal fluctuations in front counter enquiries due to being an area with a high proportion of holiday homes. Taumarunui office deals with the majority of Council related enquiries.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Community Support Activity

Actual

LTP 2015 LTP 2016 2016

$000 $000 $000

Sources of operating funding General rates, uniform annual general charges, rates penalties

1,265 1,158 1,169

Targeted rates 274 320 332Subsidies and grants for operating purposes 9 - 9Fees and charges 91 521 1,463Internal charges and overheads recovered - - -Local authorities fuel tax, fines, infringement fees, and other receipts

- - -

Total operating funding (A) 1,639 1,999 2,973

Applications of operating funding

Payments to staff and suppliers 924 1,245 1,884

Finance costs 11 2 1

Internal charges and overheads applied 638 717 604

Other operating funding applications - - -

Total application of operating funding (B) 1,573 1,964 2,489

Surplus/(deficit) of operating funding (A-B) 66 35 484

Sources of capital funding

Subsidies and grants for capital expenditure - - -

Development and financial contributions - - -

Increase/(decrease) in debt 50 37 64

Gross proceeds from sale of assets - - -

Lump sum contributions - - -

Total sources of capital funding (C) 50 37 64

Application of capital funding

Capital expenditure:

- To meet additional demand 45 - -

- To improve the level of service 23 13 67

- To replace existing assets - 59 44

Increase/(decrease) in reserves 48 - 437

Increase/(decrease) of investments - - -

Total applications of capital funding (D) 116 72 548

Surplus/(deficit) of capital funding (C-D) (66) (35) (484)

Funding balance ((A-B)+(C-D)) - - -


LEADERSHIP

Introduction The Leadership activity provides for:

Council’s governance at a District and local level,

Council’s advocacy on issues that impact on the Outcomes,

A Strategic Development function that provides a framework and planning for the community’s strategic direction, and

Administration of elections. This activity provides plans and policies guiding strategic direction and strategic financial decisions and also prepares and consults on these, including the LTP, EAP, outcomes monitoring and other documents as necessary.

Aim of Leadership and Contribution to Outcomes The aim of Leadership is to maintain a well-balanced and functional organisation which is responsive to local economic conditions and changes and to maintaining and improving community engagement.

The Leadership activity targets the following Outcomes:

Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services.

Council is proactive, transparent, accountable and takes an active, consultative approach to finding solutions.

The Leadership activity also has an impact on all of the other Outcomes as it is the decision-making part of Council.


What We Achieved



2015/16 Target

2015/16 Actual

Commentary

Leadership Goal: To facilitate effective consultation processes to seek community input into decision-making and

advocacy on key issues.

Consultation material will be made publicly available from all Council offices and on its website.

Percentage of respondents who are satisfied or very satisfied with consultations.

86% 80% 70.8% Not achieved. While not a new measure, it is now being measured through the LoS survey, not submitters (Note 1).

Council meets regularly with iwi.

Number of meetings with Ruapehu District Maori Council per year.

8 >6 8 Achieved.

Council provides public access to the community through Community Boards and Council meetings.

Number of Public Forums per year.

48 >40 45 Achieved.

Residents are satisfied with the Leadership of Council.

Percentage of respondents who are satisfied with Council’s leadership.

49.4% 60% 60.9% Achieved.

Notes:

Note 1: Level of Service survey result for Leadership was based on 427 replies to an online survey which was open all year and a postal survey conducted from 8 April 2016 - 27 May 2016.


Highlights for the Year Governance (Mayor and Council) During 2015/16 the following number of meetings were held:

Council ordinary meetings: 21

Waimarino-Waiouru Community Board: 11 Ruapehu District Maori Council: 8 National Park Community Board: 7 Taumarunui/Ohura Ward Committee: 6 Management Committee: 6 Audit and Risk Committee: 2

A major focus over the year was a review of the representation arrangements ahead of the 2016

election, which included consideration of the role of community boards and the establishment of the Audit and Risk Committee.

The Management Committee was disestablished in 26 January 2016 and the Audit and Risk Committee was established in February 2016.

Strategic Development Exceptions Annual Plan - Changes made in 2012 to the Local Government Act 2002 meant that

the focus of the consultation process and documentation for the EAP changed. The change focused specifically on exceptions to the 2016/17 year from what was forecast in that year in the LTP. The big issues that Council took out to the public for consultation were:

an increase to the Economic Development budget, and the development of a multi-purpose community facility in Ohakune.

These issues generated an unprecedented level of public engagement with high attendance at seven public meetings and 133 formal submissions. Hearings were held on 11 May in Ohakune and (for the first time) in Raetihi and 13 May in Taumarunui. Across the district there was strong public support for the increase to the economic development budget and significant opposition to the Ohakune community facility project. Public feedback was taken into account and Council adopted the Exceptions Annual Plan 2016/17 on 28 June 2016.

Policies - The policy review programme is being brought up to date. The following policies were reviewed (or developed) and adopted:

Appointment Directors to Council Controlled Organisations Policy.

Class 4 Venues Policy.

Community Grants Policy.

Complaints Policy.

Excessive Noise and Offenders Policy.

Legal Compliance Policy.

Local Approved Products Policy (Psychoactive substances).

Procurements and Termed Contracts Policy.

Risk Management Policy.

Small and Local Suppliers Policy.

EAP consultation meeting.


Significant projects that were completed:

Registration of Interest in government funding for digital enablement and Digital Enablement Plan.

Motor home friendly initiative (Taumarunui).

Representation Review. Ruapehu District Māori Council Council continued to build and strengthen its capacity and positive relationships with local Iwi

through its mandated Iwi Members on the Ruapehu District Māori Council (RDMC). The RDMC allows Members to make recommendations which can then be put before Council, thereby enabling Iwi to participate and contribute to Council’s decision-making processes.

Over the 2015/16 year, RDMC members have attended eight formal meetings. Two workshops

were also held in relation to Māori Land rates. On average, there has been a total of eight active RDMC members.

The Strategic Development Team continued to support RDMC. The continued working

relationship with RDMC acknowledges the partnership of the Memorandum of Understanding (MoU).

RDMC continued to build relationships and strengthen its networks with other Iwi and Hapū

authorities outside of the group. This included working alongside local Kaumatua, Iwi, Hapū and the wider community. This relationship was successful in finalising the King Tawhiao sign project in Taumarunui.

Also, the RDMC working party groups continued to work in the following areas:

Māori Land rating issues, including participation in the first stage of Te Ture Whenua Māori Reform Bill.

Liaising on various resource consent renewals applicable to Council.

RDMC has completed its first draft of a Strategic and Communications Plan and will work on

getting this ratified by Council over the coming year. Council acknowledges that the RDMC is significant in building its working relationship with local Iwi Māori as it embraces the values and principles of Tikanga Māori.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Leadership Activity

ActualLTP 2015 LTP 2016 2016

$000 $000 $000Sources of operating funding

General rates, uniform annual general charges, rates penalties

1,555 1,374 1,387

Targeted rates - - -

Subsidies and grants for operating purposes - - -

Fees and charges - (10) -

Internal charges and overheads recovered - - -

Local authorities fuel tax, fines, infringement fees, and other receipts

- - -



Payments to staff and suppliers 417 472 437

Finance costs - - -

Internal charges and overheads applied 1,138 885 974



Surplus/(deficit) of operating funding (A-B) - 7 (24)

Sources of capital funding - - -



Increase/(decrease) in debt - (7) -



Total sources of capital funding (C) - (7) -



- To meet additional demand - - -

- To improve the level of service - - -

- To replace existing assets - - -

Increase/(decrease) in reserves - - (24)


Total applications of capital funding (D) - - (24)Surplus/(deficit) of capital funding (C-D) - (7) 24Funding balance ((A-B)+(C-D)) - - -



REGULATION

Introduction The Regulation activity works towards the goal of effectively and efficiently providing a safe and sustainable environment through the administration and enforcement of Central Government legislation, including its responsibilities for the sustainable management and use of natural resources under the Resource Management Act 1991 (RMA) and District Bylaws. Building Services

The Building Services Team issues building consents and inspects all building works and relocated buildings to ensure they meet the Building Act 2004 and Building Code requirements Council is an accredited Building Consent Authority. Council achieved renewal of this accreditation in 2016 following the 2015 audit.

Compliance

The Compliance Team’s role is to ensure compliance with Council’s bylaws and legislation. The work covered is varied and includes Animal Control, Parking, Noise Control and Bylaws. Compliance Officers ensure that the amenities of the District are able to be enjoyed by all.

Resource Management

Resource Management involves both the issuing of resource consents and monitoring of conditions of these consents in line with relevant legislation and the District Plan.

Environmental Health and Liquor Licensing

The Environmental Health and Liquor Licensing functions promote, protect and improve the health of the residents and visitors to the Ruapehu District. The activities are very high profile largely due to the overall implications on the community, members of the public, businesses and visitors coming into the District.

Council enforces provisions of:

Health Act 1956 Sale and Supply of Alcohol Act 2012 Resource Management Act 1991 Local Government Act 2002 Food Hygiene Regulations 1974, Food Act 2014 and a variety of Public Health regulations

and Council bylaws. Council ensures that members of the community and the public feel confident about their health and safety and they are not troubled by nuisances. This is achieved by:

Registering, inspecting and licensing businesses such as food premises, liquor outlets, camping grounds and hairdressing salons.

Investigating, resolving and monitoring nuisances and health-related complaints.

Investigating infectious diseases notified by the Medical Officer of Health, food poisonings

and food-borne illnesses and taking action to eliminate health risks or future recurrence.

Monitoring and enforcing relevant public health legislation and local Bylaws.

Reviewing resource and building consents for compliance with environmental health standards in both domestic and commercial situations.


Providing advice and information to the community regarding their rights, obligations and

responsibilities under the relevant legislation and on general public health matters.

Undertaking noise monitoring to ensure that members of the community are protected from unreasonable and excessive exposure to unwanted noise.

Aim of Regulation and Contribution to Outcomes As the level of service is already high, it is the aim of the Regulation activity to maintain that high level of service in the short term. Changes in rules and regulations, either decided by Central Government or changes in local government bylaws may impact long term level of service. For the 2015/16 Financial Year, the overall level of service was maintained. This activity targets the following Outcomes:

Quality regulation, regulatory services and infrastructure support healthy communities. That the impact of waste on our environment is minimised.

Excellent standards of safety and welfare are promoted and respected.


What We Achieved

Level of Service Key

Performance Indicators

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Building Services, Compliance and Inspections

Goal: Provide a safe environment for residents and visitors.

Council will effectively process all proposed applications.

Building consents processed within 20 working days.

96.77% 90% 100% Achieved.

Average consent processing time in days 4.66.

Urgent LIMs processed in five working days (Note 1).

100% 100% 100% Achieved.

Non-urgent LIMs processed in ten working days.

100% 95% 97.68% Achieved.

Urgent request for service calls responded to within 8 working hours (Note 2).

100% 100% Not assessed.

% of all registered dogs that are microchipped (Note 3).


75% 76% Achieved.

Respond to dog attacks within two hours.

100% 100% 100% Achieved.




2014/15 Actual

2015/16 Target

2015/16 Actual Commentary

Environmental Health and liquor Licensing

Goal: Provide a healthy environment for residents and visitors.

Council will undertake ongoing monitoring of conditions to ensure compliance.

Health-related food hygiene complaints are responded to within 24 hours and actioned within five days.

100% 95% 95% Achieved.

Percentage of food premises complying with requirements at second inspection.

90% 90% 90% Achieved.

Ensure alcohol licensing complies with statutory and licensing provisions.

Percentage of alcohol licences that comply with statutory and licence conditions on first inspection.

97.5% 90% 95% Achieved.

Ensure noise complaints are responded to effectively, promptly and efficiently.

Percentage of noise complaints resolved at first contact.

94% 95% 95% Achieved.




2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Resource Management

Goal: Provide a sustainable environment for residents and visitors.

Resource consents are processed within the legal timeframes.

Land Use consents processed within the legal timeframes.

100% 100% 100% Achieved.

Subdivision consents processed within the legal timeframes.

100% 100% 100% Achieved.

The public is informed about Resource Management processes and other issues related to maintaining a sustainable environment.

% of pre-application meetings to number of applications received.

53% >10% 69% Achieved.

The result is an effect of Council being more proactive and customers understanding the benefits of pre application meetings.

Notes:

Note 1: LIM = Land Information Memorandum.

Note 2: There were no urgent requests.

Note 3: Microchipping is a legal requirement. There are exemptions, e.g. based on the age of the dog. A target of 100% compliance is not appropriate.


Highlights for the Year Compliance A new hunting dog fee was introduced as part of a combined incentive between Department of

Conservation (DOC) and Council to achieve compliance and help identify those dogs that have been trained in the Kiwi Aversion training that DOC provides. The objective of offering the incentive was to protect Kiwi in the National Park conservation land and increase registration compliance within the Ruapehu area.

A further discounted fee was introduced to all pet owners providing Council with a digital photo of their pet dog. The amnesty to allow all of these photos to be collected is now extended until 2017. Dog owners with photos of dogs will receive a discount of $25.00 per dog. The photos will assist Council with several issues in identifying the right dog to return back to the owner if the tag is lost and the dog does not have a microchip.

Body worn cameras were issued to the Compliance Team and an extra camera was supplied for

the Regulation group to use. The cameras have proved to be effective in providing a true account of conversations between the officer and the public. They have also been helpful in curbing aggressive behaviour as the camera shows the person on the screen and their actions are clearly visible to them. Camera evidence has also been used in Court.

A new Excessive Noise Control Policy was approved by Council in 2015 to assist Council dealing with repeat offenders and enforcement. A new administration fee will be charged to those repeat offenders that have triggered the repeat offender policy.

Building Control Unit

Although building consent application numbers have been down, reflecting the slower economy, there have been some significant building projects within the District in the past year including a new Lodge (Timber Trail, Stage 1) in Waimiha and a new cool store in Ohakune. In addition, there have been a number of other commercial projects. The Building Team have been challenged with processing over 20 new dwellings with 95% of these processed in house. The Team have also had their first Multiproof Consent for three sleeping huts at Helwan Camp, Waiouru.

All building inspectors are working toward their National

Diploma in Building. This is a requirement for Building Accreditation.

The two yearly IANZ Accreditation Audit was successfully completed with minor corrective actions

required.

New building being constructed in

Ohakune.


Resource Consents 63 consents have been processed (1 July-25 May) in the 2015/16 year. These took an average of 13 days to process which is well under the statutory time frame of 20 days to complete. The RAL chairlift consent was processed in six working days to assist RAL in meeting its tight timeframes. 564 requests for service have been received and completed. A number of consents heading into their final year of their

consented period have been activated. This reflects an increase in confidence in the economy.

Environmental Health and Liquor Licensing

Liquor licensing is still in somewhat of a transitional phase with many licensees having to renew their licenses under the Sale and Supply of Alcohol Act 2012 for the first time since it came into effect. The additional information required under the Act has led to frustration on the part of many licensees and there is an increased need for staff to work more closely with them in order to ensure that the information provided is accurate and acceptable to the District Licensing Committee.

The District Licensing Committee has conducted 17 hearings, an increase from seven the previous year, which reflects the more stringent requirements which must now be met when assessing each new or renewal application.

Health has experienced an increased number of enquiries from new and current food operators prior to, and following, the commencement of the Food Act 2014. There is now an increased demand to provide resources and education around the new systems that will require all people who have food within their business having to be registered in either a Food Control Plan or under a national programme in order to comply with the new Act within the transition time frame of just under three years. This will include the need to register hospitals, rest homes, schools and some of the District’s early childhood centres who had previously been exempt.

There has been an increase in the number of mobile food operators, with two established recently

in Taumarunui.

Enquiries in regard to homes that have been or suspected to have been involved in the use or manufacturing of methamphetamine have shown a notable increase with one home requiring the issuing of a cleansing order. Standards New Zealand is currently in the process of looking into the development of a standard for testing and decontamination of properties.

Looking towards the construction of the new Rangatira Express chairlift at Whakapapa, Mt Ruapehu.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Regulation Activity

Actual LTP 2015 LTP 2016 2016 $000 $000 $000

Sources of operating funding


1,991 737 744



Fees and charges 773 809 798



- - 36




Finance costs - - -

Internal charges and overheads applied 2,466 1,221 1,342



Surplus/(deficit) of operating funding (A-B) - - 105




Increase/(decrease) in debt - - -



Total sources of capital funding (C) - - -


Capital expenditure: - - -

- To meet additional demand - - -

- To improve the level of service - - -

- To replace existing assets - - -

Increase/(decrease) in reserves - - 105


Total applications of capital funding (D) - - 105Surplus/(deficit) of capital funding (C-D) - - (105)

Funding balance ((A-B)+(C-D)) - - -


COMMUNITY FACILITIES

Introduction The Community Facilities activity includes Cemeteries, Community Halls, Community Buildings and Property, Parks and Reserves, Public Toilets, Social Housing and Swimming Pools.

The purpose of the Recreation and Community Facilities function is to provide efficient services, facilities and an environment that attracts people to the area and encourages good health and education for all residents. The purpose of the Community Property function is to act as a steward for property that is of social, cultural or environmental benefit to the community and to maintain these properties to a high standard. The portfolio of property includes Council administration buildings and libraries, social housing rental units, some small forestry plantations, parks, reserves, playgrounds, walkways, swimming pools, community halls, public toilets and cemeteries. Cemeteries The objective of the Cemeteries service is to provide administration, record, enquiry and burial services for the burial of deceased persons at Council owned cemeteries within the District. Council owns and maintains cemeteries in Manunui, Matiere, Ohakune, Ohura, Owhango, Raetihi, Rangataua, Raurimu and Taumarunui. Council also owns the closed cemetery at Tatu (not maintained). Natural burial sections within several larger cemeteries will be investigated over the next few years. Community Halls The purpose of the Community Halls activity is to provide and maintain suitable and appropriate public halls throughout the District for social, recreational, cultural or educational purposes. There are 15 halls that are managed by, or that have been vested in Council. These range from large facilities such as the Taumarunui Memorial Hall, to smaller local community-managed halls, such as the Rangataua Hall. The Taumarunui Memorial Hall has been assessed as earthquake-prone. Funding for an in-depth engineering assessment and design for strengthening has been allocated in the 2016/17 budget. Community feedback on the issue resulted in the majority of the Taumarunui community who submitted on options of demolition or strengthening, seeking retention and strengthening. Once a firm cost on strengthening has been obtained, further consultation will be undertaken with the community. Most rural community halls are wooden single story buildings that would allow safe evacuation in the event of an earthquake. Community Buildings and Property Community buildings and property include the Council administration buildings, libraries, Taumarunui Aerodrome, Ohakune Railway Station, Taumarunui Saleyards and a number of other miscellaneous properties, such as forestry plantations and the ex-library building in Ohakune. The long term lease of the Taumarunui Saleyards expired in 2015 and the land is no longer required for this purpose. Options for the future use of this land will be explored in 2016/17. The most significant of all Council property assets are the Council administration and service centre buildings (which also incorporate the library services) in Taumarunui and Ohakune.


Parks and Reserves The purpose of Parks and Reserves assets is to: Provide space for people to pursue active and passive recreational activities for their social,

spiritual, mental and physical wellbeing. Provide the landscape setting for towns. Ensure the protection and maintenance of history (ecological and human) and character of the

area. Ensure the environments essential to the existence of plant and animal species are maintained. Protect public access to significant landscape features and recreation areas. Areas covered by the Parks and Reserves activity include: Parks and Reserves. Playgrounds. Camping Grounds – Taumarunui, Raetihi and Ohakune Holiday Parks. Walkways. Miscellaneous structures, e.g. the Taumarunui Grandstand. Public Toilets The provision of public toilet facilities for residents and visitors is considered an important activity for Council, particularly in relation to public health and safety. Social Housing Council owns a total of 81 individual social housing units constructed on six separate sites. The Raetihi complex consists of six units constructed in 1977, with a further six units added in 1980

and four units completed in 1985. The Ohakune complex contains eight units constructed circa 1976. The 20 units in Taupo Road (Rangimarie Flats), Taumarunui, comprise 10 initial units constructed

in 1975. Six units were added in 1981 and a further four in 1988. The 25 Taumarunui Street units (Rochfort Flats), Taumarunui, were erected in two stages in 1967

and 1970. The eight Taumarunui Street units (Cherry Grove Flats), Taumarunui, were erected in two stages

in 1982 and 1983. The four Miriama Street units (Miriama Flats), Taumarunui, were erected in 1982. Swimming Pools Council maintains and operates three public swimming pools situated in the main centres of population at Taumarunui, Ohakune and Raetihi. The purpose of this activity is to provide and encourage the use of swimming pools efficiently and effectively within the District as a safe and affordable leisure activity. The three swimming pool complexes owned by Council are considered to be significant assets. These assets are now at or beyond their estimated life span. There is no indication that the pool structures cannot continue to be maintained and used for at least another decade.


Aim of Community Facilities and Contribution to Outcomes Overall it is the aim of the Community Facilities activity to maintain current levels of service, with a few improvements by upgrading and renewing facilities.

For the 2015/16 financial year this has been achieved, through a renewal programme and some upgrades of facilities.

The Recreation and Community Facilities function targets a number of Outcomes by providing recreation and community facilities that meet the needs of the community, retain the beauty and aesthetic values of the area and provide leisure opportunities for residents and tourists. Community Property function aims to provide stewardship for property that is of benefit to the community and ensures this property is managed in a sustainable and responsible manner.

The following are the main Outcomes targeted:

Excellent standards of safety and welfare are promoted and respected. That the traditions, values and history of all ethnic groups are respected. That activities, facilities and opportunities for youth are provided and supported. That excellence and achievement in sport, arts/cultural pursuits, community service and business

is supported through provision of community facilities such as libraries, pools, halls and parks and reserves.

That Council plans for and works with the community to ensure that our environment is accessible,

clean and safe and that our water, soil and air meet acceptable standards.


What We Achieved



2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Recreation and Community Facilities

Goal: Parks, reserves and community facilities are accessible, attractive, and meet the needs and expectations of residents, visitors and youth wherever and whenever possible.

Goal: Urban streetscapes, parks, playgrounds and public toilets are clean and residents and visitors feel that they are safe places to be in.

Council will maintain and provide access to playgrounds, public green space, amenities, libraries and community halls.

Council-Owned Swimming Pools Achieve NZ Water Pool standards for all Pools (water quality certificates are achieved).

100% 100% 100% Achieved.

Cemeteries Number of customer complaints on the maintenance of the District cemeteries.


<3/annum Three complaints received.

Not achieved. - Subsidence

between two graves at Ohakune Cemetery.

- Manunui Fence

needed cleaning. - Damage to a

headstone (chipped) in Taumarunui New Cemetery.

Community Halls Council managed halls have the required building compliance and emergency procedures in place (Compliance Programme and trial Emergency Evacuations).


100% 100% Achieved. BWOF in place and trial emergency evacuations completed as required.


Level of Service

Key Performance

Indicators

2014/15 Actual

2015/16 Target

2015/16 Actual Commentary

Recreation and Community Facilities

Goal: Parks, reserves and community facilities are accessible, attractive, and meet the needs and expectations of residents, visitors and youth wherever and whenever possible.

Goal: Urban streetscapes, parks, playgrounds and public toilets are clean and residents and visitors feel that they are safe places to be in.

Amenities and facilities are provided that meet the needs and safety of the community.

Playgrounds Compliance with NZ standards as measured by annual engineer safety audit.

97% 98% 100% Achieved. Playgrounds comply and no outstanding maintenance requirements.

Parks and Reserves Users feel safe and are satisfied with the quantity of green space and facilities available.

Safety and Quality 64%

Facilities 55%

Overall 60%

85% 79% Not achieved.

Public Toilets Emergency requests for service responded to within 24 hours.

79% 95% 91% Not achieved. Annual total (31/34) emergency RFS completed within response timeframe.

Public Toilets Urgent requests for service responded to within 48 hours.

79% 95% 76% Not achieved. Annual total (19/25) urgent.




2015/16Target

2015/16 Actual

Commentary

Community Property

Goal: To act as a steward for property that is of social, cultural or environmental benefit to the community.

Goal: Council-owned buildings are structurally sound and safe and Council occupants and tenants in administration buildings and social housing feel safe.

Libraries, public meeting venues, Administration Buildings and the Ohakune Railway Station will be retained and well maintained.

Buildings Council public buildings (including administration, library and information centres) have the required building compliance in place. (All BWOFs renewed before expiry date, annually).

New Measure 2015/16.

100% 100% Achieved. All Building Warrant of Fitness (BWOF) renewed as required.

Library Library users are satisfied or highly satisfied with public library buildings.

60% 75% 76.4% Achieved.

Moving the Taumarunui Library into the Admin Building is now showing positive results, along with increased active membership and the introduction and increased use of e-books.

Community Property

Goal: Council owned buildings are structurally sound and safe and Council occupants and tenants inadministration buildings and social housing feel safe.

Housing units are maintained to a satisfactory standard and provide a safe environment for tenants.

Social Housing Percentage of residents who feel safe in their homes.

97% 95% 94% Not Achieved.

Social Housing Percentage of residents who are satisfied or very satisfied with the LOS.

86% 75% 91% Achieved.


Capital Projects

Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

National Park playground contribution

75 15 96 Complete. 50% LOS, 50% Growth.

Accessible walkway south 19 20 39 Raetihi and Waiouru allocation WIP, Ohakune complete. LOS.

Rochfort/Jubilee Park development 3 10 6 Needs to be carried forward to complete project in September 2016. LOS.

Taumarunui Domain facilities upgrade 10 5 4 Remainder needs to be carried forward. LOS.

Fencing problem reserves north 16 10 5 Needs to be carried forward. Renewal.

Fencing problem reserves south 18 10 17 Complete. Renewal

Taumarunui Admin Building turnaround bay extended

- 10 8 Complete. LOS.

Raurimu cemetery fence renewal - 5 5 Complete. Renewal.

Raetihi cemetery fence - 10 22 Complete. Renewal.

Cherry Grove development - 10 - Needs to be carried forward. LOS.

Social Housing security doors - 5 6 Complete. LOS.

Social Housing minor capital works 15 15 24 Complete. Renewal.

Furniture and fittings over $500 - 20 7 Majority of items purchased were under $500. Renewal.

Raetihi Agency security access

- 12 8 Complete. LOS.

Ohakune i-SITE security access - 6 3 Complete. Renewal.

Ohakune i-SITE wall and heat pump - - 16 Complete. Renewal.

Taumarunui town clock - - 10 In progress. Renewal.

Park Ave wetland development 20 - - Needs to be carried forward.

Raetihi amenity street lighting 5 - - Needs to be carried forward.

Security CCTV CBD 5 - 9 Reallocated to Raetihi Agency cameras. Complete. LOS.

Taumarunui north entrance upgrade 30 - 37 King Tawhiao Sign. Complete. Renewal.

Ohakune Admin Building 42 - - On hold.


Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

Taumarunui Memorial Hall switchboard

10 - - On hold.

Islington Street garage roof 15 - - Needs to be carried forward.

Waiouru toilet re-build 277 - 272 Complete. Renewal.

Ohura Hall re-wiring and switchboard 12 - 3 Complete. Renewal.

Ohakune walkway 20 - 12 Incomplete. Needs to be carried forward. LOS.

Taumarunui walkway 20 - - Needs to be carried forward.

Manunui River Reserve sewerage upgrade

15 - 15 Complete. Renewal.

Taumarunui Parks and Reserves fence upgrades

- - 5 Renewal.

Raetihi playground fence

- - 10 Renewal.

Raetihi sportsground fence

- - 13 Renewal.

Taumarunui swimming pool switchboard

- - 4 Renewal.

Raetihi swimming pool switchboard

- - 7 Renewal.

Ohakune swimming pool switchboard

- - 3 Renewal.

Raetihi library upgrade

- - 9 Renewal.

Taumarunui amenity street lighting

- - 14 Renewal.

Community Housing Upgrades

- 42 141 70% Renewal, 30% LOS.

Kakahi Domain

- - 11 Renewal.

Taumarunui Netball Facilities

- - 37 LOS.

Manunui Reserves Toilets

- - 15 Renewal.

Total 627 205 893


Work in Progress

Project Description Opening

WIP $000

Closing WIP $000

Notes

Rangimarie Flats - Insulation 12 - Completed.

Social Housing minor works 22 - Completed.

Ohakune Flats roof renewal 31 - Completed in July 2015.

Social Housing minor works 2015 14 - Completed.

Install barriers at problem reserves – Waimarino

1 - Completed.

2km concrete walkway – Waimarino

11 - Completed.

Taumarunui Grandstand upgrade (Special Funds)

4 - Waiting for the Community to get rest of the funding. Not actually carried forward.

National Park reserves land purchase – transferred to playground equipment as per Council resolution

75 - Completed.

Taumarunui northern entrance upgrade 2 - Completed.

District swimming pool switchboards 11 - Completed.

Taumarunui amenity street lighting 4 - Completed.

Raetihi pool ablutions and solar heating 5 - Completed.

Raetihi cemetery fence renewal 9 - Completed.

Raetihi walkway 12 - Completed.

District swimming pool switchboards 2014

1 - Completed.

Fencing problem reserves north 5 5 Ongoing project.

Fencing problem reserves south 3 - Ongoing project.

Refurbishment of Taumarunui netball court

35 - Completed.

Ohakune swimming pool new shed 29 - Completed.

Waiouru toilets refurbishment 145 - Completed.

Manunui river reserve toilet sewage system upgrade

14 - Completed.

Security Cameras CCTV CBD - 8Not yet completed.

Signs - 4Not yet completed.

Taumarunui Domain facilities upgrade - 4Not yet completed.

Taumarunui Town Clock renewal - 10Not yet completed.

Total 445 31


Highlights for the Year Cemeteries Berm name signs have been installed for the three ash blocks at the Manunui Cemetery and five

areas at the Taumarunui Cemetery. The monument at the Ohakune Cemetery for the railways explosion was painted, the fence line

was relocated to behind the monument and a new pathway was constructed prior to the 100-year anniversary of the event.

A hedge has been planted at the Ohura cemetery to make a boundary between the Catholic section

and the remainder of the area which is to be used for all denominations. The Raurimu Cemetery fence was renewed using a new PVC product which will require minimum

maintenance.

Ohakune Railways Explosion Memorial.

Raurimu Cemetery Fence.

Community Halls The roof over the supper room area and the entrance of the Ohura War Memorial Hall was

replaced, and an electrical upgrade was completed at the same time. New tables have been purchased for the Taumarunui War Memorial Hall.

Ohura Memorial Hall Roof Renewal.


Community Buildings and Property An electronic security access system was installed to the back door of the Raetihi Service Centre

and Agency.

The electronic security access system at the Ohakune i-SITE was replaced due to the existing system becoming obsolete.

An area of carpet was replaced at the Taumarunui i-SITE. The turn-around area at the Taumarunui Admin Building was extended to enable the required

parking distance from the LPG gas storage area to be met. Gates were installed at the front and back of the Taumarunui Admin Building to prevent access

around the building which had been the subject of graffiti and vandalism over weekend periods. The Raetihi Service Centre and Agency building roof was repainted. Additional security cameras were installed at the entrance of the Taumarunui Admin Building, and

new cameras were installed at the Raetihi Service Centre and Agency. The electronics for the gate at the Huia Street Depot, Taumarunui were replaced. The scoria gabion basket wall at the Ohakune i-SITE was replaced with a solid wall to provide a

significant increase in useable wall and floor space.

Additional Security at Taumarunui Admin Building.

Ohakune i-SITE Wall.


Parks and Reserves Fencing has been installed at the Kakahi Domain to provide safety for users from the dangerous

edge of the bluff. Repairs and adjustments were completed to the walkway from House Avenue to Kururau Road

(SH43). A new seesaw and lullaby swing were installed at Pitt Street Reserve, Raetihi. Two picnic seats were installed at Christie Park, Ohakune. The slide chute was repaired and a new baby swing installed at Christie Park, Ohakune.

The chains from East Street swings have been replaced with Viking ropes. A frog rocker for toddler play has been installed at Christie Park, Ohakune. The Rochfort Park accessible walkway and reserve development has continued, driven by

Ohakune 2000 and the Ohakune Growers Association. The King Tawhiao sign at the Northern Entrance to Taumarunui was renewed and new picnic tables

were installed. The National Park playground installation was successfully completed. Special maintenance was completed at the Tangiwai Memorial Reserve in preparation for the

unveiling of the names etched into the monument. The successful trial of a ‘Big-Belly’ compacting bin at the new Waiouru public toilets has led to the

permanent installation of a unit. The fencing around the Pitt Street Reserve, Raetihi has been replaced.

New Fence, Kakahi Domain.

House Ave to Kururau Road Walkway.


Pitt Street Reserve Fencing.

Rochfort Park Upgrades.

King Tawhiao Sign, Taumarunui.


Public Toilets The new toilet block at Waiouru was completed. Maintenance work was completed at the Pipiriki toilets, with gutters and valleys in the roof being cleared, downpipes being flushed out, the roof swept, moss/mould spray applied.

Waiouru Public Toilets.

Waiouru Public Toilets.

Social Housing Ceiling insulation and replacement of the roofs at the Ohakune Flats has been completed. The broken fence between the railway line and Rangimarie Flats has been replaced. The ceiling and underfloor insulation was completed at the remaining Rochfort Flats, Taumarunui. The second stage of installation of security doors was completed at Rochfort Flats, Taumarunui. Insulation was also installed in the wall between the garages and flats in flats 1-3, Cherry Grove,

Taumarunui. A shower unit was installed in Flat 7, Cherry Grove Court, Taumarunui. The three yearly maintenance of roofs at Cherry Grove Court and Miriama Street flats was

completed. Carpet was replaced in flats 15 & 16 Rangimarie Flats, flat 7 Cherry Grove, and 1 & 2 Rochfort

Flats. The work to improve poor stormwater drainage at Rangimarie flats, Taumarunui has been

completed. Swimming Pools The main pump at the Taumarunui Swimming Pool was replaced after it failed.

The major leak at the Raetihi Swimming Pool has been found and remedied.

Rotting weatherboards at the Ohakune Swimming Pool ablution block were replaced.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Community Facilities Activity

Actual LTP 2015 LTP 2016 2016 $000 $000 $000



2,305 2,386 2,409


Subsidies and grants for operating purposes - 4 16




- - -



Payments to staff and suppliers 1,926 1,825 1,669


Internal charges and overheads applied 719 815 1,082






Development and financial contributions 35 - -







- To meet additional demand 148 8 48


- To replace existing assets 116 91 320

Increase/(decrease) in reserves 62 267 (232)


Total applications of capital funding (D) 390 472 247Surplus/(deficit) of capital funding (C-D) (79) (133) (96)Funding balance ((A-B)+(C-D)) - - -



LAND TRANSPORT

Introduction The Land Transport activity involves the maintenance and development of public roads, kerbs and channels, bridges, street lighting, footpaths and street furniture for the District, with the exception of the State Highways, which are managed by the NZ Transport Agency (NZTA). Council maintains its roads under contract to a standard that provides safe and comfortable driving within the limitations of available funding.

The District land transport network consists of:

488 km of sealed roads,

851 km of unsealed road,

342 bridges and large culverts,

69 km of footpaths, and

1,445 street lights.

Aim of Land Transport and Contribution to Outcomes The aim of the Land Transport activity is to provide reliable, cost effective all-weather transport corridors for the District and to maintain levels of service at the current standard. Land transport contributes to the following Outcomes by providing core services and managing the roading network to keep pace with development, as well as ensuring that roads and footpaths are safe, reliable and well maintained. The relevant Outcomes are: Council is proactive, transparent, accountable and takes an active, consultative approach to

finding solutions. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and

roading) endeavours to keep pace with changing demand. Excellent standards of safety and welfare are promoted and respected. Regulatory services and reliable infrastructure help the economy prosper and support a range of

quality retail, entertainment, educational, healthcare, businesses and services. Our transportation network is reliable, safe and endeavours to meet the needs of users.

Ohura Road Sealing.


What We Achieved


Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Land Transport

Goal: District roads provide continuous all weather travel that is safe and accessible. Goal: Managing the network with a strong focus on safety to avoid or mitigate significant hazards.

The safety of the land transport network is acceptable to users.

The change from the previous financial year in the number of fatalities and serious injuries on the local road network, expressed as a number.


Target for reducing the number of serious injuries and fatalities = less than or equal to 1 (less than previous year).

+1 increase in

fatal and serious injuries.

Not achieved. Two fatal and serious injuries in 14/15. Three fatal and serious injuries in 15/16. (Note 3).

Roads are managed to an acceptable level and the road network is available when required.

The average quality of ride on a sealed local road network, measured by smooth travel exposure.

88% Target level of smooth travel exposure ≥87%

86.4% Not achieved.

The percentage of the sealed local road network that is resurfaced.


7.5%

37km out of 485km.

7.1% of 485.7km

34.7km resurfaced

during 2015/16.

Not achieved. Resurfacing includes Reseals, Rehabilitation, Minor Improvement and other full width seal resurfacings.

Maintain the sealed roads to a standard that allows <5.5 defects/km/quarter.

Q1 - 6.41 defects/km.




<5.5 defects/km

/ quarter.

4.19 defects/km

Achieved.



Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Land Transport

Goal: District roads provide continuous all weather travel that is safe and accessible. Goal: Managing the network with a strong focus on safety to avoid or mitigate significant hazards.

Maintain the unsealed roads to a standard that allows <5.5 defects/km/quarter.





<5.5 defects/km/

quarter.

4.21 defects/km

Achieved.

The percentage of footpaths that fall within the level of service for the surface condition of footpaths as per the AMP (Note 2).


75% of network to

= or >average and not

more than 10% of

network in poor

condition.

94.3% average or

better condition.

2.4% poor condition.

Achieved.

Percentage is based on actual area of footpath.

The percentage of customer service requests relating to roads and footpaths to which Council responds within the time frame specified in the LTP (Note 4).


95% 82% Not achieved.

This measures if a call is completed on or by the original or revised target date. For calls that are scheduled at the time of the period end date, they are counted as completed if they have been responded to prior to the target completion date.

There is a discrepancy between the full year and quarterly results as calls that were not completed by the end of a quarter were subsequently completed throughout the year.

Also the results in Quarter 1 KPI report were found to be incorrect at the time of the Annual Report.

Note that the response times in Note 3 are not linked to contracted response times.

Therefore, the target dates can be changed.


Notes:

Note 1: In 2010, the LGA02 was amended to enable Central Government to make rules specifying non-financial performance measures for local authorities to use when reporting to their communities. The mandatory performance measure will do this through providing better information about the LOS for five groups of activities carried out by local authorities – stormwater drainage, wastewater and the disposal of wastewater, flood protection and control works, water supply and the provision of footpaths and roads. Requirements to report against the performance standards are mandatory from 2015. Most of the KPIs for Land Transport are new for this reason.

Note 2: Footpath Performance Measures – 2015/16 will be the first time this Level of Service will be measured. There was no base line at the beginning of the year to establish targets.

Note 3: NB1: A serious accident in Q2 was not reported in the KPI report as it was not included in the Crash Analysis System (CAS) export for Q2 and a Traffic Crash Report (TCR) was not received from the police.

NB2: NZTA are behind on importing crashes into CAS for Q3 and 4 so Police TCRs have been used for these results.

Note 4: The Request for Service targets are:

Subtype Category Schedule by Complete by

1 Bridge Routine 2 days 15 days

2 Building relocation road inspections Routine 1 day 5 days

3 Contract / Engineer required Routine 1 day 5 days

4 Corrugations Routine 2 days 15 days

5 Culvert Urgent 4 hours 3 days

5 Culvert Routine 2 days 15 days

6 Flooding Urgent 4 hours 3 days

7 Footpath Issues Routine 2 days 15 days

8 Kerb or Channel Issues Routine 2 days 15 days

9 Litter Routine 2 days 15 days

10 Mowing / Vegetation Control Routine 2 days 60 days

11 Potholes Routine 1 day 15 days

12 Rapid Number plates Routine 1 day 10 days

13 Roading Team to Investigate Routine 1 day 5 days

14 Signs / Sight rails / markings Urgent 1 day 3 days

14 Signs / Sight rails / markings Routine 2 days 15 days

15 Slips Emergency 30 minutes 2 days

16 Streetlights Urgent 4 hours 2 days

16 Streetlights Routine 4 days 30 days

17 Surface - Frost / Grit / Oil / Accident Urgent 1 day 5 days

18 Trees - Fallen or standing Urgent 1 day 5 days

18 Trees - Fallen or standing Routine 2 days 15 days

19 Underslip Emergency 30 minutes 2 days

20 Water channel issues (rural) Urgent 1 day 3 days

21 Water channel issues (rural) Routine 2 days 15 days


Major Capital Projects

Project Description

Carried Forward Budget $000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

Bus Shelter Renewal 10 11 3 Renewals. .

B152 Waitewhenua Rail Overbridge Renewal

- 333 23 15% LOS, 85% Renewals.

B353 Upokonui Stream Culvert Renewal

- 460 - 15% LOS, 85% Renewals.

B292 Mangateitei Rail Over Bridge Renewal

- - 28 Renewals.

Drainage Renewals - 448 337 15% LOS, 85% Renewals.

Drainage Renewals SPR - 25 4 15% LOS, 85% Renewals.

Facility Road Carparks - 21 9 15% LOS, 85% Renewals.

Footpath Renewal District Wide - 181 147 Renewals.

Kurb and Channel Development – District Wide

47 43 35 LOS.

Kaiwhakauaka/Depot Road Bridge

- - 98 15% LOS, 85% Renewals.

Minor Improvements - 870 966 80% LOS, 20% Renewals.

Minor Improvements SPR - 219 234 80% LOS, 20 Renewals.

Motorist Service and Tourist Information Signs

28 29 13 50% LOS, 50% Renewals.

Ohakune Mountain Road Capacity Improvement

203 106 - 60% LOS, 40% Renewals.

Pedestrian Safety Improvements

- 28 30 LOS.

Seal Extensions - 63 69 Growth.

Sealed Road Surfacing - 974 1,133 Renewals.

Sealed Road Surfacing SPR - 135 128 Renewals.

Sealed Surface Rehabilitation - 2,028 1,786 15% LOS, 85% Renewals.

Sealed Surface Rehabilitation SPR

- 314 506 15% LOS, 85% Renewals.

Street Flags District Wide - 16 25 Renewals.

Structures Components Replacement (Bridges)

- 654 830 15% LOS, 85% Renewals.

Traffic Surfaces Renewals - 326 202 Renewals.

Traffic Surfaces Renewals SPR - 22 5 Renewals.

Under Verandah Lighting Renewals

- 4 - Renewals.

Unsealed Road Metalling 23 974 1,131 Renewals.

Total 311 8,284 7,742


Note that the figures of some projects are not specifically detailed in the LTP or EAP in a certain year but are planned to be performed over the ten-year period of the LTP.

Capital Projects Carried Forward Sometimes a capital project that was budgeted for is not undertaken or it is started but not completed, in the financial year for which it was budgeted. If the project is one that Council believes should be completed, it may decide to carry forward the unspent budget to the following financial year. Carried forward capital projects in this Activity are: Waitewhena Rail Over Bridge Renewal (B152) was carried forward due to delays in obtaining all

required land owner approvals to undertake the project. Investigation and design was competed in the year with final design approval from KiwiRail pending at year end. This project will be completed in 2016/17.

A 1.6 km section of Sealed Pavement Rehabilitation on Poro O Tarao Road (RP 2.8 to 4.4km) was

deferred due to competing demands for specialist resources brought about largely by the unexpected resource demands required to address the June/July 2015 flood event. This project will be undertaken in 2016/17. No budget has been carried forward for this work as it will be funded out of the pavement rehabilitation budget for 2016/17.

Ohakune Mountain Road Capacity Improvement budget carried forward for the cycle path project

as an offset to the pavement rehabilitation project. Upokonui Stream Culvert Renewal (B353) was carried out under emergency reinstatement. The

budget will be transferred to another bridge renewal. The Asset Management Plan identifies that project bridge work is a focus in the ten-year period from 2015-25, as a number of timber bridges are reaching the end of their useful lives.

Remainder of Under Verandah Lighting Renewal budget to be carried forward for work in next

financial year. Remainder of Facility Roads and Car Parks Renewal budget for use on projects including Waiouru

landscaping and Pipiriki Wharf upgrade. Remainder of Bus Shelter Renewal budget to address the various school bus shelter issues

identified around the District. Remainder of Motorist Service and Tourist Information Signs budget to continue upgrading the

Welcome to District Signage and for Tourist Information destination signposting as required. Remainder of Kerb and Channel Development budget for National Park to be used in conjunction

with the footpath development budget. Remainder of Footpath Renewal budget to be used in National Park for Findlay Street footpath. Remainder of Pedestrian Safety Improvement Budget to be used in National Park for Findlay

Street.


Work in Progress


WIP $000

Closing WIP $000

Notes

B152 Waitewhena Rail Over Bridge Renewal.

- - Completed.

B292 Mangateitei Rail Over Bridge Renewal. - - Completed.

Street Flags District Wide 4 - Completed.

Total 4 -


Highlights for the Year Contract Renewals Contract 1667 for street light maintenance and renewal was tendered in May 2016. The process

will not be completed until August 2016. Aggregate supply unit price negotiations are undertaken annually and in effect create new supply

values annually. Unsubsidised Construction Footpath development was completed in Ohakune on Ayr Street (110m), Lee Street (210m) and

Shannon Street (110m). The Lee Street footpath was constructed in conjunction with kerb and channel development, water main renewal and resealing of the road pavement.

Footpath renewal using hot mix asphalt was undertaken in Ohakune on Rata Street (Clyde to Ayr) and Ayr Street (Rata to Goldfinch) and Taumarunui on Taumarunui Street (Morero to Manuaute). Concrete renewal was undertaken on Manuaute Street (Taumarunui to Huia).

Facility roads and carpark works included reconstructing the Taumarunui Campground access

loop, a replacement streetlight pole on the Miriama Street carpark, on-road car parking area at Owhango School and the Waiouru Toilet block landscaping and carpark.

Subsidised Construction Heavy Maintenance and Improvements –Three River Valley meetings were attended during the

year and various types of work requests were discussed from plant pests to bridge replacements. Minor Improvement works at 30 sites were identified and programmed for these valleys with 73 sites completed during the year to match available budgets.

Flood Damage - Intense rainfall on 20 June 2015 with peak flows in the Whanganui River of

15.64m at Pipiriki, 15m above summer flow, resulted in widespread flooding, underslips, washouts and overslips. Access to Pipiriki was restored to two-wheel drive traffic on 13 August 2015. 230 major sites were identified requiring engineered remedial works, 84 sites to be monitored with minor damage at a further 98 sites attended to by the Contractors during initial responses. An emergency work funding request was submitted to NZTA and approved for immediate response of $200,000 for 2014/15 and reinstatement works during 2015/16 at an estimate of $5,000,000 was submitted and approved, totalling $5,200,000 for this event. Works have been completed to a total value of $4,243,192.

June 2015 flood damage on Pipiriki Raetihi Road.


Renewals Reseals – The 2015/16 work programme was completed by J&J Walters Ltd, achieving a total

reseal length of 22.9km. Drainage – Culverts throughout the District are installed, replaced and extended on an as required

basis and within most major work activities. 53 culverts, ranging in size from 225mm to 1350 mm, with lengths from 2.0m to 47.5m, have been installed up to 30 April.

Metalling – A total of 57,900 tonne of aggregate was applied to the unsealed Ruapehu road

network up to 30 April which equates to 69,500 for a 12-month year. Kerb & Channel – The renewal of kerb and channel is usually undertaken in conjunction with the

reseals activity in urban areas. This year only minor sections of kerb and channels needed repair and this type of work is covered within the drainage renewal budgets.

Pavement Rehabilitation The pavement rehabilitation programme is complete with a total rehabilitation achieved of 6.15km.

In addition, Kaha and Tau Streets in Rangataua were sealed following unsealed pavement and drainage renewal, the total length sealed was 0.96km bringing the total length of pavement rehabilitated to 7.11km. A 1.6km section of rehabilitation on Poro O Tarao Road (RP 2.8 to 4.4km) was deferred to maintain resources on the other rehabilitation sites and seal extensions. The list of sites is summarised in the table below:

Pavement Rehabilitation Sites 2015/16

Road Start RP (km) Length (km) Status

Whangaehu Valley Road 6.40 1.62 Complete.

Ohakune Mountain Road 1.46 1.42 Complete.

Ruapehu Road 0.03 1.29 Complete.

Ohura Road 35.20 0.56 Complete.

Ohura Road 13.25 1.26 60% complete.

Kaha and Tau Street 0.96 Complete.

Total Length 7.11


Bridges In the context of the 30-year infrastructure plan, the total forecast replacement expenditure on

bridges is $22m. Ninety bridges are due for replacement by 2044 with estimated replacement cost (2013 dollars) of $15m. The estimated component replacement forecast (where only part of a bridge is replaced, such as decks, beams, rails) is $7m.

Ruapehu District Council has been progressively renewing its bridge assets utilising structural

component replacements. The 2015/16 year saw the replacement of decks, abutments and rails of Waione ($138,000), Mangateitei No.2 ($117,000) and Borcks ($291,000) bridges as well as a number of minor sub-component replacements.

The 2015/16 year saw the unplanned renewal of Upokonui Stream culvert with a new bridge. This

project was bought forward due to damage incurred during the June 2015 flood event. Investigation and design was completed for the Waitewhena Rail Overbridge and the Borcks Road bridge deck was replaced.

The cycle bridge on the Kaiwhakauka Trail was also completed. This was a jointly funded

arrangement between Department of Conservation, the land owner and Council. This enabled the trail to be reopened for the cycling season.

This work category will be a focus for Ruapehu for the foreseeable future.

Upokonui Bridge, Pipiriki.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Land Transport Activity

Actual

LTP 2015 LTP 2016 2016

$000 $000 $000



4,779 6,981 2,174

Targeted rates 185 70 4,944

Subsidies and grants for operating purposes 5,205 4,960 6,964




254 148 133





Internal charges and overheads applied 785 2,294 2,760



Surplus/(deficit) of operating funding (A-B) 1,816 2,137 1,597


Subsidies and grants for capital expenditure 4,584 5,269 4,610

Development and financial contributions 447 50 46

Increase/(decrease) in debt 676 828 1,127



Total sources of capital funding (C) 5,707 6,147 5,783




- To improve the level of service 624 1,662 1,570

- To replace existing assets 5,966 6,559 6,033

Increase/(decrease) in reserves 10 - (291)


Total applications of capital funding (D) 7,523 8,284 7,380Surplus/(deficit) of capital funding (C-D) (1,816) (2,137) (1,597)Funding balance ((A-B)+(C-D)) - - -



STORMWATER

Introduction Stormwater is rainwater that runs over the ground on its way to a natural watercourse. When rain falls on buildings, car parks, roads, driveways and gardens but does not soak into the ground, it will follow a natural flow path downhill until it reaches a watercourse or is collected by a pipe system. Where there is development, runoff from properties and roads flows into stormwater systems. The greater the level of development in a catchment, the greater the level of impermeable surfaces (e.g. roofs, driveways and paths) and the greater conversion of rainfall into runoff. If this runoff is not managed it will cause flooding. Generally, stormwater is directed into channels on roadways or into drains, then into streams and rivers.

Aim of Stormwater Activity and Contribution to Outcomes The Stormwater activity aims to mitigate problems of flooding in urban areas that pose hazards to people, roads and the urban economy. Under the Local Government Act, Council is required to assess water and other sanitary services available to the community, including stormwater drainage.

Council’s stormwater network includes 50km of piped drains and approximately 32km of open drains and natural watercourses within the urban boundary.

The Stormwater activity targets the following Outcomes by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning:

Core infrastructure (water, wastewater, waste management and minimisation, power and roading) keep pace with changing demand.

That Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable standards.


What We Achieved


Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Stormwater

Goal: To provide and maintain an appropriate level of infrastructure.

Capacity/degree of protection.

The number of flooding events that occur in a territorial authority district (Note 3).


≤3 - Achieved.

For each event, number of habitable floors affected (Note 4) (per 1,000 properties connected (Note 2) to system).


≤3 NA Achieved.

There were no flooding events in 2015/16.

Environmental impacts are managed and resource consents complied with.

Compliance with resource consents for discharges from the stormwater system as measured by the number of abatement notices.


≤2 NA Achieved.

There are no resource consents for stormwater in the townships.

Compliance with resource consents for discharges from the stormwater system as measured by the number of infringement notices received.


≤1 NA Achieved.


Compliance with resource consents for discharges from the stormwater system as measured by the number of enforcement orders received.


≤1 NA Achieved.


Compliance with resource consents for discharges from the stormwater system as measured by the number of convictions.


- NA Achieved.




Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Stormwater


Responsiveness of service.

Median response time to attend a flooding event (Note 4).


2 hours NA Achieved.

There were no flooding events in 2015/16.

The number of complaints (Note 5) received about the performance of the stormwater system (per 1,000 properties connected (Note 2) to system).


≤15 4.5 Achieved.

Notes:

Note 1: There are now mandatory Non‐Financial Performance Measures, against which all stormwater infrastructure in New Zealand will be measured. This is the first year these KPIs have been measured.

Note 2: The number of connections is calculated from the number of customers charged in their rates for use of

Council stormwater services (calculated at 5,784 in September 2015). Note 3: A flooding event means an overflow of stormwater from a Council stormwater system that enters a

habitable floor. Note 4: A habitable floor refers to a floor of a building (including a basement) but does not include ancillary

structures such as stand-alone garden sheds or garages. Note 5: There are occasions where there is more than one complaint per event. In such a situation, each

complaint is counted separately, not each event or occurrence.


Capital Projects

Project Description

Carried Forward Budget

$000

LTP 2015/16

$000

Actual 2015/16

$000

Notes

District Wide projects 33 - - 20% Growth, 75% LOS and 5% renewal.

District Wide Main Replacement - 20 - LOS.

National Park Open Channel Stormwater Drain Reformation

- 4 - Renewal. Work completed, additional $2k not capitalised at balance date.

National Park Stormwater Mains Replacement

5 5 5 Renewal.

Ohakune Channel A - Upstream of Arawa Street

7 - - 10% Growth, 90% LOS.

Ohakune Condition Assessments

- 44 - LOS.

Ohakune Extension of the Stormwater network for growth

20 20 - 50% Growth, 50% LOS.

Ohakune Lower Mangawhero River - Large willow clearance and vegetation control

28 - - 10% Growth, 90% LOS.

Ohakune Miro Street Drain Flood Control

- - 121 10% Growth, 90% LOS. Work completed. Work undertaken included flood protection work following the 2012 flood event.

Ohakune Open Channel Drain Reformation

7 11 - Renewal.

Ohakune Park Avenue Flood Control

7 11 - 10% Growth, 90% LOS.

Ohakune Southridge Drive Stormwater Drain

10 - - 10% Growth, 90% LOS.

Ohakune Mains Rehabilitation / Replacement

8 - - Renewal.

Ohura Flood Warning System - 18 - Renewal.

Ohura Mains Replacement - 9 - Renewal.

Ohura Open Channel Drain Reformation

8 5 - Renewal.

Owhango Main Replacement - 8 - Renewal.

Owhango Open Channel Drain Reformation

4 3 - Renewal.

Raetihi Open Channel Drain Reformation

- 8 18 Renewal.


Project Description


$000

LTP 2015/16

$000

Actual 2015/16 $000)

Notes

Raetihi Stormwater: Planning 12 - - LOS.

Rangataua: Open Channel Drain Reformation

4 3 - Renewal.

Raurimu Condition Assessment - 1 -LOS.

Raurimu Open Channel Drain Reformation

4 3 -Renewal.

Taumarunui Open Channel Drain Reformation

- 11 14Renewal.

Taumarunui Stormwater Asset Information Network Survey

5 - -LOS.

CCTV Survey of Network - 7 -

LOS.

Taumarunui Condition Assessment

15 - -LOS.

Taumarunui Stormwater Main Replacement

50 62 -Renewal.

Taumarunui, Turaki Street & Maata Street Flood Control

107 - -LOS.

Waiouru Stormwater Main Replacement

20 21 -Renewal.

Budgeted Contingency - 33 -

354 307 158

Work in Progress

Project Description

Opening WIP $000

Closing WIP $000

Notes

National Park Stormwater Main Replacement

5 - Complete.

National Park Open Channel Drain Reformation

2 2 Ready to capitalise early in the new financial year.

Ohakune Miro Street Drain Flood Control 76 - Complete.

Raetihi Open Channel Drain Reformation

13 - Complete.

Taumarunui Open Channel Drain Reformation

5 - Complete.

Total 101 2


Highlights for the Year The Stormwater system has, in general, operated well over the year with no major events affecting

habitable floors in the communities. Council and Horizons Regional Council are moving toward a closer relationship in delivering

Stormwater and river control works together. Strategic planning has slowed down the delivery of projects which appear to be better delivered together and some projects have been delayed as we align each organisation's work programmes.

In Taumarunui, the decongestion of the

poplar trees from the river channel has increased the capacity of the river system and reduced erosion potential. The clearing of the poplar trees along the Ongarue River upstream and downstream of the State Highway bridge has also enhanced the visual amenity at the North Taumarunui entrance way.

Stormwater works identified for flood control in Tuku Street, Taupo Road, Turaki Street and Maata

Street in Taumarunui all require the stop bank to be breached. Works will need to be undertaken together.

Mangawhero River flood damage repairs, from the 2013 flood, have been completed this year.

General clearing of small stretches of river continues. Ohakune township flooding and erosion risk information modelling has been looked at by

Horizons. This resulted in a draft report (“Upper Mangawhero and Tributaries Flooding and Erosion Risk at Ohakune, July 2015”) which was discussed with Council late in 2015. The report suggests that diversion options are likely to be the most efficient and effective to address future flood and erosion risk, which put a hold on Ohakune channel B flood control works. The report is also the first step in discussion with the community around the development of a new Horizons river scheme.

Clearing of Poplar trees from the Ongarue River downstream of the

State Highway bridge.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Stormwater Activity

Actual

LTP 2015 LTP 2016 2016

$000 $000 $000



349 391 394

Targeted rates 349 391 406





- - -

Total operating funding (A) 700 786 802






Total application of operating funding (B) 444 446 404




Development and financial contributions 6 - 7










Increase/(decrease) in reserves 104 121 360





WASTEWATER

Introduction The purpose of the Wastewater activity is to collect and dispose of wastewater in an effective and environmentally friendly manner. Effective and efficient wastewater collection and disposal is essential to protect the environment and to maintain public health. It is an essential service for public good. In order to ensure the successful disposal of wastewater in an environmentally sustainable manner and to promote and protect public health, Council provides treatment plants at Taumarunui, National Park Village, Ohakune, Pipiriki, Raetihi and Rangataua. In addition, Council co-operates with the NZ Army authorities in Waiouru to provide wastewater services for the town.

Aim of Wastewater Activity and Contribution to Outcomes Council is committed to treating wastewater in such a way as to improve, promote and protect public health and the environment. Council aims to ensure that this activity is provided in the most cost-effective and efficient manner in accordance with the agreed Asset Management Plan. Council’s wastewater assets consist of six wastewater treatment plants, 109km of pipes, 18 pump stations, 1,418 manholes and 4,674 rateable service connections. The Wastewater activity targets the following Outcomes by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning: That the impact of waste on the environment is minimised.

Quality regulation, regulatory services and infrastructure support healthy communities.

Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading) endeavours to keep pace with changing demand.

Regulatory services and reliable infrastructure help the economy prosper and support a range of quality retail, entertainment, educational, healthcare, businesses and services that Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable, affordable standards.


What We Achieved


Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Wastewater


Environmental sustainability.

Number of dry weather wastewater overflows from system, expressed per 1,000 connections (Note 3) to that system.


<7 1.29 Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of abatement notices.


≤2 - Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of infringement notices received.


≤1 - Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of enforcement orders received.


≤1 - Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of convictions.


0 - Achieved.

Responsiveness to infrastructure issues.

Median time (Note 2) to attend to wastewater overflows resulting from a blockage or other fault.


2 hours 0.95 hours (Note 5)

Achieved.

A total of ten calls were received by Council (one call has been excluded from the median calculation because of a



Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Wastewater


negative response time reported by Veolia.

Median time (Note 2) to resolve sewage overflows resulting from a blockage or other fault.



Achieved.

A total of ten calls were received by Council (one call has been excluded from the median calculation because of a negative response time reported by Veolia.

Total number of complaints (Note 4) received about any of the following (expressed by 1,000 connections (Note 3) to the territorial authority’s wastewater system): (a) Wastewater

odour. (b) Wastewater

system faults. (c) Wastewater

system blockages.

(d) The territorial

authorities response to issues with its Wastewater system.


<25

(a) 0.9 (b) 0.2

(c) 2.8

(d) 0

Achieved.


Notes:

Note 1: There are now mandatory Non‐Financial Performance Measures, against which all wastewater infrastructure in New Zealand will be measured. This is the first year these KPIs have been measured.

Note 2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these has not been and cannot be independently verified.

Note 3: The number of connections is calculated from the number of customers charged in their rates for use of Council wastewater services (calculated at 4,634 in September 2015).

Note 4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.

Note 5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.


Capital Projects

Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000

Notes

Taumarunui Earthquake Assessments

- 15 - LOS.

National Park WWTP Upgrade 198 160 - 75% LOS, 25% Growth.

Ohakune Asset Renewal 25 - - Renewal.

Ohakune Headworks & Treatment Resource Consent

- 16 - LOS.

Ohakune Inlet Screens and Grit Trap - 263 229 LOS.

Ohakune Resource Consent 9 - - Renewal.

Upgrade of Ohakune WWTP to meet resource consent requirements

39 75 18 LOS.

Ohakune renewal (replacement and refurbishment) of assets.

- 17 14 Renewal.

Pipiriki Treatment Facilities 4 - - Renewal.

Raetihi Aerators 78 3 - 90% LOS, 10% Growth.

Raetihi WWTP Upgrade - 100 64 LOS.

Raetihi WWTP Scada Install - - 20 LOS.

Raetihi Main Trunk CCTV Survey - - 5 LOS.

Raetihi Resource Consent 12 25 - LOS.

Seddon St WWPS: Asset Renewal 2 - 12 Renewal.

Raetihi Main Relining based on remaining Useful Asset Life - Stage 2

27 - 97 Renewal.

Raetihi WWTP Inlet Flow Meters - - 34 Renewal.

Rangataua Facilities Plant Upgrade 31 - - LOS.

Rangataua Wetland and Fencing etc.

4 - - LOS.

Rangataua WWTP: Asset Renewal - 2 - Renewal.

Golf Road WWPS: Asset Renewal 2 - - Renewal.

Hikumutu WWTP: Asset Renewal 12 16 3 Renewal.

Sunshine Rd WWPS: Asset Renewal

- 2 - Renewal.

Tuku Street WWPS: Asset Renewal 2 - 5 Renewal.


Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000

Notes

Tubby Woods WWPS: SCADA Install

- - 18 LOS.

Victory Bridge WWPS: Asset Renewal

17 5 9 Renewal.

Victory Bridge WWPS: Chamber Access

- - 21 LOS.

Taumarunui Above Ground Asset Renewal

10 - - Renewal.

Taumarunui Wastewater Condition - 68 - LOS.

Wastewater Main Refurbishment - taken $75K out for Fire Brigade

113 - 97 Renewal.

Waiouru Andrews Drive WWPS 3 - 3 Renewal.

Waiouru Ruanui Street WWPS: Asset Renewal

1 - - Renewal.

Waiouru Wastewater Networks 20 3 - Renewal.


609 1,058 649


Work in Progress

Project Description

Opening WIP $000

Closing WIP $000

Notes

National Park - Headworks & Treatment - Resource Consent

11 15 Can only be capitalised once asset is completed.

National Park - WWTP Upgrade Preliminary Work


National Park Resource Consents 45 110 Can only be capitalised once asset is completed.

Ohakune Wastewater Resource Consents


Ohakune WWTP - Replace Inlet Screens

6 - Capitalised.

Ohakune - WWTP Inlet Grit Trap 91 18 Stage one capitalised, stage two to be completed.

Ohakune - WWTP - Upgrade 5 - Capitalised.

Ohakune - WWTP - Renewals 4 - Capitalised.

Pipiriki Treatment Facilities - 1 Can only be capitalised once asset is completed.

Raetihi Hydraulic Model 2011 28 - Capitalised.

Raetihi WWTP - Upgrade 88 - Capitalised.

Raetihi: Seddon Street WWTP SCADA Installation

17 - Capitalised.

Raetihi - Wastewater Relining - Stage 2 55 27 Can only be capitalised once asset is completed.

Raetihi Highway WWTP: Guide Rails 7 - Capitalised.

Raetihi - WWTP - Renewals 1 - Capitalised.

Raetihi - Headworks & Treatment - Resource Consent

13 - Capitalised.

Raetihi - Resource Consent 45 73 Consent lodged with Horizons Regional Council.

Rangataua - Resource Consent 40 40 Consent lodged with Horizons Regional Council.

Rangataua - WWTP: Modification, Facilities Plant Upgrade


Hikumutu WWTP – Asset Renewal - 29 Can only be capitalised once asset is completed.

Hikumutu Sewerage Resource Consents

72 72 Consent lodged with Horizons Regional Council.


Project Description

Opening WIP $000

Closing WIP $000

Notes

Taumarunui Wastewater Mains 10 2 Can only be capitalised once asset is completed.

Taumarunui - Networks - Tuku Street WWPS: Asset Renewal


Taumarunui - Network - Tubby Woods Pump Station - Scada Install

17 - Capitalised.

Taumarunui Victory Bridge Pump Station - Access to bottom chamber

9 - Capitalised.

635 536


Highlights for the Year Closed Circuit Television (CCTV) investigation of wastewater reticulation lines in Raetihi has been

carried out this year to inform condition assessment of pipelines and enable priorities to be set around future works to upgrade the pipelines.

A new inflow monitor has been installed at the Raetihi wastewater oxidation ponds providing a

more accurate measurement of wastewater flow entering the ponds. Replacement of the online dissolved oxygen probe at the Ohakune Wastewater Treatment Plant

has enabled automatic control of the aerators in the oxidation ponds. The intake step screen, for the removal of inorganic

matter from the influent, at the Ohakune Wastewater Treatment Plant has been upgraded with a rotary drum screen. The new unit is fully sealed therefore reducing health and safety issues through operators coming into contact with raw effluent. In addition, a grit trap was installed upstream of the intake to collect all grit and rocks thereby reducing the potential for damage to the new screen.

Resource consent renewals for the Raetihi, Ohakune and National Park Wastewater Treatment Plants were lodged on 17 August 2015. This involved trialling a new consultation process with iwi, in the form of the Wai Group, in which Council and Iwi worked together in the consideration of the effects of the wastewater plants on the water systems, the river values that needed protecting and potential upgrades required. The consultation process was considered successful by both Iwi and Council and offers a framework for future consultation at a national scale.

Upgrade of the National Park Wastewater Treatment Plant has been delayed while Horizons

Regional Council assess the resource consent application lodged in August 2015. In the meantime, preliminary works such as closed circuit television (CCTV) and infiltration and ingression investigations to inform the future upgrade have been able to proceed.

Safety railings have been installed at some of the higher risk wastewater pump stations in

Taumarunui and Raetihi due to the depth at which the pumps sit below ground level. This enables maintenance and repair to be carried out more safely by the operator.

A backflow device has been installed on the water connections at the Taumarunui Campgrounds

Wastewater Pumping Station to protect the supply from potential bacterial contamination through backflow or siphonage from the taps. A new macerating (chopper) pump has been installed at the Rangataua

Wastewater Pump Station in order to reduce instances of ragging and blockages.

Rotary drum intake screen install at Ohakune.

New pump at Rangataua.


The status of resource consents for water plants is as follows:

Town Expiry Date Notes

Taumarunui 1 March 2003 Draft conditions provided to Regional Council. Under application and awaiting release from Horizons Regional Council.

National Park 17 November 2015 Application lodged with Horizons Regional Council 17 August 2015.

Raetihi 17 November 2015 Application lodged with Horizons Regional Council 17 August 2015 and requested to be put on hold to carry out nutrient investigations (will take two to three years to complete).

Ohakune 17 November 2015 Application lodged with Horizons Regional Council 17 August 2015.

Pipiriki 1 July 2035 Current.

Waiouru* Unknown NZ Army consent - current.

Rangataua December 2005 Under application.

*Wastewater disposal for Waiouru Township is procured from the New Zealand Defence Force.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Wastewater Activity

Actual

LTP 2015 LTP 2016 2016

$000 $000 $000



(33) (12) (4)

Targeted rates 2,294 2,186 2,226





- - -



Payments to staff and suppliers 1,035 939 691















- To meet additional demand 36 1 -





Total applications of capital funding (D) 815 1,475 1,128Surplus/(deficit) of capital funding (C-D) (707) (717) (959)Funding balance ((A-B)+(C-D)) - - -

The wastewater users of National Park are currently repaying the general ratepayer for an historical subsidy by the District. This shows as increased Targeted Rates and negative General Rates in this Funding Impact Statement.



WATER SUPPLY

Introduction The purpose of the Water Supply activity is to supply safe drinking water to the communities of the District. Water supply is essential to run households, maintain public health and sustain economic development. Council is committed to providing a water supply service that meets the needs of the community. Council’s water supply service consists of six treatment plants, 16 reservoirs, 187kms of pipelines and approximately 5,374 rateable service connections.

Aim of Water Supply Activity and Contribution to Outcomes Water supply is one of the essential services Council supplies to the community. Council has legal obligations to supply water. Council is required under the LGA02 to assess the need and provision of water services, including water supply (Sections 124 to 126), to retain its water supplies (Section 130) and has a duty under Section 23 of the Health Act 1956 to improve, promote and protect Public Health. Water supplies can be closed or transferred with the agreement of local communities. The Water Supply activity targets the following Outcomes, by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning. Quality regulation, regulatory services and infrastructure support healthy communities. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and

roading) endeavours to keep pace with changing demand. Regulatory services and reliable infrastructure help the economy prosper and support a range of

quality retail, entertainment, educational, healthcare, businesses and services. That Council plans for and works with the community to ensure that our environment is accessible,

clean and safe and that our water, soil and air meet acceptable, affordable standards. Excellent standards of safety and welfare are promoted and respected.


What We Achieved


Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Water Supply

Goal - To provide and maintain an appropriate level of infrastructure to the communities defined to be supplied potable water by Council.

Quality of Drinking Water - continuity of potable water supply to applicable community areas.

Extent to which drinking water supplies comply with Part 4 (bacteria compliance criteria) of the DWS.


Ohura =Y

Taumarunui =Y

Owhango =Y

National Park =Y

Raetihi =Y

Ohakune =Y

Ohura =Y

Taumarunui =Y

Owhango =Y

National Park =Y

Raetihi =Y

Ohakune =Y

Achieved. It was not forecasted to achieve protozoa compliance with drinking water standards this year (Note 11).

Extent to which drinking water supplies comply with Part 5 (protozoal compliance criteria) of the DWS.

New Measure 2015/16

Ohura =N Taumarunui =N

Owhango =N

National Park =N

Raetihi =N

Ohakune =N

Ohura =N Taumarunui

=N

Owhango =N

National Park =N

Raetihi =N

Ohakune =N

Not assessed.

National Park is on target to achieve compliance from January 2017 following one year of operation of the Ultra Violet (UV) system. A newly installed UV system in Taumarunui is due for completion in July 2016 and will require one year of operation post completion to achieve compliance.

Ohakune UV system has been installed since 2009 however has been unable to achieve compliance due to the filters requiring upgrade. This has been completed in 2016 and it is now evident that the incorrect reference sensor was installed when the UV system was commissioned in 2009. This will require replacement before the plant is able to achieve protozoa compliance.



Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Water Supply


Responsiveness. Percentage of real water loss from the networked reticulation system (Note 8).


<25% all supplies

41% Not achieved. An ongoing replacement programme is underway in the Ruapehu District which should see continued improvement to reducing water loss from our networks. An important factor in capturing water loss in our District is the significant number of unknown/unauthorised connections. Council will need to address this in order to improve information around water loss from the network.

Median time (Note 2) to attend to an urgent (Note 6) callout (i.e. loss of water supply).



Achieved. A total of 27 calls were received by Council.

Median time (Note 2) to resolve an urgent (Note 6) callout (i.e. loss of water supply).



Achieved. A total of 27 calls were received by Council.

Median time (Note 2) to attend non-urgent (Note 7) callouts (i.e. no loss of water supply).



Achieved. A total of 234 calls were received by Council (with 11 calls excluded from the median calculation as they related to private property issues and also 14 calls have



Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Water Supply


been excluded because of negative times reported by Veolia).

Median time (Note 2) to resolve non-urgent (Note 7) callouts (i.e. no loss of water supply).



Achieved.

A total of 234 calls were received by Council (with 11 calls excluded from the median calculation as they related to private property issues and also 14 calls have been excluded because of negative times reported by Veolia).

Total number of complaints (Note 4) received, District wide, about:

(a) Drinking water clarity.

(b) Odour. (c) Taste. (d) Pressure and

flow.

(e) Continuity of supply and response times and expressed per 1,000 connections (Note 2) to the networked reticulation systems.


<25 (a) 4.1

(b) 1.1

(c) 1.7

(d) 7.9

(e) 0.2

Achieved.



Indicators (Note 1)

2014/15 Actual

2015/16 Target

2015/16 Actual

Commentary

Water Supply


The normal demand for drinking water (litres/day/person).


500 Normal demand (using

Usually Resident

Population) = 605.

Peak demand (using Peak

Population) = 267.

Not Achieved.

Without further metering of water use throughout the Ruapehu District it is difficult to determine accurately the normal demand for drinking water (Note 9 and Note 10).

Notes:

Note 1: There are now mandatory Non‐Financial Performance Measures, against which all water infrastructure in New Zealand will be measured. This is the first year these KPIs have been measured.

Note 2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these has not been and cannot be independently verified.

Note 3: The number of connections is calculated from the number of customers charged in their rates for use of Council water services (calculated at 5,417 in September 2015).

Note 4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.

Note 5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.

Note 6: An urgent call-out is one that leads to a complete loss of supply of drinking water.

Note 7: A non-urgent call-out is one where there is still a supply of drinking water.

Note 8: Real water loss refers to volumes lost through leaks, bursts or overflows on mains, service reservoirs and services connections, up to the point of the customer meter.

Note 9: This is because much of our water use is attributed to supply for stock and farm or commercial use rather than solely being used for human consumption.

Note 10: Additionally, the Ruapehu District has a large number of visitors which results in the appearance of high volumes of water being used by an apparently usually small Resident Population (URP). The significance of the visitor numbers on the apparent water usage is demonstrated by the much lower normal demand for drinking water using Peak population figures.

Note 11:

(a) Confirmation of Council water supply compliance with Water Quality Standards is not available until later in 2016.

(b) Compliance sampling for bacteria is required to be carried out every five days. Over the 2015 Christmas period there was a six-day period between sampling on some supplies due to limited availability of courier services over this time.


(c) Compliance for the supplies of National Park and Taumarunui are still to be confirmed as the timeframe anomaly affected sampling for these supplies. They have been reported as achieving compliance in this report on the basis that Council has received advice that Raetihi and Ohakune supplies, also affected by the timeframe anomaly, complied with leniency.

(d) National Park is on target to achieve compliance from January 2017 following one year of operation of the Ultra Violet (UV) system.

(e) A newly installed UV system in Taumarunui is due for completion in July 2016 and will require one year of operation post completion to achieve compliance.

(f) The Ohakune UV system has been installed since 2009 however has been unable to achieve compliance due to the filters requiring upgrade. This has been completed in 2016 and it is now evident that the incorrect reference sensor was installed when the UV system was commissioned. This will require replacement before the plant is able to achieve protozoa compliance.


Capital Projects

Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

NP Hatch Cover Replacement 5 - - Renewal.

NP Installation of meters in township 54 32 - LOS.

NP Reservoir Inlet Chamber 3 - - LOS.

NP Valve and Hydrant replacement 4 2 - Renewal.

NP WTP Upgrade (CAPS Funding) 159 - 153 LOS.

NP WTP Above Ground Asset Renewals

- - 84 LOS.

NP WTP Upgrade PHRMP - - 2 LOS.

Ohakune Replacement of failed valves and hydrants (reactive renewals)

9 5 - Renewal.

Ohakune Meters across township 125 17 - 80% LOS, 10% Growth, 10% renewal.

Ohakune WTP: Above Ground Asset Renewals

- 16 - Renewal.

Ohakune WTP: Polymer Dosing 21 - 16 LOS.

Ohakune WTP: Install emergency shower

2 - - LOS.

Ohakune WTP: Backwash Processing

98 - - LOS.

Ohakune WTP: Backflow Prevention 13 - - LOS.

Ohakune WTP – SCADA to Windows 7

- - 19 LOS.

Ohakune Renewal (replacement and refurbishment) of assets.

29 23 16 Renewal.

Ohakune WTP raw water pump manifold replacement

20 3 Renewal.

Structured scheduled replacement programme for the Ohakune water reticulation mains (includes associated valve, hydrant, etc. asset renewals)

71 141 308 90% renewal, 10% growth.

Ohakune WTP Filtration - 118 65 Renewal.

Ohura Replacement of failed valves and hydrants (reactive renewals)

2 1 - Renewal.


Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

Ohura Water Main Replacement 17 12 - Renewal.

Ohura Above Ground Asset Renewal - 9 - Renewal.

Owhango Critical Spares - - 4 LOS.

Owhango Replacement of failed valves and hydrants (reactive renewals)

3 4 1 Renewal.

Owhango Upgrade for fire supply 11 - - LOS.

Owhango WTP reservoir asset renewal

3 - 8 Renewal.

Owhango Resource Consent - 5 - LOS.

Owhango - Identify any potential high risk backflow regions, and install backflow prevention devices where applicable.

6 - - 98% LOS, 2% Growth.

Owhango water reticulation mains (includes associated valve, hydrant, etc. asset renewals) Structured scheduled replacement programme.

10 4 - Renewal.

Raetihi Intake Asset renewal - - 7 Renewal.

Raetihi WTP & Reservoir Asset renewal

- 28 18 Renewal.

Raetihi Intake: Resource Consent - 75 - 91% LOS, 9% Growth.

Raetihi Intake & WTP Waimarino Water Supply Option

- 97 - LOS.

Raetihi Renewal of Water Mains - 160 158 Renewal.

Raetihi Valve & Hydrant Replacement

- 5 - Renewal.

Raetihi Water Main Replacement - 42 22 Renewal.

Taumarunui: Above Ground Asset Renewals

- 50 3 Renewal.

Taumarunui: Manunui Booster WPS - 8 - LOS.

Taumarunui, (Matapuna) Chemical Bunding

- 42 - LOS.

Taumarunui (Matapuna) Health and Safety

- 5 - LOS.


Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

Taumarunui (Matapuna) Intake: Resource Consent

- 27 - LOS.

Taumarunui (Matapuna) Intake: Asset renewal

- - 25 Renewal.

Taumarunui (Matapuna) WTP Scada to Windows 7

- - 3 LOS.

Taumarunui (Matapuna) WTP Upgrade

- - 40 LOS.

Taumarunui (Matapuna) Water Filters

- - 114 LOS.

Taumarunui Power savings project - - 2 LOS.

Taumarunui Rangaroa Reservoir Asset Renewal

- - 4 Renewal.

Taumarunui: Te Peka Reservoir: Asset Renewal

- 1 - Renewal.

Taumarunui Valve & Hydrant Replacement

- 11 - Renewal.

Taumarunui Water Main Replacement

- 37 9 Renewal.

Waiouru Main St. Upgrade - - 31 Growth.

Waiouru Valve & Hydrant Replacement

9 - Renewal.

District Wide Critical Spares - - 7 LOS.

District Wide Earthquake Assessments

- 45 - LOS.


665 1,401 1,122


Work in Progress


WIP $000

Closing WIP $000

Notes

District Wide: Critical Spares 1 12 Ongoing.

National Park - WTP - Asset Renewal

7 28 Ongoing project.

National Park - Resource Consent 179 2 Consent lodged with Horizons Regional Council.

Water D/W 38 - Completed.

Ohakune - Network - Backflow Prevention

46 - Completed.

Ohakune Valve and Hydrant Replacement

- 10 Ongoing project.

Ohakune WTP - Asset Renewal 28 - Completed.

Ohakune Water Main Replacement 2 122 To be completed in 2016/17.

Ohakune WTP - Filtration 84 - Completed.

WTP - Migrate SCADA base stations to Windows 7

15 - Completed.

Ohakune Resource Consent 18 - Completed.

Ohura Resource Consent - Sludge 43 - Completed.

Owhango Intake: Resource Consent - 32 Required work for consent.

Owhango -Valve & Hydrant Replacement

4 - Completed.

Owhango WTP: Asset Renewal 7 - Completed.

2014 - Raetihi: Meter Installation 1 - Completed.

Raetihi Intake Resource Consent - 1 Required work for consent.

Raetihi WTP & Reservoir: Asset Renewal

1 2 Ongoing project.

Raetihi Network - Water Main Replacement

15 - Completed.

Taumarunui - Huia Street. Water Mains


Taumarunui - Intake Resource Consent

- 9 Consent lodged with Horizons Regional Council.

Taumarunui Network - Water Main Replacement




WIP $000

Closing WIP $000

Notes

Taumarunui - WTP - Health & Safety 2 4 To be completed in 2016/17.

Taumarunui - PHR&P with Cap Funding

13 163 To be completed in 2016/17.

Taumarunui - WTP - Asset Renewal 25 - Completed.

Taumarunui - Power Savings Project - 2 To be completed in 2016/17.

Taumarunui - Matapuna WTP Filters 6 90 Ongoing project.

Taumarunui - Matapuna WTP – Upgrade

124 - Completed.

Taumarunui - WTP – SCADA Base Stations Migration to Windows 7

14 - Completed.

Taumarunui - Above Ground Asset Renewals


Total 673 508


Highlights for the Year Council’s continuing programme of water main replacement and upgrade has seen 930 metres

of asbestos water pipeline, installed in the 1960s, upgraded in Ohakune. The outcome of this upgrade is reduced water loss from the network, reduced risk of pipe failure and interruption to supply and reduced reactive costs to Council.

Continuation of works begun in 2014 and 2015 saw the water mains at two road crossings in Taumarunui renewed. In addition, 135 metres of steel water pipeline, installed in 1966 and in poor condition, was replaced and upgraded with plastic (MDPE).

Work to renew the Taumarunui Water Supply Resource Consent, due to expire 20 June 2017, is

underway with ecological sampling of the river carried out upstream and downstream of the water treatment plant in Matapuna. Iwi consultation, to inform the cultural considerations for the consent renewal, has commenced and a survey has been sent out to rural users of the supply to provide information on the number of stock and other usage such as irrigation. This complies with requirements by Horizons Regional Council to show adherence to key policies from the Horizons Regional One Plan for reasonable, justifiable and efficient use of water.

In 2013, under the Ministry of Health (MoH) Capital Assistance Programme, Council was granted

funding to upgrade the Matapuna Water Treatment Plant to improve water quality output and move toward compliance with Drinking Water Standards New Zealand and with the Health (Drinking Water) Amendment Act. The first stage of the upgrade, which consisted of the installation and monitoring of an ultra violet (UV) system at the plant, was completed in 2015. The second stage of the upgrade for the installation of a UV unit, run-to-waste facility on the rapid gravity filters and anti-short circuiting baffle has commenced and is currently proceeding ahead of schedule with a completion date set for July 2016.

In August 2015 Council was awarded a grant by the MoH, under a funding programme aimed at

helping small, disadvantaged communities to establish or improve their drinking water supplies, to build a new water treatment plant in Raetihi. The aim of the upgrade is improved water quality and safety for the supply of Raetihi. The contract began in March 2016 and is set to run over the next year with a commissioning date set for March 2017.

An additional chlorine analyser has been installed at the Raetihi Water Treatment Plant providing

a backup to the existing analyser and allowing even better control of chlorine dosing of the water supply.

An uninterrupted power supply system has been installed at the Raetihi Water Treatment Plant

to prevent effects from power fluctuations on the control system of the plant. Upgrade of 575 metres of water main has been completed in Raetihi.

An application to renew the Owhango Water Supply

Resource Consent was lodged with Horizons Regional Council on 18 December 2015 and is currently under review.

A post-reservoir chlorine analyser has been installed

at the Owhango Water Treatment Plant providing a backup to the existing chlorine analyser situated between the dosing unit and the reservoir, and providing even better control of chlorine dosing.

Owhango water supply intake.


Works toward installing a clarification step at the Owhango Water Treatment Plant have begun with the investigation into the re-use of filters lifted from the disused Ongarue Water Treatment Plant.

The MoH funded upgrade of the National Park Water Treatment Plant

(WTP) has been completed in a move to bring the National Park water supply closer to compliance with Drinking Water Standards New Zealand. The upgrade included improvements to the filtering system, pH and turbidity monitoring and installation of an ultra violet system.

Works carried out in Waiouru have seen 175 metres of asbestos cement

ridermain replaced with plastic piping. Meter installation across the District has been delayed to allow time to

assess whether smart meters or traditional meters are the best option. The status of resource consents for water plants is as follows:

Town Expiry Date Notes

Ohura 14 November 2021 Current.

Taumarunui 20 June 2017 Current.

Owhango 20 March 2016 New application lodged with Horizons Regional Council 18 Dec 2015.

National Park 12 December 2026 Current.

Raetihi 30 April 2015 New application lodged with Horizons Regional Council 30 Jan 2015.

Ohakune 11 September 2025 Current.

Waiouru * Not Applicable Current.

*Water for Waiouru Township is procured from the New Zealand Defence Force.

National Park WTP UV

unit.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Water Supply Activity

Actual

LTP 2015 LTP 2016 2016

$000 $000 $000



(1) 22 45

Targeted rates 2,787 3,011 3,426

Subsidies and grants for operating purposes - - 304




- - -








Surplus/(deficit) of operating funding (A-B) 991 1,097 1,448















Total applications of capital funding (D) 1,059 1,417 1,581Surplus/(deficit) of capital funding (C-D) (991) (1,097) (1,448)Funding balance ((A-B)+(C-D)) - - -

Operating funding figures have been changed to reflect targeted rates for water correctly. The net amount has not changed.


WASTE MANAGEMENT AND MINIMISATION

Introduction The Waste Management and Minimisation activity manages the collection, receipt and disposal of refuse and recycling in the District. People generate waste each day and the current trend of increasing waste associated with consumption creates an ongoing challenge in waste management and minimisation. If solid waste is not managed in a suitable manner, it may pose serious public health. In addition, landfill waste can result in significant environmental effects, e.g. leachate can contaminate surrounding soil and water, while landfill gases (methane and carbon dioxide) contribute towards climate change. The disposal of waste to landfill has a significant cost associated with it. This cost is likely to increase with the closing of the District landfill in 2020. The national Emissions Trading Scheme (ETS) may also have an impact as prices in carbon markets change. To address these issues, Council is actively working to minimise the volume of waste produced, e.g. through the kerbside recycling programme and removing organics from the waste stream. The assets for Waste Management and Minimisation activity include the District landfill in Taumarunui, seven transfer stations and seven decommissioned landfills.


Aim of Waste Management and Minimisation and Contribution to Outcomes The aim of Waste Management and Minimisation activity is to maintain the level of service to the community, whilst increasing the proportion of solid waste being collected within the District for recycling.

The 2013 customer satisfaction survey conducted by the National Research Bureau indicates that levels of 80+% for kerbside services and 60+% for transfer stations and recycling have been maintained. The next National Research Bureau survey is scheduled for 2016 (survey every three years).

The Waste Management and Minimisation activity targets the following Outcomes by providing core facilities, opportunities for community involvement and participation and working towards improving the environment with the goal of waste minimisation. That the impact of waste on our environment is minimised. Excellent standards of safety and welfare are promoted and respected. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and

roading) endeavours to keep pace with changing demand. That Council plans for and works with the community to ensure that our environment is accessible,

clean and safe and that our water, soil and air meet acceptable, affordable standards.

0

10

20

30

40

50

60

70

80

90

100

Kerbside rubbishcollection

Kerbside recyclingcollection

Transfer Stationservices

Level of Service (Percentage)

2005

2007

2010

2013

2016


What we Achieved



2015/16 Target

2015/16 Actual

Commentary


Goal: Towards waste minimisation and a sustainable environment.

Goal: That the impact of waste on our environment is minimised.

Goal: To provide and maintain an appropriate level of infrastructure and people are informed about, and participate in, waste minimisation.

The community is provided with opportunities to recycle.

The portion of waste recycled increases by 0.5% each year.

+2.98% +0.5% -6.6% Not achieved.

(Note 1).

Waste minimisation is encouraged.

An annual waste audit is conducted to identify opportunities to increase recycling.


1 1 Achieved.

Outcome of audit indicated that greater recycling thus further reduction of waste to landfill is possible.

Recycling facilities are improved and/or expanded at two locations annually.


2 2 Achieved.

National Park Transfer Station expanded.

Ohakune Transfer Station improved.

Waste Minimisation initiatives promoted District wide.


2 2 Achieved.

Fabric nappy promotion and online Council Facebook campaign on waste undertaken.

Legislative compliance is achieved.

Annual resource consent breaches.

Achieved. No consent issues at landfill.

<3 One minor consent breach in regards to water monitoring.

Achieved.

One compound wasn’t measured that was required to be measured biennially.

This will be measured annually for the next two years.




2015/16 Target

2015/16 Actual

Commentary


Goal: Towards waste minimisation and a sustainable environment.

Goal: That the impact of waste on our environment is minimised.

Goal: To provide and maintain an appropriate level of infrastructure and people are informed about, and participate in, waste minimisation.

Waste hierarchy (reduce, reuse, recover, redirect and refuse) promoted throughout the community.

Number of multimedia communications to the public on the Waste Hierarchy.

1 >3 3 Not achieved.

Two industry stewardship schemes promoted annually.


2 2 Achieved. Cloth Nappy Promotion. Love Food Hate Waste press release.

Waste education in schools.

Percentage of schools visited annually that express a desire to participate in Zero Waste Education programme.

75% 75% 75% Achieved.

Schools participating in Zero Waste programme visits reported on.

Community is satisfied with the overall level of service for Waste Management and Minimisation.

Percentage of community satisfied with the overall LOS.

60% 70% 67.71% Not achieved.

Number of requests for service that indicate poor service provision is less than 156 per year (approximately three per week).


<156 53 Achieved.

Approximately one per week.

Notes:

Note 1: 2014/15 we had unusually low volumes of waste to the Landfill and this was reflected by a higher percentage of waste diverted as recycling.

Note2: Although 2015/16 has a decrease in recyclable product and an increase in the volume of waste which is reflected by the lower ratio of recyclables/waste there is an overall decrease of waste to Landfill from 2013/14.

Note 3: Overall the volume of waste to Landfill is trending downwards, despite 2015/16 spiking up compared to 2014/15.


Capital Projects

Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

2016 Waste Initiatives 16 10 - All expenditure is offset by revenue received from the Waste Levy received from Central Government for expenditure on waste initiatives.

District Signs 3 3 - Renewal of sign information.

E-Waste recycling - 5 - Less funding will be required in future years. 2015/16 expenditure offset by Waste Levy received.

New Waste Stream Removal 21 20 - Although predicted as necessary, no new removal facility required.

Taumarunui Site Development 42 30 - Planned project now modified to recycling shop only. Deferred until willing partners from community come forward. May be re-allocated as part of 2018 - 2028 LTP.

Ohura Site Development 5 10 - Planned installation of new facilities identified as no longer necessary with modification of existing facilities.

District – Painting Containers 5 5 - Budget transferred to operational activity.

National Park site development 30 40 - This project was identified as a probable new recycling station capable of receiving waste streams from RAL and the Department of Conservation. These streams are being managed by the Department of Conservation and funding not required in the short term future.

National Park Development phone, power, etc.

21 10 - This small project will form part of a larger infrastructure installation where Council wastewater and water infrastructure is extended through the transfer station site when St Peter’s College undertake their proposed development West of National Park village.

Recycling facilities at transfer stations

- 5 - Current facilities modified and no new expenditure required.


Project Description


$000

LTP 2015/16

$000

Actual 2015/16

$000 Notes

Repaint Waimarino Transfer Station - 30 - Work not yet required and will be budged for in operational expenditure in 2020.

Waimarino Site Development 69 20 13 Balance of work will be undertaken in 2016/17 year. 50% Growth, 50% LOS.

National Park Road Improvement - 10 - Budget transferred to operational expenditure as asset not owned by Council.

Waimarino Weighbridge - 82 - Council approved carry over and re-allocation of funding to new digger Waimarino to be purchased 2016/17 year.

Waimarino Bins - 5 - Expenditure predicted but proven unnecessary.

Waimarino Road Improvement - 5 - Minor works undertaken as part of site development.

Road Improvement Taumarunui - 20 - Minor works as required on both; - Sealed road to weighbridge. - Transfer Station area adjacent

weighbridge.

Total 212 310 13

Work in Progress

Project Description

Opening WIP $000

Closing WIP $000

Notes

2014 District Signs 1 - Completed.

2014 Waimarino Site Development 3 - Completed.

2014 Ohura Site Development 3 Completed.

2015 Taumarunui Site Development 99 - Completed.

Landfill Closure – Taumarunui 18 - Completed.

Total 124 -


Highlights for the Year Council collected a large number of CRT televisions under the now defunct TV takeback recycle

scheme. Council arranged for South Waikato Achievement Centre to collect the television sets. In all, they collected in excess of seven tonnes of television sets.

Improvements at National Park Transfer Station – Work was undertaken to clear scrub and upgrade the drainage at the National Park Transfer Station. This has provided far greater useable space and will enable Council to arrange two refuse bins, green waste bin and scrap metal bin alongside the ramp (which will be extended) and allow customers to top load the bins. Top loading will mean more refuse can be placed in the bins safely and the bins can be transported less often. Every bin movement costs Council a flat fee from EnviroNZ so this will save Council money.

The TV graveyard is no more.

Work underway at National Park Transfer Station.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2016 Waste Management and Minimisation Activity

Actual LTP 2015 LTP 2016 2016 $000 $000 $000



1,014 395 303

Targeted rates 748 1,087 1,118





- - -











Development and financial contributions 54 - -

Increase/(decrease) in debt 177 234 (142)



Total sources of capital funding (C) 231 234 (142)



- To meet additional demand 94 134 (60)

- To improve the level of service 122 131 (51)

- To replace existing assets 40 45 -




Section Two

Financial Information


Section Two cover image: Tongariro National Park, Ruapehu District, New Zealand.


CONTENTS

Part A – Consolidated Statements ..................................................................................................................... 3

STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2016 ........................................................................................................................................................ 3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................................ 4

STATEMENT OF CHANGES IN EQUITY .......................................................................................................... 5

CONSOLIDATED STATEMENT OF CASH FLOWS ......................................................................................... 6

Part B – Notes to the Financial Statements for Council and Group ................................................................... 7

1. STATEMENT OF ACCOUNTING POLICIES ......................................................................................... 7 Reporting Entity .................................................................................................................................. 7 Basis of Preparation ........................................................................................................................... 7 Summary of Significant Accounting Policies .................................................................................. 8

2. RATES REVENUE ............................................................................................................................... 20 Rates Remissions ............................................................................................................................... 20 Non-Rateable Land ............................................................................................................................. 20

3. FEES AND CHARGES ......................................................................................................................... 21

4. SUBSIDIES AND GRANTS .................................................................................................................. 21

5. FINANCE INCOME AND FINANCE COSTS ........................................................................................ 21

6. OTHER REVENUE ............................................................................................................................... 22

7. GAINS ................................................................................................................................................... 22

8. PERSONNEL COSTS .......................................................................................................................... 22

9. OTHER EXPENSES ............................................................................................................................. 23

10. LOSSES................................................................................................................................................ 23

11. CASH AND CASH EQUIVALENTS ...................................................................................................... 24

12. DEBTORS AND OTHER RECEIVABLES ............................................................................................ 24 Fair Value ............................................................................................................................................ 24 Impairment .......................................................................................................................................... 25

13. INVENTORY ......................................................................................................................................... 26

14. INVESTMENT IN ASSOCIATES .......................................................................................................... 27 Purpose of the Associates .................................................................................................................. 27

15. OTHER FINANCIAL ASSETS .............................................................................................................. 28

16. PROPERTY, PLANT AND EQUIPMENT ............................................................................................. 29

17. INTANGIBLE ASSETS ......................................................................................................................... 34

18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY ................................ 34

19. FORESTRY ASSETS ........................................................................................................................... 35

20. INVESTMENT PROPERTY .................................................................................................................. 35 Valuation ............................................................................................................................................. 35

21. CREDITORS AND OTHER PAYABLES .............................................................................................. 36

22. BORROWINGS .................................................................................................................................... 37 Secured Loans .................................................................................................................................... 37 Security ............................................................................................................................................... 37 Fair Values .......................................................................................................................................... 37 Internal Borrowings ............................................................................................................................. 37


23. EMPLOYEE ENTITLEMENTS.............................................................................................................. 38

24. PROVISIONS ....................................................................................................................................... 38 Landfill Aftercare Costs ....................................................................................................................... 39

25. EQUITY ................................................................................................................................................. 40 Purpose of Each Reserve Fund .......................................................................................................... 43

26. RECONCILIATION OF NET SURPLUS/(DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES .......................................................................................................................................... 44

27. COMMITMENTS AND OPERATING LEASES..................................................................................... 45 Operating Commitments ..................................................................................................................... 45 Operating Commitment Reclassifications ........................................................................................... 45 Operating Leases................................................................................................................................ 45

28. CONTINGENCIES ................................................................................................................................ 46 Contingent Liabilities ........................................................................................................................... 46

29. RELATED PARTY TRANSACTIONS ................................................................................................... 46 Transactions with Key Management Personnel ................................................................................. 46 Provisions/Impairments ...................................................................................................................... 47

30. REMUNERATION ................................................................................................................................. 48 Chief Executive ................................................................................................................................... 48 Elected Representatives ..................................................................................................................... 48 Council Employees ............................................................................................................................. 49

31. SEVERANCE PAYMENTS ................................................................................................................... 50

32. EVENTS AFTER THE BALANCE DATE .............................................................................................. 50

33. FINANCIAL INSTRUMENT RISKS ...................................................................................................... 50 Financial Instrument Categories ......................................................................................................... 50

34. CAPITAL MANAGEMENT .................................................................................................................... 54

35. COUNCIL CONTROLLED ORGANISATIONS ..................................................................................... 55

36. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET .......................................................... 55

Part C - Other Legislative Disclosures .............................................................................................................. 57

1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2016 – ALL ACTIVITIES ............................................................................................................ 57

2. SUPPORT FUNDING IMPACT STATEMENT ..................................................................................... 58

3. OVERALL FUNDING IMPACT STATEMENT RECONCILIATION ...................................................... 59

4. RATING BASE INFORMATION ........................................................................................................... 60

5. INSURANCE ......................................................................................................................................... 60

6. BENCHMARKS .................................................................................................................................... 61

Part A – Consolidated Statements



STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2016

Group and Parent For the year ended 30 June 2016

Council And Group

Notes Actual Budget Actual

2016 2016 2015

$000 $000 $000

Revenue

Rates 2 20,877 20,497 20,100

Fees and Charges 3 2,074 2,947 1,932

Development and Financial Contributions 73 - 74

Subsidies and Grants 4 11,903 10,232 8,216

Finance Revenue 5 31 55 63

Other Revenue 6 1,965 223 1,220

Gains 7 6 34 26

Total Revenue 36,929 33,988 31,631

Expenses

Personnel Costs 8 4,719 5,533 4,627

Depreciation and Amortisation Expense 18 8,491 8,551 8,291

Finance Costs 5 1,355 1,683 1,503

Other Expenses 9 19,513 16,038 14,651

Losses 10 43 - 853

Total Expenses 34,121 31,805 29,925

Share of Associate's Surplus / (Deficit) 76 - 63

Net Surplus / (Deficit) 2,884 2,183 1,769

Other Comprehensive Revenue and Expense

Gain/(Loss) on Property, Plant and Equipment Revaluations

25 - 9,150 (1,125)

Property, Plant and Equipment Revaluation Adjustment

25 (970) - -

Financial Assets at Fair Value Through Comprehensive Revenue and Expense

15 15 - -

Total Other Comprehensive Revenue and Expense (955) 9,150 (1,125)

Total Comprehensive Revenue and Expense 1,929 11,333 644 Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Group and Parent As at 30 June 2016

Council And Group


2016 2016 2015

$000 $000 $000

Assets

Current Assets

Cash and Cash Equivalents 11 642 (23) 36

Receivables 12 2,573 4,079 3,480

Prepayments and Accrued Income 1,696 950 960

Inventory 13 135 101 152

Total Current Assets 5,046 5,107 4,628

Non-Current Assets

Investment in Associates

- Investment in CCOs and other similar Entities 14 490 - 399

Other Financial Assets 15 117 182 110

Biological Assets - 344 -

Property, Plant and Equipment 16 379,002 392,349 378,396

Intangible Assets 17 437 273 512

Investment Property 20 2,319 3,047 2,358

Total Non-Current Assets 382,365 396,195 381,775

Total Assets 387,411 401,302 386,403

Liabilities

Current Liabilities

Creditors and Other Payables 21 4,035 2,858 3,563

Borrowings 22 5,500 6,000 9,292

Employee Entitlements 23 420 197 389

Income in Advance 906 735 717

Total Current Liabilities 10,861 9,790 13,961

Non-Current Liabilities

Borrowings 22 20,300 24,252 17,800

Provisions 24 183 445 455

Creditors and other Payables 21 101 - 150

Total Non-Current Liabilities 20,584 24,697 18,405

Total Liabilities 31,445 34,487 32,366

Net Assets 355,966 366,815 354,037

Equity

Accumulated Funds 25 263,318 261,706 260,533

Other Reserves 25 92,648 105,109 93,504

Total Equity Attributable to the Council 355,966 366,815 354,037

Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.



STATEMENT OF CHANGES IN EQUITY Group and Parent For the year ended 30 June 2016

Council And Group


2016 2016 2015

$000 $000 $000

Balance at 1 July 354,037 355,482 353,393Total Comprehensive Revenue and Expense for the Year

1,929 11,333 644

Balance at 30 June 25 355,966 366,815 354,037 Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.



CONSOLIDATED STATEMENT OF CASH FLOWS Group and Parent For the year ended 30 June 2016

Council And Group Notes Actual Budget Actual

2016 2016 2015 $000 $000 $000

Cash Flows from Operating Activities Cash was received from: Receipts from Rates Revenue 21,039 20,492 19,830Receipts from Subsidies and Grants 12,139 9,188 7,790Interest Received 31 55 73Dividends Received - - -Other Revenue 3,904 4,214 3,363Goods and Services Tax (Net) 161 - 113 37,274 33,949 31,169Cash was distributed to: Payments to Suppliers (18,805) (16,255) (15,378)Payments to Employees and Elected Members (5,046) (5,590) (4,784)Interest Paid (1,349) (1,683) (1,593) (25,200) (23,528) (21,755)Net Cash Flow from Operating Activities 26 12,074 10,421 9,414 Cash Flows from Investing Activities Cash was received from: Receipts from Sale of Property, Plant and Equipment

8 - 39

8 - 39Cash was distributed to: Purchase of Property, Plant and Equipment (10,041) (12,153) (8,707)Purchase of Intangible Assets (128) - (212)Purchase of Investments (15) - - (10,184) (12,153) (8,919)Net Cash Flow from Investment Activities (10,176) (12,153) (8,880) Cash Flows from Financing Activities Cash was received from: Proceeds from Borrowings 8,000 2,415 3,500 8,000 2,415 3,500Cash was distributed to: Repayment of Borrowings (9,000) (1,000) (5,000) (9,000) (1,000) (5,000)Net Cash Flow from Financing Activities (1,000) 1,415 (1,500) Net Increase/(Decrease) in Cash, Cash Equivalents and Bank Overdrafts

898 (317) (966)

Cash, Cash Equivalents and Bank Overdrafts at the beginning of the year

(256) 294 710

Cash, Cash Equivalents and Bank Overdrafts at the end of the year

11 642 (23) (256)

Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.

Part B – Notes to the Financial Statements for Council and Group



1. STATEMENT OF ACCOUNTING POLICIES

Reporting Entity Ruapehu District Council (the Council or RDC) is a territorial local authority established under the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. The relevant legislation governing the Council’s operations includes the LGA and the Local Government (Rating) Act 2002. The group consists of: The ultimate parent, Ruapehu District Council. RDC Holdings Ltd (100% owned subsidiary) which is non-trading. Manawatu Wanganui LASS Ltd (14.29%) which is equity accounted (an associate). Wanganui District Council’s Forestry Joint Committee (3.93%) which is equity accounted (an associate). All subsidiaries and associated entities are established and domiciled in New Zealand. The financial statements reflect the consolidated results for RDC and group. The only subsidiary of RDC (RDC Holdings Limited) is non-active and has no revenue, expenditure, assets or liabilities, and as Group and Parent accounts are materially the same. Only Group (consolidated) accounts have been prepared. The Council and Group provide local infrastructure, local public services, and perform regulatory functions. The Council does not operate to make a financial return. The Council has designated itself and the group as public benefit entities (PBEs) for financial reporting purposes. The financial statements of the Council and Group are for the year ended 30 June 2016. The financial statements were authorised for issue by Council on 7 October 2016.

Basis of Preparation The financial statements have been prepared on the going concern basis. The accounting policies have been applied consistently throughout the period. Statement of Compliance The financial statements of the Council and Group have been prepared in accordance with the requirements of the LGA which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). These financial statements have been prepared in accordance with Tier 1 PBE accounting standards. Presentation Currency and Rounding The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).



Summary of Significant Accounting Policies

Basis of Consolidation The consolidated financial statements are prepared by adding together like items of assets, liabilities, equity, revenue, and expenses of entities in the group on a line-by-line basis. All intragroup balances, transactions, revenue and expenses are eliminated on consolidation.

Subsidiaries The Council consolidates in the group financial statements all entities in which the Council has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the subsidiary. This power exists where the Council controls the majority voting power on the governing body or where policies have been irreversibly predetermined by Council, or where the determination of such policies is unable to materially affect the level of potential ownership benefits that arise from the activities of the subsidiary. The only subsidiary owned is RDC Holdings Ltd (100% owned).

Associate The Council’s associate investment is accounted for in the group 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 group financial statements is increased or decreased to recognise the group’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 in the group financial statements. If the share of deficits of an associate equals or exceeds its interest in the associate, the group discontinues recognising its share of further deficits. After the group’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 group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where the group transacts with an associate, surpluses 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. Associates of the Council are: Manawatu Wanganui LASS Ltd (14.29%, owned with six other local authorities). This entity is an exempt

Council Controlled Organisation. Wanganui District Councils’ Forestry Joint Committee (3.93%, owned with two other local authorities).



Revenue Revenue is measured at fair value of consideration received or receivable. Revenue may be derived from either exchange or non-exchange transactions.

Exchange Transactions Exchange transactions are transactions where RDC receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange. Revenue derived through the provision of services to third parties in a commercial manner is recognised in proportion to the stage of completion at balance date. Revenue from asset management services is recognised when provided to the customer. Interest revenue is recognised using the effective interest method. Interest revenue on an impaired financial asset is recognised using the original effective interest rate. Dividends are recognised when the right to receive payment has been established. When dividends are declared from pre-acquisition surpluses, the dividend is deducted from the cost of the investment.

Non-Exchange Transactions Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, RDC either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange or where the value given or received is not able to be accurately measured. This includes transactions for activities which are subsidised through rates. An inflow of resources from a non-exchange transaction, whether this be an asset or revenue, is only recognised if a liability is not also recognised for that particular asset or revenue. A liability is only recognised to the extent that the present obligations have not been satisfied. A liability in respect of a transferred asset is recognised only when the transferred asset is subject to a condition, such as a condition for the asset to be consumed as specified and / or that future economic benefits or service potential must be returned to the owner. The specific accounting policies relating to significant revenue items follow.

Rates Revenue The following policies for rates have been applied:

General rates and targeted rates (excluding water-by-meter), are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. The Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue.

Rates arising from late payment penalties are recognised as revenue when rates become overdue.

Revenue from water-by-meter rates is recognised on an accrual basis based on usage. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis.

Rates remissions are recognised as a reduction of rates revenue when the Council has received an application that satisfies its rates remission policy.

Development and Financial Contributions Development and financial contributions are recognised as revenue when the Council provides, or is able to provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as the Council provides, or is able to provide, the service.



New Zealand Transport Agency Roading Subsidies The Council receives funding assistance from the New Zealand Transport Agency, which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.

Other Grants Received Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.

Building and Resource Consent Revenue Fees and charges for building and resource consent services are recognised on a percentage completion basis with reference to the recoverable costs incurred at balance date.

Landfill Fees Fees for disposing of waste at the Council’s landfill are recognised as waste is disposed by users.

Infringement Fees And Fines Infringement fees and fines mostly relate to traffic and parking infringements and are recognised when the infringement notice is issued. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the collection history of fines.

Vested or Donated Physical Assets For assets received for no or nominal consideration, the asset is recognised at its fair value when the Council obtains control of the asset. The fair value of the asset is recognised as revenue, unless there is a use or return condition attached to the asset. The fair value of vested or donated assets is usually determined by reference to the cost of constructing the asset. For assets received from property developments, the fair value is based on construction price information provided by the property developer. For long-lived assets that must be used for a specific use (e.g. land must be used as a recreation reserve), the Council immediately recognises the fair value of the asset as revenue. A liability is recognised only if Council expects that it will need to return or pass the asset to another party.

Donated and Bequeathed Financial Assets Donated and bequeathed financial assets are recognised as revenue unless there are substantive use or return conditions. A liability is recorded if there are substantive use or return conditions and the liability released to revenue as the conditions are met (e.g. as the funds are spent for the nominated purpose).

Borrowing Costs In accordance with PBE IPSAS 5 Borrowing Costs, all borrowing costs are recognised as an expense in the period in which they are incurred.

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 approved by the Council and the approval has been communicated to the applicant. The Council’s grants awarded have no substantive conditions attached.



Leases Finance Lease A finance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred. At the commencement of the lease term, finance leases are recognised as assets and liabilities in the statement of financial position at the lower of the fair value of the leased item and the present value of the minimum lease payments. The finance charge is charged to the surplus or deficit over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether the Council will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life.

Operating Leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term. Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.

Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

Receivables Receivables are recorded at their face value, less any provision for impairment.

Other Financial Assets Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit.

Purchases and sales of financial assets are recognised on trade-date, the date on which the Council and group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council and group has transferred substantially all the risks and rewards of ownership.

Financial assets are classified into the following categories for the purpose of measurement:

fair value through surplus or deficit; loans and receivables; held-to-maturity investments; and fair value through other comprehensive revenue and expense. The classification of a financial asset depends on the purpose for which the instrument was acquired.

Financial Assets At Fair Value through Surplus Or Deficit Financial assets at fair value through surplus or deficit include financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of short-term profit-taking. Financial assets acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held for trading are classified as a current asset.



After initial recognition, financial assets in this category are measured at their fair values with gains or losses on re-measurement recognised in the surplus or deficit.

Loans And Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. After initial recognition, they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

Held-To-Maturity Investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities and there is 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. After initial recognition they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

Fair Value Through other Comprehensive Revenue and Expense Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non-current assets unless Council intends to dispose of, or realise, the investment within 12 months of balance date. The Council and group includes in this category:

Investments that it intends to hold long-term but which may be realised before maturity; and Shareholdings that it holds for strategic purposes. These investments are measured at their fair value, with gains and losses recognised in other comprehensive revenue and expense, except for impairment losses, which are recognised in the surplus or deficit. On de-recognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.

Impairment of Financial Assets Financial assets are assessed for evidence of impairment at each balance date. Impairment losses are recognised in the surplus or deficit.

Loans and Receivables and Held-To-Maturity Investments Impairment is established when there is evidence that the Council and group will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership, or liquidation and default in payments are indicators that the asset is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Impairment in term deposits, local authority stock, government bonds, and community loans, are recognised directly against the instrument’s carrying amount.

Financial Assets at Fair Value Through other Comprehensive Revenue and Expense For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are objective indicators that the asset is impaired.



If impairment evidence exists for investments at fair value through other comprehensive revenue and expense, 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) recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit. Equity instrument impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit. If in a subsequent period the fair value of a debt instrument increases, and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit.

Inventory Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential. Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition. Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.

Non-Current Assets Held For Sale Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment losses for write-downs of non-current assets held for sale are recognised in the surplus or deficit. Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised. 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.

Property, Plant and Equipment Property, plant and equipment consist of: Operational Assets – These include land, buildings, parks and reserves improvements, library books, plant vehicles, computer equipment and office equipment. Restricted Assets – Restricted assets are mainly parks and reserves owned by RDC that provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions. Infrastructure Assets – Infrastructure assets are the fixed utility systems owned RDC. Each asset class includes all items that are required for the network to function. For example, sewer reticulation includes reticulation piping and sewer pump stations. Land (operational and restricted) – Is measured at fair value, and buildings (operational and restricted) and infrastructural assets (except land under roads) are measured at fair value less accumulated depreciation. All other operational and restricted asset classes are measured at cost less accumulated depreciation and impairment losses.



Revaluation Land and buildings (operational and restricted) and infrastructural assets (except land under roads) are revalued annually. Revaluations of property, plant and equipment are accounted for on a class-of-asset basis. The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class-of-asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed and then recognised in other comprehensive revenue and expense.

Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Council and group and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds.

Subsequent Costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.

Depreciation Property, plant and equipment depreciation is provided on a straight line (SL) or diminishing value (DV) basis at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. Infrastructure asset depreciation rates are based on the remaining useful life for each individual asset component. These rates are on a straight line basis. The revaluation approach, useful lives and associated depreciation rates of major classes of assets have been estimated as per the next page. For depreciated assets the residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. Any work undertaken on infrastructure assets to reinstate (termed “renewal”) or add to the service potential of the asset is capitalised. The useful lives and associated depreciation rates of major classes of assets have been estimated as per the following table:



Useful Lives and Depreciation Rates

Property, Plant and Equipment

Measurement Basis (*1)

Estimated Life Depreciation Rate

Buildings (Excluding Investment Property)

RAD 10 – 100 Years 1 - 10% SL

Other Improvements CAD 10 – 100 Years 1 - 10% SL Computer Equipment CAD 2.5 Years 40% SL Office Equipment, Furniture and Fittings

CAD 5 Years 20% SL

Library Books CAD 10 Years 10% SL Plant and Vehicles CAD 3.33 – 10 Years 10 – 30% SL

Roads and Footpaths Measurement

Basis (*1) Estimated Life Depreciation Rate

Top Surface (Seal) RAD 15 Years 6.67% SL Pavement (Base Course) RAD 100 Years 1% SL Culverts RAD 70 – 100 Years 1 – 1.33% SL Footpaths RAD 20 – 80 Years 1.25 – 5% SL Kerbs RAD 80 – 100 Years 1 – 1.25% SL Signs RAD 10 Years 10% SL Street Lights RAD 20 – 25 Years 4 – 5% SL Bridges RAD 70 – 100 Years 1 – 1.33% SL

Water Supply Measurement


Pipes RAD 50 – 85 Years 1 – 2% SL Valves and Hydrants RAD 15 – 70 Years 1 – 6.67% SL Pump Stations RAD 10 – 60 Years 1.25 – 10% SL Tanks RAD 25 – 80 Years 1 – 4% SL Treatment Plants RAD 5 – 80 Years 1.25% – 20% SL

Wastewater Measurement


Pipes RAD 50 – 85 Years 1 – 2% SL Manholes and Cesspits RAD 50 – 75 Years 1 – 2% SL Pump Stations RAD 10 – 60 Years 1 – 12.5% SL Treatment Plants RAD 10 – 200 Years 0.5 – 10% SL

Stormwater Measurement


Pipes RAD 30 – 85 Years 1 – 13% SL Manholes and Cesspits RAD 75 Years 1 – 2% SL

Solid Waste Measurement


Various RAD 20 – 70 Years 1.43 - 5% SL

Other (Not Depreciated)Measurement


Land REV Formation Costs for Roading

COST

Stop Banks REV Work In Progress and Assets Under Construction

COST

*1 CAD = Cost Less Accumulated Depreciation And Impairment Losses. RAD = Revaluation Less Subsequent Depreciation. REV = Revaluation (Not Depreciated). COST = Cost.



Intangible Assets Software Acquisition and Development Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised in the surplus or deficit when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and maintenance of the Council’s website are recognised as an expense when incurred.

Easements Easements are recognised at cost, being the costs directly attributable to bringing the asset to its intended use. Easements have an indefinite useful life and are not amortised, but are instead tested for impairment annually.

Carbon Credits Purchased carbon credits are recognised at cost on acquisition. Free carbon credits received from the Crown are recognised at fair value on receipt. They are not amortised, but are instead tested for impairment annually. They are derecognised when they are used to satisfy carbon emission obligations.

Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and amortisation rates have been estimated as follows:

Amortisation Rates Intangibles Estimated Life Amortisation

Rate Proprietary Software 3 years 33.3% SL

Corporate Software 8 years 12.5% SL

Pipiriki Wastewater Treatment Plant Resource Consent 22 years 5% SL

Impairment of Property, Plant and Equipment and Intangible Assets Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment. Property, plant and equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying amount is written-down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit.

Value in Use for Non-Cash-Generating Assets Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.



Value in Use for Cash-Generating Assets Cash-generating assets are those assets that are held with the primary objective of generating a commercial return. The value in use for cash-generating assets and cash-generating units is the present value of expected future cash flows.

Investment Property Properties leased to third parties under operating leases are classified as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation. Investment property is measured initially at its cost, including transaction costs. After initial recognition, all investment property is measured at fair value at each reporting date. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit.

Payables Short-term creditors and other payables are recorded at their face value.

Borrowings Borrowings are initially recognised at their fair value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Council or group has an unconditional right to defer settlement of the liability for at least 12 months after balance date.

Employee Entitlements Short-Term Employee Entitlements Employee benefits expected to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date. A liability and an expense are recognised for bonuses where the Council or group has a contractual obligation or where there is a past practice that has created a constructive obligation. The Council expects all employee entitlements to be settled within 12 months of balance date.

Superannuation Schemes Defined Contribution Schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred.

Provisions A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.



Equity Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into the following components: Accumulated funds; Restricted reserves; Asset revaluation reserve; Fair value through other comprehensive revenue and expense reserve.

Restricted 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 include 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 reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council.

Asset Revaluation Reserve This reserve relates to the revaluation of property, plant and equipment to fair value.

Fair Value through Other Comprehensive Revenue and Expense Reserve This reserve comprises the cumulative net change in the fair value of assets classified as fair value through other comprehensive revenue and expense.

Goods and Services Tax All items in the financial statements are stated exclusive of GST, except for receivables and payables. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.

Budget Figures The budget figures are those approved by the Council for the year 2015/16 in its Long Term Plan 2015-25. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted in preparing these financial statements.



Cost Allocation The cost of service for each significant activity of the Council has been derived using the cost allocation system outlined below: Direct costs are those costs directly attributable to a significant activity.

Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific

significant activity. Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as staff numbers and size of budgets.

Critical Accounting Estimates and Assumptions In preparing these financial statements, estimates and assumptions have been made 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 below: Infrastructural Assets - Note 16 provides information about the estimates and assumptions applied in determining the fair value of infrastructural assets. Landfill Aftercare Provision - Note 24 provides information about the estimates and assumptions surrounding the landfill aftercare provision.

Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 30 June 2016:

Classification of Property The Council owns a number of properties held to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for service delivery objectives as part of the Council’s social housing policy. The properties are therefore classified as property, plant and equipment rather than as investment property. Taumarunui Airport and Ohakune Railway station are held for strategic reasons rather than for generation of revenue and are therefore classified as property, plant and equipment rather than as investment property.



2. RATES REVENUE

2016 2015

$000 $000

General Rates 8,114 7,499

Targeted Rates Attributable to Activities:

Community Support 332 275

Land Transport 4,944 4,852

Stormwater 406 435

Wastewater 2,226 2,381

Water 3,130 3,075

Water Charges By Meter 296 319

Solid Waste 1,118 1,108

Rates Penalties 311 156

Total Rates Revenue 20,877 20,100 Of the total rates revenue, $258,821 (last year $245,000) is for rates paid to RDC by RDC on properties it owns or leases. Water charges by meter have been reclassified from user fees and charges due to a legislative change.

Rates Remissions Rates revenue is shown net of rates remissions. The Council rates remission policy allows rates to be remitted on land used for sport, land protected for historical or cultural purposes and contiguous and land-locked properties.

2016 2015

$000 $000

Total Gross Rates Revenue 21,481 20,685

Rates Remissions:

- Land used for Sport, Clubs and Societies 18 17

- Land protected for Historical or Cultural Purposes 41 37

- Contiguous and Land-Locked Properties 396 380

- Community Organisations 149 151

Total Remissions 604 585

Rates Revenue Net of Remissions 20,877 20,100

Non-Rateable Land Under the Local Government (Rating) Act 2002 certain properties cannot be rated for general rates. These properties include schools, places of religious worship, public gardens and reserves. These non-rateable properties may be subject to targeted rates in respect of wastewater, water, refuse and sanitation. Non-rateable land does not constitute a remission under RDC's Rates Remission Policy.



3. FEES AND CHARGES

2016 2015

$000 $000

User Charges 800 646

Regulatory Revenue 268 293

Rental Charges 330 356

Refuse Charges 676 637

Total Fees and Charges (Non-Exchange) 2,074 1,932

4. SUBSIDIES AND GRANTS

2016 2015

$000 $000

New Zealand Transport Agency (NZTA) Roading Subsidies

Operational Subsidies 6,805 3,618

Capital Subsidies 4,610 4,484

Streetlight Cost Recovery 159 94

Total NZTA Subsidies 11,574 8,196

Other Miscellaneous Subsidies 329 20

Total Subsidies and Grants (Non-Exchange) 11,903 8,216 There are no unfilled conditions and other contingencies attached to NZ Transport Agency subsidies recognised.

5. FINANCE INCOME AND FINANCE COSTS

2016 2015

$000 $000

Finance Income

Interest Income 30 63

Dividend Income 1 -

Total Finance Income (Exchange) 31 63

Finance Costs:

Interest Expense

- Interest on Bank Borrowings 1,338 1,378

- Interest on Bonds Issued - 103

- Discount unwind on Provisions 17 22

Total Finance Costs 1,355 1,503

Net Finance Costs 1,324 1,440



6. OTHER REVENUE

2016 2015

$000 $000

Non-Exchange

Infringements and Fines 36 26

Petrol Tax 133 141

Vested Assets - 90

Other 1,375 942

Total Non-Exchange Revenue 1,544 1,199

Exchange

Rental Revenue (from Investment Properties) 23 21

Other 398 -

Total Exchange Revenue 421 21

Total Other Revenue 1,965 1,220

7. GAINS

2016 2015

$000 $000

Non-Financial Instruments

Disposal of Assets 6 26

Total Non-Financial Instrument Gains 6 26

8. PERSONNEL COSTS

2016 2015

$000 $000

Salaries and Wages 4,541 4,377

Defined Contribution Plan Employer Contributions 110 97

Increase / (Decrease) in Employee Entitlements 67 150

Other Employee Benefits 1 3

Total Personnel Costs 4,719 4,627 Employer contributions to defined contribution plans include contributions to KiwiSaver.



9. OTHER EXPENSES

2016 2015

$000 $000

Fees to Principal Auditor

- Fees to Audit NZ for the Audit Of RDC's Prior Year Financial Statements 40 -

- Fees to Audit NZ for the Audit Of RDC's Current Financial Statements 135 133

- Fees to Audit NZ for the Audit of RDC’s LTP - 94

Total Fees to Principal Auditor 175 227

Roading Maintenance 7,814 4,338

All Other Maintenance 4,162 4,240

Consultants and Legal Fees 1,645 1,353

Rental Expenses 413 414

Operating Lease Expenditure 143 131

Impairment of Receivables (Note 12) 116 (411)

Property Impairment (Note 16) 241 -

Other Operating Expenses 4,804 4,359

Total Other Expenses 19,513 14,651

10. LOSSES

2016 2015

$000 $000

Non-Financial Instruments

Losses of Disposals of Assets 4 266

Fair Value Loss on Investment Property Valuation 39 83

Impairment of Solid Waste Assets Recognised as Loss - 504

Total Losses 43 853



11. CASH AND CASH EQUIVALENTS

2016 2015

$000 $000

Cash at Bank and On Hand 642 34

Term Deposits with Original Maturities Less Than Three Months - 2

Total Cash and Cash Equivalents 642 36

The carrying value of cash at bank and term deposits with original maturities less than three months approximates their fair value. The Council holds unspent funds, included in cash at bank of $100k that are subject to restrictions. These unspent funds were received from Horizons Regional Council for the benefit or the Raetihi Community. Cash, cash equivalents and bank overdrafts include the following for the purposes of the statement of cash flows:

2016 2015

$000 $000

Cash at Bank and On Hand 642 34

Term Deposits with Original Maturities Less Than Three Months - 2

Bank Overdraft - (292)

Total Cash and Cash Equivalents 642 (256)

12. DEBTORS AND OTHER RECEIVABLES

2016 2015

$000 $000

Non-Exchange

Rates Receivables 2,149 2,175

Other Receivables 820 1,790

Infringement Receivables 35 34

3,004 3,999Less Provision for Impairment (626) (519)

2,378 3,480

Exchange

Other Receivables 195 -

Total Debtors and Other Receivables 2,573 3,480

Fair Value Debtors and other receivables are non-interest bearing and receipt is normally on 30 day terms. Therefore, the carrying value of debtors and other receivables approximates their fair value.



Impairment RDC provides for impairment on rates receivables although it has various powers under the Local Government (Rating) Act 2002 to recover any outstanding debts. These powers allow RDC to commence legal proceedings to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made within three months of the Court's judgement, RDC can apply to the Registrar of the High Court to have the judgement enforced by sale or lease of the rating unit.

Ratepayers can apply for payment plan options in special circumstances. Where such repayment plans are in place, debts are discounted to their present value of future payments if the effect of discounting is material.

Ageing Profile At Year End 2016 2015

Gross Impairment Net Gross Impairment Net

Not Past Due 1-30 698 - 698 2,923 - 2,923

Past Due 1-60 Days 519 - 519 28 - 28

Past Due 60-120 Days 228 - 228 298 - 298

Past Due > 120 Days 1,754 626 1,128 750 519 231

Total 3,199 626 2,573 3,999 519 3,480 The impairment provision has been calculated based on a review of specific overdue receivables and a collective assessment. The collective impairment provision is based on an analysis of past collection history and debt write-offs.

Impairment Profile 2016 2015

$000 $000Individual Impairment 182 -

Collective Impairment 444 519

Total Provision For Impairment 626 519 Individually impaired receivables have been determined to be impaired because there is a dispute over a significant receivable.

Individually Impaired Receivable 2016 2015

$000 $000Past Due 61 - 120 Days - -

Past Due > 120 Days 182 -

Total Provision For Impairment 182 -

Impairment Source 2016 2015

$000 $000Rates Debtors 413 461

Sundry Invoice Debtors 182 27

Infringement Debtors 31 31

Total Provision For Impairment 626 519



Movement In Impairment Provision 2016 2015

$000 $000

At 1 July 519 742

Provision Reclassification - 200

Total 519 942

Additional Provisions made during the year 116 38

Provisions Reversed during the year - (449)

Receivables Written Off during the year (9) (12)

At 30 June 626 519

13. INVENTORY

2016 2015

$000 $000

Inventory Held for Distribution

Merchandise Visitor and Service Centres 52 37

Blue Recycling Bins 1 14

Critical Spares for Operations 82 101

Total Inventory at 30 June 135 152 No inventory is pledged as security for borrowings or payables.



14. INVESTMENT IN ASSOCIATES

2016 2015

$000 $000

Investment In Associates

- Investment In Manawatu-Wanganui LASS Ltd 25 6

- Investment In Wanganui District Councils’ Forestry Joint Committee 465 393

490 399

Manawatu Wanganui Lass Ltd

Summarised financial information of associates presented on a gross basis

Assets 540 442

Liabilities 362 397

Revenues 1,392 967

Surplus/(Deficit) 30 2

RDC’s Share of Surplus/(Deficit) 4 -

RDC's Interest 14.29% 14.29%

Wanganui District Councils’ Forestry Joint Committee

Summarised financial information of associates presented on a gross basis

Assets 11,918 10,125

Liabilities 89 132

Revenues 1,541 1,404

Surplus/(Deficit) 1,167 1,005

RDC’s Share of Surplus/(Deficit) 46 47

RDC’s Share of Total Comprehensive Revenue and Expense 72 63

RDC’s Interest 3.93% 3.93%

All entities have a reporting date of 30 June. The actuals for 2016 are based on unaudited financial statements. The share of surplus / deficit in the Statement of Comprehensive Revenue and Expenditure includes any movement in prior years results post publication of Council’s Annual Report, when the Associates final numbers became available. None of the Council’s associates have contingent liabilities.

Purpose of the Associates Manawatu-Wanganui Local Authority Shared Services Limited (MW LASS Ltd) MW LASS Ltd was formed in October 2008 to provide an ‘umbrella vehicle’ for the councils of the Manawatu-Wanganui region to investigate, procure, develop and deliver shared services. Such services will be initiated under the umbrella of MW LASS Ltd where a business case shows that they provide benefits to the council users by either improved levels of service, reduced costs, improved efficiency and/or increased value through innovation. Current feasibility studies being undertaken include GIS, Aerial photography and joint procurement. MW LASS Ltd has been exempted according to section 7 of the Local Government Act 2002. It is therefore not a Council Controlled Organisation for the purposes of the Act.



Wanganui District Councils’ Forestry Joint Committee The committee was formed in 1996 to jointly administer forestry property of Wanganui District Council, South Taranaki District Council and Ruapehu District Council across the greater Wanganui Districts. Under the agreement between the parties the forestry is owned jointly as tenants in common. The Joint Committee was formed as a Joint Committee pursuant to S113(S) of the Local Government Act 1974. The Council is entitled to appoint one out of a potential of six representatives. Currently the Council has one representative in a committee of four. The committee has been exempted according to section 7 of the Local Government Act 2002. It is therefore not a Council Controlled Organisation for the purposes of the Act.

15. OTHER FINANCIAL ASSETS 2016 2015

$000 $000

Current Portion

Term Deposits With Maturities of 4 - 12 Months - -

Total Current Portion - -

Non-Current Portion

Other Investments:

- King Country Energy (Unlisted Exchange) 12 11

- Unlisted Shares in Civic Assurance 83 68

- Loan to Kakahi Water Board Supply Limited 9 8

- Emissions Trading Scheme ETS 13 23

Total Non-Current Portion 117 110

Total Other Financial Assets 117 110

RDC owns an 8.33% share in the Manawatu Wanganui Regional Disaster Relief Fund Trust. The Trust is not in operation and the value of the Trust is therefore nil. Should the Trust come into operation, RDC will not be in receipt of any funds from the Trust, unless the District is struck by a disaster.

In the event of the Trust being wound up, the surplus assets and funds, after payment of the Trust’s liabilities, including expenses of winding up, shall not be paid or distributed among the Trustees or the Local Authorities, but shall be paid and transferred to such person or body corporate, for the furtherance of charitable purposes within New Zealand, as the Trustees shall determine at the meeting, when the resolution for winding up is duly confirmed.

Fair Value The carrying amount of other financial assets approximates their fair value. More details are shown in note 33.

Other Investments The investments in Civic Assurance are valued according to RDC’s share of the net assets in their financial statements. Shares in King Country Energy are recognised at fair value. The fair value of King Country Energy shares is determined by reference to published current bid price quotations on the “Unlisted” share trading facility. The investments in King Country Energy and Civic Assurance are held for strategic purposes and RDC has no intention of disposing of the assets.

The loan to Kakahi Water Board Supply Limited is a loan for unpaid rates, that is a fixed term, with an option of early termination, should the timber on the land be felled before expiry of the loan. Council will either receive the outstanding loan amount, or an agreed portion of the timber revenue, whichever is higher.

The investment in ETS credits is an investment intended to be held until they are needed to satisfy carbon emissions obligations.

Impairment Due to a diluted share of ownership of Civic Assurance, there was an impairment of the investment of $14,623 in 2013. There was no additional impairment in 2015 or 2016.

None of the other financial assets is either past due or impaired.



16. PROPERTY, PLANT AND EQUIPMENT

As at 30 June 2016 Cost/ Valuation

Accum Depn & Impairment

Charges

Carrying Amount

Current Year Additions

Current Year Disposals

Current Year Impairment

Charge

Current Year Depreciation

Revaluation Surplus/ (Deficit)

Cost / Valuation Accum Depn & Impairment

Charges

Carrying Amount

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Operational Assets Land 10,203 - 10,203 7 (4) - - (873) 9,333 - 9,333 Buildings 14,359 (2) 14,357 586 - (241) (863) (97) 14,811 (1,069) 13,742 Other Improvements 801 (232) 569 277 - - (23) - 1,079 (256) 823 Library Books 1,054 (757) 297 48 - - (109) - 1,101 (865) 236 Plant & Vehicles 985 (624) 361 232 (1) - (134) - 1,168 (710) 458 Computer Equipment 651 (441) 210 26 (1) - (85) - 675 (525) 150 Office Equipment 1,598 (1,261) 337 138 - - (83) - 1,737 (1,345) 392 Total Operational Assets 29,651 (3,317) 26,334 1,314 (6) (241) (1,297) (970) 29,904 (4,770) 25,134 Restricted Assets Land 200 - 200 - - - - - 200 - 200 Improvements 751 - 751 42 - - (58) - 793 (58) 735 Total Restricted Assets 951 - 951 42 - - (58) - 993 (58) 935 Infrastructural Assets Roading & Footpaths 236,368 - 236,368 6,765 - - (3,816) - 243,133 (3,816) 239,317 Bridges 36,229 - 36,229 978 - - (800) - 37,207 (800) 36,407 Land Under Roads 9,115 - 9,115 - - - - - 9,115 - 9,115 Water Supply - Treatment Plants 3,055 - 3,055 556 - - (332) - 3,611 (332) 3,279 Water Supply - Reticulation 25,329 - 25,329 566 - - (784) - 25,895 (784) 25,111 Wastewater - Treatment Plants 8,033 - 8,033 305 - - (229) - 8,338 (229) 8,109 Wastewater - Network 15,495 - 15,495 344 - - (547) - 15,840 (548) 15,292 Stormwater 14,129 - 14,129 158 - - (410) - 14,288 (411) 13,877 Stopbanks 156 - 156 - - - - - 156 - 156 Solid Waste 1,197 (53) 1,144 13 - - (15) - 1,210 (68) 1,142 Total Infrastructural Assets 349,106 (53) 349,053 9,685 - - (6,933) - 358,793 (6,988) 351,805 Items Under Construction 2,058 - 2,058 (930) - - - - 1,128 - 1,128 Total Property, Plant and Equipment

381,766 (3,370) 378,396 10,111 (6) (241) (8,288) (970) 390,818 (11,816) 379,002



As at 30 June 2015 Cost/ Valuation

Accum Depn Carrying Amount

Current Year Additions

Assets Reclassifed

Current Year Disposals

Current Year Depreciation

Revaluation Surplus / (Deficit)

Revaluation Depreciation Rolled Back

Cost / Valuation

Accum Depn & Impairment

Charges

Carrying Amount

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000Operational AssetsLand 10,366 10,366 32 (53) (142) - 10,203 - 10,203Buildings 14,708 (1) 14,707 353 (183) (37) (864) (482) 863 14,359 (2) 14,357Other Improvements 754 (213) 541 47 - (19) - - 801 (232) 569Library Books 1,115 (751) 364 56 - (117) (90) - 84 1,054 (757) 297Plant & Vehicles 847 (611) 236 250 - (112) (91) - 78 985 (624) 361Computer Equipment 676 (365) 311 26 - (51) (125) - 49 651 (441) 210Office Equipment 1,498 (1,208) 290 106 - (6) (59) - 6 1,598 (1,261) 337Total Operational Assets 29,964 (3,149) 26,815 870 (236) (323) (1,248) (624) 1,080 29,651 (3,317) 26,334 Restricted Assets Land 200 - 200 - - - - - - 200 - 200Improvements 779 - 779 - - - (56) (28) 56 751 - 751Total Restricted Assets 979 - 979 - - - (56) (28) 56 951 - 951 Infrastructural Assets Roading & Footpaths 236,461 - 236,461 6,677 - - (3,807) (6,770) 3,807 236,368 - 236,368Bridges 36,650 - 36,650 405 - - (802) (826) 802 36,229 - 36,229Land Under Roads 9,115 - 9,115 - - - - - - 9,115 - 9,115Water Supply - Treatment Plants 3,488 - 3,488 157 - (2) (299) (588) 299 3,055 - 3,055Water Supply - Reticulation 25,545 - 25,545 216 - (82) (774) (350) 774 25,329 - 25,329Wastewater - Treatment Plants 7,396 - 7,396 74 - (229) 563 229 8,033 - 8,033Wastewater - Network 15,627 - 15,627 155 - (544) (287) 544 15,495 - 15,495Stormwater 14,115 - 14,115 17 - (5) (353) 2 353 14,129 - 14,129Stopbanks 156 - 156 - - - - - - 156 - 156Solid Waste 1,430 (663) 767 - 892 - (11) (1,125) 621 1,197 (53) 1,143Total Infrastructural Assets 349,983 (663) 349,320 7,701 892 (89) (6,819) (9,381) 7,429 349,106 (53) 349,053 Items Under Construction 1,351 - 1,351 706 - - - - - 2,058 - 2,058

Total Property, Plant and Equipment

382,277 (3,812) 378,465 9,277 656 (412) (8,123) (10,033) 8,565 381,766 (3,370) 378,396



Core Infrastructure Asset Disclosures

Valuation In 2015 the following classes of property, plant and equipment were revalued: Roads and bridges. Infrastructural assets for Water, Wastewater and Stormwater. Solid waste infrastructural assets. Land and buildings. A revaluation has been performed as at 1 July 2016 that will be reflected in the 2016/17 financial statements. This was reviewed for materiality and impairment. No material difference was noted between the current carrying value and their revalued amounts.

Land (Operational, Restricted and Infrastructural) Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the “unencumbered” land value where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value, an open market “willing buyer, willing seller” scenario is assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property. The most recent valuation of land and buildings reflected in these accounts was performed by Andrew Parkyn, SPNIZ, ANZIV, and Ashton Gibbard BBS (VPM) of Quotable Value Ltd and the valuation had an effective date of 30 June 2015.

Buildings (Operational and Restricted) Specialised buildings are valued at fair value using depreciated replacement cost because no reliable sales data are available for such buildings. Depreciated replacement cost is determined using a number of significant assumptions: The replacement asset is based on the reproduction cost of the specific assets with adjustments where

appropriate for obsolescence due to overdesign or surplus capacity. The replacement cost is derived from recent construction contracts of similar assets and Property Institute

of New Zealand cost information.

2016 2015 Closing Book

Value Most Recent

Replacement Cost Estimate For Revalued

Assets

Closing Book Value

Most Recent Replacement

Cost Estimate For Revalued

Assets

$000 $000 $000 $000Roading 239,317 315,756 236,368 315,756Bridges 36,407 74,942 36,229 74,942Water Supply - Treatment Plants & Facilities 3,279 6,962 3,055 6,962- Reticulation 25,111 53,255 25,329 53,255Wastewater - Treatment Plants & Facilities 8,109 11,003 8,033 11,003- Reticulation 15,292 34,874 15,495 34,874Stormwater 13,877 26,323 14,129 26,323



The remaining useful life of assets is defined by taking the economic life of the improvement and reducing this by the effective age of the components within each property.

Straight line depreciation has been applied in determining the depreciated replacement cost value of the asset.

Non-specialised buildings (e.g., residential buildings) are valued at fair value using market-based evidence. Market rents and capitalisation rates were applied to reflect market value.

Infrastructural Asset Classes: Wastewater, Water, Drainage, Roads and Solid Waste Wastewater, water and drainage are valued using depreciated replacement cost methodology. Roading infrastructural assets are valued using the optimised depreciated replacement cost method. There are a number of estimates and assumptions exercised when valuing infrastructural assets using the optimised depreciated replacement cost method. These include: Estimating any obsolescence or surplus capacity of the asset.

Estimating the replacement cost of the asset. The replacement cost is derived from recent construction contracts in the region for similar assets.

Estimates of the remaining useful life over which the asset will be depreciated. These estimates can be affected by the local conditions (e.g., weather patterns and traffic growth). If useful lives do not reflect the actual consumption of the benefits of the asset, then RDC could be over or under estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Revenue. To minimise this risk, 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, deterioration, and condition modelling are also carried out regularly as part of asset management planning activities, which provides further assurance over useful life estimates.

The most recent valuation for wastewater, water and stormwater drainage was performed by Zach Meyer and reviewed by Steven Rumble, both of Veolia Water Australia and New Zealand. The valuation had an effective date of 30 June 2015. The most recent valuation for roading was performed by Jayanthi Rangamuwa, BSc(Eng), C.Eng, CBC(NZ) and reviewed by Sarah Irwin, BSc(Hons), PGDipIM, GCPAM, both of GHD Limited and the valuation had an effective date of 30 June 2015. The most recent valuation for buildings, land and solid waste assets (valued by assessing the buildings on transfer station locations) was performed by Andrew Parkyn, SPNIZ, ANZIV, and Ashton Gibbard BBS (VPM) of Quotable Value Ltd and the valuation had an effective date of 30 June 2015.

Land Under Roads Land under roads are carried at deemed cost.

Library Collections Library collections are valued at depreciated cost.

Total Fair Value of Property, Plant and Equipment Valued by Each Valuer ($000) 2016

$000 2015$000

QV Asset and Advisory 26,597 26,597

Veolia Water 66,125 66,125

GHD 272,597 272,597



Impairment and Security for Liabilities In light of the Building (Earthquake-prone Buildings) Amendment Bill, a high level engineering assessment has been undertaken of Council owned buildings. The engineering assessments were provided to the valuers and their valuation made allowance for possible impairment or repair costs. This resulted in an impairment being reflected on the Taumarunui Memorial Hall of $241k plus a reversal of previously recognised revaluations of $70k. None of RDC’s assets are pledged as security for liabilities in 2016 (2015: nil).

Proceeds from insurance Council has received no money from its insurers for vehicle damages. (2015: $46k) No proceeds have been received for flooding and lightning stikes (2015: $13k) Proceeds have been received relating to the costs of the Raetihi diesel spill event from 2013 of $107k (2015: $115k).

Work in Progress Capital Works in Progress by class of asset is detailed below:

2016 2015

$000 $000

Operational Assets

Land - -

Buildings - 290

Other Improvements 18 142

Library Books 3 -

Plant and Vehicles 13 29

Computer Equipment 15 14

Office Equipment - 16

Infrastructural Assets

Roading - 4

Bridges - -

Land Under Roads - -

Water Supply 508 673

Wastewater 536 635

Stormwater 2 101

Stopbanks - -

Solid Waste - 124

Property Plant and Equipment Capital Works in Progress Total 1,095 2,028

Intangibles 33 30

Total Capital Works in Progress by Asset Class 1,128 2,058



17. INTANGIBLE ASSETS The intangible assets owned by RDC include computer software and a resource consent.

2016 2015

$000 $000

Intangibles

Cost

Balance At 1 July 1,825 1,661

Additions 128 212

Disposals - (48)

Balance At 30 June 1,953 1,825

Accumulated Amortisation

Balance At 1 July (1,313) (1,175)

Amortisation Charge (203) (168)

Disposals - 30

(1,516) (1,313)

Carrying Amounts

Carrying Amount at 1 July 512 486

Carrying Amount at 30 June 437 512 There are no restrictions over the title or security held on the intangible assets. There were no internally generated intangible assets (2015 Nil).

18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY

Directly Attributable Depreciation and Amortisation Expense by Group of Activity

2016 2015

$000 $000

Community Support 18 -

Regulation 1 -

Community Facilities 876 849

Land Transport 4,616 4,609

Leadership 7 7

Stormwater And Flood Protection 411 353

Wastewater 793 777

Water Supply 1,116 1,072

Waste Management And Minimisation 14 11

Total Directly Attributable Depreciation And Amortisation By Group Of Activity

7,852 7,678

Depreciation And Amortisation Not Directly Related To Group Of Activities 639 613

Total Depreciation And Amortisation Expense 8,491 8,291



19. FORESTRY ASSETS RDC owns 10.6 hectares of land able to be used for forestry. On 8.1 hectares the timber has been felled during the last five years and no new operations have commenced. On the remaining 2.5 hectares there are no operations. RDC has therefore decided not to value the forestry assets. The land that is available for forestry is currently included in the asset category lands.

20. INVESTMENT PROPERTY

Movement in investment property during the year was: 2016 2015

$000 $000

Balance at 1 July 2,358 3,017

Reclassification to PPE - (667)

Additions – Vested Assets - 90

Fair Value Gains/(Losses) on Valuation (39) (82)

Balance at 30 June 2,319 2,358 Investment properties are revalued annually effective at 30 June to fair value. The valuation was performed by Ashton Gibbard BBS (VPM) of Quotable Value Ltd and the valuation had an effective date of 30 June 2016. There are no restrictions on the realisability of investment property or the remittance of revenue or proceeds from disposal.

Valuation Investment Property Land Investment land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the “unencumbered” land value where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value an open market “willing buyer, willing seller” scenario has been assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property.

2016 2015

$000 $000

Land 1,906 1,927

Buildings 413 431

Balance at 30 June 2,319 2,358



Investment Property Buildings Valuations give consideration to:

Sales comparison approach, comparing structures based on market-based net rates per square metre;

Income approach, capitalising net income and discounted cash flow (based on assumptions including future rental revenue, anticipated maintenance costs, and appropriate discount rates);

Depreciated replacement cost is used if the fair value method cannot be established using market data. Depreciated replacement cost looks at replacement costs of material less economic physical obsolescence and any over design.

Revenue and Expenditure on Investment Property

2016 2015

$000 $000Rental Revenue 23 21Expenditure on Property Generating Revenue (11) (6)Expenditure on Property Not Generating Revenue (8) -

21. CREDITORS AND OTHER PAYABLES

2016 2015

$000 $000

Current

Exchange

Trade Payables 3,410 3,078

Accrued Expenses 390 135

Amounts Due To Customers For Contract Work - 90

3,800 3,303

Non-Exchange

Trade Payables 108 6

Accrued Expenses - 90

Other Financial Liabilities 76 114

Transitional GST Payable 51 50

235 260

Total Current Portion 4,035 3,563

Non-Current

Non-Exchange

Transitional GST Payable 101 150

Total Creditors and Other Payables 4,136 3,713

Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, therefore, the carrying value of the creditors and other payables approximates their fair value. RDC has moved from a GST payable basis to invoice basis. A significant liability arose and IRD has agreed that the Council can pay this over an extended period. In the prior year this balance was presented separately on the face of the Statement of Financial Position.



22. BORROWINGS

Carrying Amount Fair Value

2016 2015 2016 2015

$000 $000 $000 $000

Current Portion

Secured Loans 5,500 9,000 5,227 8,537

Bank Overdraft - 292 - 292

Total Current Portion 5,500 9,292 5,227 8,829

Non-Current Portion

Secured Loans (Fixed Interest) 20,300 17,800 16,970 15,032

Total Non-Current Portion 20,300 17,800 16,970 15,032

Total Borrowings 25,800 27,092 22,198 23,861

Weighted Average Interest Rate 2016 2015

Current 5.22% 5.43%

Non-Current 4.95% 5.36%

Overall 5.01% 5.39%

Secured Loans RDC’s secured loans of $25,800,000 are borrowed at fixed rates of interest from the major trading banks. Fixed rate debt rates are set at the time of rollover and include a margin for credit risk. Rates are fixed on terms in line with RDC’s Liability Management Policy, with staggered rollovers to mitigate interest rate risk.

Security An overdraft facility of $2,000,000 (drawn to $0) is secured by a charge over rates (2015: $2,000,000). There are no restrictions on the use of this facility. Secured loans are secured over either separate or general rates of RDC.

Fair Values The fair values are based on cash flows discounted using weighted average interest rates based on borrowing costs ranging from 3.88% to 6.32% (2015 4.75% to 6.32%).

Internal Borrowings RDC has no internal borrowings, defined as per clause 27 of schedule 10 in the Local Government Act 2002. The Council is keeping track of internal movement of funds but these do not qualify as internal borrowings under this provision.



23. EMPLOYEE ENTITLEMENTS

2016 2015

$000 $000

Annual Leave 240 228

Accrued Salaries 180 161

Total Employee Entitlements 420 389

24. PROVISIONS

2016 2015

$000 $000

Non-Current Portion

Landfill Aftercare Provision 183 455

Movement In Landfill Aftercare Provision

Balance at 1 July 455 445

Additional Provisions Made - -

Amounts Used (117) (12)

Unused Amount Reversed (172) -

Discount Unwind (Note 5) 17 22

Balance at 30 June 183 455



Landfill Aftercare Costs The landfill aftercare costs and provision referred to in this note relate to the one operational landfill in Taumarunui (which will be capped and monitored in the future). Upon formation of RDC from amalgamation of smaller councils, and the introduction of the Resource Management Act (1991), 13 landfills throughout the District were phased out. Closed landfills are capped and monitored according to resource consent requirements. The risks associated with this operation are not believed to be significant and the expense is budgeted for annually as part of the relevant activity. RDC obtained resource consent in July 2001 to operate a landfill until October 2020. There is a responsibility under the resource consent to provide ongoing maintenance and monitoring of the landfill after the site is closed. The management of the landfill will influence when some liabilities are recognised. The current landfill will operate in two stages. A liability relating to Stage Two will only be created when this stage is commissioned and when refuse begins to accumulate. Stage One pre closure planning and operations is now underway with a closed landfill design commissioned. Cell one of three cells in the closure design has now been capped. Stage two post closure planning will be undertaken over the next three years with decisions made on whether to operate a clean fill on the site from 2020 in 2018/2028 LTP process. The cash outflows for landfill post-closure costs are expected to occur through to 2055. The long-term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated taking into account existing technology and known changes to legal requirements. The gross provision before discounting is $306,749 (2015: $644,366). Ongoing monitoring costs as required by the resource consent reduce the future provision. Should these costs be higher than provided for each year, then the additional charge is taken to the statement of comprehensive revenue. The following significant assumptions have been made in calculating the provision:

The remaining capacity for the existing site is 10,000m³ of airspace, which based on current filling rates of approximately 3,000m³ per year will result in closure in 2019/20.

The estimated remaining life is at least the duration of the resource consent. The remaining life of the resource consent is four years. A discount rate of 5% has been applied for 2016 (2015: 5%). An inflation factor of 2% has been applied for 2016 (2015: 2%). Estimates of the life have been made by RDC management and consultant engineers based on planned changes in use and efficiencies.



25. EQUITY

2016 2015

$000 $000

Ratepayers Equity

Balance at 1 July 260,533 259,108

Transfer from Asset Revaluation Reserve on Reclassification - (457)

Transfers from Asset Revaluation Reserves on Disposal (40) 104

Transfers from Restricted Reserves 79 9

Transfers to Restricted Reserves (114) -

Transfers to Financial Assets at Fair Value through Other Comprehensive Revenue Reserve

(24) -

Surplus / (Losses) for the year 2,884 1,769

Balance at 30 June 263,318 260,533

Other Reserves

Restricted Reserves


Transfers to Accumulated Funds (79) (9)

Transfers from Accumulated Funds 114 -


Asset Revaluation Reserve

Balance at 1 July 93,094 93,866

Net Revaluation Gains/(Losses) - (1,125)

Revaluation Adjustment (refer note below) (970) -

Transfer to Ratepayers Equity on Reclassification - 457

Transfer to Ratepayers Equity on Disposal of Property 40 (104)

Balance at 30 June 92,164 93,094 Revaluation Adjustment The revaluation adjustments arose from the following movements:

Asset $000 Explanation

Land (873) QV advised that land previously recognised as being RDC land is Crown land. The total revaluation previously recognised has been reversed in 2016.

Buildings (Administration Building) (27) The value of buildings revalued at 30 June 2015 omitted some costs, resulting in an overstated revaluation. This has been corrected in 2016.

Buildings (Taumarunui Memorial Hall) (70) The Taumarunui Memorial Hall has been assessed for compliance with earthquake building standards and is significantly under strength. An impairment has been recognised in 2016, and previously recognised revaluation reversed.

Total (970)



2016 2015

$000 $000

Asset Revaluation Reserves For Each Asset Class Consist Of:

Operational Assets

- Land 5,026 5,899

- Buildings 4,837 4,895

Infrastructural Assets

- Wastewater System 12,130 12,129

- Stormwater System 9,213 9,213

- Water Supply System 13,870 13,870

- Land Transport (Roading Network) 47,088 47,088

- Stop Banks - -

- Solid Waste - -

92,164 93,094

Fair Value Through Comprehensive Revenue and Expense Reserve

Balance at 1 July - -

Transfer from ratepayers equity 24 -

Net revaluation gains/(losses) 15 -

Balance at 30 June 39 -

Total Other Reserves 92,648 93,504

Total Equity 355,966 354,037 The fair value through comprehensive income reserve reflects the cumulative revaluations on other financial assets for which gains and losses are reflected through other comprehensive revenue and expense.



Information about reserve funds held for a specific purpose is provided below:

Reserve Activities for which the Reserve Relates

Balance1 Jul

Transfers into Fund

Transfers out of Fund

Balance30 Jun

$000 $000 $000 $000

2016

TBC Land Subdivision Reserve Community Facilities 73 - - 73

OBC Reserve Contributions Community Facilities 2 - - 2

Waimarino Reserves Community Facilities 6 - - 6

Property Disposition Reserves Community Facilities 150 - - 150

Ohura Mayoral Relief Fund Leadership 79 - 79 -

OBC Roading Contributions Land Transport 4 - - 4

ECNZ Stratford-Huntly Amenities Leadership 85 - - 85

ECNZ Whanganui River Amenities

Community Facilities 11 - - 11

Raetihi Water Supply Water Supply - 100 - 100

Raetihi Lighting Community Facilities - 5 - 5

Ohakune Lighting Community Facilities - 9 - 9

Total restricted reserves 2016 410 114 79 445

2015

TBC Land Subdivision Reserve Community Facilities 73 - - 73

OBC Reserve Contributions Community Facilities 11 - 9 2

Waimarino Reserves Community Facilities 6 - - 6

Property Disposition Reserves Community Facilities 150 - - 150

Ohura Mayoral Relief Fund Leadership 79 - - 79

OBC Roading Contributions Land Transport 4 - - 4

ECNZ Stratford-Huntly Amenities Leadership 85 - - 85

ECNZ Whanganui River Amenities

Community Facilities 11 - - 11

Total restricted reserves 2015 419 - 9 410 Restricted reserves are those reserves subject to specific conditions accepted as binding by Council and which Council may not revise without reference to the Courts or a third party. Transfer from these reserves may only be made for certain specific purposes or when specified conditions are met. Most of the restricted reserves were “inherited” during the amalgamation that created RDC.



Purpose of Each Reserve Fund

TBC Land Subdivision Reserve The fund is to be used within the former Taumarunui Borough Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

OBC Reserve Contributions The fund is to be used within the former Ohakune Borough Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

Waimarino Reserves The fund is to be used within the former Waimarino District Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

Property Disposition Reserves The Property Disposition Reserve was created following the sale of the Owhango Pensioner Flats in early 2000. This was a book entry, which showed what proceeds were available following that sale. The Property Disposition Reserve is held for the purposes of buying more property in the future, anywhere in the Ruapehu District.

Ohura Mayoral Relief Fund The fund is to provide aid to the inhabitants of Ohura and National Park who were affected by the flood of 1998. This has been reclassified as a liability in 2016 to reflect its underlying nature.

OBC Roading Contributions This fund was established as a contingency to help fund emergency works that may occur in the former Ohakune Borough Council area and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

ECNZ Stratford-Huntly Amenities The fund was created prior to 1989 and was established to provide “public” amenities being amenities owned or administered by the Crown or Council for recreational, cultural or social purposes.

ECNZ Whanganui River Amenities The fund was created prior to 1989 and was established for the purpose of maintaining or developing amenities in the Taumarunui urban area.

Raetihi Water Supply This fund resulted from a contribution by Ruapehu Alpine Lifts Ltd which is designated for Raetihi community projects.

Raetihi Lighting In 2013 funds were allocated to the Raetihi community for community lighting. These remain unspent.

Ohakune Lighting In 2013 funds were allocated to the Ohakune community. In addition, funds were vested on the Council for use on this project.



26. RECONCILIATION OF NET SURPLUS/(DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES

2016 2015

$000 $000

Net Surplus (Loss) 2,884 1,769

Add / (Less) Non-Cash Items

Share of Associate's (Surplus) / Deficit (76) (54)

Depreciation and Amortisation Expense 8,491 8,291

Property, Plant and Equipment Impairment 241

Vested Assets - (90)

(Gains) / Losses on Impairment of Receivables - -

(Gains) / Losses in Fair Value of Investment Property 39 82

11,579 9,998

Add / (Less) Items Classified As Investing Or Financing Activities

(Gains) / Losses (Net) on Disposal of Property, Plant and Equipment (2) 240

(Gains) / Losses on Financial Assets Taken Through Gains / Losses 8 -

(Gains) / Losses on Property, Plant and Equipment Revaluations Taken Through Gains / Losses

- 504

6 744

Add / (Less) Movements In Working Capital Items

(Inc) / Dec in Debtors and Other Receivables 907 (829)

(Inc) / Dec in Prepayments and Accrued Income (736) 145

(Inc) / Dec in Inventory 17 (52)

Inc / (Dec) in Creditors and Other Payables 591 (902)

Inc / (Dec) in Provisions (272) 10

Inc / (Dec) in Other Employee Entitlements 31 150

Inc / (Dec) in GST Term Liability (49) 150

489 (1,328)

Net Cash Inflow / Outflow from Operating Activities 12,074 9,414



27. COMMITMENTS AND OPERATING LEASES

2016 2015

$000 $000

Capital Commitments

Roading 8,879 21,337

Bridges 464 928

Water 56 -

Total Capital Commitments 9,399 22,265

Operating Commitments

Not Later Than One Year 8,700 6,754

Later Than One Year And Not Later Than Five Years 15,651 8,275

Later Than Five Years 5,310 -

Total Non-Cancellable Operating Commitments 29,661 15,029

Operating Leases As Lessee

Not Later Than One Year 124 97

Later Than One Year And Not Later Than Five Years 356 318

Later Than Five Years 211 230

Total Non-Cancellable Operating Leases 691 645

Operating Leases As Lessor

Not Later Than One Year 66 32

Later Than One Year And Not Later Than Five Years 187 101

Later Than Five Years 80 104

Total Non-Cancellable Operating Leases 333 237

Operating Commitments RDC has entered into a number of non-cancellable contracts for the delivery of services. Further details on these commitments are disclosed in Section One of this report.

Operating Commitment Reclassifications Due to flood damage sustained during mid-2015, there has been a significant shift of contractual roading commitments from Capital to Operational components in line with the nature of restoration works being undertaken. It is also anticipated that there will be additional payments over and above the current contracted values noted for the 2016/17 Financial Year and beyond as damage costs are not yet fully quantified.

Operating Leases RDC leases property, plant and equipment in the normal course of its business. The future aggregate minimum lease payments payable under non-cancellable operating leases are as shown above.

RDC leases an office building for which the lease expires in September 2031, with a right of renewal for a further 25 years. There is no option to purchase the asset at the end of the lease term. There are no other significant leases.

The total minimum future sublease payments expected to be received under non-cancellable subleases at balance date is $nil (2015: $nil).

There are no restrictions placed on the council by any of the leasing arrangements. No contingent rents have been recognised during the period.



28. CONTINGENCIES

Contingent Liabilities

2016 2015

$000 $000

Legal Proceedings 150 150

RDC is subject to one legal proceeding against it, alleging inadequate compensation for acquired land. The potential liability to RDC, if the claim is successful, is estimated to be $150,000. The outcome of the claim will not be known until legal proceedings progress further 2016 (as for 2015).

29. RELATED PARTY TRANSACTIONS

Transactions with Key Management Personnel

Key Management Personnel Compensation 2016 2015

FTE’s $000 FTE’s $000

Councillors - - - -

Remuneration - 294 - 278

Full Time Equivalent Members 12 - 12 -

Senior Management Team Including Chief Executive - - - -

Salaries and other Short-Term Employee Benefits - 636 - 635

Post-Employment Benefits - - - 11

Other Long-Term Benefits - - - -

Termination Benefits - - - -

Full Time Equivalent Members 4 4

Total Key Management Personnel Compensation 16 930 16 924

Due to the difficulty in determining the full-time equivalent for Councillors, the full-time equivalent figure is taken as the number of Councillors. Key management personnel include the Mayor, Councillors, Chief Executive and the other three members of the senior management team. During the year, Councillors and senior management, as part of a normal customer relationship, were involved in minor transactions with RDC (such as the payment of rates). Peter Till (RDC’s former Chief Executive (who retired during the financial year) has been a Director of The Lines Company Limited (TLC), a supplier to RDC, since September 2011. Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances. Related party disclosures have also not been made for transactions with entities within the Council group (such as funding and financing flows), where the transactions are consistent with the normal operating relationships between the entities and are on normal terms and conditions for such group transactions.



Councillors are also involved in various non-profit organisations throughout the community which receive funding from RDC. There has been no disclosure where the transactions are consistent with a client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances.

Provisions/Impairments No impairments have been required for any receivables to related parties (2015: $nil).



30. REMUNERATION

Chief Executive The total Chief Executive remuneration was:

2016 2015

Salary – P. Till 69,981 222,391

Superannuation Contribution – P. Till - -

Salary – C. Manley 151,288 -

Superannuation Contribution – C. Manley - -

Total Chief Executive Remuneration 221,269 222,391

Elected Representatives Remuneration paid to elected representatives:

Council 2016 2015

Cameron, Don (Mayor) 79,869 77,848

Broderson, Bruce 17,940 16,675

Cooke, Ron 17,975 16,675

Cosford, Graeme 22,235 20,281

Dowsett, Cynthia 19,252 17,821

Gillard, Marion (Deputy Mayor) 26,215 24,063

Goddard, Ben 18,430 17,270

Ngatai, Karen 19,060 17,305

Nottage, Rabbit 18,168 17,183

Pehi, Peta 17,800 16,745

Wheeler, Elaine 19,506 19,143

Wood, Rhonda 17,800 16,500

Total 294,250 277,509

Community Boards 2016 2015

Compton, John 8,123 6,400

Conway, Lucy 4,000 3,200

Hotter, John (Luigi) 4,000 3,200

Paul, James 2,700 2,570

Pendleton, Jenni 4,800 2,675

Sinclair, Hamish 2,700 2,500

Taylor, William (passed away 3/10/15) 1,394 5,175

Wilson, Murray (co-opted on 3/02/16) 1,244 -

Whale, Allan 4,000 3,200

Total 32,960 28,920

Total Elected Representatives' Remuneration 327,211 306,429



Councillors (excluding the Mayor) attended the following meetings as part of their roles:

Councillor Meeting Attendance Council

RDC Rep

External

Total

Resource Consent

Broderson, Bruce 34 2 36 -

Cameron, Don (Pre Oct 2013) - - - -

Cooke, Ron 41 3 44 -

Cosford, Graeme 46 15 61 -

Dowsett, Cynthia 44 10 54 -

Gillard, Marion 69 18 87 -

Goddard, Ben 35 2 37 -

Ngatai, Karen 47 7 54 -

Nottage, Rabbit (Since Oct 2013) 40 5 45 -

Pehi, Peta (Since Oct 2013) 48 3 51 -

Wood, Rhonda (Since Oct 2013) 25 2 27 -

Wheeler, Elaine 53 18 71 -

Total 482 85 567 - RDC Rep External represents meetings where the Councillor is attending as the Council appointed representative.

Council Employees

Total Annual Remuneration By Band

2016 Bands 2015 Bands 2016 2015

< $60,000 < $60,000 50 47

$60,000 - $79,999 $60,000 - $79,999 11 11

$80,000 - $99,999 $80,000 - $99,999 9 11

$100,000 - $139,999 $100,000 - $239,999 6 6

$140,000 - $239,999 N/A 1 -

Total Employees 77 75 Total remuneration includes non-financial benefits provided to employees. At balance date, the Council employed 55 (2015: 55) full-time employees, with the balance of staff representing 15.43 (2015: 14.09) full-time equivalent employees. A full-time employee is determined on the basis of a 40-hour working week.



31. SEVERANCE PAYMENTS For the year ended 30 June 2016, RDC made one severance payment of $14,159 (2015: nil).

32. EVENTS AFTER THE BALANCE DATE There are no known events after balance date.

33. FINANCIAL INSTRUMENT RISKS

Financial Instrument Categories The accounting policies for financial instruments have been applied to the line items below:

2016 2015

$000 $000

Financial Assets

Cash And Cash Equivalents 642 36

Debtors And Other Receivables 2,461 2,980

Accrued Revenue 1,254 960

Total Loans And Receivables 4,357 3,976

Fair Value Through Other Comprehensive Revenue

Other Financial Assets:

- Listed Shares -

- Unlisted Shares 95 79

- Other Investments 22 31

Total Fair Value Through Other Comprehensive Revenue 117 110

Financial Liabilities

Financial Liabilities At Amortised Cost

Creditors And Other Payables 3,984 3,513

Borrowings:

- Overdraft - 292

- Secured Loans 25,800 26,800

- Bonds (Fixed Interest) -

Total Financial Liabilities At Amortised Cost 29,784 30,605



Fair Value Hierarchy Disclosures The majority of RDC’s financial assets are valued using non-observable inputs. RDC has assessed the value of Council’s financial assets as not material and has therefore chosen not to present fair value hierarchy disclosures. Valuation Techniques with Significant Non-Observable Inputs (Level 3) The table below provides reconciliation from the opening balance to the closing balance for the Level 3 fair value measurements:

2016 2015

$000 $000


Gains and Losses Recognised in the Surplus or Deficit 6 3

Gains and Losses Recognised in other Comprehensive Revenue - -

Purchases - -

Sales - -

Transfers into Level 3 - -

Transfers out of Level 3 - -


These investments include Civic Assurance, ETS units and a loan to the Kakahi Water Supply Board Limited. The increase in the value of the loan includes capitalisation of interest income and rates revenue. Financial Instruments Risk RDC has a series of policies to manage the risks associated with financial instruments, is risk averse and seeks to minimise exposure from its treasury activities. Council has approved RDC’s established Liability Management and Investment Policies. These policies do not allow any speculative transactions.

Market Risk Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. RDC does not have any material exposure to price risk.

Fair Value Interest Rate Risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments at fixed rates of interest expose RDC to fair value interest rate risk. RDC’s Liability Management Policy sets the minimum and maximum levels of fixed interest rate exposure to borrowings across various time intervals.

Cash Flow Interest Rate Risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose RDC to cash flow interest rate risk.

RDC’s policy is to raise long-term borrowings on fixed interest rates. There is no significant exposure to cash flow interest rate risk.



Credit Risk Credit risk is the risk that a third party will default on its obligation to RDC, causing it to incur a loss. Financial instruments which potentially subject RDC to credit risk principally consist of bank balances, accounts receivable, investments and other guarantees. Debtors and other receivables arise mainly from Council’s statutory functions. Therefore, there are no procedures in place to monitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings. Council has no significant concentrations of credit risk in relation to debtors and other receivables, as it has a large number of credit customers, mainly ratepayers. Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers. RDC’s Investment Policy limits the amount of credit exposure on investment instruments to any one institution or organisation. There are also minimum credit rating limits in place. RDC holds no collateral or credit enhancements for financial instruments that give rise to credit risk. RDC’s maximum credit risk exposure for each class of financial instrument is as follows:

2016 2015

$000 $000

Cash at Bank and Term Deposits 642 36

Debtors and Other Receivables 2,461 2,980

Accrued Income 1,254 960

Other Financial Assets (Investments) 117 110

Total Credit Risk 4,474 4,086

Credit Quality of Financial Assets The credit quality of financial assets, that are neither past due nor impaired, can be assessed by reference to Standard and Poor’s credit ratings, where such ratings are available.

AA- Unrated Total

$000 $000 $000

2016

Cash at Bank and Term Deposits 642 - 642

Debtors and Other Receivables - 2,461 2,461

Accrued Income - 1,254 1,254

Other Financial Assets (Investments) - 117 117

Total Credit Risk 642 3,832 4,474

2015

Cash at Bank and Term Deposits 36 - 36

Debtors and Other Receivables - 2,980 2,980

Accrued Income - 960 960

Other Financial Assets (Investments) - 110 110

Total Credit Risk 36 4,050 4,086 Other financial assets are mainly assets not able to be credit rated. The remaining assets are of insignificant value and are therefore not rated.



Liquidity Risk

Management of Liquidity Risk Liquidity risk is the risk that RDC will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. RDC aims to maintain flexibility in funding by keeping committed credit lines available. RDC manages its borrowings in accordance with its funding and financial policies which include a Liability Management policy (adopted as part of RDC’s Long Term Plan). RDC has a maximum amount that can be drawn down against its overdraft facility of $2m (2015: $2m).

Contractual Maturity Analysis of Financial Liabilities The following table analyses RDC’s financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the relevant interest rate at balance date. The amounts disclosed are the contractual undiscounted cash flows and include interest payments.

CarryingAmount

Contractual Cash Flows

Total < 1 year 1-2 years 2-5 years 5+ years

$000 $000 $000 $000 $000 $000

30 June 2016

Creditors and Other Payables

3,984 3,984 3,984 - - -

Overdraft - - - - - -

Secured Loans 25,800 29,483 6,760 6,668 11,735 4,320

Bonds (Fixed Interest) - - - - - -

Total 29,784 33,467 10,744 6,668 11,735 4,320

30 June 2015

Creditors And Other Payables

3,399 3,399 3,399 - - -

Overdraft 292 292 292 - - -

Secured Loans 26,800 30,416 10,418 6,534 13,464 -

Bonds (Fixed Interest) - - - - - -

Total 30,491 34,107 14,109 6,534 13,464 -



Sensitivity Analysis The following table illustrates the potential profit and loss impact due to reasonable possible market movements, with all other variables held constant, based on RDC’s financial instrument exposures at balance date. There are no financial instruments held for which foreign exchange risk applies.

Interest Rate Risk (Through Surplus)

2016 2015

-50bp +100bp -50bp +100bp

$000 $000 $000 $000

Financial Assets

Cash and Cash Equivalents - - - -

Financial Liabilities

Cash and Cash Equivalents - - 1 (3)

Term Loans - - - -

Total Sensitivity - - 1 (3)

Explanation of Interest Rate Risk Sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis point (bp) movement. For example, a decrease in 50bp is equivalent to a decrease in interest rates of 0.5%. As Council only secures borrowing through loans, there is no interest rate risk sensitivity on the financial liabilities.

34. CAPITAL MANAGEMENT Council’s capital is its equity (or ratepayers’ funds) which comprise accumulated funds and reserves. Equity is represented by net assets. The Local Government Act 2002 (the Act) requires RDC to manage its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayers’ funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general financial dealings. The objective of managing these items is to achieve intergenerational equity. This is a principle promoted in the Act and applied by RDC. Intergenerational equity requires today’s ratepayers to meet the costs of utilising RDC’s assets and does not expect them to meet the full cost of long-term assets that will benefit ratepayers in future generations. Additionally, RDC has in place Asset Management Plans for major classes of assets detailing renewal and maintenance programmes, to ensure that ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance. RDC is also focussing efforts on ensuring that it is being “smart” with how it maintains and upgrades assets to minimise the impact on ratepayers now and in the future. The Act requires RDC to make adequate and effective provision in the Long Term Plan (LTP) and in its Annual Plan (where applicable) to meet the expenditure needs identified in these plans. The Act also sets out the factors that RDC is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in RDC’s LTP. RDC has the following Council created reserves:

Reserves for different areas of benefit. Trust and bequest reserves.



Reserves for different areas of benefit are used where there is a discrete set of rate or levy payers as distinct from payers of general rates. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves. Trust and bequest reserves are set up where funds that are restricted for a particular purpose have been donated to RDC. Interest is added to trust and bequest reserves where applicable and deductions are made where funds have been used for the purpose for which they were donated.

35. COUNCIL CONTROLLED ORGANISATIONS RDC Holdings Limited is a company created as a Local Authority Trading Enterprise (LATE) to comply with changes in tendering rules for contracting. The trading activities ceased with the sale of the LATE contracts Plant and Equipment to Works Construction in 1997. The company has been retained as an inactive company because, periodically, opportunities arise which may make it a useful entity. None of these prospective opportunities has materialised to date. RDC Holdings Ltd is intended to be an exempt CCO and has no performance targets. The resolution was passed at the Council Meeting of 11 November 2014. Note 14 also has details of Council’s Associates which are also exempt CCOs.

36. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET Explanations for major variations from RDC’s budget figures for the 2015/16 year in the 2015/25 Long Term Plan are as follows: Statement of Comprehensive Revenue and Expense Revenue

Subsidies and Grants is over budget by $1.671m. This is primarily due to the flood event which occurred in June 2015 resulting in NZTA roading subsidies being over budget by $1.303m.

Other Revenue is over budget by $1.742m.

o This includes a $480k classification difference for i-SITE revenue that was included in the Long Term Plan under Fees and Charges revenue but actual figures have been coded to Other Revenue.

o Income from Ruapehu Visitor Centres (i-SITES) had sales of $108k, higher than what was anticipated.

o The Department of Conservation Whakapapa facilities management contract had unbudgeted sales totalling $527k, but there are compensating expenses included in Other Expenses.

o Council received unbudgeted funding of $83k from the Ministry of Social Development for New Zealand Cycle Trails.

Fees and Charges are below budget by $873k mainly due to classification differences with Other Revenue between the Long Term Plan and Annual Report totalling $899k. $419k relates to the reclassification of water meter charges to rates income and $480k relates to the reclassification of i-SITE revenue to Other Revenue.

Expenses

Personnel Costs were below budget principally due to Corporate Services staff accounting positions being vacant for a number of months in the current financial year. The budget also included the Councillors and the Mayors costs which have been classified in Other Expenses and the 2017 budget has been corrected.

Finance costs are under budget due to lower than anticipated debt levels and interest rates.

Other Expenses are $3.475m over budget. The roading maintenance cost was $2.157m over budget due to the June 2015 flood event which was part funded by NZTA subsidies.

Consultants and legal costs are over budget by $179k which is partly offset by the underage in Personnel Costs.



Asset impairments are over budget by $241k mainly due to the earthquake impairment write down on the Taumarunui Memorial Hall.

Occupational Health and Safety costs are over budget by $112k.

Statement of Financial Position

Other Receivables are below budget by $1.522m due to the improved collection of all receivables.

Long term debt is significantly lower than budget by $4.452m. The capital spend was impacted by the June 2015 flood event which took resources away from the budgeted capital projects for the first few months of the current financial year. The improved collections enabled Council to repay $1m of debt during the 2016 Financial Year.

Creditors and Other Payables were over budget by $1.177m. Assumptions made in the Long Term Plan on timing of expenditure were incorrect, particularly regarding roading.

Statement of Cash Flows

Receipts from Subsidies and Grants were $2.951m over budget mainly due to the NZTA road maintenance subsidies received for the June 2015 flood event.

The payments to suppliers were over budget by $2.55m and the majority of this overage also related to the June 2015 flood event road maintenance expenditure.

Purchase of Property, Plant and Equipment and Intangible Assets were $1.984m under budget mainly due to capital projects being delayed for reasons mentioned above.

The lower Property, Plant and Equipment purchases contributed to a debt repayment of $1m against a planned drawdown of $1.415m ($2.415m variance).

Part C - Other Legislative Disclosures



1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2016 – ALL ACTIVITIES

Budget Actual Budget Actual

2016 2016 2015 2015

$000 $000 $000 $000

Sources Of Operating Funding

General Rates, Uniform Annual General Charges, Rates Penalties

13,432 8,426 12,518 7,657

Targeted Rates 7,065 12,451 7,256 12,125

Subsidies And Grants For Operating Purposes 4,963 7,293 5,022 3,732

Fees And Charges 2,947 3,870 3,029 3,193

Interest And Dividends From Investments 55 31 35 63

Local Authorities Fuel Tax, Fines, Infringement Fees, And Other Receipts

113 169 195 188

Total Operating Funding (A) 28,575 32,240 28,055 26,958

Applications Of Operating Funding

Payments To Staff And Suppliers 21,570 23,998 21,220 19,844

Finance Costs 1,683 1,355 1,746 1,504

Other Operating Funding Applications - - - -

Total Application Of Operating Funding (B) 23,253 25,353 22,966 21,348

Surplus/(Deficit) Of Operating Funding (A-B) 5,322 6,887 5,089 5,610

Sources Of Capital Funding

Subsidies And Grants For Capital Expenditure 5,269 4,610 4,196 4,484

Development And Financial Contributions 110 73 221 74

Increase/(Decrease) In Debt 1,452 (1,000) 110 (1,500)

Gross Proceeds From Sale Of Assets - 8 - 46

Lump Sum Contributions - - - -

Total Sources Of Capital Funding (C) 6,831 3,691 4,527 3,104

Application Of Capital Funding

Capital Expenditure:

- To Meet Additional Demand 320 113 1,121 762

- To Improve The Level Of Service 3,501 2,564 1,761 1,066

- To Replace Existing Assets 8,332 7,489 6,734 6,954

Increase/(Decrease) In Reserves - 276 - (68)

Increase/(Decrease) Of Investments - 136 - -

Total Applications Of Capital Funding (D) 12,153 10,578 9,616 8,714

Surplus/(Deficit) Of Capital Funding (C-D) (5,322) (6,887) (5,089) (5,610)

Funding Balance ((A-B)+(C-D)) - - - -



2. SUPPORT FUNDING IMPACT STATEMENT

Budget Budget Actual

LTP 2015 LTP 2016 2016

$000 $000 $000

Sources Of Operating Funding

General Rates, Uniform Annual General Charges, Rates Penalties

- - (195)

Targeted Rates - - (1)

Subsidies And Grants For Operating Purposes - - -

Fees And Charges 32 1 219

Internal Charges And Overheads Recovered 7,821 8,907 9,250

Interest And Dividends From Investments - 20 31

Total Operating Funding (A) 7,853 8,928 9,304

Applications Of Operating Funding

Payments To Staff And Suppliers 6,454 7,020 7,370

Finance Costs 467 456 (344)

Internal Charges And Overheads Applied 512 713 784

Other Operating Funding Applications - - -

Total Application Of Operating Funding (B) 7,433 8,189 7,810

Surplus/(Deficit) Of Operating Funding (A-B) 420 739 1,494

Sources Of Capital Funding

Subsidies And Grants For Capital Expenditure - - -

Development And Financial Contributions - - -

Increase/(Decrease) In Debt (569) (1,085) (2,496)

Gross Proceeds From Sale Of Assets - - 8

Lump Sum Contributions - - -

Total Sources Of Capital Funding (C) (569) (1,085) (2,488)

Application Of Capital Funding

Capital Expenditure:

- To Meet Additional Demand 65 89 -

- To Improve The Level Of Service 144 12 131

- To Replace Existing Assets 238 417 320

Increase/(Decrease) In Reserves (596) (864) (1,581)

Increase/(Decrease) Of Investments - - 136

Total Applications Of Capital Funding (D) (149) (346) (994)

Surplus/(Deficit) Of Capital Funding (C-D) (420) (739) (1,494)

Funding Balance ((A-B)+(C-D)) - - -



3. OVERALL FUNDING IMPACT STATEMENT RECONCILIATION

Reconciliation between the Group of Activities’ Funding Impact Statements, the Overall Council Funding Impact Statement and the Statement of Comprehensive Revenue and Expense against EAP budget.

LTP Actual Actual

2016 2016 2015

$000 $000 $000

Total operating and capital funding sources as shown in the group of activities’ funding impact statements

44,313 45,181 39,673

Less Corporate Services revenue unallocated - - -

Less internal charges and overheads recovered (8,907) (9,250) (9,611)

Total operating and capital funding sources as shown in the overall council funding impact statement

35,406 35,931 30,062

(Increase)/decrease in debt (1,452) 1,000 1,500

Gross proceeds from sale of assets - (8) (46)

Vested assets - - 90

Other gains 34 6 25

Total funding sources 33,988 36,929 31,631Total revenue as shown in the statement of comprehensive revenue

33,988 36,929 31,631

Application of total operating and capital funding as shown in the group of activities’ funding impact statements

44,314 45,146 39,100

Add corporate services costs - - -

Less internal charges and overheads applied (8,194) (8,386) (9,038)

Application of total operating and capital funding as shown in the overall council funding impact statement

36,120 36,760 30,062

Capital expenditure (12,153) (10,169) (8,782)

(Increase)/decrease in reserves - (138) 68

(Increase)/decrease in investments - (33) -

Less corporate services net gain in allocations (713) (864) (573)

Depreciation and amortisation 8,551 8,491 8,291

Other losses - 43 859

Total funding application 31,805 34,121 29,925

Total expenditure as shown in the statement of comprehensive revenue

31,805 34,121 29,925



4. RATING BASE INFORMATION The 2015/16 rates were set based on the following information, as at 1 July 2015 and prior year comparatives.

2016 2015

Number of Rating Units 9,877 9,899

Non-Rateable Units 926 934

Total Capital Value of Rating Units in the District $4,225,443,850 $4,091,071,350

Total Land Value of Rating Units in the District $2,225,316,900 $2,156,536,050

5. INSURANCE

As at 30 June Ruapehu District Council had the following insurance contracts in place:

2016 2015

Max Insured Value Max Insured Value

$000 $000 $000 $000

Material Damage Replacement 70,834 70,834 67,117 67,117

Motor Vehicles Market 630 630 630 630

Infrastructural Assets Replacement 12,500 113,868 12,500 112,115 Council has no self-insurance fund set aside. Risk mitigation include the NZTA subsides and Councils ability to borrow to replace lost / damaged assets.



6. BENCHMARKS

Annual Report Disclosure Statement for the Year Ending 30 June 2016

What Is the Purpose of this Statement? The purpose of this statement is to disclose the Council’s financial performance in relation to various benchmarks to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings. Council is required to include this statement in its annual report in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

Rates Affordability Benchmark Council meets the rates affordability benchmark if: Its actual rates income equals or is less than each quantified limit on rates; and Its actual rates increase equals or is less than each quantified limit on rates increases. Rates (Income) Affordability The following graph compares Council’s actual rates revenue with the quantified limit on rates. Council set a quantified limit on the rates income for which it plans to rate (whole of Council), included in the Financial Strategy within its Long Term Plan. This quantified limit is that the whole of Council rate income will not increase by more than the Local Government Cost Index (LGCI) plus 2%, year on year.

In 2016 the rates income was within quantified limits and annual increase of 4% from the prior year. The rates average increase disclosed in the 2015/16 Annual Plan was 3.65%. In 2015 Council exceeded this limit by $111k. Under the 2012-22 Long Term Plan, the quantified limit was a measure of CPI plus 2% for any rates increases on a year on year basis.

17,000

17,500

18,000

18,500

19,000

19,500

20,000

20,500

21,000

21,500

2012 2013 2014 2015 2016

Rates Income ($'000)

Year

Quantified Limited on rates income Actual rates income (exceeds limit)

Actual rates income (at or within limit)



Rates (Increases) Affordability The following graph compares Council’s actual rates increase with the quantified limit on rates increases included in the financial strategy included in the Council’s Long Term Plan. The quantified limit is the Local Government Cost index (LGCI) plus 2% for each of the next 10 years of the plan.

The 2015-25 Long Term Plan’s target for rate increases was for increases to be less than LGCI plus 2% over the 10-year period. Council has met this target with a 3.9% actual increase vs a limit of 4.3%. The 2012-22 Long Term Plan’s target for rate increases was for increases to be less than CPI plus 2% over the ten-year period. There were no limits set within the 2009-2019 Long Term Plan. Council has changed its limit to for rate increases to reflect the LGCI from 2015/16 because it is a better indicator of the costs actually faced by Council much of which relates to costs of maintaining and improving infrastructure. Previously, Council’s costs have tended to rise at a greater rate than the CPI which is a measure of inflation for consumer goods rather than inflation for local government inputs. Due to legislative requirements, water user charges have been reclassified from a User Fees and Charges, to a Targeted Rates category of income to Council. This has been restated for 2014/15, and impacted upon the rates increase shown by 1.7%..

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2012 2013 2014 2015 2016

Rat

es In

crea

ses (%

)

Year

Quantified Limited on rates increases Actual rates increases (exceeds limit)

Actual rates increases (at or within limit)



Debt Affordability Benchmark The Council meets the debt affordability benchmark if its actual borrowings are within each quantified limit on borrowing. The following graph compares the Council’s actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Council’s Long Term Plan. The quantified limit is that debt should be less than twice the annual rates bills from 2013 onwards, and less than twice operating revenue for 2012.

Debt Control Benchmark The following graph displays the Council’s actual net debt as a proportion of planned net debt. In this statement, Net Debt means financial liabilities less financial assets (excluding trade and other receivables.) The Council meets the debt control benchmark if its actual net debt equals or is less than its planned net debt.

0

10000

20000

30000

40000

50000

60000

70000

2012 2013 2014 2015 2016

Do

llars

$00

0's

Year

Quantified Limited on debt Actual Debt (at or within limit) Actual Debt (exceeds limit)

90%

94%

88%

82%

88%

80%

85%

90%

95%

100%

2012 2013 2014 2015 2016

Act

ual

\b

ud

get

ed n

et d

ebt

(%)

Year

Benchmark met Benchmark not met



Balanced Budget Benchmark The following graph displays the council’s revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant and equipment as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant and equipment). The Council meets this benchmark if its revenue equals or is greater than its operating expenses.

The balanced budget benchmark was not met in the 2013/14 year due to larger than expected depreciation charges as a result of the revaluation on the Council owned buildings. As this depreciation increase was unexpected, it had not been rated for.

101%

102%

99%

107%108%

94%

96%

98%

100%

102%

104%

106%

108%

110%

2012 2013 2014 2015 2016

Re

ven

ue

/ o

pe

rati

ng

ex

pe

nd

itu

re (%

)

Year




Operations Control Benchmark This graph displays the Council’s actual net cash flow from operations as a proportion of its planned net cash flow from operation. The Council meets the operations control benchmark if its actual net cash flow from operations equals or is greater than its planned net cash flow from operations.

Operating cash flow is very challenging to budget. As Council has the ability to borrow at short notice, the lack of operating cash flow has not been of concern. During the 2016 Financial Year our collection of overdue rates was successful. Essential Services Benchmark The following graph displays the Council’s capital expenditure on network services as a proportion of depreciation on network services. The Council meets this benchmark if its capital expenditure on network services equals or is greater than depreciation on network services.

The Capital spend on infrastructure has been cyclical in nature, with the spend decreasing from 2011 when the Council had been recovering from a long period of underinvestment. The targeted level of spend for renewals is approximately $8.3m, which is very similar to the 2015/16 depreciation charge.

82% 87%

111%

99%

116%

0%

20%

40%

60%

80%

100%

120%

140%

2012 2013 2014 2015 2016

Actual /Budgeted Net Cash Flow from

Operations (%)

Year




The increase for 2015/16 is due to emergency works brought on by the June 2015 floods. The main driver is repair of roading and bridge assets and water infrastructure throughout the 2015 Financial Year. Debt Servicing Benchmark The following graph displays the Council’s borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant and equipment). Because Statistics New Zealand projects the Council’s population will grow more slowly than the national population growth rate, it meets the debt servicing benchmark if it’s borrowing costs equal or are less than 10% of its revenue.

The interest to operating revenue benchmark that is measured against is that finance costs not exceed 10% of operating revenue. Council’s finance costs over the last five years have been significantly below this benchmark. The last five years have, however, had very low borrowing costs with interest rates having dropped significantly. The Weighted Average Cost of Capital for Council is 5.01% which is low next to historical data.

5.7%6.2%

5.4%4.8%

3.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2012 2013 2014 2015 2016

Bo

rro

win

g C

ost

s /

Rev

enu

e (%

)

Year

Benchmark Met Benchmark not met

Documents

2015/16 ANNUAL REPORT - Ruapehu District...RUAPEHU DISTRICT COUNCIL - ANNUAL REPORT 2015/16 SECTION 1 – PAGE 3 STATEMENT OF COMPLIANCE Council completed and adopted its 30 June 2016