working together for a better Southland · 10 Southland District Council – Summary of the draft Annual Plan 2014/2015 • The new water supply and treatment scheme will be completed

1Southland District Council – Summary of the draft Annual Plan 2014/2015

2 Southland District Council – Summary of the draft Annual Plan 2014/2015

VISION - to have thriving healthy communities - MISSION - working together for a better Southland



This document sets out key highlights of the draft plan. We want to hear from you about whether you think Council is on the right track with our plans or whether you think we should make some changes.

Council has tried to balance what needs to be done in the District against the ability to pay. To do this overall rates collected will increase 2.95 percent.

This year will be a busy one with several major projects underway including water and wastewater upgrades, road rehabilitation, progression of the District Plan, enactment of numerous changes in legislation and the continuation of the Te Anau Sewerage Scheme upgrade project.

Gary Tong MAYOR

David Adamson CHIEF EXECUTIVE

FROM THE MAYOR AND CHIEF EXECUTIVE

Changes to the structure of our community governance in 2013 will affect the rating structure for the Ward, Community board and Community Area Subcommittees. It is proposed to align the rating boundaries to the electoral boundaries.

Funding the District’s roading network will continue to be a challenge and Council is looking at new shared services initiatives including: Libraries, Our Way Southland, earthquake prone buildings, psychoactive substances control and alcohol policies.

Changes to the Local Government Act and the Building Act will impact a number of council activities.

We want to thank you for reading this document and strongly encourage you to submit on those things you do or do not support and to let us know what you think about what is planned for your District.

Welcome to

A Future Plan - the summary of Council’s draft Annual Plan 2014/2015.


SECTOR RATING UNITS (UTR)

2013/14 MODELShare of Costs (A)

CURRENT 2013/14Share of Costs (B)

UPDATED MODELShare of Costs (C)

PROPOSED 2014/15Share of Costs (D)

% CHANGE

% Dollars % Dollars % Dollars % Dollars (B to D)

Mining 22 2.2 $269,708 2.0 $245,189 1.97 $257,508 2.0 $261,607 6.7

Non-Dairy 3,070 35.6 $4,364,366 35.5 $4,352,107 37.47 $4,901,249 37.0 $4,839,725 11.2

Dairy 797 36.7 $4,499,220 36.0 $4,413,404 34.38 $4,496,673 34.5 $4,512,717 2.25

Forestry 178 4.9 $600,713 6.0 $735,567 4.95 $647,957 6.0 $784,820 6.7

Industrial 326 3.7 $453,600 4.0 $490,378 3.79 $495,442 4.0 $523,214 6.7

Commercial 455 2.5 $306,486 2.5 $ 306,486 2.43 $318,178 2.5 $327,008 6.7

Lifestyle 2,365 3.9 $478,119 4.0 $ 490,378 4.1 $535,714 4.0 $523,214 6.7

Residential 7,968 6.0 $735,567 9.0 $1,103,351 6.3 $824,479 9.0 $1,177,231 6.7

Other 314 4.5 $551,676 1.0 $ 122,595 4.61 $603,139 1.0 $130,803 6.7

15,495 $12,259,455 $12,259,455 $13,080,339 $13,080,339

ROADING RATE MODELComparing the current share of costs with the revised model and Council’s proposed split (excluding GST)

There are a number of key issues facing Southland District’s roading network.

Uncertainty around funding, policy set by national government and an ageing roading network are among the challenges.

To address this Council is considering options such as changing the levels of service and looking at new ways to improve efficiencies in expenditure and management of the roading network.

A focus on delivering a safe roading network will be maintained.

ROADING

WHAT ARE WE PLANNING TO DO


KEY PROJECTS & ACTIVITIES

Drinking Water StandardsProjects relating to drinking water standards are scheduled to take place in Eastern Bush/Otahu Flat and Riverton this upcoming year.

Council is continuing work to improve the quality of drinking water in Riverton with a new source of water developed north east of the township and upgrading of the water treatment plant.

There are plans in place to improve the water intake and treatment facility at Eastern Bush/Otahu Flat. This is expected to cost around $600,000 with design and investigation work being undertaken later this year.

WATER ISSUES

Sewerage Scheme - Te AnauThe proposed sewerage treatment and disposal system project for Te Anau is currently going through the resource consent process with Environment Southland.

The application is for the discharge of treated wastewater to land immediately north of the Te Anau Airport Manapouri. It is anticipated a hearing will be held in June 2014. If the proposal goes ahead construction is expected to be between $9.8 million and $11.9 million and take two to three years.

This all depends on the outcome of the resource consent hearing and any conditions imposed.

Water and WasteCouncil will continue upgrading treatment schemes to improve compliance with standards.

The affordability of water and sewerage scheme improvements, particularly for smaller schemes, has become an issue since the Ministry of Health financial subsidies are no longer available.

Council will continue to carry out appropriate assessments to ensure the best timing of upgrades.


Rating Boundary ChangesA new representation system was introduced in Southland District last year which led to changes in wards, Community Boards and Community Development Area Subcommittees. As a result, the rating boundaries and electoral boundaries in some areas do not align. Council is proposing that all ratepayers pay a ward rate and that all ratepayers within a Community Board or Community Development Area boundary pay a Community Board or CDA rate. This would ensure the local rates collected are also spent in the same area.

Libraries - Bookbus RouteThe mobile library bookbus has 45 scheduled stops on its route. In the Long Term Plan Council decided to purchase a smaller vehicle and retain the route of the bookbus for 12 months in order to monitor its use over time. With the new vehicle now in use Council is proposing to remove and amend the location of a number of stops on the current bookbus route. It is proposing seven stops to be removed, one relocated and two stops added.

Around the Mountains Cycle TrailThe Around the Mountains Cycle Trail has been under construction since May 2013. Stage one from Kingston to Mossburn via Garston, Athol, Five Rivers and Lumsden is expected to be completed by 31 May. Planning for stage two will take place with construction set to be completed by the end of 2015 to comply with the government’s funding agreement.

A $2 million project relating to stage two is planned for this financial year, covering Mossburn through to Walter Peak. The start of this project relies on resource consent being granted for a section of the trail in the area of the upper Oreti River. The trail is expected to be wholly completed by the end of 2015.

Our Way SouthlandOur Way Southland is a regional initiative that aims to facilitate community decision-making and action across different sectors. The programme has been operating since 2003 and work includes monitoring regional community outcomes, leadership, youth, parenting and community liaison. Council contributes $45,000 to this initiative every year and is considering whether to continue funding the programme.

Smokefree PolicyCouncil is proposing a Smokefree Open Spaces Policy. This policy aims to discourage smoking in public outdoor areas where people, particularly children and young people, gather. The policy promotes healthy lifestyles and relies on community support to encourage behavioural change.

KEY PROJECTS & ACTIVITIES

What we are planning to do...


WALLACETOWN

WAIHOPAI TOETOES WARD

Councillor Paul DuffyCouncillor Julie Keast

YOUR COMMUNITY

What’s planned for your communities...

EDENDALE AND WYNDHAM Funds have been set aside for a footpath upgrade over the next year.

• Council is working with the Department of Conservation and the South Catlins Development and Environmental Charitable Trust to provide infrastructure for the area.

• Council is progressing design and consenting for a sewage treatment plant and improvements to a water supply. Council agreed in the Ten Year Plan to contribute $300,000 towards the Curio Bay development. This was budgeted for, but unspent, in 2012/2013 with the funding to come from existing financial reserves.

CURIO BAY

TOKANUIFunds will be allocated for the construction of a skate and recreation park.

WAWALLLLACACETETOWOWNN

WOODLANDSTwo seating projects at a cost of $12,000 are being developed for the Woodlands Cemetery.


What’s planned for your communities

MARAROA WAIMEA WARD

Councillor Alistair JukesCouncillor John DouglasCouncillor Brian Dillon

YOUR COMMUNITY

Pavement rehabilitation works are continuing and a major foothpath upgrade will be undertaken.

BALFOUR

• A playground upgrade has been proposed which will see wooden edgings replaced with concrete, improving longevity and reducing maintenance costs.

• The water bore and public toilet upgrade will be completed this year, the project will cost approximately $190,000.

GARSTON • Upgrade work on the historic railway precinct is continuing and is due to be completed this financial year. Around $40,000 has been spent to date and Council is working with the Lumsden Heritage Group on the project.

• Footpath rehabilitation and drainage work will take place, worth around $55,000.

LUMSDEN

MOSSBURN• A total overhaul of toilet facilities is

expected to be completed this year. The cost is around $400,000 and will include the installation of a new septic tank and disposal unit.

• Similarly to the playground in Garston an upgrade to the Mossburn playground has been proposed where the wooden edgings will be replaced with concrete.


What’s planned for your communities...

YOUR COMMUNITY

MANAPOURI$15,000 has been allocated for work associated with a commemorative rock and the surrounding area, including an information kiosk being installed in the town centre.

This work has been carried over from the last financial year. Additional funds are needed and will be sought from other sources.

• Work is underway on a 1.8km walking track from the town to the cemetery. It is a community project, funded by Venture Southland, local funders and volunteers. Council owns the land and is supervising the project.

RIVERSDALE

MILFORD SOUND• Consultation will be undertaken on a proposed multi-purpose court for the

Village Green at an estimated cost of $25,000 to $30,000.

• The roading network in Cleddau Village will be vested to Council by the Department of Conservation. This affects less than 2 kilometres of road.

TE ANAU• $14,000 has been allocated to the Te Anau Events Charitable Trust Co-ordinator position.

• Blue Gum Point will be upgraded with the creation of a picnic area and a tidy up.

• Te Anau Library will be renovated at a cost of $32,500 with the work likely to begin in August. The library will be reconfigured to create more space and make the facility more user-friendly.

Early investigation into a walking track in the area is being considered.

The project could be worth $20,000 to $25,000 and would likely take 1-2 years.

WAIKAIA


• The new water supply and treatment scheme will be completed at a cost of $1.8 million.

• The $100,000 upgrade of street works, which started in the last financial year, is continuing this year. It includes street widening, and new kerb and channelling in different areas.

• A study into the revitalisation of the main street is being undertaken by the Community Board.

RIVERTON

OREPUKI An information kiosk is set to be completed in the year ahead. It has been built on Oldham Street across from the hall. The project is worth $8,000.

Key projects & activitiesWhat’s planned for your communities

WHAT’S PLANNED FOR YOUR COMMUNITIES

WAIAU APARIMA WARD

Councillor Rodney DobsonCouncillor Stuart BairdCouncillor George Harpur

YOUR COMMUNITY


Councillor Bruce Ford

STEWART ISLAND RAKIURA WARD• A project has been identified

to provide additional car parks on Argyle Street subject to funding.

• Conditional reporting will take place on the pumping system to identify if replacement is needed.

• The Port William Wharf project will continue in the 2014/2015 year with the wharf to be constructed as funds allow.


YOUR COMMUNITY

TUATAPEREMaintenance of the newly developed and planted areas of Greenheart Reserve is set to take place.

THORNBURYMaintenance work will take place on the community hall.

OTAUTAUA walkway is being constructed on the floodbanks near the town.

NIGHTCAPSNew flow metres and a SCADA system worth $50,000 will be installed in the sewerage scheme.

OHAI $45,000 worth of electrical upgrades are set to take place later in the year.


• Investigations are taking place into the sealing and widening of Florence Road and Lindsay Street.

• Street works will be undertaken township wide.

• $5,000 is allocated to the maintenance of the Winton Walking Track.

WINTON WALLACETOWN WARD

Streetworks projects are to be funded in the year ahead and will include a footpaths upgrade.

WALLACETOWN

WINTON

Councillor Lyall BaileyCouncillor Neil PatersonCouncillor Gavin Macpherson


YOUR COMMUNITY


Sources of Revenue 2014/2015

Rates IncreaseCouncil is forecasting an increase in overall rates of 2.95% in the 2014/15 year.

The district rate increase accounts for 3.94% of the rise (down from 5% in the Ten Year Plan).

Rates on your own property will vary depending on where you live, the local projects being funded and the services you receive.

For more information please refer to the full Draft Annual Plan.

FINANCIAL OVERVIEW

Sources of RevenueCouncil expects to receive $66.4 million for the 2014/2015 financial year. Of this, rates make up $40.6 million (61% of total revenue), New Zealand Transport Agency Roading Assistance $14.6 million (22%), and other revenue $7.4 million (11%).

Included in other revenue are fees and charges received for services, such as consent fees, development and financial contributions, forestry income as well as interest and dividends Council receives from investments.

Council undertakes a number of activities, and each has a budget based on the levels of service it believes the community wants, as well as assumptions about the future.

Much of what Council is proposing to do in the Draft Annual Plan was set out in the Ten Year Plan 2012/2022.

However Council has looked to make savings by reducing operating expenditure that was forecast in the Ten Year Plan. This has resulted in cost savings and there is no proposed reduction in Council’s intended level of service across its various activities. Some infrastructural work has been deferred as it is not required as soon as originally thought.

Other Revenue11%

Grants & Subsidies 5%

New Zealand Transport Agency 22%

Other Grants & Loses 1%

Rates Revenue 61%


Capital Expenditure 2014/2015

Roading and Transport is the activity which takes up the majority of Council’s spending - 74% of overall capital expenditure and 44% of operating expenditure in 2014/2015.

For the past five years roading activity has used internal reserves to help keep rates at an affordable level.

Council has also faced external pressure from Government cutting the Funding Assistance Rate by 1%. The funding assistance is not keeping up with the cost increases Council is experiencing in maintaining its roading network.

Council’s focus is to keep rates at an affordable level as well as reducing the level of debt required to fund the roading services.

Council expects future financial pressure associated with increased petroleum costs, shortage of skilled resources and plant demand due to the Christchurch rebuild, which will continue to place pressure on the levels of service it delivers in roading.

Financially, this plan continues the theme of investment in infrastructure with capital expenditure for the 2014/2015 year forecast to be $24.8 million.

This plan will see the renewal of key infrastructure assets, many of which are ageing, as well as improvements to infrastructure to provide a better level of service.

In considering affordability, Council has been mindful that capital works and the borrowing required will increase costs but this infrastructure is important for the continued operation of the district.

Council’s finances often refer to capital and operating expenditure.

Capital expenditure is what is spent building infrastructure and assets, such as roads and water and sewerage treatment plants. It also includes major costs to upgrade or improve these.

Operating expenditure refers to day to day costs of providing services and maintaining assets. Examples include wages electricity bills, insurance and repairs and maintenance to Council’s assets.

FINANCIAL OVERVIEW

Roading and Transport (including footpaths, street lighting and street works)

Other District Services 6%

Other Local Services 3%

Water, Sewerage, & Stormwater 17%

Roading and Transport 74%


Water, Sewerage and StormwaterWater, sewerage and stormwater is the second largest activity of Council, consuming 17% of overall capital expenditure and 12% of operating expenditure in 2014/2015.

In accordance with the Ten Year Plan, Council rates for this expenditure by way of a consistent charge for water and sewerage for ratepayers across the district connected or able to be connected to a Council scheme.

Other district expenditure

Other district expenditure includes activities associated with the district such as:

• community housing

• district support

• library services

• solid waste management

• public conveniences

• corporate services

FINANCIAL OVERVIEW

Other local expenditure

Local expenditure represents costs associated with running local communities, ranging from:

• beautification

• cemeteries

• halls

• parks

• reserves

The programme of operating and capital expenditure for local communities reflects each area’s local priority whether it be playgrounds, cemetery maintenance and upgrades, or beautification projects.

Other Local Services 5%

Representation & Advocacy 6%

Roading and Transport 44%

Water, Sewerage, & Stormwater 12%

Regulatory Services 6%

Grants & Donations 6%

Other District Services 21%

Operating Expenditure 2014/2015


Documents

working together for a better Southland · 10 Southland District Council – Summary of the draft Annual Plan 2014/2015 • The new water supply and treatment scheme will be completed