Annual Plan Full Document 2011/2012 - Far North District Council

CONTENTSNGA RARANGI UPOKOSECTION 1 WELCOME TO THIS PLANWhakatau mai ki tenei kaupapa2SECTION 8 COUNCIL CONTROLLED ORGANISATIONSNga ropu whakarite o te kaunihera40Words from the Mayor and Chief ExecutiveWelcome to this PlanCommunity FeedbackSECTION 2 COUNCIL’S STRATEGIC PRIORITIESRautaki whai tikanga o te kaunihera6SECTION 9FINANCIAL MATTERSNga take puteaSECTION 10 FUNDING IMPACT STATEMENTWhakapapatanga tahua korero4163SECTION 3ROADS AND STORMWATERNga rori me nga wai ãwha14SECTION 11 POLICIESNga kaupapa71SECTION 4 WATER AND WASTE MANAGEMENTNga wai me te pakopako ropu whakahaereSECTION 5DISTRICT FACILITIESNga whakaurunga o te rohe1923SECTION 12 YOUR COUNCIL AND IMPORTANT CONTACTSNga whakapanga hirahira a koutou kaunihera80SECTION 6 SUSTAINABLE ENVIRONMENTKaitiakitanga te tai aõ31SECTION 7 GOVERNANCE AND CORPORATEKãwanatanga me te ratonga rangapu34FAR NORTH ANNUAL PLAN 2011-2012 3

LETTER TO THE COMMUNITY FROM THE MAYOR & CHIEF EXECUTIVERETA O TE KOROMATUA ME TE KAIWHAKA HAERE KI TE HÃPORIKia Ora,Harsh times demand harsh measures and itwill be a “no frills” year for residents and ratepayerswith capital and operating expenditureslashed, non-essential capital works deferred,and the drive to reduce debt maintained.This year’s Annual Plan requires an increase intotal rate income for 2011/12 of 4.1% whichis 0.3% higher than was outlined the Draft Plan. This increase reflects theadditional money being allocated to tourist related activities to maintain andimprove service delivery as discussed below. The total increase is still belowboth the current level of inflation and the 4.26% increase projected in theLong Term Council Community Plan (LTCCP) for the 2011/2012 year. Theaverage residential rate increase is now 0.9% but the increases to commercialand farming properties is higher, primarily because of the 2010 revaluation.The sewerage rate is now lower than was proposed in the Draft Plan at$581.98. This is a reduction from last year’s charge of $602.57. The watercharge remains at $181.33 compared to last year’s charge of $177.78 and thewater by meter charge is $2.45 per cubic metre, an increase of 5 cents overlast year’s charge of $2.40 per cubic metre, (these figures are net of GST).Council found little room to move in this year’s budget which is a reflectionof the current worldwide economic climate. We have been veryconscious of the hardship which a flat economy has generated and thefact that 138 businesses in Northland failed last year. Signs of economicimprovement are tentative and the latest report on growth assumptionsfor the Far North makes relatively dismal reading through until at least2015. The Far North economy like most in New Zealand and around theworld will continue to struggle in the short term.One area in which we are looking to draw back is that of social spending.We will this year be closely reviewing the use of rate income in areaswhich, arguably, should be the responsibility of government agencies orprivate sector funding providers.Council will continue to support planned for events such as the OceanSwim Series, the Snapper Classic, Twin Coast Cycle Trail project, Hokiangaand Mangonui Food Festivals, aeromagnetic minerals survey and RugbyWorld Cup activity.Council will continue to look at ways to recover some of the cost offacilities provided to service the visitor industry. This is essentially a balancingact between the need to encourage tourism, as a major contributorto the local economy, and the need to contain the costs on ratepayers.As a first step we have decided this year to introduce a user pays systemat Paihia (Williams Road toilets) and Kawakawa (Hundertwasser toilets).Other public toilet facilities in these locations will remain free of charge,although this may change if the Paihia and Kawakawa trials prove costeffective. There is also a comprehensive review currently being carried outon the way we deliver public toilet facilities across the district.As a result of submissions received, Council has elected to increase itsoperational spending by $215,000 to provide for a higher level of serviceto the tourist belt in areas such as beach cleaning, toilet maintenance, littercontrol and other tourism related services at the height of the visitorseason and on occasions such as Waitangi Day. Community Boards willbe able to provide advice on where this additional funding can best beapplied. This funding comes at a cost with rate increases in the Te Hikuand Bay of Islands-Whangaroa Wards of $5 and $10 respectively per rateassessment. The principle of encouraging communities to be more selfreliantand to work with us to reduce costs will continue to ensure thatthe additional funding goes as far as possible.We have developed a road hierarchy – each road has been classified based onits primary function, its traffic volume and the number and type of users. Thismeans we can go out and tell people what we are doing (or not doing) and why.An intention was signaled in the Draft Plan to reduce the commercial differentialfrom 3 times the general rate to 2.75 times. While this move wasendorsed by the commercial sector, others were not prepared to accepta compensating increase in their rates to provide the commercial reliefsought. In particular Council was mindful of the impact this would have onthe farming sector which was already facing average rate increases of closeto 9% and has opted to retain the commercial differential at 3 for this year.However a working party of councillors and staff has been set up toconsider a wide range of options and ideas for the Far North rating systemduring the next 12 months, or longerif needed. This is considered to be a highpriority initiative. However the process willinclude consultation and will not be rushed.This year Council will design and build anew water supply for Rawene, design a newreticulated wastewater system for Opua,upgrade the Awanui wastewater reticulationsystem, start design work on the Bay ofIslands wastewater treatment plant (subject to consent), start design workto upgrade the Hihi wastewater treatment plant, complete major drainageimprovements at Cooper Beach and Russell and increase recycling activitiesin line with our Waste Management Strategy.Economic development projects and community plans will be advancedand the Disability Action Plan implemented. Consent processing will beimproved, District Plan changes advanced, District Plan monitoring improved,and the Kerikeri/Waipapa Structure Plan will be progressed.Maori engagement, including consultation, representation, economic andsocial development and improving collection of Maori rates remain animportant area of work.While we have not been able to accommodate many of the wishes expressedin the submission process, concessions have been made includingprovision for new toilets at Te Kao ($70,000), provision to give effect tothe Disability Action Plan ($15,000), provision to advance Council’s positionon GMOs ($10,000 if required) and the move to increase the levelof service to high volume visitor locations.It will be a tough year but we believe this Annual Plan has acknowledgedthis and will generally contain spending to meet the economic objectivesset out in the draft.Kia Kaha,4 FAR NORTH ANNUAL PLAN 2011-2012

WELCOME TO THIS PLANWHAKATAU MAI KI TENEI KAUPAPAWELCOME TO THIS PLANWhakatau mai ki tenei kaupapaThe Annual Plan is like a one-year slice of the LTCCP, in whichCouncil provides you, the community, with details of its planned levelsof service and projected financial information for the year ahead.As was outlined last year, the Local Government Act requiresCouncil to prepare and consult on the Draft Annual Plan each year.This Final Plan is the outcome of that consultation process.In putting together the Draft Annual Plan, Council gets theopportunity to review progress towards its ten year objectives,take account of any new issues and consider whether theLong-Term Plan still refl ects the strategic direction Council isintending to take.MANAGING EXPECTATIONSWhakahaere a au hiahiaAs was outlined in the Draft Plan, the challenges presented bythe current worldwide economic climate have had a severe effecton the Far North District’s economy. Unemployment is highand many businesses are struggling to survive. Whilst there aresigns that the economy may be starting to improve, it is likely tobe a long and painful time for many people.Council believes it is important that it plays its part in minimisingthe costs it imposes on the residents and ratepayers ofthe district. As outlined in this document, Council has kept anyrate increases to a minimum, but it also recognised that thereare some areas where a small additional investment will helpmaximise the returns from one of the District’s most importantindustries, namely tourism.The Final Plan outlines a small increase in rates for two of thewards, Bay of Islands/Whangaroa and Te Hiku which have beenspecifi cally targeted as supporting the tourism industry.Council has noted the submissions received from the farmingsector about the effects of the recent revaluations. It wasconcerned that one of the results of the proposal to reduce theCommercial Differential was to increase the rates in the farmingsector by an additional 1%.As a result, Council has reconsidered that proposal and is nowleaving the differentials unchanged but has committed to a fullreview of these as part of the next Long-Term Plan.OTHER CHANGES SINCE THE DRAFTPLANNga mea whakaneke mai i te kaupapa atau tuatahiIn light of the feedback received on the Draft Plan, Councilhas made a number of decisions that are refl ected in this fi nalversion of the Plan. Details of these changes are outlined in theCommunity Feedback section.LONG TERM PLANTiruhanga akeThis Annual Plan is the last slice of the 2009/2019 Long-TermCouncil Community Plan. Next year, Council will be publishinga new document called a Long-Term Plan. This will take a similarrole to the previous LTCCP but will be more focused on Counciland what it does to support the District.Most importantly, for the fi rst time the legislation specifi callydetails certain specific functions that Council must report on.Additionally, there will be new forms of fi nancial statements willassist readers focus on what is important.Council will be developing this plan over the next twelvemonths but may well start consulting with the community onsome aspects earlier.FAR NORTH ANNUAL PLAN 2011-2012 5

COUNCIL’S KEY STRATEGIC PRIORITIESRAUTAKI WHAI TIKANGA O TE KAUNIHERACOUNCIL’S KEY STRATEGICPRIORITIESRautaki whai tikanga o te kauniheraIn the LTCCP Council identifi ed eight strategic priorities, whichform the basis for this Draft Annual Plan.VALUE FOR RATEPAYERS:Wariu mo nga kai utu reti:• Reducing costs across the organisation• Putting pressure on suppliers to reduce their charges toCouncil• A fairer rating system with fewer anomalies• Affordable services of an acceptable quality• Government must come to the party – a fair share of nationalfunding for the Far North.THE ECONOMIC DEVELOPMENT OF THEFAR NORTH:Nga whanaketanga painga hua o te nota:• Marketing the Far North as a place and as a brand• Continuing to encourage tourism• Supporting primary production and core industries whilstencouraging new business development• Realising the potential benefits offered by the 2011 RugbyWorld Cup• Attracting at least one other major sporting event to theDistrict• Exploring the opportunities to utilise the District’s mineralresource.• Encouraging innovative communities to live, work, developand prosper whilst raising their families within the Far North.RESPONDING EFFECTIVELY TO THEGROWTH OF THE DISTRICT:Nga whakautu totika nga whanaketanga o terohe:• Developing a growth strategy to attract inward investment• Producing community plans and implementing District Planchanges to guide growth and development• Pursuing a Development Contributions policy that encouragesand helps pay for growth and offers suitable incentivesto achieve balanced growth in different parts of the District.• Encouraging further development to occur in areas that havethe infrastructure to support the growth.INVESTMENT IN NEW INFRASTRUCTUREAS AND WHEN AFFORDABLE:Nga moni whakangao ki te hanga ngawhaipainga hou:• Making proper provision for the maintenance and renewal ofexisting assets before investing in new ones• Adopting a “back to basics” approach focusing on key infrastructurepriorities – roads, sewerage and water in particular– and cutting out unnecessary or unaffordable projects (i.e.must do rather than nice to have).MAKING FNDC A LEANER, MORE CUS-TOMER-FOCUSED ORGANISATION:Ki a whaiwhakaaro nuitia a FNDC he ropu kaiarotaki nga kaiutu:• Providing excellent customer services – better, faster,cheaper – right person, right place, right processes• Working in a business-like way noted for its effi ciency• Adopting a positive and forward-looking approach• Acting as an agent for change rather than a barrier to progress• Developing staff who will promote the District as a place tolive and do business• Ensuring sound fi nancial management• Offering the leadership the District needs and fairly representingthe views and aspirations of its community interactingpositively and easily with its population• Delivering value to the community and its ratepayers.SAFEGUARDING OUR COMMUNITIES:Kaitiaki pai te iwi whanui:• Continuing to press Northland Regional Council (NRC) toplay its proper part in fl ood protection and mitigation (ortaking on these responsibilities as a unitary council)• Working with communities to improve emergency preparedness• Improving stormwater drainage• Leading the District in responding positively and effectively toclimate change.IMPROVING THE QUALITY OF LIFE IN THEFAR NORTH:Whakawhanake te ahua noho i te nota:• Modernising the Far North’s towns• Making the Far North a better place to play – improvedcoastal access, better recreation, walking and cycling facilities• Tackling social issues like illegal dumping• Working with key groups in our community to improveprovision for disabled people and identify the most effectiveoption for future management of housing for older people.COMMUNITY DEVELOPMENT:Te tupu hapori:• Encouraging community groups to take an interest andresponsibility for development within their towns• Enabling and encouraging Maori social and economic developmentto occur whilst acknowledging their reciprocalresponsibilities and obligations• Working towards effective Maori representation• Protecting the Far North’s unique culture and heritage.6 FAR NORTH ANNUAL PLAN 2011-2012

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUISUBMISSIONS ON THE DRAFT PLANNga whakatakotoranga tuhinga kaupapahukihukiCouncil has now completed its consultation on the Draft AnnualPlan for 2011/2012. It received a total of 197 submissions coveringover 1,000 points and 74 submitters took the opportunity to presenttheir submission in person to Council at one of the hearings held inKaitaia, Kaikohe and Kerikeri during the week 16 to 20 May 2011.Council has reviewed all the submissions it received and hasconsidered how it should respond to the various points thatwere made. The deliberation on the submissions took place onWednesday 8 June 2011 and this has culminated with the adoptionof this Final Annual Plan on 23 June 2011.As a fi nal step, FNDC will be writing individually to all submittersto tell them how Council has responded to the points theyraised in their submissions.Some of the key decisions made by Council in the light of thefeedback from submissions are set out below.REVIEW OF SOCIAL SPENDINGHe ata tirohanga ki te whakapau moni a IwiAs was indicated in the Draft Plan, Council is taking a more “back tobasics” approach for this and future years.In particular, they would like to signal their intention to review whatthey refer to as “social” spending in next year’s Long-Term Plan. Inparticular, they will be reviewing the provision of grants and donationsto social, sporting and cultural activities and organisations.For this year, Council has agreed to continue to fund organisationssuch as the Kerikeri Citizens Advice Bureau, the KaitaiaPeople’s Centre, the Bay of Islands Arts Festival and SportsNorthland to name a few, but has decided to transfer $5,000from grants currently provided for the fi rst three organisationsto fund the Disability Action Group.RATES ISSUESNga take reitiCommercial Differential Remains at 3 TimesIn the Draft Plan, Council indicated it was proposing to reducethe Commercial Differential from 3 to 2.75 times the GeneralDifferential. The primary reason for this proposal was to addresssome of the impact of the 2010 revaluation.Council received a number of submissions from the commercialsector supporting this proposal but it also received many submissionsfrom the farming sector expressing concerns over theincrease in their rates which arose from the revaluation.In considering the issue, Council noted that one of the resultsof reducing the commercial differential was to increase the rateson farming properties by an average of 1%. Given the currentstresses on the farming community, particularly following the recentdroughts that have affected the Far North, Council decided toreconsider the proposed reduction to the Commercial Differential.After considering all the submissions on this issue, Council decidedthat it would retain the current three times differential for thecommercial sector, but would indicate its intention to review all thedifferentials as part of the forthcoming review of the rating system.Increase in the Rates for the Bay of Islands/Whangaroa and Te Hiku WardNumerous submissions were received seeking a higher level of servicein the tourist belt. As a result, Council has agreed to increasethe proposed Ward Rates for the Bay of Islands/ Whangaroa and TeHiku Wards by $10 and $5 respectively.This increase has been designed to provide an opportunity forCouncil to coordinate with local communities to achieve improvementsin areas such as beach cleaning, toilet maintenanceand support for Waitangi Day. These extra funds will maintain orimprove the visitor experiences within these wards by increasingthe level of services for tourism and associated activitiesReview of Rating SystemsThere was general support for a review of the rating systemcurrently in operation in the Far North and a number of organisationsoffered to assist with the process.As was indicated in the Draft Plan, Council will be looking atrating systems over the next twelve months and any proposalsfor change will be included in the next Long-Term Plan.IMPROVEMENTS TO PUBLIC TOILETSHe whakapainga o nga wharepakuThere were a number of submissions requesting Council toimprove the provision of public toilets throughout the district.As a result, Council has made a number of key decisions:• Te Kao will get new public toilets up to a value of $70,000,but it will come at the cost of a refurbishment programmefor the Melba Street toilets in Kaitaia. The Melba Street projecthas been placed on hold and will be reviewed after the TeAhu complex is opened• Council also signalled its intention to introduce chargesfor the use of public toilets servicing the visitor industryat Kawakawa (Hundertwasser toilets) and Paihia (WilliamsRoad toilets).GENETICALLY MODIFIED ORGAN-ISMS (GMOs)He ira ngangara kua whakarereketia maiNumerous submissions were received asking Council to takea stance on the issue of GMOs in the district. In general, thesesubmissions requested Council to provide funding of $10,000to pay for the cost of a collaborative plan change with the otherauthorities in Northland.The current budget already includes a sum of $5,000 to coveradministration costs associated with any policy changes relatedto GMOs. As a result of the submissions, Council agreed to add afurther $5,000 to the budget. Council will now consider whetherto undertake an analysis pursuant to Section 32 of the ResourceFAR NORTH ANNUAL PLAN 2011-2012 7

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUIManagement Act which will provide a basis for any future action.It should be noted that in providing this budget. Council is notmaking any firm commitment to undertake any actions on GMOsuntil it has formed a position on the matter.KERIKERI CBD ALTERNATE ROUTETe ara ke atu ki te CBD o te KerikeriCouncil sought submissions on the possibility of developing theKerikeri Alternate Route using a new targeted rate. Most submissionsopposed this concept so, given the current economic climate,it is unlikely that the project will proceed in the near future.DEFERRAL OF CAPITAL PROJECTSTe hikinga nuku o nga mahi whakanuiCouncil sought submissions on its proposal to defer a number ofcapital projects so as to keep rates down and to minimise debt levels.There were a few submissions opposing the deferral of someprojects, however in general the community supported the needto keep expenditures as low as possible. No specifi c projectswere reinstated into the works programme for 2011/2012.However, as indicated in the Draft Plan, all projects will be reconsideredas part of the next 2012/2022 Long-Term Plan.OTHER DECISIONS REFLECTED INTHE ANNUAL PLANNga taunga ke i kitea i roto i te kaupapa atauCouncil has also made the following decisions as part of theannual plan process:• Council will continue its current level of funding of the communitypools• Council would consider purchasing land to provide a newcarpark to support the Hundertwasser toilet provided thecommunity was willing to fund this through a targeted rate.Council agreed to carry forward the $100,000 for Lindvart8 FAR NORTH ANNUAL PLAN 2011-2012Park upgrade and the $100,0t00 for Lindvart Park hockeylights from the 2010/2011 into the 2011/2012 Annual Plan• It was agreed that the sum of $37,276, which was unallocatedfrom the footpath development budget, should be carriedforward to the 2011/2012 fi nancial year and the Bay of Islands/WhangaroaCommunity Board be advised that Councilconsiders it should be spent in Moerewa• Council agreed that the Te Hiku Community Board shouldarrange for the work to provide the last 50m of footpath onRedan Road to be carried out as soon as possible• Council considered the future of the Kaeo Post Offi ce andsuggested that, although a Community Trust could be an appropriateway for the building to be managed, it was not theonly building in Kaeo which had historical signifi cance• It was agreed that it would be in both the community’s andCouncil’s interest to have the building occupied, preferablyby a commercial enterprise, before any steps were taken tospend money on an upgrade• Council noted the submission on the Kerikeri Business ImprovementDistrict and agreed that it was unfortunate that theproposal for it had failed. It considered that perhaps there werelessons which could be taken from the way it had been managedfor when the Kaitaia and Kaikohe proposals are considered• Council noted submissions received on the provision ofcoastal access. Council is taking every opportunity as it arisesto provide additional public access to beaches in the District• Council considered a submission seeking funding for the DoubtlessBay Information Centre. Council agreed to review the totalfunding of i-SITES and information centres to see whether fundingcould be made available from the current budget• A number of submissions objected to the possibility of MillLane connecting to Hall Road. Whilst Council noted that thiswas an early proposal for the Kerikeri roading network, itis not currently being planned but cannot be ruled out forsome time in the future.RATE INCREASENga reiti whakanuitiaThe decisions outlined above have altered the total increase in ratesfrom 3.8% by 0.3% to 4.1%. As was explained in the Draft Plan, the ac-tual increase experienced by any individual ratepayer will be dependenton where they own properties as well as their uses.The decision to retain the Commercial Differential at three times hasmeant that commercial properties will experience a greater increasethan was outlined in the Draft Plan. This is offset by lower increases tofarming properties and a minimal reduction to residential properties.The increase to the two ward rates means that properties in thesetwo wards will experience a small increase in their total rates.A table showing the actual increases to a range of properties isincluded in the Funding Impact Statement later in this document.Average Rate IncreaseExample PropertyAverage TotalRate$ Increase orDecrease% Increaseor (Decrease)Average Property (no services*) $ 1,442 $ 73 5.32%Average Property (all services) $ 2,237 $ 56 2.56%Average Residential - District $ 1,964 $ 18 0.93%Average Residential - East $ 2,117 $ 9 0.43%Average Residential - North $ 1,874 $ 6 0.34%Average Residential - West $ 1,763 $ 68 4.01%Average Farming $ 2,606 $ 213 8.92%Average Commercial $ 3,428 $ 242 7.60%* No Water, Sewerage or Stormwater

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUIPROPOSED CAPITAL PROJECT DEFERRALSProject nameEasternCost2011-12SubsidyReserve /RatesFundingLoan FundedPotentialSavingsRoading NetworkKerikeri CBD Alternate Route 495,715 0 (347,001) (148,715) (148,715)TOTAL: Roading Network 495,715 0 (347,001) (148,715) (148,715)FootpathsAmokura Road Footpath Kerikeri 2,700 0 (2,700) 0 DEFERCobham Court Footpath Kerikeri 4,500 0 (4,500) 0 DEFERGreenacres Drive Footpath Kawakawa 4,950 0 (4,950) 0 DEFERGrey Street Footpath Kawakawa 2,700 0 (2,700) 0 DEFERHarry's Place Footpath Kawakawa 2,700 0 (2,700) 0 DEFERKawakawa Mainstreet Kawakawa 48,544 0 0 (48,544) (48,544) DEFERKings Road Footpath Paihia 2,700 0 (2,700) 0 DEFERLanding Road Footpath Kerikeri 2,700 0 (2,700) 0 DEFERMarsden Road Footpath Paihia 3,600 0 (3,600) 0 DEFERMason Avenue Footpath Moerewa 2,700 0 (2,700) 0 DEFERMassey Street Footpath Moerewa 22,000 0 0 (22,000) (22,000) DEFERMatauwhi Road Footpath Russell 2,700 0 (2,700) 0 DEFERMawson Avenue Footpath Waipapa 2,700 0 (2,700) 0 DEFERSammaree Place Kerikeri 6,750 0 (6,750) 0 DEFERSeaview Road Paihia 2,700 0 (2,700) 0 DEFERYork Street Russell 2,700 0 (1,065) (1,635) (1,635) DEFERTOTAL: Footpaths 117,344 0 (45,165) (72,179) (72,179)HallsHalls Eastern Renewals 250,697 0 (250,697) 0 0 DEFERTOTAL: Halls 250,697 0 (250,697) 0 0Community BoardRecommendationsFAR NORTH ANNUAL PLAN 2011-2012 9

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUIProject nameCost2011-12SubsidyReserve /RatesFundingLoan FundedPotentialSavingsPublic ToiletsWaipapa Landing Toilets 30,000 0 (24,930) (5,070) (5,070) DEFERTOTAL: Public Toilets 30,000 0 (24,930) (5,070) (5,070)Parks & ReservesParks & Reserves Eastern Renewals 85,920 0 (79,072) (6,848) (6,848) DEFERTOTAL: Parks & Reserves 85,920 0 (79,072) (6,848) (6,848)Wastewater SchemesNew Resource Consent Riverview WWTP 150,000 0 0 (150,000) (150,000) DEFERTOTAL: Wastewater Schemes 150,000 0 0 (150,000) (150,000)Community BoardRecommendationsWater SchemesKerikeri Water Treatment Plant upgrade (ongoingfrom 08/09)1,700,000 0 (510,000) (1,190,000) (1,190,000) DEFERTOTAL: Water Schemes 1,700,000 0 (510,000) (1,190,000) (1,190,000)TOTAL: Eastern 2,829,676 (1,256,865) (1,572,811) (1,572,812)NorthernRoading NetworkSH10 Coopers Beach to Mangonui 346,787 (228,879) (94,326) (23,582) (23,582) DEFERFairburn / Peria Roads (Oruru end) 1,050,000 (693,000) 0 (357,000) (357,000) DEFERTOTAL: Roading Network 1,396,787 (921,879) (94,326) (380,582) (380,582) 010 FAR NORTH ANNUAL PLAN 2011-2012

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUIProject nameCost2011-12SubsidyReserve /RatesFundingLoan FundedPotentialSavingsFootpathsAhipara Road Footpath Ahipara 2,700 0 (2,700) 0 DEFERArnold Rae Park Kaitaia 40,000 0 0 (40,000) (40,000) DEFERColonel Mould Drive Footpath Mangonui 9,000 0 0 (9,000) (9,000) DEFERDonald Lane Footpath Kaitaia 4,950 0 0 (4,950) (4,950) DEFERJamieson Road Footpath Kaitaia 2,700 0 (2,700) 0 DEFERMasfen Terrace Footpath Kaitaia 3,240 0 0 (3,240) (3,240) DEFERMasters Street Footpath Kaitaia 6,300 0 0 (6,300) (6,300) DEFERMelba Street Footpath Kaitaia 2,700 0 (2,700) 0 DEFERNorth Road Footpath Kaitaia 13,500 0 0 (13,500) (13,500) DEFEROxford Street Footpath Kaitaia 2,700 0 (1,662) (1,038) (1,038) DEFERPuckey Avenue Footpath Kaitaia 7,740 0 0 (7,740) (7,740) DEFERPukepoto Road Kaitaia 20,000 0 0 (20,000) (20,000) DEFERPukepoto Road Footpath Kaitaia 11,700 0 0 (11,700) (11,700) DEFERTaaffe Street Footpath Kaitaia 9,900 0 0 (9,900) (9,900) DEFERTaaffe Street Footpath Kaitaia 2,700 0 0 (2,700) (2,700) DEFERTangonge Crescent Footpath Kaitaia 8,100 0 0 (8,100) (8,100) DEFERCommunity BoardRecommendationsTOTAL: Footpaths 147,930 0 (9,762) (138,168) (138,168) 0Parks & ReservesLocal Recreational Facilities - Northern ward 20,000 0 0 (20,000) (20,000) DEFERTOTAL: Parks & Reserves 20,000 0 0 (20,000) (20,000) 0Urban StormwaterInstall Reticulation System Foreshore Rd Ahipara 76,777 0 (36,718) (40,059) (40,059) DEFERTOTAL: Urban Stormwater 76,777 0 (36,718) (40,059) (40,059) 0TOTAL: Northern 1,641,494 (921,879) (140,806) (578,809) (578,809) -FAR NORTH ANNUAL PLAN 2011-2012 11

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUIProject nameCost2011-12SubsidyReserve /RatesFundingLoan FundedPotentialSavingsCommunity BoardRecommendationsWesternRoading NetworkPiccadilly Road (from Mangakahia Road) Kaikohe 294,000 (194,040) 0 (99,960) (99,960) Would like dustsuppressionalternativesinvestigatedTOTAL: Roading Network 294,000 (194,040) 0 (99,960) (99,960)FootpathsKohukohu Road Footpath 68,000 0 (21,287) (46,713) (46,713) DEFERState Highway 12 Omapere 80,000 0 0 (80,000) (80,000) DEFERThorpe Rd Kaikohe 40,000 0 0 (40,000) (40,000) DEFERTOTAL: Footpaths 188,000 0 (21,287) (166,713) (166,713)HallsHalls Western Renewals 736,330 0 (736,330) 0TOTAL: Halls 736,330 0 (736,330) 0 0Parks & ReservesNetball Upgrade Practice Area Lindvart Park40,000 0 0 (40,000) (40,000) DEFERKaikoheParks & Reserves Western Renewals 223,050 0 (191,600) (31,450) (31,540) DEFERTOTAL: Parks & Reserves 263,050 0 (191,600) (71,450) (71,540)Urban StormwaterHillcrest Rd Kaikohe 142,500 0 (21,375) (121,125) (121,125) DEFERTOTAL: Urban Stormwater 142,500 0 (21,375) (121,125) (121,125)12 FAR NORTH ANNUAL PLAN 2011-2012

COMMUNITY FEEDBACKNGA KORERO WHAKAHOKI O TE IWI WHANUIProject nameWater SchemesNew 500m3 Treated Water Storage and LandAcquisitionCost2011-12SubsidyReserve /RatesFundingLoan FundedPotentialSavings250,000 0 0 (250,000) (250,000) DEFERNew Bores Kaikohe 135,000 0 (40,500) (94,500) (94,500) DEFERRawene/Omanaia water supply scheme 1,650,000 (900,000) (30,000) (720,000) (220,000) DEFERTOTAL: Water Schemes 2,035,000 (900,000) (70,500) (1,064,500) (564,500)TOTAL: Western 3,658,880 (1,094,040) (1,041,092) (1,523,748) (1,023,838)DistrictRoading NetworkLocal Share$1.3m pending Subsidy 442,000 0 0 (442,000) (442,000) DEFERTOTAL: Roading Network 442,000 0 0 (442,000) (442,000)TOTAL: District 442,000 0 0 (442,000) (442,000)TOTAL: Whole of Council excludes other reductions 8,572,050 (2,015,919) (2,438,762) (4,117,368) (3,617,459)Community BoardRecommendationsFAR NORTH ANNUAL PLAN 2011-2012 13

ROADS AND STORMWATERNGA RORI ME NGA AWHAPRIMARY SERVICESNga take hirahira• Roads• Ferry• Stormwater14 FAR NORTH ANNUAL PLAN 2011-2012ROADSNga RoriWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been signifi cant changes to the roading programmesince the publication of the 2009/2019 LTCCP. They are primarilydue to the changes made after the 2008 General Election tothe Government Policy Statement for Transport (which nowemphasises investment in the Government’s nominated Roadsof National Signifi cance) and the economic recession which hashad a significant impact on housing and property development inthe District. These factors have impacted on Council’s abilityto carry out capital improvements, such as seal extensions, onthe District’s road network by severely reducing the amountof funding assistance (or subsidy) available for such work fromthe National Land Transport Fund and by creating a shortfall inanticipated development contributions. In addition Council hasdecided to reduce its level of borrowing to fund capital projects.The most signifi cant results of these changes that are refl ectedin this plan are:The seal extensions that were not funded in 2009/2010 thatwere part funded in 2010/2011 subject to 66% of the expenditurebeing funded from external sources have been deferred.Hence the funds allocated for Rural seal Extensions this year willbe used to support Section 4 of Council’s Policy No. 4101 - Roading:Funding Sources whereby Council will enter into appropriatefunding arrangements with local property owners where:• Work is desired ahead of or in addition to the adoptedprogramme;• 75% of the affected property owners , as determined by apoll, agree with such funding arrangements;• Already allocated NZTA funding assistance is not used; and• The Council share is no greater than the local share if NZTAfunding assistance for construction work was available (i.e. Council’sshare will be limited to no more than 34% of the total costOnly three bridge replacements (F13 Sawyers Rd, I25 Wainui Rdand B13 Quarry Rd) are expected to be finished by 2012.Additional land purchases for the Kerikeri CBD Alternate Routehave been deferred. As most submissions to the Draft Annual Planopposed funding this project by means of a local targeted rate, it isunlikely to proceed any further in the foreseeable future.Investigations of options for a new road linking Kapiro Road withWaipapa Road, improvements on Hone Heke Road and for a newroad linking the Kerikeri south eastern light industrial area withKerikeri Road have been deferred.Council is looking to become more involved in the decision makingin respect of the funds available or allocated to the Far North.Criteria for Prioritisation of Future CapitalImprovement WorksCouncil wishes to ensure that there is clear community understandingof the criteria used in determining priorities for roadimprovement projects. These are outlined below:• Access to community infrastructure and tourist destinations:To ensure safe access to community and recreationalfacilities, such as halls, marae, schools and hospitals, and touristdestinations (relevant measure: amount of accessibility achievable)• Social and health impacts: To protect and promote publichealth by reducing adverse environmental effects e.g. dust,uncontrolled stormwater run-off, stock effl uent and noise(relevant measure: numbers of properties and communityfacilities in close proximity to the road)• Environmental Sustainability: To improve water qualityand drainage (relevant measure: proximity of road to receivingwater and level of riparian zone vegetation)• Growth rate: To ensure appropriate economic investmentin areas of high growth (relevant measure: growth rate since2001 and growth forecast)• Seasonal/holiday traffic: To assist economic developmentby protecting journey times on routes to popular holiday destinations(relevant measure: seasonal increase in traffic volume)• Land-Use zoning/activities: To facilitate integrated landuse and transport planning (relevant measure: District Plan

ROADS AND STORMWATERNGA RORI ME NGA AWHAzoning and level/percentage of development on the road)• Route security: To reduce disruption to land use andeconomic activities by minimizing blockages on strategic links(relevant measure: availability of alternative routes)• Safety: To improve safety and public security (relevant measure:frequency and severity of crashes)• Connectivity/Strategic link function: To acknowledgeaccess routes that are key to maintaining connectivity withinthe district and to other parts of Northland (level of completionof sealed link in the FNDC Strategic Plan)• Traffic type and percentage of heavy commercialvehicles: To assist economic development by ensuring thatappropriate investment is directed to areas of high economicactivity (relevant measure: percentage of heavy commercialvehicles and traffi c composition)• Traffic volume: To assist economic development by improvingaccess in areas of high traffic activity and reducing averagetravel time (relevant measure: average annual daily traffic)• Travel demand management: To promote alternativemodes of transport, particularly walking and cycling wherepracticable (relevant measure: level of achievement of traveldemand management objectives)• Topography: To prioritise improvement works in areaswhere the challenging terrain influences maintenance cost;to promote access and mobility, secure personal safety andreduce maintenance cost (relevant measure: type of terrain).Criteria are given weightings and weighted scores are usedas the fi rst stage of determining project priority. This is thencombined with economic analysis, which takes account of ratesanalysis (rates paid and rates collection per kilometre), benefit/cost analysis (based on comparison with the do-minimum option),and New Zealand Transport Agency funding assessment.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012Addressing Current and Future Traffic DemandsThe NZTA has decided not to fund the design and constructionphases of the proposed State Highway 10/Waipapa/Waipapa LoopRoad intersection upgrade in 2011/2012. Council has completedacquiring all the land required for the proposed road to link KlinacLane with Waipapa Loop Road but will not proceed with the designand construction of the link until the upgrade of the State Highwayintersection proceeds.Maintenance and Renewal• Maintaining the current Levels of Service with respect tomaintenance, including bridges and other road structures• Carrying out 11km of sealed road pavement rehabilitation(with associated improvements where applicable)• Maintaining Tau Henare Drive, Waitangi• Concluding a comprehensive audit of all bridges and otherstructures on the road to establish an accurate forwardworks programme for repairs and replacements works programmefor repairs and replacements• Replacing the structural components of other bridges on an“as required” basis in accordance with current known prioritieswill be carried out during the year• Introducing a roading management and maintenance systemthat enables ratepayers to be informed of the standard thatroads will be maintained to. These standards will be refl ectedin contractor performance contracts.Safety Improvements• Completing a minimum of 20 minor safety improvements onthe network targeted at reducing the number of crashes andseverity of loss of control on bends• Maximising the amount of funding assistance for the FarNorth from the National Land Transport Fund• Supporting, subject to affordability, sealing projects where an elementof local community contribution is available and where theproposed project is in line with the relevant Council policy.Promoting Safer Driving• Pursuing community programmes to raise awareness and educatecommunities about high risk issues such as drink driving,crashes on bends, speed, child restraint compliancy and fatigue.CARPARKSNga papa wakaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been no signifi cant changes since the 2009/2019LTCCP was published.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to carry out maintenance on Council owned andmaintained carparks.FERRYWaka tereWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?Council undertook an extensive review of the costs and fundingof the Hokianga Ferry “Kohu Ra Tuarua,” in 2009. As a resultof this review, a modest increase was made to some fares toreduce the operating losses. A further increase to some fareswas made late last year to cover the increase to GST.Negotiations have also been held with the NZ Transport Agencyto confi rm the amount of subsidy paid to Council from theNational Land Transport Fund to help offset the short fall ofincome from fares over costs. The result of these negotiationsis that the subsidy now covers 56% of the actual net operatingcost (the operating cost less the income received from fares)with the balance of 44% being funded from the General Rate.The NZ Transport Agency has also agreed to subsidise the renewalcost of the ferry when the present vessel reaches the endof its economic life (estimated to be in 2029). An underwaterdive inspection carried out last year indicated that the underwaterhull of the ferry is in very good condition and hence the fi veFAR NORTH ANNUAL PLAN 2011-2012 15

ROADS AND STORMWATERNGA RORI ME NGA AWHAyearly haul-out for under water hull maintenance that fell due in2010 was deferred for a year.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to operate the Ferry “Kohu Ra Tuarua” sevendays a week, 365 days a year and reviewing fares to reduceoperating losses and to meet unavoidable cost increases• Hauling “Kohu Ra Tuarua” on to the slip way at The Narrowsfor under water hull maintenance, subject to the outcome ofa further underwater dive inspection• Reviewing fares to reduce operating losses and to meetunavoidable cost increases• Council has decided not to proceed with an electronic fare concessioncard for the time being.STORMWATERWai ÃwhaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?The following projects have either been deferred or had fundingreduced because of fi nancial constraints:• Hillcrest Road Kaikohe stormwater management at theintersection of Orrs and Hillcrest Roads.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to investigate options to address network defi -ciencies identifi ed by Stormwater Catchment ManagementPlan (SWCMP) capacity studies• Continuing stormwater maintenance and improvements• Identifying high profi le beach outlets in areas of high touristnumbers and undertaking improvements to make the outletsmore aesthetically pleasing• District Wide Emergency Response to address unknownworks that arise during the year16 FAR NORTH ANNUAL PLAN 2011-2012• Identifying and installing new pipelines that take into considerationfuture upstream development on the hillside aboveForeshore Road Ahipara.TWIN COAST CYCLE TRAILPou herega taiPRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012Council staff working with a committee of dedicated and enthusiasticindividuals drawn from diverse areas of the communityhave continued to make progress on the Cycle Trail.Clearing work has advanced along the route of the old rail corridorfrom Kaikohe to Okaihau and South from Kaikohe with the supportof teams of enthusiastic workers employed by Community Trusts,funded by the Community Max scheme. Council acknowledges thecontribution these teams continue to make to the project.Government has confi rmed funding for the project permittingwork to proceed as fast as practical. Consultation withaffected landowners, iwi, communities and parties interested inthe business and social opportunities the Cycle Trail project isbeing developed to provide, has commenced and will continuethroughout the year. Council is strongly interested in communicatingwith interested parties and groups who may wish toexplore the opportunities available.The framework of the marketing brand of the Cycle Trail is welladvanced and will be refined and communicated to the District duringthe year. A strong story is emerging that will permit visitors and localusers of the Cycle Trail to gain an appreciation for the region not previouslyassembled in such a structured way.Council intends to open the 13.7 kilometre section betweenKaikohe and Okaihau for walkers and bike riders during theyear to help the Community gain an understanding of theCycle Trail experience and will advance other sections of theCycle Trail as access becomes available.

ROADS AND STORMWATERNGA RORI ME NGA AWHAKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETSafetyReduce the % of fatal and serious crashes each year26.20%(26.20 number)23.76% 22.63%Extending the sealed networkExtend the existing sealed network by at least 7 km per year864(2008/2009)878 * 878Maintaining the sealed network – Reseals At least 8% of the network resealed per year 7% 8% ** 8%Maintaining the sealed network – Pavement Renewal At least 2% of the network Pavement Renewals 2% 2% ** 1.5%Safety Bridge Renewals At least 3 bridge renewals per year 3 3 † 1Responsiveness/Effectiveness % of Requests for Services responded to in set time and to appropriate standard 60% 95% 95%Meeting Community ExpectationsThe % of respondents indicating they are very/fairly satisfi ed as measured by theCommunitrak Survey is not less than 55%55% 55% 55%Alcohol Education Awareness CheckpointsIncrease the number of Alcohol Education Awareness Checkpoints around thedistrict by at least 12 per year over the next 3-years and no less than 36 checkpointsthereafter4(2008/2009)24 36Child Restraints Education CheckpointsReduce the % of non-compliant child restraints through Child Restraint EducationCheckpoints30%(2008 – MOT stats)10% 5%Fatigue StopsNo less than 10 Fatigue stops district wide per year targeting motorists, trucksand heavy vehicles6(2008/2009)10 10* Amended indicator due to non availability of Government subsidy.** Amended indicator due to reassessment of actual need.† Amended indicator due to full reassessment of state of bridges in the network to determine forward works programme.FAR NORTH ANNUAL PLAN 2011-2012 17

ROADS AND STORMWATERNGA RORI ME NGA AWHAKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETDriver Education and LicensingIncrease the number of learners and restricted driver education programmes, thiswill increase the number of licensed drivers on the road66(2008/2009)76 80Day to day stormwater service provisionStormwater improvements% of stormwater Requests for Services responded to in set time and to the appropriatestandardThe % of respondents indicating they are very/fairly satisfi ed as measured by theCommunitrak Survey is not less than 53%90% 90% 90%53% 53% 53%18 FAR NORTH ANNUAL PLAN 2011-2012

WATER AND WASTE MANAGEMENTNGA WAI ME TE PAKOPAKO ROPU WHAKAHEAREPRIMARY SERVICESNga take hirahira• Water Treatment and Reticulation• Wastewater Treatment andReticulation• Waste Management including Refuse• Transfer Stations and RecyclingWATER SUPPLYNga wai tukuWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?The review of the Kerikeri Water Treatment Plan project toensure demand can be met with minimal capital expenditure hasmeant the project is not expected to commence until 2011.The Omanaia new water supply will be progressed followingcommunity consultation.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Reviewing options for the supply of water• Providing a secure water source for Kaitaia• Limiting extensions to reticulation in line with falling demandfrom new development• Reducing operating costs• Investigating rain water harvesting at Opononi/Omapere• Introduction of a bylaw for rainwater tanks on new properties.WASTEWATERWai pakopakoWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?The following projects have been deferred to allow for ResourceConsent amendments:• Paihia Wastewater Treatment Plant is deferred to 2013/2014subject to a Council decision regarding the methodologyrelated to the Bay of Islands project• Kaikohe Wastewater Treatment Plant will commence in2011/2012.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Completing the installation of new reticulation at Ngawha• Completing the installation of new treatment plant at Kaeo• Obtaining the Bay of Islands Wastewater Treatment PlantResource Consent• Agreeing the strategy for the implementation of Kerikeri reticulation• Addressing with the community the recently discovereddesign problems with the Hihi wastewater reticulation• Commencing the upgrade of the Paihia Treatment Plant subjectto the resource consent• Commencing the Awanui and Opua reticulation projects• Obtaining resource consents renewals for Rawene, Ahiparaand Kawakawa Wastewater Treatment Plants• Limiting extensions to reticulation in line with falling demandfor new development• Reducing operating costs by utilising enhanced biologicaltreatment processes• Investigating new technology for wastewater treatment.FAR NORTH ANNUAL PLAN 2011-2012 19

WATER AND WASTE MANAGEMENTNGA WAI ME TE PAKOPAKO ROPU WHAKAHEAREREFUSE AND RECYCLINGNga otaota me te hangaruaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There are no signifi cant changes to the refuse and recyclingpriorities since the publication of the 2009/2019 LTCCP.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Reducing the material going to landfill by increasing reuseand recycling• Continuing to work with Council’s contractors to improveservices• Developing education packages for schools on recycling.20 FAR NORTH ANNUAL PLAN 2011-2012

WATER AND WASTE MANAGEMENTNGA WAI ME TE PAKOPAKO ROPU WHAKAHEAREKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETTreatment plant upgrades Number of failures of Resource Consent determinants 1 0 0Treatment plant upgrades Number of systems achieving grade Bb (8 systems in all) 0 1 2Construct additional treated water storageInterruptions to supply of water into the reticulation systemout of reserves not to exceed 24 hours in any 1 year100% 100% 100%Reduction in per capita water consumption 267m3 2% 2%Water conservation% of unaccounted for water (leakage, illegal connections,unauthorised use)28% maximum (annualbasis)26% 25%General improvements in service % very satisfi ed/satisfi ed respondents in Communitrak Survey 82% 82% 85%Customer Service % of service disruptions resolved in less than 4 hours 90% 91% 92%Optimise water fl ow and pressure Reduction in number of bursts per km of pipe 0.55 0.53 0.52Reduce operational costs per m3 of water Operational cost ($ /cubic metres) 1.087 1.044 1.023Treatment plant upgrades % compliance with New Zealand drinking water standards 97% 98% 98.5%Extend coverage of public water systems Number of connections 9,279 9,545 * 9,400* Due to slower growth than anticipated the number of connections has been reduced accordingly.FAR NORTH ANNUAL PLAN 2011-2012 21

WATER AND WASTE MANAGEMENTNGA WAI ME TE PAKOPAKO ROPU WHAKAHEAREKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETTreatment plant upgrades Number of failures of Resource Consent determinants 22 20 18Implementation of spill management programme Number of spills of sewage to water 11 10 9General service improvements % very satisfi ed/satisfi ed respondents in Communitrak Survey 84% 84% 85%Improvements in infrastructure and equipment % of service disruptions resolved in less than 4 hours 90% 95% 95%Extend coverage of public wastewater systems Number of connections 10,576 10,700 * 10,650Improvements in recycling facilities % by tonnage of waste that is recycled/reused 46% 52% 55%Introduction of greenwaste processingImplementation of environmental awarenessprogrammeGeneral improvements in the refuse servicePer capita volume of refuse from District disposed of atlandfi lls% respondents very satisfi ed /satisfi ed with refuse service inCommunitrak survey1.64m3 1.58 1.5571% 71% 75%Improvements in recycling facilities% respondents very satisfi ed /satisfi ed with recycling servicesin Communitrak Survey75% 75% 80%* Due to slower growth than anticipated the number of connections has been reduced accordingly.22 FAR NORTH ANNUAL PLAN 2011-2012

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHEPRIMARY SERVICESNga take hirahira• Airports and Maritime• Cemeteries, Public Toilets and TownMaintenance• Community Centres, Halls, Museumsand Pensioner Housing• Community and EconomicDevelopment• i-Sites• Libraries• Lighting, Carparks and Footpaths• Motor Camps• Community Activities - RecreationAIRPORTS AND MARITIMENga tauranga manurere me ngarere moanaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?The only signifi cant change to the airport and maritime activitiesrelates to the Russell wharf.A partnership arrangement has been reached with business intereststo carry out a $362,000 refurbishment of the Russell wharf.Under the arrangement the Russell business community will contribute$100,000 towards the work through a local charitable trust.A start is subject to Resource Consent approval and to theavailability of maritime contractors.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Undertaking a review of the current maritime renewal programmeand retime projects if required.CEMETERIES, PUBLIC TOILETSAND TOWN MAINTENANCENga tiakitanga o nga taone, menga whare paku me nga urupaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?Council will no longer be extending the Kaitaia cemetery as additionalcapacity has been created by realigning unused areas.Council has determined that it is not responsible for shop frontor under verandah lighting that may be required for securitypurposes. The planned toilet renewals at Houhora Heads,Kaimaumau, Waipapa Landing, Cobham Road, Broadwood, orRussell Esplanade have been deferred. However Williams Road,Paihia public toilet has been up-graded ahead of schedule.Council is transferring the $70,000 budget from the MelbaStreet toilets to construct a new one in Te Kao. It has beendecided not to make any decisions on new toilets in Kaitaiauntil the Te Ahu Centre is operational as this project containsa number of public toilets. This may obviate the need for newtoilets in town.Council is looking at the overall funding of toilets and is keen tointroduce user pays in key locations. In particular, Paihia and theKawakawa Hundertwasser toilets have been identifi ed.Council has added $10 to the Bay of Islands/Whangaroa wardand $5 to the Te Hiku ward rates to fund specifi c improvementsto key communities to support tourism. These include localbeach clean ups, Waitangi day clean ups and other services.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to ensure that cemeteries and places of remembranceare well presented• Continuing to ensure that public toilets are clean, hygienicand functional• Developing an up-grade programme to improve the qualityof the visitor experience along with the fi nancial implicationsfor inclusion in the 2012/2022 LTCCP• Continuing to clean and maintain town centres to ensurethey are tidy, safe and attractive particularly for the visitorsassociated with the Rugby World Cup and for the high numberof cruise ships passengers expected• Working with Focus Paihia to determine how the new PaihiaCBD targeted rate will be used.FAR NORTH ANNUAL PLAN 2011-2012 23

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHECOMMUNITY CENTRES, HALLS,MUSEUMS AND PENSIONERHOUSINGNga whare tapere, whare taonga,whare nui me nga whare penihanaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?Although the planned renewal programme for community halls hasbeen retimed to better align with the remaining asset life of thehalls assets the spending of this funding has been deferred whileCouncil reviews its future role in the provision of community halls.Museum funding was increased to $120,000 in 2010/2011 tobe split two thirds/one third between the Far North RegionalMuseum and Heritage Kaikohe.Council has engaged in-house maintenance staff to provide amore robust and cost-effective approach to maintenance ofcommunity halls and pensioner housing.Council is continuing the planned deferred maintenance programmefor pensioner housing that was funded from the sale ofthe Mangonui pensioner units.Pensioner housing rent will increase on the 1st October eachyear by the CPI index and Council has also introduced marketrents for tenants who do not meet the pensioner age criteria.Council has adopted a no-smoking policy for all new tenants inthe pensioner housing units.Council will continue to work with social housing providersto fi nd a more sustainable solution to the management of theremaining pensioner housing complexes over the next fi ve years.24 FAR NORTH ANNUAL PLAN 2011-2012PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Using the funds from the Mangonui pensioner housing saleto complete deferred maintenance on other pensioner unitsover the next two years• Continuing to work with the Far North Regional Museum toensure a smooth transition into the Te Ahu centre• Reassessing, in consultation with the community, Council’srole in owning, maintaining and promoting Community halls.• Continuing to support key local community hubs such as TeAhu and The Turner Centre.COMMUNITY AND ECONOMICDEVELOPMENTTupú õhanga me te tupú hãporiWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been no signifi cant changes to the Community andEconomic Development activities since the publication of the2009/2019 LTCCP.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Attracting inward investment to the District and making iteasier for people who want to invest in the future of theDistrict to do business with Council• Promoting the Far North as a tourist destination• Supporting events that bring people to the District and creatingopportunities for them to prolong their visit• Taking advantage of the unique opportunities offered by theRugby World Cup• Working with local businesses to develop Business ImprovementDistricts• Continuing the Far North Cycleway project and advising communitieshow to maximise its financial benefit• Working with communities in Kaikohe, Paihia, Omapere andOpononi, Kaitaia, Ahipara, Kawakawa and Doubtless Bay todevelop community plans• Implementing Council’s Mãori Engagement Action Plan, with afocus on economic development projects• Implementing an aerial survey of Northland mineral resourcesby March 2011with an estimated completion date bythe end of this year. (Ministry of Economic Development)• Exploring closer working relations between urban and ruralfi re authorities.• Working with the Regional Council and other partners toimplement the priorities set out in the Northland Civil DefenceEmergency Management Plan. There will be a particularfocus in the Far North on developing and maintaining communityresponse plans and raising public awareness (includinginitiatives through local schools)• Implementing Council’s Disability Action Plan• Continuing to consider the needs of older people andidentifying ways in which Council or other providers can bestrespond to those needs.• Continuing the ‘Buy North” campaign as a means of assistinglocal employment.

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHEi-SITESi-Puna kõrero whai mõhioWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?The Kaitaia i-SITE will be incorporated into Te Ahu.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Working with the Hokianga community to develop a businessmodel for the operation for the new Hokianga i-SITE• Continuing to develop a joint initiative with local tourismoperators, Te Roroa Hapu, Footprints Waipoua and theHokianga Art Project at the recently opened (March 2010)Hokianga Economic Development Centre and i-SITE• Working with Te Ahu to investigate and secure the ongoing useof the existing i-SITE building• Continuing to explore more cost effective options and locationsfor providing i-SITE services in the Eastern Ward (Paihia)• Increasing the sale of retail products and introducing morerevenue-generating services• Reviewing the current cost base of the i-SITES operation andexploring a volunteer-based service.LIBRARIESWhare pukapukaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There are no signifi cant changes to the Libraries activity sincethe publication of the 2009/2019 LTCCP.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to support the new Archives facility completed atthe Procter Library showcasing the history of the Far North• Commence incorporation of the Kaitaia Library into Te Ahu• Investigate potential availability and usage of the existingKaitaia Library.LIGHTING, CARPARKS ANDFOOTPATHSRama, nga papawaka, me nga ara hikoiWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been no significant changes to the Lighting, Carparks andFootpath activities since the publication of the 2009/2019 LTCCP.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• All footpath renewal projects have been deferred as a revisedcondition assessment is being undertaken that may realignthe renewal programme.• Developing a district car parking strategy.MOTOR CAMPSNga pupahi wakaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?Council has adopted an amended Reserves Bylaw that allowsCouncil by public notice to set aside areas for camping for certified camping vehicles within the District.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to update the camping information pamphlet andpromote licensed camping grounds within the District• Working with Community Boards to determine whatreserves, if any, should be set aside for use by self containedcamping vehicles and developing a Freedom Camping policyin time for Rugby World Cup visitors• Continuing to monitor the provision of camping on the westcoast of the District• Continuing to review the provision of camping at the peakperiod between December and January• Continuing to monitor illegal camping in known hot spotsduring the peak camping period• In line with Council’s policy continue to improve coastal accessas part of any coastal resource consent approved.COMMUNITY ACTIVITIES –RECREATIONNga tú mahi o te hãpori – hakinakinaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There is an increased focus on working together with schools,sports clubs, the community, Sport Northland and other regionalsports organisations to deliver better outcomes for sportingparticipation, better skill levels, and more sporting opportunitiesfor school-age children.Council will also be focusing its resources on improving servicesand support to sport and recreation clubs that co-locate andshare facilities at recreation hubs.Council has determined that the one off grants to improve accessto the Northland College swimming pool and the WhangaroaFAR NORTH ANNUAL PLAN 2011-2012 25

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHECommunity Pool were successful and will continue. This will nextbe reviewed as part of the 2012/2022 Long-Term Plan process.Council is continuing to work with the Kaikohe community todevelop a recreation hub for the town.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Developing a recreation strategy based on minimum standardsapproach rather than needs approach• Working with Northland regional sporting partners on thebest possible outcome for Far North sports in the allocationof Regional Partnership sports funding• Continuing with the development of the Kerikeri SportsComplex• Continuing to work with Kerikeri Domain Trust to developthe Domain as a recreation centre• Continuing to work with the Kaikohe community to develop arecreation hub for the town• Continuing to contract Sport Northland to provide three districtsports coordinators to increase physical activity, create strongerclubs, and ensure a variety of recreational events and sports areavailable in the District• Reviewing the Recreation and Sport Policy• Building netball courts as part of the Whatuwhiwhi recreationhub• Continuing the development of the Pukenui sports fi eldwithin available funds.26 FAR NORTH ANNUAL PLAN 2011-2012

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHEKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETMaintain maritime assetsResident satisfaction with recreational boat ramps and jetties (CommunitrakSurvey)58%(2006 survey)58% 59%Maintain airport assets Customer satisfaction with airports (User Survey) New measure 65% 65%Improve cemetery provision % satisfi ed with cemetery provision in Communitrak survey 54% 62% 65%% satisfi ed with public toilets in Communitrak survey 54% 55% 56%Improve toilet facilitiesToilets Requests for Services completion (urgent within 3 hours nonurgentwithin 5 days)95% 90% 90%% of toilets that comply with NZS 4241 1999 Public Toilet standards 70% 70% 70%Improve town maintenance % of graffi ti removed within 48 hours of reporting 85% 95% 95%Halls maintenance and renewalCompletion of preventative and regular maintenance checks andremedial work within set timescale (2 days urgent, 5 days not urgent)New 90% 90%Reduction of Requests for Services received annually 400 5% 5%Maintaining Housing for the Elderly Units in good condition% of faults responded to in set time (2 days urgent, 5 days nonurgent)90% 91% 91.5%FAR NORTH ANNUAL PLAN 2011-2012 27

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHEKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETLive Work Investment promotion % new visitors to Live Work Invest website New Measure 80% * 80%Buy Far North campaignNumber of new businesses registered 270 400 * 450Number of returning visitors to Buy Far North website New Measure 50% * 50%Event attraction Number of major high profi le events attracted to the District 1 1 1Community Plans % community support for plan in each community New measure 75% 75%Small Town Beautifi cation projects % community support for the outcome of each project New measure 75% 75%Pursuing Inward Investment Number of new projects benefi ting from inward investment New Measure 10 10Supporting new business opportunities Number of new business opportunities assisted New Measure 30 25Annual supplier satisfaction rating 85% 85% 85%Deliver a quality visitor experienceAnnual customer satisfaction rating 98% 98% 98%Achieve annual visitor info network (VIN) accreditation 100% 100% 100%* Indicators related to the Live, Work, Invest and Buy Far North websites have been updated togive a better indication of the effectiveness of the initiatives.28 FAR NORTH ANNUAL PLAN 2011-2012

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHEKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGET% satisfaction of users 80% 85% 85%% population who are members 32% 33% 33%Make libraries more accessible and able to meet the community’s needsIssue rate per library member per annum 7 7 7Year on year % increase in door counts per annum over previousyear’s fi gure2008/2009 will bebaseline2% 2%Extend the footpath network by 1.5km per annum 2.8km/annum 1.5km **1kmMaintain and extend the footpath network as resources permitRenew 2.0km of footpath per annum 0.6km 2.0km 2.0km% of residents satisfi ed with footpath network 63% 70% 70%Ensure the footpath and car park network remains safe% of complaints about maintenance of amenity lighting responded towithin 48 hours% of complaints about car park maintenance responded to within 3days80% 76% 77%90% 85% 86%Formalise the occupation of esplanade reserves/legal roads by campingoperators to enable suffi cient camping capacity for the peak periodYear on year % increase in camping numbers at registered motorcamps2008/2009 will bebaseline5% 5%Community satisfaction with camping provision 76% 76% 76%Ensure suffi cient camping capacity for the peak period% of complaints about illegal campingresponded to within 48 hours90% 90% 92%** Previous number refl ected the length of footpath vested in Council from developers, however this has reduced drastically.FAR NORTH ANNUAL PLAN 2011-2012 29

DISTRICT FACILITIESNGA WHAKAURUNGA O TE ROHEKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETProvision of parks and reserves % of users satisfied with parks and reserves 76% 80% 80%Development of hub facilities capable of hosting national, regional, districtand community eventsYear on year % increase in the number of district/regional events heldat Kerikeri Domain, Kerikeri Sports Complex or BaySport Inc.2008/2009 will bebaseline5% 5%Resident satisfaction with swimming pools 29% 55% 60%Improve access to aquatic facilities* PoolSafe Accreditation 66% 66% *100%Increase in Pool usageTo be determined2008 season10% 10%Provision of playgrounds% of playgrounds safety audited each month and any safety issuesresolved within one month90% 100% 100%% satisfaction with playgrounds 69% 80% 80%Service delivery for parks and reserves* Kawakawa reached Pool Safe Accreditation.% of urgent Requests for Services resolved within 3 hours and nonurgentwithin 5 daysThe number of fi nancial deductions from the contractor for nonperformance95% 95% 95%0.5% 0% 0%30 FAR NORTH ANNUAL PLAN 2011-2012

SUSTAINABLE ENVIRONMENTKAITIAKITANGA TE TAI AOPRIMARY SERVICESNga take hirahira• Development Consents• District Plan• Structure Planning• Sustainable EnvironmentDEVELOPMENT CONSENTSNga kaupapa whakatau e whakaaetiaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?Insurance cover for leaky homes liability has been removed. Anassistance package is being proposed by central governmentwith guaranteed inputs from both central and local government.Council has opted to remain outside this programme at thispoint in time and will review this decision periodically.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Establishing a plan to ensure when growth resumes Councilis able to recruit and retain the necessary specialist resources• Continuing implementing process improvements for consentprocessing• Continuing technical training programmes aiming to ensureall technical offi cers are formally qualifi ed by 2013• Providing educational programmes with the developmentindustry on the building and RMA processes and DistrictPlan requirements• Continuing cooperation with all agencies in the Far NorthLiquor Accord, (N.Z. Police, Fire Service, Northland Health)to promote compliance and responsible attitudes to theliquor licensing process.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to investigate the effectiveness of the District Plan throughthe implementation of the District Plan Monitoring Strategy• Progressing a District Plan change addressing the establishmentof commercial activities in the rural zones• Implementing the District Plan Monitoring Strategy.STRUCTURE PLANNINGKaupapa whakariteWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There are no signifi cant changes to Structure Planning prioritiessince the publication of the 2009/2019 LTCCP.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to progress the implementation of the Kerikeri-Waipapa Structure Plan changes including the rezoning of landin line with the strategic provision of Council infrastructure• Supporting the development and implementation of CommunityDevelopment Plans where projects are identifi ed andresourced in the Annual Plan.DISTRICT PLANNINGKaupapa whakahaere mo te roheWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There are no signifi cant changes to District Plan priorities sincethe publication of the 2009/2019 LTCCP.FAR NORTH ANNUAL PLAN 2011-2012 31

SUSTAINABLE ENVIRONMENTKAITIAKITANGA TE TAI AOSUSTAINABLE ENVIRONMENTKaitiakitanga te tai aõWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There are no signifi cant changes to Sustainable Environmentpriorities since the publication of the 2009/2019 LTCCP.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to develop the Climate Change Strategy• Continuing to develop and implement an awareness programmearound the District Plan, Renewable Energy andEnergy Effi ciency and Sustainability• Investigating and advocating (with regional and nationalgovernment) for research into natural hazards affecting theFar North• Continuing to work through compliance issues raisedthrough the Inter-Council Working Group on GMOs.• Working to fully understand the implications of the Governments’snew Coastal Policy Statement and Fresh Water Policyfor the District’s communities.32 FAR NORTH ANNUAL PLAN 2011-2012

SUSTAINABLE ENVIRONMENTKAITIAKITANGA TE TAI AOKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETLevel of satisfaction with planning, building or inspection services 30% 40% 45%Average number of days to process building consents excluding time on hold 12 12 12Continue to improve Consents processingImprove the delivery of liquor licensing servicesDistrict Plan Monitoring Strategy and Plan changes% of non-notifi ed resource consents completed within statutory timeframes(20 days)Average number of days to process subdivision consents excluding timeon holdPercentage of liquor licensed premises visited to promote good hostresponsibility% of District Plan monitoring strategy indicators currently being measured% of residents who feel either very well informed or well informedabout the District Plan% of solutions identifi ed within the year for issues identifi ed via themonitoring strategy37% 80% 90%57 45 4012.3% 20% 25%New Measure 30% 40%50% 52% 52%New Measure 55% 60%Complete Community Plans for key parts of the District by 2012 Number of Community Plans in place 1 3 * 4Investigate and advocate for research into natural hazards affecting theFar North.Number of communities with robust hazard information or number ofhazard research projects completed1 4 6Develop guidelines on how to take Hapu/Iwi management plans intoaccount when developing Council plans and policyNumber of Hapu/Iwi management plans taken into account by Council 100% 100% 100%Facilitating one on one housing workshops regarding business andeducational opportunitiesIncrease in Papakainga and/or individual housing contractsNew(2008/2009)will be baseline2 3* Due to the fi nancial cost and timelines associated with developing and implementing Structure Plans, Council determined that revamped Community Plans (that include infrastructure) wouldsuffi ce at this stage.FAR NORTH ANNUAL PLAN 2011-2012 33

GOVERNANCE AND CORPORATEKAWANATANGA ME TE RATONGA RANGAPUPRIMARY SERVICESNga take hirahira• Customer Services• Field Services• Finance and Business Performance• Governance• Human Resources• Mãori Development34 FAR NORTH ANNUAL PLAN 2011-2012CUSTOMER SERVICESWãhanga ãwhina tãngataWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?Hours of operation at the Rawene Service Centre have beenreduced with the new Hokianga i-SITE offering more services.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to develop appropriate service standards andquality controls• Reviewing processes and procedures to ensure maximum efficiency• Continuing to train and multi-skill staff to enable them to dealeffectively with and address a wider range of issues and tasksat first point of contact• Working with the Te Ahu project to develop a new servicedelivery model incorporating all the services and functionsprovided by the Kaitaia Service Centre, i-SITE, Library, Museumand Far North Community Centre• Continuing to attract and develop skilled and knowledgeablestaff that work with purpose and enthusiasm• Focusing on providing personalised, fast, reliable, convenient,cost effective and customer-focused service• Implementing and promoting the key customer focused messagesacross the organisation• Completing the restructure to ensure Council becomes a‘lean’ organisation focused on delivering customer satisfaction.FIELD SERVICESMahi ã takiwãWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?New Liquor Licensing and Food legislation bringing aboutchanges to administration and inspector roles. These changes tolegislation have not taken place at this time, but are expected tosoon. As a member of the New Zealand Food Safety Authorities‘Voluntary Implementation Program” Council has begun auditingand assessing food control plans for voluntary food premises.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Actively progressing the review of the regulatory bylaws andpolicies to completion• Increasing dog registration• Improving response times• Targeting problems associated with wandering stock• Targeting problems associated with illegal dumping of rubbish.FINANCE and BUSINESSPERFORMANCENga mahi whakarite mo ngaumanga me nga puteaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been no significant changes to the Finance and BusinessPerformance activity since the 2009/2019 LTCCP was published.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Identify reduced charges from suppliers and improve standardsof service• Continuing to identify opportunities for savings and effi cienciesin operating costs• Reviewing rating policies in the light of consultation feedback• Increasing recovery of rates• Completing the implementation of an Electronic Documentand Records Management System to improve effi ciency• Continuing to dispose of surplus properties to provide fundingfor other projects.

GOVERNANCE AND CORPORATEKAWANATANGA ME TE RATONGA RANGAPUGOVERNANCEMana kãwanatangaWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been no signifi cant changes to the Governance activitysince the 2009/2019 LTCCP was published.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Continuing to support the Council, its Committees andCommunity Board meetings• Pursuing a continued reduction in Council’s legal costs• Encouraging greater use of online agendas and minutes bythe public and staff• Finalising the review of the Council’s bylaws• Ensuring residents and ratepayers are kept well informedabout what the Council is doing using the most effi cientmeans• Supporting the implementation of Council’s Maori EngagementAction Plan with a focus on Maori representation• Continuing reviews of Council bylaws.HUMAN RESOURCESRauemi ã tangataWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?There have been no significant changes to the Human Resourcesactivity since the 2009/2019 LTCCP was published.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Completing the restructure to ensure Council becomes a‘lean’ organisation focused on delivering customer satisfaction• Continuing to ensure Council is able to retain key skills andorganisational knowledge• Stabilising the implementation of the new talent managementsystem to increase accountability and lift performance• Enhancing the new HR information system to improve managementreporting• Increasing the focus on Health & Safety both within Counciland for Council Contractors to provide a safer workplaceand reduce lost time and associated costs• Capitalising on the fi ndings from Project Opportunity todrive culture change in Council by improving work practices,effi ciency and effectiveness• Ensuring staff job satisfaction and increased focus on customerservice.MÃORI DEVELOPMENTWhanaketanga MãoriWHAT HAS CHANGED SINCE THE LTCCP?E aha ke nga kaupapa kua tini mai te LTCCP?At its October 2009 meeting Council approved a comprehensiveMaori Development and Engagement Action Plan subjectto the development of appropriate budgets. This builds on keyobjectives included in the LTCCP. The Action Plan aims toencourage Maori input to, and participation in, Council decisionmakingprocesses, as well as improving the ways in which Councilworks with Maori at a number of different levels. Key actionsare refl ected in the priorities below.PRIORITIES FOR 2011/2012Nga mea tuatahi mo 2011/2012• Refl ecting Council’s commitment to the principles of theTreaty of Waitangi in key documents and publications• Implementing Maori Engagement Operating Protocols toguide Council’s day-to-day work with Mãori on a range ofissues• Developing Memoranda of Understanding to underpin Council’srelationships with Iwi• Building on structural mechanisms to enhance Maori consultation(i.e. Mayor and Iwi Chairs’ meetings, Iwi and CouncilCEOs’ meetings, and Iwi/Hapu practitioners)• Ensuring Maori issues are properly understood and addressedin Resource Consent processes• Incorporating relevant points from Iwi/Hapu ManagementPlans in Council decision-making• Enhancing Maori representation via three ward-based Maorirepresentative groups• Promoting Maori economic development, including pursuingjoint projects where opportunities arise• Supporting the work of other key bodies, such as HousingNZ and the Ministry of Social Development, towards Mãorisocial development• Training Council staff and elected members to raise awarenessof Maori issues• Exploring incentive schemes and other opportunities toimprove collection of Maori land rates• Working with Maori on key infrastructure projects of mutualinterest (e.g. those affecting water quality within the District).FAR NORTH ANNUAL PLAN 2011-2012 35

GOVERNANCE AND CORPORATEKAWANATANGA ME TE RATONGA RANGAPUKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETSatisfaction when contacting the Council by telephone 58% 68% 73%Satisfaction when contacting the Council in writing 45% 51% 54%Continue to improve customer service standardsOverall satisfaction when contacting Council 78% 82% 85%% of calls answered in 20 seconds 78.4% 82% 84%% of abandoned calls 7.4% 5.5% 5%% of calls answered at fi rst point of contact 64.2% 68% 70%Dog registration % of known dogs currently registered 80% 90% 95%Responding to complaints relating to dogsIncreased action to address wandering stock% of Requests for Services relating to dogs respondedto in required timeNumber of wandering stock-related Requests forServices90-95% 92% 95%400 370 360Continue to provide effective stock and dog control services % of residents satisfi ed with the District’s animal control 66% 68% 69%Assessment and audit of food safety plans % of Food Control Plans assessed and audited annually New Measure 98% 98%Respond to complaints regarding Land Use (District Plan,Bylaws and RMA)% of Requests for Services responded to in requiredtime77% 90% 90%Continued review of regulatory bylaws and policies Number of outstanding bylaws to be reviewed New Measure 2 136 FAR NORTH ANNUAL PLAN 2011-2012

GOVERNANCE AND CORPORATEKAWANATANGA ME TE RATONGA RANGAPUKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETResponding to Noise complaints % of noise complaints responded to in required time 90 – 95% 95% 98%% of responses to rates/water queries in ten days 88% 90% 95%Make best use of IS/IT to improve effi ciency% of property fi les electronically stored within the EDRMS 0% 25% * 25%Average days to produce a LIM 5 5 5 **Number of days after the month end to produce financial reports 6 5 5Reduce levels of rates debts Rates outstanding as % of rates billed 12.5% 11% 11%Improve Information ManagementUpgrade Council’s systems to keep abreast of new technologicaldevelopmentsDeliver value for Far North Ratepayers% of requests to Helpdesk resolved within timescales New Measure 90% † 75%% of requests resolved at point of call (Gen-i) New Measure 30% 35%Availability of software and servers New Measure 97.5% ‡ 99%Monitoring public debt: Revenue ratio over borrowing as per policy 1:1 2:1 2:1Level of debt (within 10%) of plan ($ms) New Measure 154.200 154.781Workshopping with Maori land owners on Matters of ownership,rates, road access, consents, funding access* Amended Indicator as FNDC now scanning on demand and will not be back scanning.** Amended Indicator as this target is still well within the legal requirement.† Amended Indicator is based on reduction in staffi ng levels.‡ Amended Indicator based on implementation of DR/business continuity solution.¥ Amended Indicator to provide a better indication of progress.Number of rateable occupations occurring on Maori FreeholdLand BlocksNew Measure 49 ¥ 49FAR NORTH ANNUAL PLAN 2011-2012 37

GOVERNANCE AND CORPORATEKAWANATANGA ME TE RATONGA RANGAPUKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGET% positive feedback in annual councillor satisfactionsurvey100% 90% 100%Maintain and develop quality standards% of agendas sent out in 5 days before meetings 90% 90% 90%% of minutes sent out in 5 days before meetings New Measure 100% 100%Enhance community involvement in local government % of residents aware of their Community Board 70% 73.0% 74.5%Enhance community knowledge about the council% of residents who feel they know a great deal/a fairamount about Council57% 59% 60%Keep people better informed about what Council does% of residents who feel well informed about whatCouncil is doing43% 46% 47%Website hits for agendas & minutes New Measure 8000 * 8000Improve public access to council information and services% of residents satisfi ed with ease of access tocouncil66% 68% 69%* Amended Indicator to provide a better indication of progress.38 FAR NORTH ANNUAL PLAN 2011-2012

GOVERNANCE AND CORPORATEKAWANATANGA ME TE RATONGA RANGAPUKEY PERFORMANCE TARGETS – ONE YEAR PLAN MEASURES AND LEVELS OF SERVICEKEY PERFORMANCE INDICATORMEASUREBASELINE2007/20082010/2011TARGET2011/2012TARGETStaff satisfaction 62% 67% 69%Culture change, staff training and developmentPercentage variation from benchmark for staff engagement -16.4% -5% nilStaff sense of belonging 61.6% 65% 67%Staff recruitment and retentionCumulative reduction in contract and casual staff New measure 10% * 5%Staff turnover % 17.18% 2.5% ** 5%Reduce sickness absence Absenteeism % 4.5% 3.5% † 4%To enhance Maori engagement strategies and programmesIncrease in the number of capacity building workshopsto enable Maori participation to occurNew (2008/2009) willbe baseline2 3Contributing to Maori workshops regarding business and educationalopportunitiesIncrease in number of Maori development projectsNew (2008/2009) willbe baseline2 3Maintaining Te Reo and Tikanga Maori programmes in CouncilIncrease in number of bi-cultural programmesNew (2008/2009) willbe baseline3 3To enhance Maori engagement strategies and programmesIncrease in the number of new economic developmentprojects with Iwi MaoriNew (2008/2009) willbe baseline3 4* Casual staff reduction has reached the bare minimum pool of trained staff required for use in front line Customer Service positions during sickness, annualleave and peak periods.** Poor economic conditions and economic forecasts indicate that staff turnover will continue to stay low due to decreased job opportunities. Unemploymentin the Far North is the highest in the country.† Health trends and benchmarking information from other Councils indicate the FNDC will not be able to reduce sickness absence much lower than 4%.FAR NORTH ANNUAL PLAN 2011-2012 39

COUNCIL CONTROLLED ORGANISATIONSNGA ROPU WHAKARITE O TE KAUNIHERACOUNCIL CONTROLLEDORGANISATIONSNga ropu whakarite ote kaunihera• Far North Holdings Limited• Te Ahu TrustFAR NORTH HOLDINGSLIMITED (FNHL)Te Kumupene Te Nota KaitiakiCORPORATE SUMMARYFar North Holdings Limited will continue to focus on managing resourcesand activities efficiently to provide income for council plus theability for further reinvestment in commercial opportunities that mayarise .It is anticipated that demands on the Kerikeri airport infrastructure willcontinue and the Company will work with Council to explore optionsfor meeting these with appropriate developments. There is furtherwork required at Kaitaia airport to sustain and enhance the facility andposition for continued growth in activity. The Company will continue tonegotiate with the Crown for security of tenure of the airport lease toensure investments are retained.The Company will continue to pursue options for the redevelopmentof various under-utilised commercial /maritime facilities and economicdevelopment opportunities for the district. FNHL plans to return itsnon-strategic and community assets to Far North District Council andbecome an investor in only strategic and commercial assets, with a viewto maximizing its dividend to the community.SUMMARYTE AHU TRUSTTe Ahu TrahitiThe 2011/2012 Financial Year is set to see the completion of theTe Ahu building.The securing of suffi cient funding to complete construction hasmeant that the Trust has been able to proceed with the buildingof the new facility along with the refurbishment of adjacentexisting facilities of community hall and Little Theatre.The Trustees and all associated with Te Ahu will continue tofocus on maximising the opportunities that this great projectwill bring to Kaitaia and the Far North.Operational planning will continue to ensure the highest possibleservice delivery is achieved at no extra cost to the Districtor ratepayers.Further capital fundraising initiatives will continue to be undertakento maximise Te Ahu’s potential.40 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEAFINANCIAL MATTERSNga take putea• Opex - Budget for 2011/2012 andvariations from the LTCCP• Capex – Projects for 2011/2012 andvariation from the LTCCP• Funding Impact StatementBackgroundCouncil set out ten-year fi nancial projections in the 2009/2019LTCCP. These have now been updated in this plan to take accountof changing circumstances and decisions made since theLTCCP was published.Operating ExpenditureThe Plan includes both the original LTCCP budget for2010/2011 and an updated budget refl ecting changes since theLTCCP. The previous year’s fi gures are also included for purposesof comparison.The updated budget for 2011/2012 takes account of changesarising from changed assumptions:Due to global fi nancial market changes and the resulting reductionin interest rates, Council has decided to bring the interestrate used in the 2011/2012 Annual Plan in line with Council’saverage cost of borrowing of 5.7%.Capital ExpenditureAs a result of the current economic climate, Council has deferreda number of projects to future years. This has been doneto keep debt levels down and to minimise rate increases. TheAnnual Plan lists the projects concerned.RatesThe plan is based on an increase in total rates of 4.1% over thetotal rates for 2010/2011. The rates increases across propertytypes range from -5.9% to 11% with an average residentialincrease of 0.93%. This is a lower fi gure than projected in theLTCCP (4.26%) and refl ects Council’s ongoing philosophy ofreducing costs.Financial AssumptionsIn the 2009/2019 LTCCP, the following assumption was made inrelation to interest rates.“Interest rates will be in line with the fi nancial forecasts containedin the plan (assumed 7%)”.Due to global fi nancial market changes and the resulting reductionin interest rates, Council has decided to bring the interestrate used in the 2011/2012 Annual Plan in line with Council’saverage cost of borrowing of 5.7%.FAR NORTH ANNUAL PLAN 2011-2012 41

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED ROADS AND STORMWATERPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIncome15,225 Rates - General 15,458 15,375515 Rates - Targeted 406 518145 Rates - Penalties 195 424950 Fees & Charges 973 7576,491 Subsidies Operational 7,251 7,10116,037 Subsidies Capital 11,658 10,365739 Development Contributions 2,002 4951,362 Other Income 1,431 60541,464 Total Operating Income 39,373 35,638Direct Costs0 Asset Management 0 (99)0 Cycleway Network 0 123422 Drainage and Stormwater Operations 383 42995 Drainage Schemes 97 98670 Emergency Works 686 6981,236 Ferries 1,130 1,175(150) Infrastructure & Asset Management0 (154)Operations392 Legalisation 353 40110,048 Roading Network 10,862 10,2241,116 Roading Operations 938 1,288585 Roading Unsubsidised Work 102 122558 Urban Stormwater 571 6001,855 Interest 2,280 1,87014,568 Depreciation 15,706 14,98031,394 Total Direct Operating Expenditure 33,108 31,754CONSOLIDATED ROADS AND STORMWATERANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIndirect Costs411 Corporate Costs 334 499123 Provisions 119 128124 Rating Costs 204 71659 Total Indirect Costs 656 69832,052 Total Operating Expenditure 33,764 32,4529,412 NET SURPLUS/(DEFICIT) 5,609 3,186STATEMENT OF SOURCE AND APPLICATION OF FUNDSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sCAPITAL STATEMENT9,412 Net Surplus/(Deficit) 5,609 3,1863,041 Loan 4,539 1,7312,121 Contribution Funding 1,656 82514,959 Depreciation Funding 17,358 15,854300 Reserve Funding 350 470(862) Appropriation to Reserves (1,977) (540)28,971 Total Funding 27,535 21,527Capital Expenditure28,043 Capital Projects 26,299 20,213928 Debt Repayment 1,236 1,31428,971 Total Capital Expenditure 27,535 21,5270 NET SURPLUS/(DEFICIT) 0 042 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACAPITAL PROJECTS BY ACTIVITYROADS AND STORMWATERREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sROADSFerryDistrict0 Ferry 40 0110 Ferry Component Maintenance 0 0110 Ferry Total 40 0Infrastructure & Asset Management District WideDistrict2,800 Cycleway Project 0 2,0002,800 Infrastructure & Asset Management District Wi 0 2,000Transport Network District WideDistrict430 Bridges 1,069 1,069730 Drainage 855 7301,782 Minor Safety 1,836 1,8361,390 Other Works 0 506,592 Pavement 7,809 6,5215,822 Pavement Rehabilitation 5,650 5,113170 Public Facility Sealing 450 01,802 Rural Seal Extensions 5,390 556546 Structural Components 563 563131 T Fund Local Share 106 0559 Traffic Services 576 576498 Urban Improvements 1,006 350206 Walkways and Cycleways 0 0CAPITAL PROJECTS BY ACTIVITYROADS AND STORMWATERREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000s23,567 Roads Total 25,349 19,363STORMWATERUrban Stormwater/Flood ProtectionDistrict0 Beach Outlets Improvements 50 50600 Emergency Response 600 600Eastern150 East Coast Bays Coopers Beach Slip 0 0387 Long Beach Road 0 0350 Waipapa Road 0 0Northern300 Foreshore Road 300 2001,787 Stormwater Total 950 85025,354 Roads and StormwaterTotal 26,299 20,21320,657 Transport Network District Wide Total 25,309 17,363FAR NORTH ANNUAL PLAN 2011-2012 43

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED ROADS AND STORMWATER - SIGNIFICANT FINANCIAL CHANGESLTCCP ANNUAL PLAN2011-12 2011-12 Variance$'000s $'000sOperationalSubsidies Operational 7,251 7,101 (150) Reduction in New Zealand Transport Authority (NZTA) subsidy approvals and subsequentcontract costs offset by reclassification of NZTA Administration Subsidy from OtherIncomeSubsidies Capital 11,658 10,365 (1,293) Addition of the Cycleways project funding and reductions in capital worksOther income 1,431 605 (826) Reclassification of New Zealand Transport Authority Administration Subsidy to SubsidiesOperationalRoading Network 10,862 10,224 (638) Reduction in New Zealand Transport Authority subsidy approvals and subsequentcontract costsRoading Operations 938 1,288 350 Correct allocation of costs associated with the provision for bad debts and valuationfeesInterest 2,280 1,870 (410) Reduction in 2010-11 Capital Programme and projected interest rateDepreciation 15,706 14,980 (726) Reduction in 2010-11 Capital ProgrammeCapitalCapital Projects 26,299 20,213 (6,086) Deferred capital spend and Reduction in New Zealand Transport Authority subsidyapprovals44 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED WATER, WASTEWATER AND REFUSEPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIncome3,889 Rates - General 5,235 4,41116,235 Rates - Targeted 18,570 16,460208 Rates - Penalties 244 5701,390 Fees & Charges 2,021 1,8321,407 Subsidies Capital 3,736 3,5202,358 Development Contributions 2,431 1,108164 Other Income 4 16825,650 Total Operating Income 32,241 28,069Direct Costs369 Landfills 697 33583 Recycling & Waste Minimisation 197 96414 Refuse Operations 618 4690 Resource Recovery 0 142 Septic Tank Response 2 7133 Special Collections 184 1092,876 Transfer Stations 3,956 3,074683 Wastewater Operations 635 6983,206 Wastewater Schemes 3,581 3,816416 Water Operations 642 5453,350 Water Schemes 3,557 3,6895,041 Interest 5,405 4,5935,214 Depreciation 6,083 5,78821,787 Total Direct Operating Expenditure 25,557 23,233CONSOLIDATED WATER, WASTEWATER AND REFUSEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIndirect Costs188 Corporate Costs 419 174167 Provisions 187 172168 Rating Costs 217 96523 Total Indirect Costs 823 44122,310 Total Operating Expenditure 26,380 23,6743,340 NET SURPLUS/(DEFICIT) 5,861 4,394STATEMENT OF SOURCE AND APPLICATION OF FUNDSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sCAPITAL STATEMENT3,340 Net Surplus/(Deficit) 5,861 4,3946,418 Loan 4,112 7,75937 Contribution Funding 128 3674,133 Depreciation Funding 4,283 3,342504 Reserve Funding 546 802(1,933) Appropriation to Reserves (2,125) (1,130)12,499 Total Funding 12,805 15,534Capital Expenditure9,916 Capital Projects 9,619 12,4682,583 Debt Repayment 3,186 3,06612,499 Total Capital Expenditure 12,805 15,5340 NET SURPLUS/(DEFICIT) 0 0FAR NORTH ANNUAL PLAN 2011-2012 45

FINANCIAL MATTTERSNGA TAKE PUTEACAPITAL PROJECTS BY ACTIVITYWATER, WASTEWATER AND REFUSEREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sREFUSELandfillDistrict5 Landfills Pumps and Security Renewal 0 0Northern0 Ahipara Landfill 250 125Transfer StationsDistrict10 Install Health Safety and Security 20 2010 Recycling Facilities 0 045 Transfer Station Renewal 69 6931 Transfer Station Upgrade 25 25Eastern50 Recycling Facilities 0 0Northern50 Refuse Transfer Station 0 0201 Refuse Total 364 239CAPITAL PROJECTS BY ACTIVITYWATER, WASTEWATER AND REFUSEREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sWASTEWATERWastewater SchemesDistrict750 Minor Works 750 2250 Reticulation Extension 95 9550 Telemetry Upgrade 25 251,810 Treatment Plant 0 1,611Eastern160 Bay Of Islands Core Infrastructure 390 1600 Inflow & Infiltration Improvements 10 0210 Resource Consent 250 400150 Treatment 0 020 Wastewater Subsidy Scheme 1,763 100420 Wastewater Treatment Plant Upgrade 700 1,900Northern120 Resource Consent 0 80800 Treatment Plant 0 2,523430 Wastewater Subsidy Scheme 3,172 3,200Western1,300 New Scheme 0 070 Resource Consent 0 30630 Treatment Plant 60 306,920 Wastewater Total 7,215 10,37946 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACAPITAL PROJECTS BY ACTIVITYWATER, WASTEWATER AND REFUSEREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sWATERWater SchemesDistrict25 Health and Safety Improvement 25 25500 Minor Works 500 15050 Telemetry 25 25Eastern0 Resource Consents Source 50 50300 Water Supply Scheme 180 0Northern35 Resource Consents Source 25 0330 Water Supply Scheme 0 500Western150 Resource Consents Source 100 100750 Water Supply Scheme 1,135 1,0002,140 Water Total 2,040 1,8509,261 Water, Wastewater and Refuse Total 9,619 12,468FAR NORTH ANNUAL PLAN 2011-2012 47

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED WATER, WASTEWATER AND REFUSE - SIGNIFICANT FINANCIAL CHANGESLTCCP ANNUAL PLAN2011-12 2011-12 Variance$'000s $'000sOperationalRates - General 5,235 4,411 (824) Reflects budget savings in RefuseRates - Targeted 18,570 16,460 (2,110) Reflects overall budget reductionsSubsidies Capital 3,736 3,520 (216) Reflects movements in Capital ProgrammeLandfills 697 335 (362) Reduced costs as a result of new contractWastewater Schemes 3,581 3,816 235 Increased contract costs across all schemesTransfer Stations 3,956 3,074 (882) Reduced costs as a result of new contractInterest 5,405 4,593 (812) Reflects changes to 2010-11 Capital Programme and projected interest rateDepreciation 6,083 5,788 (295) Reflects changes to 2010-11 Capital ProgrammeCapitalCapital Projects 9,619 12,468 2,849 Retiming of Capital Projects from prior years and new septage disposal project48 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED DISTRICT FACILITIESPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIncome5,126 Rates - General 4,980 5,0787,335 Rates - Targeted 8,035 7,794126 Rates - Penalties 100 3341,639 Fees & Charges 2,314 1,671902 Development Contributions 2,570 379114 Other Income 116 25715,242 Total Operating Income 18,115 15,513Direct Costs13 Afforestation 15 1787 Airports 19 7629 Amenity Lighting 32 1726 Carparks 31 39187 Cemeteries 86 196179 Civil Defence 145 20436 Community Centres 25 40729 Community Services (Ward) Operations 17 6674 Community Services Operations 289 1350 Economic Planning 126 0211 Footpaths 277 236264 Halls 256 346979 Information Centre 1,147 97338 Koropiro Basin Project 48 401,476 Libraries 1,168 1,5660 Lindvart Park Recreation Hub 0 181123 Maritime Facilities 54 1318 Motor Camps 2 8CONSOLIDATED DISTRICT FACILITIESANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000s120 Museums 110 1221,123 Parks & Reserves 1,328 1,168779 Pensioner Housing 616 673836 Public Toilets 727 1,001130 Recreation 177 136362 Rural Fires 324 40197 Structural Planning 106 62550 Swimming Pools 574 609877 Town Maintenance 1,192 1,025760 Interest 1,613 7573,961 Depreciation 4,490 3,99513,983 Total Direct Operating Expenditure 14,993 14,824Indirect Costs1,117 Corporate Costs 1,111 945103 Provisions 111 101103 Rating Costs 153 561,323 Total Indirect Costs 1,375 1,10215,305 Total Operating Expenditure 16,368 15,926(63) NET SURPLUS/(DEFICIT) 1,747 (413)FAR NORTH ANNUAL PLAN 2011-2012 49

FINANCIAL MATTTERSNGA TAKE PUTEASTATEMENT OF SOURCE AND APPLICATION OF FUNDSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sCAPITAL STATEMENT(63) Net Surplus/(Deficit) 1,747 (413)2,196 Loan 603 62964 Contribution Funding 393 403,180 Depreciation Funding 2,104 1,219499 Reserve Funding 54 142(364) Appropriation to Reserves (2,217) (13)6,411 Total Funding 2,684 1,037Capital Expenditure6,204 Capital Projects 1,904 712207 Debt Repayment 780 3256,411 Total Capital Expenditure 2,684 1,0370 NET SURPLUS/(DEFICIT) 0 0CAPITAL PROJECTS BY ACTIVITYDISTRICT FACILITIESREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sAirportsNorthern136 Reseal Touchdown Areas 0 0132 Taxiway/Apron Stabilise and seal (8900sqm 0 0268 Airports Total 0 0CarparksNorthern900 New Car Park 0 0900 Carparks Total 0 0CemeteriesEastern20 Cemetery Upgrade 0 0Western0 Cemetery Upgrade 5 520 Cemeteries Total 5 5Community CentresEastern2 Community Centres Eastern Renewals 0 00 The Centre Kerikeri 113 02 Community Centres Total 113 050 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACAPITAL PROJECTS BY ACTIVITYDISTRICT FACILITIESREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sFootpathsEastern97 Footpaths New - Eastern 49 054 Footpaths Upgrade 69 0Northern486 Footpaths New - Northern 60 0150 Footpaths Upgrade 88 0Western100 Footpaths New - Western 120 00 Footpaths Upgrade 68 0888 Footpaths Total 453 0HallsEastern94 Halls Eastern Renewals 14 0Northern725 Halls Northern Renewals 0 0Western41 Halls Western Renewals 0 0861 Halls Total 14 0Maritime FacilitiesDistrict411 Maritime Facilities Renewals 65 65411 Maritime Facilities Total 65 65CAPITAL PROJECTS BY ACTIVITYDISTRICT FACILITIESREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sMotor CampsDistrict74 Motor Camps Renewals 96 9674 Motor Camps Total 96 96MuseumsNorthern8 Museums Northern Renewals 0 08 Museums Total 0 0Pensioner HousingEastern21 Pensioner Housing Renewals 0 10Northern114 Pensioner Housing Renewals 0 16Western203 Pensioner Housing Renewals 0 62338 Pensioner Housing Total 0 87Public ToiletsEastern27 New Toilet 0 050 Toilet Upgrade 30 0Northern70 New Toilet 0 0Western0 New Toilet 50 5043 Toilet Upgrade 0 0190 Public Toilets Total 80 50FAR NORTH ANNUAL PLAN 2011-2012 51

FINANCIAL MATTTERSNGA TAKE PUTEACAPITAL PROJECTS BY ACTIVITYDISTRICT FACILITIESREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sParks & ReservesEastern160 Baysport 0 0100 Beach Access 0 00 Civic Space Acquisition 300 0150 Domain Development 0 0210 Parks & Reserves Eastern Renewals 86 0633 Sports Complex 0 0Northern0 Local Recreational Facilities 20 080 Parkdale/Reserves 0 0184 Parks & Reserves Northern Renewals 113 1130 Recreation Hub Development 50 50Western50 Lindvart Park 40 098 Parks & Reserves Western Renewals 223 060 Playground Devepment 0 0CAPITAL PROJECTS BY ACTIVITYDISTRICT FACILITIESREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sSwimming PoolsEastern15 Kerikeri Pool 0 015 Swimming Pools Total 0 0Information CentreDistrict160 Information Centre Renewals 0 0160 Information Centre Total 0 0LibrariesDistrict237 Books 247 247106 Libraries General 0 0344 Libraries Total 247 2476,204 District Facilities Total 1,904 7121,726 Parks & Reserves Total 832 16352 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED DISTRICT FACILITIES - SIGNIFICANT FINANCIAL CHANGESLTCCP ANNUAL PLAN2011-12 2011-12 Variance$'000s $'000sOperationalFees & Charges 2,314 1,671 (643) Mainly reduction in I-site fees as expansion plan for sales did not proceedCommunity Services (Ward) Operations 17 667 650 Budget transfer due to organisational restructure and new contract (reintroduction offacilities allocation to correctly allocate administration cost across wards)Libraries 1,168 1,566 398 Costs directly attributable to libraries now being correctly allocated to libraries ratherthan Corporate overheadsTown Maintenance 1,192 1,025 (167) Savings against LTCCP provisions due to renegotiation of town maintenance contractInterest 1,613 757 (856) Revision of 2010-11 Capital programme and projected interest rateDepreciation 4,490 3,995 (495) Revision of 2010-11 Capital programmeCapitalCapital Projects 1,904 712 (1,192) Revision and deferment of Capital programmeFAR NORTH ANNUAL PLAN 2011-2012 53

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED SUSTAINABLE ENVIRONMENT AND CONSENTSPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIncome5,559 Rates - General 6,042 5,82858 Rates - Penalties 33 1533,690 Fees & Charges 3,623 3,1920 Subsidies Operational 0 109,308 Total Operating Income 9,699 9,182Direct Costs3,146 Building Act 3,026 00 Building Compliance 0 1,1340 Building Consents 0 1,74531 Climate Change 32 39869 District Plan 768 920297 Environmental Health 304 460307 Iwi Services 251 314120 Leaky Home Costs 0 144193 Liquor Licencing 224 193147 Maori Engagement 120 193271 Parking Enforcement 268 2750 Regulatory Services Operations (46) (134)2,049 Resource Consents Administration 2,307 2,113167 Resource Consents Appeals 194 2142 Sustainable Environment Operations 329 026 Interest 19 8136 Depreciation 191 967,761 Total Direct Operating Expenditure 7,986 7,716CONSOLIDATED SUSTAINABLE ENVIRONMENT AND CONSENTSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIndirect Costs1,456 Corporate Costs 1,627 1,39546 Provisions 37 4646 Rating Costs 49 261,548 Total Indirect Costs 1,713 1,4679,308 Total Operating Expenditure 9,699 9,1820 NET SURPLUS/(DEFICIT) 0 0STATEMENT OF SOURCE AND APPLICATION OF FUNDSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sCAPITAL STATEMENT0 Net Surplus/(Deficit) 0 00 Loan 0 00 Contribution Funding 0 019 Depreciation Funding 13 70 Reserve Funding 0 00 Appropriation to Reserves 0 019 Total Funding 13 7Capital Expenditure0 Capital Projects 0 019 Debt Repayment 13 719 Total Capital Expenditure 13 70 NET SURPLUS/(DEFICIT) 0 054 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED SUSTAINABLE ENVIRONMENT AND CONSENTS - SIGNIFICANT FINANCIAL CHANGESLTCCP ANNUAL PLAN2011-12 2011-12 Variance$'000s $'000sOperationalFees & Charges 3,623 3,192 (431) Reflects expected decrease in Environmental Services fees due to lower activityBuilding Act 3,026 0 (3,026) Change in management practices, budget transferred to new cost centresBuilding Compliance 0 1,134 1,134 New cost centre. Overall reduction reflects expected decrease in Environmental ServicesactivityBuilding Consents 0 1,745 1,745 New cost centre. Overall reduction reflects expected decrease in Environmental ServicesactivitySustainable Environment Operations 329 0 (329) Budget transfer to other functions following change in organisational structureFAR NORTH ANNUAL PLAN 2011-2012 55

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED GOVERNANCE AND CORPORATEPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIncome13,453 Rates - General 13,877 14,667131 Rates - Penalties 111 406554 Fees & Charges 485 5360 Subsidies Operational 0 10170 Development Contributions 0 315128 Other Income 34 814,436 Total Operating Income 14,508 15,942Direct Costs830 Administration 1,038 890846 Animal Control Dogs 808 86622 Animal Control Stock 22 25654 Call Centre 642 747551 Community Board Operations 552 592783 Community Development 643 9610 Community Special Projects 0 177165 Council Support 256 176319 Customer Services Operations 0 323379 Development Contributions Operations 0 300156 Elections 28 810 Investments 10 12115 Liaison Services 152 14579 Mayoral Support 61 95920 Monitoring 984 1,0370 Policy 2 01,860 Policy Planning 2,104 2,0400 Record Remediation 207 0CONSOLIDATED GOVERNANCE AND CORPORATEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000s64 Recruitment 66 67(8) Septic Tanks Monitoring (11) 01,394 Service Centres 1,178 1,54610 Sister Cities 33 34432 Strategic Planning 241 784110 Strategic Property Management 0 1271,297 Interest 729 1,288120 Depreciation 146 8811,099 Total Direct Operating Expenditure 9,891 12,401Indirect Costs1,319 Corporate Costs 1,318 1,348112 Provisions 110 122112 Rating Costs 163 681,543 Total Indirect Costs 1,591 1,53812,642 Total Operating Expenditure 11,482 13,9391,794 NET SURPLUS / (DEFICIT) 3,027 2,00356 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEASTATEMENT OF SOURCE AND APPLICATION OF FUNDSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sCAPITAL STATEMENT1,794 Net Surplus/(Deficit) 3,027 2,0034,211 Loan 170 1,6161,032 Contribution Funding 0 1031,888 Depreciation Funding 1,472 1,980260 Reserve Funding 0 791(2,212) Appropriation to Reserves (3,027) (2,897)6,973 Total Funding 1,642 3,596Capital Expenditure5,982 Capital Projects 846 2,292990 Debt Repayment 796 1,3046,973 Total Capital Expenditure 1,642 3,5960 NET SURPLUS/(DEFICIT) 0 0CAPITAL PROJECTS BY ACTIVITYGOVERNANCE AND CORPORATEREVISEDLTCCP ANNUAL PLAN2010-11 Project Name 2011-12 2011-12$'000s $'000s $'000sCorporate ServicesDistrict Wide138 Building Services Renewals 0 0250 Data Storage and Backup 0 0100 Electronic Document Management0 0Project54 Financial Systems Upgrade 120 66100 Information Management AdministrationRenewals100 1000 Payroll / HR System Upgrade 50 50561 Pool Vehicles Renewals 576 57660 Property / Regulatory System Upgrade 0 088 Telephone Infrastructure DW Renewals 0 0100 Video Conferencing Upgrade 0 0Kaitaia2,700 Te Ahu Centre 0 1,500Kerikeri375 The Centre Kerikeri 0 04,526 Corporate Services Total 846 2,292Animal ControlDistrict Wide10 Animal Control Dogs Vehicle Renewals 0 010 Animal Control Total 0 04,536 Governance and Corporate Total 846 2,292FAR NORTH ANNUAL PLAN 2011-2012 57

FINANCIAL MATTTERSNGA TAKE PUTEACONSOLIDATED GOVERNANCE AND CORPORATE - SIGNIFICANT FINANCIAL CHANGESLTCCP ANNUAL PLAN2011-12 2011-12 Variance$'000s $'000sOperationalCommunity Development 643 961 318 Movement of grant and external services budgets following the reorganisation ofmanagement functionsCustomer Services Operations 0 323 323 Budget transfer due to organisational restructureDevelopment Contributions Operations 0 300 300 Separation of Development Contributions team from Revenue and Rates following thereorganisation of management functionsRecord Remediation 207 0 (207) Budget transfer due to organisational restructureService Centres 1,178 1,546 368 Costs directly attributable to Service Centres now being correctly allocated to ServiceCentres rather than Corporate overheadsStrategic Planning 241 784 543 Cost Centre name changed from Forward Planning LTCCP and staff reassigned followingthe reorganisation of management functions. Additional provisions for the preparation ofthe 2012-2022 Long Term PlanInterest 729 1,288 559 Budget transfer due to organisational restructure and projected interest rate revisionCapitalCapital Projects 846 2,292 1,446 Retiming of projects from prior years58 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEAWHOLE OF COUNCIL FINANCIAL STATEMENTSThe following is the 2011-2012 financial strategy, covering the Whole ofCouncil and activity groupsPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sIncome43,252 Rates - General 45,592 45,35924,085 Rates - Targeted 27,011 24,771668 Rates - Penalties 683 1,8868,224 Fees & Charges 9,416 7,9876,491 Subsidies Operational 7,251 7,12117,444 Subsidies Capital 15,394 13,8854,169 Development Contributions 7,003 2,2971,767 Other Income 1,585 1,038106,100 Total Operating Income 113,937 104,344Expenditure10,585 District Facilities 10,266 11,17411,225 Governance and Corporate 10,607 12,56215,630 Roads and Stormwater 15,778 15,6029,146 Sustainable Environment and Consents 9,489 9,07812,055 Water, Wastewater and Refuse 14,893 13,2948,980 Interest 10,045 8,51723,998 Depreciation 26,615 24,948WHOLE OF COUNCILSTATEMENT OF SOURCE AND APPLICATION OF FUNDSANNUAL PLANLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sCAPITAL STATEMENT14,482 Net Surplus/(Deficit) 16,244 9,17015,865 Loan 9,423 11,1684,154 Contribution Funding 2,177 1,33624,178 Depreciation Funding 25,231 22,4021,562 Reserve Funding 950 2,204(5,371) Appropriation to Reserves (9,346) (4,580)54,872 Total Funding 44,680 41,701Capital Expenditure50,145 Capital Projects 38,668 35,6854,727 Debt Repayment 6,012 6,01654,872 Total Capital Expenditure 44,679 41,7010 NET SURPLUS/(DEFICIT) 0 0Commentary -91,618 Total Operating Expenditure 97,693 95,17414,482 Net Operating Surplus/(Deficit) 16,244 9,170FAR NORTH ANNUAL PLAN 2011-2012 59

FINANCIAL MATTTERSNGA TAKE PUTEASTATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sPUBLIC EQUITY434,088 Other Reserves 447,949 482,19424 Restricted Reserves 1,187 241,337,618 Retained Earnings 1,435,084 1,361,0691,771,730 Public Equity 1,884,221 1,843,286represented by;CURRENT ASSETS6,245 Cash & Cash equivalents 6,245 2,31333,713 Trade & Other Receivables 34,940 34,6910 Other Financial Assets 0 067 Inventories 67 6740,025 Current Assets 41,252 37,071Less;CURRENT LIABILITIES18,254 Trade & Other Payables 18,929 18,78314,012 Borrowings 18,207 4,018212 Provisions 12 711,269 Employee Benefits 1,345 1,269STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sNON CURRENT ASSETS107 Other Financial Assets 161 107297 Forestry 127 3212,066 Intangible Assets 2,066 3,36112,000 Investments in Subsidiaries 12,000 12,0001,850,212 Property, Plant & Equipment 1,972,734 1,932,0021,864,682 Non Current Assets 1,987,088 1,947,791NON CURRENT LIABILITIES98,113 Borrowings 105,350 116,2270 Trade & Other Payables 0 00 Employee Benefits 0 097 Derivative Financial Instruments 0 971,022 Provisions 275 1,11499,232 Non Current Liabilities 105,625 117,4381,771,730 Net Assets 1,884,221 1,843,286It is unlikely that all capital projects within the programme will becompleted in the year. An adjustment has been made of $5m to theclosing debt balance to allow for future carry forwards.33,747 Current Liabilities 38,493 24,1416,278 Working Capital 2,759 12,93060 FAR NORTH ANNUAL PLAN 2011-2012

FINANCIAL MATTTERSNGA TAKE PUTEASTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000s1,680,873 OPENING BALANCE 1,788,561 1,771,73090,857 Total Comprehensive Income 95,660 71,5561,771,730 CLOSING BALANCE 1,884,221 1,843,286STATEMENT OF CASHFLOWSFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sOPERATING ACTIVITIESCash was provided from:69,044 Rates 72,105 71,10937,977 Other Income 40,491 34,098118 Interest and Dividends 158 115107,139 112,754 105,322STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000s14,482 Surplus/deficit for the year 16,244 9,170Other Comprehensive Income40,516 Gains on asset revaluation 61,849 48,10635,859 Movement in other reserves 17,567 14,28090,857 Total Comprehensive Income for theyear95,660 71,556Cash was applied to:58,543 Supply of Goods, Services &67,296 66,121Employees9,452 Interest Paid 10,045 8,5170 GST (Net) 0 0139 Fringe Benefit Tax Paid 143 15268,134 77,484 74,79039,005Net Cash Inflows/(Outflows) fromOperating Activities 35,270 30,532FINANCING ACTIVITIESCash was provided from:15,865 Borrowing 9,423 11,16815,865 9,423 11,168Cash was applied to;4,727 Borrowing 6,012 6,0164,727 6,012 6,01611,138Net Cash Inflows/(Outflows) fromFinancing Activities 3,411 5,152FAR NORTH ANNUAL PLAN 2011-2012 61

FINANCIAL MATTTERSNGA TAKE PUTEASTATEMENT OF CASHFLOWSFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sINVESTING ACTIVITIESCash was provided from:Sale of Property Plant andEquipment, Investment Properties0 and Properties Intended For Sale 0 00 Sale of Investments 0 00 Advances Repaid 0 00 0 0Cash was applied to:Purchase & Development of50,144 Property, Plant & Equipment 38,681 35,68550,144 38,681 35,685(50,144)Net Cash Inflows/(Outflows) fromInvesting Activities (38,681) (35,685)0 Net Increase/(Decrease) in CashFlows0 0NET CASH POSITIONOpening Balances 1 July2,313 Cash & cash Equivalents 6,245 2,3132,313 6,245 2,313Less Balances 30 June2,313 Cash & cash Equivalents 6,245 2,313RECONCILIATION BETWEEN PROSPECTIVE ACTIVITYCOSTS AND PROSPECTIVE STATEMENTOF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2011REVISED Prospective Financial StatementsLTCCP ANNUAL PLAN2010-11 2011-12 2011-12$'000s $'000s $'000sTOTAL OPERATING SURPLUS/(DEFICIT)Activity Costs(63) District Facilities 1,747 (413)1,794 Governance and Corporate 3,027 2,0039,411 Roads and Stormwater 5,609 3,1860 Sustainable Environment andConsents0 03,340 Water, Wastewater and Refuse 5,861 4,39414,482 Total Operating Income 16,244 9,170SURPLUS/(DEFICIT) FOR THE YEAR90,857 (Statement of ComprehensiveIncome)95,660 71,55676,375 Variance 79,416 62,386Represented by:40,516 Gains on asset revaluations 61,849 48,10635,859 Movement in other reserves 17,567 14,28076,375 - Gains on Asset Revaluation 79,416 62,3862,313 6,245 2,3130 Cash Movements for the Year 0 062 FAR NORTH ANNUAL PLAN 2011-2012

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KOREROFUNDING IMPACT STATEMENTWhakapapatanga tahua koreroLegislative RequirementsThe Local Government Act 2002 requires that Council includea Funding Impact Statement in the Annual Plan. This statementmust include the following information:• The revenue and fi nancing mechanisms to be used to coverthe estimated expenses of the Council, for the year; and• The nature of, and reasons for any departure from the fundingimpact statement for that year in the Long Term CouncilCommunity Plan; and• The basis upon which the General Rate and any UAGC willbe assessed; and• Details of any targeted rates, how they will be assessed andany differentials that will be used to set them.Each of these matters is dealt with in this statement.Revenue and Financing Mechanisms• The Far North District Council has prepared its Long-TermCouncil Community Plan for the years 2009/2019 and hasresolved to fund its activities from the General Rate togetherwith a number of targeted ratesIn addition to the rating income, Council has a number of othersources of revenue as outlined below:• Fees and charges• Subsidies• Depreciation funds and other reserves• Loans and borrowings• Financial and development contributions.Differences between the LTCCP Funding ImpactStatement and this Annual PlanShown below is a table that outlines any variations between theFunding Impact Statement for the 2011/2012 year as containedwithin the 2009/2019 LTCCP and the Funding Impact Statementprepared for the 2011/2012 Annual Plan.Differences between the Funding Impact Statement in the LTCCP and the 2011-12 Annual PlanIncomeLTCCP Forecast2011/12$000sAP Budget2011/12$000sReason For Any ChangesGeneral Rate 45,592 45,359 The overall rate requirement has increased due to organisational restructure andchanges in the 2010/11 capital programme impacting on interest anddepreciationTargeted Rates 27,011 24,771 The overall rate requirement has decreased due to organisational restructure andreductions in the 2010-11 capital programme impacting on interest anddepreciationRates Other (Penalties) 683 1,886 Reclassification of provision for doubtful debtDevelopment Contributions 7,003 2,297 Amended timing of expected Development Contribution Income to future yearsdue to current economic climateOther Income 1,595 1,038 Reclassification of NZTA* subsidy income to Subsidy OperationalSubsidies Operational 7,251 7,121 NZTA subsidy approval reductionsSubsidies Capital 15,394 13,885 NZTA subsidy approval reductions, inclusion of Cycleway ProjectFees and Charges 9,406 7,987 Amended Refuse Contract offset by proposed septage disposal feeTotal Income 113,935 104,344 * NZTA - New Zealand Transport AuthorityFAR NORTH ANNUAL PLAN 2011-2012 63

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KOREROTriennial RevaluationEvery three years the district is revalued in accordance with theprovisions of the Rating Valuations Act. The last triennial revaluationtook place in 2007 which means that it was necessary toundertake a new revaluation in 2010. These revaluations wereundertaken by Council’s Valuation Service Provider, QuotableValuation Ltd (QV). QV are independent of Council and Councilhas no infl uence on the values that arise from the process. Toensure proper processes and accuracy, the valuations are independentlyaudited by the Valuer General.In the Far North, the effective date for the revaluation was 1 July2010. What that means is that 1 July is the date used to set thevalues based on what QV believed would result in the sale of theproperty between a willing seller and willing buyer on that date.For the first time since the formation of the Far North District in1989, the values of the district have fallen. This reflects the currenteconomic climate and the effect that this has had on the sale of landacross the district. This is particularly noticeable in those coastalareas which have previously experienced rapid increases in value.To assist ratepayers and property owner understand the effectof the revaluation, Council published two articles in local papers.Copies of these articles are reproduced in this plan.What has become apparent is that the revaluation has resultedin a shift of rates across different parts of the district and acrossdifferent land uses. These are all a result of changes to propertyvalues and, as such, are outside Council’s control.• Overall values have fallen by 17.9%• Residential values have fallen by 22.5%• Farming properties have fallen by 12.3%• Commercial properties have fallen by 12.1%.In addition to the differences between land uses, there has beena wide variation across the district with the highest decreasesbeing seen in the Mangonui, Paihia and Russell areas and thelowest in Kaikohe, Kawakawa and Kaitaia.As always happens in a revaluation there has been a redistributionof rates across the different land uses and across differentparts of the district. The key points to note are that, in generalwhere a property has had a reduction in value of more than thedistrict total of 17.9% then any increase in this year’s rates willtend to be lower than average. Likewise where any property hashad a land value reduction of less than 17.9% then any increasein rates will tend to be higher than the average.Commercial DifferentialIn the Draft Plan Council indicated that because of the effectsof the revaluation, it was proposing to reduce the CommercialDifferential from the current three times to 2.75 times.After considering the submissions and the effect that such achange would have on farming properties, Council decided thatit would not proceed with that proposal.That being the case, the Commercial Differential remains at 3times the general differential. In making this decision, Councilcommitted itself to reviewing the level of the Commercial Differentialas part of the forthcoming rating review.Other DifferentialsCouncil was also aware of the effect of the revaluation on farmlandso is particularly keen to look at how it rates that land. Because thereare no farming or rural differentials in place at the present time, it isnot possible to alter the way the rates are set for 2011/12 rating yearbut it is a matter that Council will be considering in the future.Rating ReviewCouncil has decided to create a small working group of Councillorsand key staff to consider a wide range of options and ideasfor its future rating system.This working group will talk to a number of industry and communitygroups to gather ideas and to seek feedback on viableconcepts that may be developed. The issues the working groupwill consider include:• A reconsideration of the possible use of Capital Value to set rates• The introduction of a wider range of targeted rates• Ways to improve collection of rates from Maori land• A review of the use of rating differentials• A review of the rates remission and postponement policiesfor general land• A review of the rates remission and postponement policiesfor Maori freehold land.It would be desirable to have the changes in place for the2012/2022 Long-Term Plan but Council wants the community tohave suffi cient time to understand and respond to any proposalsthat are brought forward for consultation so this process willnot be rushed.Rates for the 2011/2012 Financial Year (Note:All rate figures are quoted both net and inclusiveof GST)Set out below are the rates that Council has set for the2011/2012 rating year. These are based on the budgets set outin this Plan together with the land values and property numberscontained within the current Rating Information Database.The table shows the title of the rate or rates together withtheir basis of calculation, for instance, land value, number ofconnections etc. Where it is proposing to set the rate on adifferential basis, the matters used to defi ne the differential areshown. The clause numbers refer to the 2nd Schedule of theLocal Government (Rating) Act 2002.Because of the change to the rate of GST in 2010 it was necessaryto set last year’s rates net of GST and add the total GSTto the fi nal rate accounts. For 2011/12 the rates will revert tobeing set inclusive of GST. To assist readers compare the ratesbetween the two years, the 2011/12 rates are shown both netof and inclusive of GST.64 FAR NORTH ANNUAL PLAN 2011-2012

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KORERORATE TITLEBASIS OF ASSESSMENTRate or ChargeDIFFERENTIAL Rate or Charge Net of GSTGST IncMATTERSTotal GST Inc2010/11 2011/12 2011/12 2011/121. GENERAL RATES1.1 Uniform Annual General Charge Per rating unit or part of a rating unit $ 414.00 $ 455.00 $ 523.25 $ 18,266,6581.2 General Land Differential Per $ of Land Value 1 0.0025192 $ 0.0031395 $ 0.0036104 $ 29,282,0771.3 Commercial Differential Per $ of Land Value 1 0.0075575 $ 0.0094185 $ 0.0108313 $ 4,614,1652. TARGETED WARD SERVICES RATE2.1 Eastern Ward Differential Per rating unit or part of a rating unit 6 212.33 $ 220.80 $ 253.92 $ 3,931,1892.2 Northern Ward Differential Per rating unit or part of a rating unit 6 194.73 $ 207.51 $ 238.64 $ 2,844,5472.3 Western Ward Differential Per rating unit or part of a rating unit 6 238.07 $ 243.02 $ 279.47 $ 2,098,2833.03.1TARGETED DEVELOPMENT RATESKerikeri Mainstreet Rate3.1.1 General Differential Per rating unit or part of a rating unit 6 $ 8.00 $ 8.00 $ 9.20 $ 54,3493.2.2 Commercial Differential Per rating unit or part of a rating unit 6 $ 24.00 $ 24.00 $ 27.60 $ 10,6773.2 Paihia CBD Development Rate3.1.1 General Differential Per rating unit or part of a rating unit 6 $ 8.00 $ 8.00 $ 9.20 $ 18,0783.2.2 Commercial Differential Per rating unit or part of a rating unit 6 $ 24.00 $ 24.00 $ 27.60 $ 8,8324. SEWERAGE TARGETED RATES4.1 Sewerage Connected Rate4.1.1 All schemes Per rating unit or part of a rating unit 5 $ 602.57 $ 581.98 $ 669.28 $ 7,696,6864.2 Sewerage Serviceable Targeted Rates4.1.1 All schemes Per rating unit 5 $ 361.54 $ 349.19 $ 401.57 $ 838,0734.3Additional Pan Targeted Rates4.3.1 All schemesPer Pan for the 3rd and subsequentpans 6 $ 361.54 $ 349.19 $ 401.57 $ 1,471,3475. WATER TARGETED RATES5.1 Metered Water Rates5.1.1 Water Supply Rate Per rating unit or part of a rating unit 5 $ 177.78 $ 181.33 $ 208.53 $ 2,137,6755.2.1 Water Availability Rate Per rating unit 5 $ 177.78 $ 181.33 $ 208.53 $ 125,1205.3 Non-Metered Rates5.3.1 Non-metered Potable Rate Per rating unit or part of a rating unit 5 $ 777.78 $ 793.33 $ 912.33 $ 107,6555.3.2 Non-metered non-potable Rate Per rating unit or part of a rating unit 5 $ 567.78 $ 579.13 $ 666.00 $ 6,6605.4 Water By Meter Charges5.4.1 Potable Water Per cubic metre of water consumed. 6 $ 2.40 $ 2.45 $ 2.82 $ 6,615,7205.4.2 Non Potable Water Per cubic metre of water consumed. 6 $ 1.56 $ 1.59 $ 1.83 $ 1,830FAR NORTH ANNUAL PLAN 2011-2012 65

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KORERORATE TITLEBASIS OF ASSESSMENTRate or ChargeDIFFERENTIAL Rate or Charge Net of GSTTOTALGST IncMATTERS2010/11 2011/12 2011/12 2011/126. DRAINAGE TARGETED RATES6.1 Kaitaia Drainage Area Per Hectare of land area $ 6.00 $ 6.00 $ 6.90 $ 70,0616.2 Kaikino Drainage Area6.2.1 Differential A Per Hectare of land area 6 $ 8.19 $ 8.19 $ 9.41 $ 3,5436.2.2 Differential B Per Hectare of land area 6 $ 4.10 $ 4.10 $ 4.71 $ 1,9246.2.3 Differential C Per Hectare of land area 6 $ 1.37 $ 1.37 $ 1.57 $ 2,1096.3 Motutangi Drainage Area6.3.1 Differential A Per Hectare of land area 6 $ 17.47 $ 17.47 $ 20.09 $ 7,4926.3.2 Differential B Per Hectare of land area 6 $ 8.74 $ 8.74 $ 10.05 $ 5,0516.2.3 Differential C Per Hectare of land area 6 $ 2.92 $ 2.92 $ 3.35 $ 4,9086.3 Waiharara6.3.1 Differential A Per Hectare of land area 6 $ 11.86 $ 11.86 $ 13.64 $ 1,9556.3.2 Differential B Per Hectare of land area 6 $ 5.93 $ 5.93 $ 6.82 $ 3,7076.3.3 Differential C Per Hectare of land area 6 $ 1.98 $ 1.98 $ 2.28 $ 1,1276.4 Hikurangi Drainage District6.4.1 Differential C Per Hectare of land area 6 $ 38.39 $ 38.39 $ 44.15 $ 2,9696.4.2 Differential D Per Hectare of land area 6 $ 5.49 $ 5.49 $ 6.32 $ 5506.4.3 Differential E Per Hectare of land area 6 $ 2.76 $ 2.76 $ 3.18 $ 1,0856.4.4 Differential F Per Hectare of land area 6 $ 1.10 $ 1.10 $ 1.27 $ 7,2407. STORMWATER TARGETED RATES7.1 General Differential Per rating unit 6 $ 31.11 $ 31.11 $ 35.78 $ 418,1567.2 Commercial Differential Per rating unit 6 $ 62.22 $ 62.22 $ 71.55 $ 87,008Differental Matters per Local Government Rating Act 2002, Schedule 21 = Land Use5 = Availability of Supply6 = LocationExample RatesPresented below is a selection of examples that show the affectof the proposed 2011/2012 rates across the District. The fi rstgroup shows the effect that is obtained using average land valuesfor a range of land uses. This is followed by a selection of residentialproperties that represent a range of residential propertiesdrawn from different townships and communities.It should be noted that the proposed rate increase relates to anaverage valued residential property selected from the full rangeof properties across the District. Individual properties mayshow higher or lower increases depending on their location,value and the range of service charges that they are liable for.Council’s website also has tools to assist you check how theserates will impact you and your property. (Note: all rates fi guresin the examples are quoted net of GST to allow comparison tothe previous year’s rates).66 FAR NORTH ANNUAL PLAN 2011-2012

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KORERO2007 Ave 2010 Ave2010/11Rates Net of2011/12 Rates Net of GST(Rounded to nearest $)Final Rate ChangesArea - Rating RollLand Value Land Value GST General UAGC Ward* W/Water S/Water Water Other Total % Change $ ChangeDistrict Average ValuesResidential $ 201,988 $ 157,332 $ 1,946 $ 494 $ 455 $ 221 $ 582 $ 31 $ 181 $ - $ 1,964 0.93% $ 18.06Lifestyle $ 332,847 $ 271,649 $ 1,465 $ 853 $ 455 $ 221 $ - $ - $ - $ - $ 1,529 4.39% $ 64.35General/Vacant $ 347,387 $ 310,467 $ 1,501 $ 975 $ 455 $ 221 $ - $ - $ - $ - $ 1,651 9.96% $ 149.58Dairy $ 1,080,841 $ 1,044,740 $ 3,349 $ 3,280 $ 455 $ 221 $ - $ - $ - $ - $ 3,956 18.13% $ 607.14General Farming $ 726,090 $ 637,186 $ 2,455 $ 2,000 $ 455 $ 221 $ - $ - $ - $ - $ 2,676 9.01% $ 221.30Horticulture/Orchard $ 567,751 $ 476,122 $ 2,056 $ 1,495 $ 455 $ 221 $ - $ - $ - $ - $ 2,171 5.57% $ 114.53Forestry $ 284,550 $ 241,050 $ 1,343 $ 757 $ 455 $ 221 $ - $ - $ - $ - $ 1,433 6.70% $ 89.95Industrial $ 307,067 $ 289,467 $ 3,789 $ 2,726 $ 455 $ 221 $ 582 $ 62 $ 181 $ - $ 4,228 11.58% $ 438.65Commercial $ 243,476 $ 221,539 $ 3,309 $ 2,087 $ 455 $ 221 $ 582 $ 62 $ 181 $ - $ 3,588 8.45% $ 279.46Community Services $ 207,085 $ 193,458 $ 3,034 $ 1,822 $ 455 $ 221 $ 582 $ 62 $ 181 $ - $ 3,324 9.56% $ 290.00Hotel/Motels $ 302,626 $ 234,561 $ 3,756 $ 2,209 $ 455 $ 221 $ 582 $ 62 $ 181 $ - $ 3,711 -1.20% $ (44.93)Northern WardAwanui - Roll 15 $ 67,364 $ 54,705 $ 1,412 $ 172 $ 455 $ 208 $ 582 $ 31 $ - $ - $ 1,447 2.50% $ 35.23Kaitaia Township - Roll 33 $ 62,847 $ 53,711 $ 1,579 $ 169 $ 455 $ 208 $ 582 $ 31 $ 181 $ - $ 1,626 2.98% $ 47.05Ahipara West Coast Values - Roll 39 $ 264,450 $ 216,397 $ 1,909 $ 679 $ 455 $ 208 $ 582 $ 31 $ - $ - $ 1,955 2.43% $ 46.37Karikari Peninsular Values - Roll 81 $ 289,666 $ 223,648 $ 1,972 $ 702 $ 455 $ 208 $ 582 $ 31 $ - $ - $ 1,978 0.28% $ 5.61East Coast Bays Values - Roll 83 $ 312,954 $ 224,043 $ 2,031 $ 703 $ 455 $ 208 $ 582 $ 31 $ - $ - $ 1,979 -2.55% $ (51.81)Eastern WardWhangaroa Coastal - Roll 121 $ 446,095 $ 367,874 $ 1,750 $ 1,155 $ 455 $ 221 $ - $ - $ - $ - $ 1,831 4.02% $ 70.23Kaeo / Rural - Roll 133 $ 152,908 $ 138,959 $ 1,645 $ 436 $ 455 $ 221 $ 582 $ 31 $ - $ - $ 1,725 4.86% $ 79.94Purerua Peninsular - Roll 211 $ 637,368 $ 516,433 $ 2,240 $ 1,621 $ 455 $ 221 $ - $ - $ - $ 8 $ 2,305 2.91% $ 65.17Kerikeri/Waipapa Coastal - Roll 213 $ 410,343 $ 343,480 $ 1,668 $ 1,078 $ 455 $ 221 $ - $ - $ - $ 8 $ 1,762 5.64% $ 94.10Kerikeri Township - Roll 215 $ 266,319 $ 212,748 $ 2,117 $ 668 $ 455 $ 221 $ 582 $ 31 $ 181 $ 8 $ 2,146 1.39% $ 29.46Puketona Road / Coastal - Roll 221 $ 686,244 $ 578,395 $ 2,363 $ 1,816 $ 455 $ 221 $ - $ - $ - $ 8 $ 2,500 5.78% $ 136.58Haruru Falls - Roll 223 $ 199,511 $ 139,980 $ 1,948 $ 439 $ 455 $ 221 $ 582 $ 31 $ 181 $ 8 $ 1,918 -1.58% $ (30.70)Paihia - Roll 225 $ 365,081 $ 276,495 $ 2,365 $ 868 $ 455 $ 221 $ 582 $ 31 $ 181 $ 8 $ 2,346 -0.81% $ (19.21)Russell Township - Roll 411 $ 571,636 $ 421,388 $ 2,700 $ 1,323 $ 455 $ 221 $ 582 $ 31 $ - $ - $ 2,612 -3.27% $ (88.22)Bay of Islands/ Rawhiti - Roll 413 $ 865,874 $ 628,238 $ 2,808 $ 1,972 $ 455 $ 221 $ - $ - $ - $ - $ 2,648 -5.68% $ (159.46)Kawakawa Values - Roll 419 $ 57,941 $ 53,309 $ 1,584 $ 167 $ 455 $ 221 $ 582 $ 31 $ 181 $ - $ 1,638 3.40% $ 53.83Opua - Roll 423 $ 305,599 $ 246,856 $ 2,208 $ 775 $ 455 $ 221 $ 582 $ 31 $ 181 $ - $ 2,245 1.70% $ 37.58Moerewa - Roll 427 $ 15,851 $ 13,168 $ 875 $ 41 $ 455 $ 221 $ - $ 31 $ 181 $ - $ 930 6.22% $ 54.43Southern Rural - Roll 431 $ 223,668 $ 193,707 $ 1,190 $ 608 $ 455 $ 221 $ - $ - $ - $ - $ 1,284 7.91% $ 94.16WesternKaikohe Township - Roll 523 $ 61,637 $ 67,245 $ 1,619 $ 211 $ 455 $ 243 $ 582 $ 31 $ 181 $ - $ 1,704 5.24% $ 84.76Kaikohe Rural - Roll 527 $ 303,976 $ 265,626 $ 1,418 $ 834 $ 455 $ 243 $ - $ - $ - $ - $ 1,532 8.05% $ 114.11Ngawha Rural - Roll 529 $ 192,521 $ 171,567 $ 1,137 $ 539 $ 455 $ 243 $ - $ - $ - $ - $ 1,237 8.76% $ 99.59Rawene Township - Roll 611 $ 138,786 $ 125,088 $ 1,813 $ 393 $ 455 $ 243 $ 582 $ 31 $ 181 $ - $ 1,885 3.97% $ 72.00Opononi / Omapere - Roll 618 $ 226,345 $ 199,733 $ 2,034 $ 627 $ 455 $ 243 $ 582 $ 31 $ 181 $ - $ 2,120 4.22% $ 85.78Hokianga Rural - Roll 655 $ 145,200 $ 129,128 $ 1,018 $ 405 $ 455 $ 243 $ - $ - $ - $ - $ 1,103 8.41% $ 85.56Kohukohu - Roll 659 $ 125,643 $ 108,766 $ 1,780 $ 341 $ 455 $ 243 $ 582 $ 31 $ 181 $ - $ 1,834 3.03% $ 53.87District Ave $ 295,164 $ 244,134 $ 2,181 $ 766 $ 455 $ 221 $ 582 $ 31 $ 181 $ - $ 2,237 2.56% $ 55.86District Ave - No Services $ 295,164 $ 244,134 $ 1,370 $ 766 $ 455 $ 221 $ - $ - $ - $ - $ 1,442 5.32% $ 72.89Residential - East $ 265,902 $ 205,894 $ 2,108 $ 646 $ 455 $ 221 $ 582 $ 31 $ 181 $ - $ 2,117 0.43% $ 8.99Residential - North $ 177,821 $ 132,995 $ 1,868 $ 418 $ 455 $ 208 $ 582 $ 31 $ 181 $ - $ 1,874 0.34% $ 6.32Residential - West $ 91,926 $ 86,230 $ 1,695 $ 271 $ 455 $ 243 $ 582 $ 31 $ 181 $ - $ 1,763 4.01% $ 68.06* Note: the ward rate is calculated as the average of the rates for the three wards based on the ward rate times the number of properties in each ward.FAR NORTH ANNUAL PLAN 2011-2012 67

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KORERORating PoliciesThis section should be read in conjunction with the Rating Policiescontained in Volume Two of the Far North District Council’sLTCCP 2009/2019.General Rate:Council proposes to set a General Rate on the basis of Land Valueusing differentials based on land use to fund its general activities.Two differential classes will apply, general and commercial. TheCommercial Differential has been set at a level three times theGeneral Differential.UAGC:Council has sett its UAGC and other charges (unless otherwisestated) on the basis of one charge in respect of every rating unitor every separately used or inhabited part of a rating unit (SUIP),whichever is the larger.The effect of this is that where any separate rating unit has morethan one use or inhabitation, each of these will give rise to aseparate set of charges.Targeted Rates:Council has set the following targeted rates:WARD RATESTo fund urban and recreational activities within the three wardsof the District. This rate will be assessed on the basis of a differentialaccording to the ward.SEWERAGE RATESTo fund the provision of water services to the District. This ratewill be assessed on the basis of a differential according to availabilityand supply.WATER RATESTo fund the provision of water services to the District. This rate will beassessed on the basis of a differential according to availability and supply.68 FAR NORTH ANNUAL PLAN 2011-2012STORMWATERTo fund the provision of stormwater services to the District. This ratewill be assessed on the basis of a differential according to land use.KERIKERI MAINSTREET RATETo fund the Kerikeri Mainstreet project. It will be set over thearea defi ned in the 2006/2016 LTCCP and will be assessed onthe basis of a differential according to land usePAIHIA CENTRAL BUSINESS DISTRICT DEVELOPMENT RATETo fund developments in the Paihia Central Business District. Itis set over the area defi ned above and is assessed on the basisof a differential according to land use.LAND DRAINAGE RATESTo fund land drainage works in the Kaikino, Motutangi, and Waihararaand Hikurangi drainage areas. The rate will be assessedon the basis of a differential according to location. In additiona land drainage rate will be set over the Kaitaia drainage areahowever this rate will not be assessed differentially.Definition of SUIP:For the purposes of this provision, a separately used or inhabitedpart of a rating unit is defined as:A separately used or occupied part of a rating unit includes any partof a rating unit that is used or occupied by any person, other thanthe ratepayer, having a right to use or inhabit that part by virtue of atenancy, lease, license, or other agreement, or any part or parts of arating unit that are used or occupied by the ratepayer for more thanone single use. Separately used or inhabited parts include:• A residential property that contains two or more separatelyoccupiable units, fl ats or houses each of which is separatelyinhabited or is capable of separate inhabitation• A commercial, or other non-residential property containsseparate residential accommodation in addition to its commercial,farming or other primary use• A commercial premises that contains separate shops, kiosks orother retail or wholesale outlets, each of which is operated as aseparate business or is capable of operation as a separate business• An offi ce block which contains several sets of offi ces, each ofwhich is used by a different business or which is capable ofoperation as separate businesses.Council has recognised that there are certain instances wherethe above situations will occur, but in circumstances that donot give rise to separate uses or inhabitations. These specifi cinstances are:Where a business, farm, orchard, vineyard or horticulturaloperation contains accommodation on a rent-free basis for theowner, staff or share milkers associated with the enterprises’productive operationWhere a residential property contains not more than one additionalseparately inhabited part and where members of theowner’s family inhabit the separate part on a rent-free basisWhere an orchard, vineyard or horticultural operation containsa stall for the sale to goods produced solely by the operation orresidence that provides accommodation on a rent-free basis forthe owner and staff of the operation.DifferentialsThe basis of differentials as set out in the 2009/2019 LTCCPcontinues to apply for the 2011/2012 rating year.

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KOREROPayment of RatesRATESWith the exception of water by meter charges, Council willcharge the rates for the 2011/2012 year by way of four instalments.Each instalment must be paid on or before the due datesset out below. Any rates paid after the due date will becomeliable for the penalties as set out below.RATE INSTALLMENTDUE DATEFirst instalment due date: 20 August 2011Second instalment due date: 20 November 2011Third instalment due date: 20 February 2012Fourth instalment due date: 20 May 2012Note: Where any due date falls on a weekend or public holiday,the due date will be the fi rst working day following the due date.WATER BY METERWater meters are read on a six-month cycle and are payableon the 20th of the month following the issue of the invoice. Ifthe dates do change the due date will always be the 20th of themonth following the invoice date.PENALTIES ON RATESSections 57 and 58 of the Local Government (Rating) Act 2002empower councils to charge penalties on the late payment ofrates.Pursuant to sections 57 and 58 of the Act, Council is proposingto impose the following penalties:1. A ten percent (10%) penalty on any portion of each instalmentof rates assessed in the 2011/2012 fi nancial year that isnot paid on or by the due date for payment, as stated above.2. A further ten percent (10%) penalty on any rates assessedin any fi nancial year prior to 1 July 2011 that remain unpaid on 1September 2011.3. A further ten percent (10%) penalty on any rates to which apenalty has been added under (2) above that remain unpaid on1 March 2012.PENALTIES ON WATER CHARGES1. A ten percent (10%) penalty on any portion of the chargefor the supply of water, as separately invoiced, that is not paid onor by the due date for payment as set out on the invoice.RATE REMISSION AND POSTPONEMENT POLICIESThe rate remission and postponement policies and the policyfor the remission and postponement of rates on Maori freeholdland, as set out in the 2009/2019 Long-Term Council CommunityPlan have not been reviewed and continue to apply.Rate Revenue for 2011/12 ($000)11%12%65%11%1%General Ward Services Sewerage Water Other Minor RatesUse of General Rate (% by Activity)4%11%29%5%9%Roading & TransportForward PlanningCustomer Services13%14%Other Minor ItemsRegulatory ServicesRefuseStormwaterOther Activities15%Wastewater...... 1.06%Investments..... 1.67%Public Safety.... 1.76%DevelopmentContributions... 0.23%Other Minor ItemsFAR NORTH ANNUAL PLAN 2011-2012 69

FUNDING IMPACT STATEMENTWHAKAPAPATANGA TAHUA KOREROA new ratingvaluation is dueA new ratingvaluation is dueAt least once every three years every district in New Zealand is revalued to set thevalues that the council will use to charge the rates for the next three years.At least once every three years every district in New Zealand is revalued to set thevalues that the council will use to charge the rates for the next three years.Where can I getmore information?If you want to discuss your individual valuationwhen you receive your notice, your initialcontact should be with Quotable Value as theyundertake the valuation on Council’s behalf.Phone 0800 787 284 to request anobjection form or object online atwww.qv.co.nzThe Far North District Council’s website containsmore information on the valuation processes.In the Far North, this revaluation process isbeing undertaken right now and shortly propertyowners will start to receive their notices from theCouncil’s valuers, Quotable Value Ltd.The Council has prepared the followinginformation in the form of commonly askedquestions and answers to help you understandthe rating valuation process.What is a rating valuation?In New Zealand, councils are funded by a formof property taxation known as rates. Some ratesare what are known as fl at or uniform charges.This means that the amount that the propertyowner pays is the same for every property. TheUniform Annual General Charge (UAGC) is onesuch charge.The law restricts the maximum of all uniformcharges to 30% of the Council’s total income sothe balance of the rates has to be charged someother way. That way is through the use of ratesthat are based on the valuation of a property. Inthe Far North, the rates are set on the basis ofthe Land Value.The rating valuation provides the means to sharethe cost of the rates across the district accordingto a set of property values that are provided forevery property on a common date. The commondate is very important because it means thatevery property is valued on the same basis andat the same time.The rating valuation is based on two questions.The fi rst is: what would the value of a property beif it was sold by a willing seller to a willing buyeron the valuation date?This means the valuers assume that the propertyis for sale and then use current sales historiesand other information to assess what the propertywould probably fetch if it was sold on that day.The second question is: what is the best use of theproperty? This means that the valuers considerwhat a new purchaser might do with the propertyto maximise its value. The valuation is made onthis “highest and best use” basis, rather than theexisting use. For example, a smaller pastoral blockWhat should I do if I disagree with the valuation?There is a formal objection process that you can use to challengeQuotable Values’ valuation if you feel that it is not correct. Details ofthe process will be contained with the notice. If you want to object,you need to give the valuers some good reasons why you believethat the valuation is wrong and you need to suggest what you thinkmay have a higher value as a lifestyle residentialproperty, and a smaller farming property on theoutskirts of a larger urban township may have ahigher value as a residential subdivision. It is this“highest and best use” that tends to increase thevalue of coastal land because of the historicallyhigh demand from developers.How does a change in valuationaffect my rates?People often think that an increase or decrease invaluation will automatically result in an increaseor decrease in rates. Many people also think thatan increase in the district’s values will mean thatthe Council gets more money.These are misconceptions. The way that itworks is that Council decides through itsplanning processes how much money it needs toundertake the services that it will provide for thenext twelve months. Having worked out that total,it then calculates the proposed rates by dividingthe district’s Land Value into the total dollarsthat it needs. If the valuation of the district hasincreased over the last year, the rate in the dollarfalls and vice versa.As an example of the process, in 2007 the totalland value of the district was around $5 billionand in that year the Council needed $28 millionin rates. When the rate was calculated, thefi gure ended up as $0.0052598. This meantthat for every dollar of land value, the ratepayerpaid 0.53 cents.In 2007 there was a district revaluation and thetotal value of the district nearly doubled to $10billion. In 2008 the Council needed a total of$30 million in rates, but because the value ofthe district had just about doubled, the rate in thedollar fell to 0.0024460, which was almost halfthe rate for the previous year.In other words, the change in the valuation wasnot responsible for the increase in rates, ratherthis was the result of the council’s increasedexpenditure budget.Having said that, a change in property valuecan lead to a change in rates. This can happenwhen a property value increases (or decreases)at a higher (or lower) level than the average forresidential properties in the district. For example,if all property values in an area have increased byexactly 30% and the council makes no changeto the expenditure budget or the rates collectionmethod, then every homeowner’s rates billwould remain the same. If the average changein property values is 30%, and your propertyincreases by 40%, then you can expect to get arates increase. If your property only increased by20%, you might experience a decrease in yourrates.This is what happened in 2008 when manyproperties on the east coast had valuationincreases that were much less than the averagewhereas many in the west and north experiencedincreases that where much higher than theaverage.What has happened to the FarNorth District Values in 2010?For every year up until 2010, the Far North’svalues have risen. However, that is about tochange. As everybody will know, the propertymarket has been fl at and values have fallenacross much of the country. Initial indicationsare that these changes will be refl ected in theFar North’s values that are to be published laterthis month.At this stage Council has only received someinitial indications but it is understood that thetotal value of the district may drop by around17% and once again there could be unevennessin the way that the individual values will fall withthe greatest drops in the higher valued parts ofthe east coast.When will I receive myvaluation notices?It is understood that the new valuation notices willbe in the mail by the 27th of September so youshould receive them shortly after that date. Pleasenote: these valuations are made by QuotableValue, not the Far North District Council.it should be and why. If you are not satisfi ed with the result of anobjection you have the right to have the valuation heard by theValuation Tribunal.When do the new values come into effect?The 2010 values will be used for rating purposes from 1 July 2011.Where can I getmore information?If you want to discuss your individual valuationwhen you receive your notice, your initialcontact should be with Quotable Value as theyundertake the valuation on Council’s behalf.Phone 0800 787 284 to request anobjection form or object online atwww.qv.co.nzThe Far North District Council’s website containsmore information on the valuation processes.Understanding those property valuesHomeowners in the Far North district will soonreceive their updated Rating Value in the mail.This will inevitably result in a few cries of disbeliefand concern about what it might mean for thefuture rates bill. So what can you expect?The calculation of Rating Values and how theyimpact on rates is reasonably complex and variesbetween councils. Whether we love them or hatethem, the effectiveness of the process needs tobe kept in the context of its purpose and howRating Values are subsequently used.The updated Rating Value you will receive in lateSeptember will refl ect the value of your property(excluding the chattels) at Far North district’seffective date of 1 July 2010.The Rating Values are being prepared on behalf ofthe Far North District Council by Quotable Value(QV) and they have given a brief explanation ofthe process used to achieve the fi nal results.Mrs Melanie Lewis, QV Operations Manager,said: “Rating Values are calculated using aprocess called mass-appraisal. In its simplestsense, relevant property sales which occurredin a specifi c location around the July 2010revaluation date are used to establish a markettrend, which is then applied to similar propertiesin the area.“The mass-appraisal process is supported with aproportion of valuation assessments of individualproperties every year as a result of buildingconsents which were issued, subdivisions, salesinspections, objections and ratepayer requests toupdate Rating Values. Not every property can beindividually inspected.”A recent improvement to the valuation contractis that every property in the district is visited atleast once every six years. This helps to keep anoverall picture of how the district is developing.In addition more frequent inspections can occurwhere signifi cant improvements are being addedto the land.One very important feature of the Rating Valuationprocess is that it is independently audited by theOffi ce of the Valuer General and stringent qualitystandards need to be met before a revaluation isconfi rmed. It is only after the Valuer General hassigned off on the new values that they are publishedand become available for rating purposes.“In the Far North district, Rating Values areupdated once every three years. When viewingthe residential property value index over time,you can see the consistent growth in propertyvalues which occurred up until early 2008, andthe decline in property values that has occurredsince” Mrs. Lewis said.“Since the last revaluation in July 2007, residentialproperty values have increased to the peak of themarket and then decreased again, with currentlevels generally now sitting lower than they werethree years ago” Mrs. Lewis added.As most property owners in the Far North willknow, the 2007 valuations occurred at the peakof the market and they have trended downwardssince then. As is shown in the graph, theproperty values in the Far North have fallen ata higher rate than has occurred nationally. Thisparticularly refl ects the reduction in demand forcoastal properties.Another interesting feature of the 2010 valuationis that there has been a wide variation in themovement of values across the district. Whilstthe total land value has fallen by around 17.7%,this level is not uniform.The chart shown below gives a general indicationof how the values have moved across the district.In particular it emphasizes the greater reductionsin land and capital values that have occurred inthe higher valued eastern parts of the Far North.It is interesting to note that whilst there are largevariations in the land values, the effect on capitalvalues is less pronounced. This is because theimprovement values tend to move much less thanthe land values.Just because your Rating Value shows a changein value does not necessarily mean that yourfuture rates will change by that amount. Whatmatters most is how your land value has movedin relation to the district valuation change.The overall reduction in land values across thedistrict is around 17%. This suggests that whereproperties have reductions of less than 17%they may experience some increase in rates, butwhere the reduction is more than 17%, then theywill tend to experience lower rates.It should be remembered that the change invalues only affects the land value portion of theGeneral Rate, it does not alter the Uniform AnnualGeneral Charge or other chargesThe total amount of rates required by the Councildoes not change simply as a result of the changeto the values of properties in the district. All thenew values do is alter the share of the total ratesthat individual ratepayers need to pay.The level of the rates for 2011/12 will not beknown until the Draft Annual Plan is publishedin the New Year. This will be the fi rst time thatratepayers will be able to see how these newvalues will affect their rates.To ensure that any proposed changes in ratesare clear, the Council will publish the rates usingboth the current values and the new values. Anyproposed rate increase will initially be calculatedusing the current values so that this is quiteclear. It is only after that has been agreed, thatthe changes to values will be incorporated intothe equations.The relationship between rates and Rating Values is not simple, and will always attract some discussion. If, when you receiveyour updated Rating Value, you believe it is not accurate, you should contact QV on 0800 787 284 to discuss it further.70 FAR NORTH ANNUAL PLAN 2011-2012

ACCOUNTING POLICIESNGA KAUPAPA KAUTEACCOUNTING POLICIESNga kaupapa kauteSTATEMENT OF ACCOUNTINGPOLICIESNga korero mo nga kaupapa pungaREPORTING ENTITYThe Far North District Council is a territorial local authoritygoverned by the Local Government Act 2002. The prospectivefi nancial statements refl ect the operations of Far North DistrictCouncil and do not include the consolidated results of Councilcontrolled organisations.The Council has not presented group prospective fi nancialstatements because it believes that the parent prospective fi nancialstatements are more relevant to users. The main purposeof prospective financial statements in the LTCCP is to provideusers with information about the core services that the Councilintends to provide to ratepayers, the expected cost of thoseservices and as a consequence how much the Council requiresby way of rates to fund the intended levels of service. The levelof rates funding required is not affected by subsidiaries exceptto the extent that the Council obtains distributions from, orfurther invest in, those subsidiaries. Such effects are included inthe prospective statements of the Council.Far North District Council has designated itself and the groupto be a Public Benefi t Entity for the purposes of New Zealandequivalents to International Financial Reporting Standards (NZIFRS). Far North District Council primary objective is to providegoods and services for community or social benefi t and whereany equity has been provided with a view to supporting thatprimary objective rather than for a financial return. All availablereporting exemptions allowed under the framework for PublicBenefi t Entities have been adopted.The prospective fi nancial statements are for the year period to30 June 2012 and were authorised by Far North District Councilfor issue on 17 February 2011.BASIS OF PREPARATIONThe prospective fi nancial statements have been prepared andare compliant with Section 111 of the Local Governement Act2002 and New Zealand Generally Accepted Accounting Practices(NZ GAAP) and the pronouncements of the New ZealandInstitute of Charted Accountants.In preparation of these fi nancial statements, Far North DistrictCouncil has adopted the New Zealand equivalents to InternationalFinancial Reporting Standards (NZ IFRS) and otherapplicable Financial Reporting Standards, as appropriate forpublic benefi t entities. The Prospective fi nancial statements arein compliance with FRS 42.The accounting policies set out below have been applied consistentlyto the prospective financial statements.The prospective fi nancial information has been prepared on ahistorical cost basis, modifi ed by the revaluation of Forestryassets, certain classes of Property, Plant & Equipment andInvestment Property. The preparation of fi nancial statementsin conformity with NZ IFRS requires management to makejudgements, estimates and assumptions that affect the applicationof policies and reported amounts of assets and liabilities,income and expenses. The estimates and associated assumptionsare based on historical experience and various other factorsthat are believed to be reasonable under the circumstances,the results of which form the basis of making the judgementsabout carrying values of assets and liabilities that are not readilyapparent from other sources. Actual results may differ fromthese estimates. The estimates and underlying assumptions arereviewed on an ongoing basis. Revisions to accounting estimatesare recognised in the period in which the estimate is revised ifthe revision affects only that period, or in the period of the revisionand future periods if the revision affects both current andfuture periods.The fi nancial statements are presented in New Zealand Dollars(NZD) and are rounded to the nearest thousand dollars($000’s).FAR NORTH ANNUAL PLAN 2011-2012 71

ACCOUNTING POLICIESNGA KAUPAPA KAUTEStandards and interpretation issued and notyet adoptedNZ IAS 24 Related Party Disclosures (Revised 2009) replacesNZ IAS 24 Related Party Disclosures (Issued 2004). The revisedstandard simplifi es the defi nition of a related party, clarifyingits intended meaning and eliminating inconsistencies from thedefi nition. The Council and group has elected not to be an earlyadopter of the revised standard.NZ IFRS 9 Financial Instruments will eventually replace NZ IAS39 Financial Instruments: Recognition and Measurement. NZ IAS39 is being replaced through the following three main phases:Phase 1 Classifi cation and Measurement, Phase 2 ImpairmentMethodology, and Phase 3 Hedge Accounting. Phase 1on theclassifi cation and measurement of fi nancial assets has beencompleted and has been published in the new financial instrumentstandard NZ IFRS 9. NZ IFRS 9 uses a single approach todetermine whether a fi nancial asset is measured at amortisedcost or fair value, replacing the many different rules in NZ IAS39. The approach in NZ IFRS 9 is based on how each entitymanages its fi nancial instruments (its business model) and thecontractual cash fl ow characteristics of the fi nancial assets. Thenew standard also requires a single impairment method to beused, replacing the many different impairment methods in NZIAS 39. The new standard is required to be adopted for the yearended 30 June 2014. Far North District Council has not yetassessed the effect of the new standard and it expects it will notbe adopted early.SPECIFIC ACCOUNTING POLICIES(a) Basis of consolidationThe purchase method is used to prepare the consolidatedfi nancial statements, which involves adding together like itemsof assets, liabilities, equity, income and expenses, on a line by linebasis. All signifi cant intragroup balances, transactions, income andexpenses are eliminated on consolidation.72 FAR NORTH ANNUAL PLAN 2011-2012(b) Budget FiguresThe budget fi gures are those approved by Council after consultationwith the public as part of the Annual Plan/LTCCP process.(c) Cost AllocationThe Far North District Council has derived the net cost ofservice for each significant activity of the Council using the costallocation system outlined below. Direct costs are chargeddirectly to signifi cant activities. Indirect costs are charged tosignifi cant activities based on cost drivers and related activity/usage information.(d) Criteria for Direct and Indirect Costs“Direct Costs” are those costs directly attributable to a signifi -cant activity.“Indirect Costs” are those costs that cannot be identifi ed in aneconomically feasible manner, with a specifi c signifi cant activity.The costs of internal services not directly charged to activitiesare allocated as overheads using appropriate cost drivers suchas actual usage, staff numbers and fl oor area.(e) Cost of Service StatementThe cost of service statements, as provided in the Statementof Service Performance, report the net cost of services forsignifi cant activities of Council, and are represented by the costsof providing the service less all directly related revenue that canbe allocated to these activities.(f) Property, Plant and EquipmentProperty, Plant & Equipment consists of:(i) Operational AssetsThese include land, buildings, improvements, plant and equipment,and motor vehicles.(ii) Restricted AssetsRestricted assets are parks and reserves owned by the Councilthat provide a benefit or service to the community andcannot be disposed of because of legal or other restrictions.(iii) Infrastructural AssetsInfrastructure assets are the fixed utility systems owned bythe Council. Each asset type includes all items that are requiredfor the network to function; for example, sewer reticulationincludes reticulation piping and sewer pump stations.(g) RevaluationsFar North District Council accounts for revaluations of property,plant and equipment on a class of asset basis.All assets are valued at historical cost, except the following assetswhich are shown at fair value, based on periodic valuationsby independent valuers, less subsequent depreciation:o Roading Infrastructural Assetso Stormwater Infrastructural Assetso Water and Sewerage Infrastructural Assetso Drainage Infrastructural Assetso Maritime Assetso Footpaths and Footbridgeso Carparkso Refuse Transfer Stationso Library Bookso Ferry Assetso Heritage Assetso Community Facilities Buildings.The results of revaluing are credited or debited to an assetrevaluation reserve for that class of asset. Where this resultsin a debit balance in the asset revaluation reserve, this balance isexpensed in the Statement of Financial Performance. Any subsequentincrease on revaluation that offsets a previous decrease invalue recognised in the Statement of Financial Performance willbe recognised fi rst in the Statement of Financial Performanceup to the amount previously expensed, and then credited to therevaluation reserve for that class of asset.ADDITIONSAdditions between valuations are recorded at cost, exceptfor vested assets. Certain infrastructure assets and land havebeen vested in the Council as part of the sub-divisional consentprocess. The vested reserve land has been valued at 50% of thesurrounding residential land as per an appropriately certifi edgovernment valuation. Vested infrastructure assets have been

ACCOUNTING POLICIESNGA KAUPAPA KAUTEvalued based on the actual quantities of infrastructure componentsvested and the current unit rates for that componentprovided by the most recent valuation.DEPRECIATIONDepreciation is provided for on a straight-line basis on allProperty, Plant & Equipment, other than land, at rates that willwrite off the cost (or valuation) of the assets to their estimatedresidual values over their useful lives. Assessed economic life iscalculated using the methodology in the New Zealand Instituteof Asset Management (NZIAM) manual.The useful lives and associated depreciation rates of majorclasses of assets have been estimated as follows:OPERATIONAL ASSETSRunways 10 10%Buildings 40 – 100 yrs 1 – 2.5%Motor Vehicles 3 – 5 yrs 20 – 33%Plant and Machinery 1 – 40 yrs 2.5 – 100%Wharves (Concrete) 50 - 85 yrs 1.25 - 2%Wharves (Timber),Moorings & Ramps 30 – 50 yrs 2.3 – 3%Offi ce Furniture &Equipment 5 – 15 yrs 6.67 – 20%Computers 3 - 7 yrs 14.3 – 33%Library Books 3 – 45 yrs 2.22 – 33%Heritage Assets 15 – 140 yrs 0.74 – 6.7%INFRASTRUCTURAL ASSETSRoadsTop surface (seal) 12 - 50 yrs 2 – 8.33%Pavement (base course) 10 - 40 yrs 2.5 - 10%(Sealed)Culverts, cesspits 5 - 170 yrs 0.6 – 20%Footpaths 15 – 70 yrs 1.4 – 6.7%Kerbs 50 – 80 yrs 1.3 – 2%Street Lights 25 – 60 yrs 1.67 – 4%Signs 10 yrs 10%Bridges 50 – 120 yrs 0.83 – 2%Water ReticulationPipes 40 – 160 yrs 0.62 – 2.5%Valves, hydrants 40 - 150 yrs 0.67 – 2.5%Pump stations 3 – 60 yrs 1.67 – 33.3%Tanks/Dams 5 – 80 yrs 1.25 – 20%Sewerage ReticulationPipes 30 - 125yrs 0.8 – 3.33%Manholes 35 - 130 yrs 0.77 – 2.85%Treatment plant 2 – 80 yrs 1.25 – 50%Stormwater SystemsPipes 30 – 120 yrs 0.83 – 3.33%Manholes 100 yrs 1%Improvements to leased assets are depreciated over the shorterof the unexpired period of the leases and the estimated usefullives of the improvements. The residual value and useful life ofan asset is reviewed, and adjusted if applicable, at each fi nancialyear-end. Land is not depreciated.DISPOSALSGains and losses are determined by comparing the proceedswith the carrying amount of the asset. Gains and losses ondisposals are included in the Statement of Financial Performance.When revalued assets are sold, the amounts included in theasset revaluation reserves in respect of those assets are transferredto retained earnings.SUBSEQUENT COSTSCosts incurred subsequent to initial acquisition are capitalisedonly when it is probable that future economic benefits or servicepotential associated with the item will flow to Far North DistrictCouncil and the cost of the item can be measured reliably.ASSETS UNDER CONSTRUCTIONAssets under construction are not depreciated. The total costof a project is transferred to the relevant asset class on itscompletion and then depreciated.(h) Intangible assetsIntangible assets that are acquired by the Far North DistrictCouncil are stated at cost less accumulated amortisation. Easements,Resource Consents, Public Access Rights and Softwareare included in this category.Computer software:Acquired computer software systems are capitalised on thebasis of costs incurred to acquire and bring to use the specifi csoftware. These costs are amortised over their estimated usefullives at a rate of 10 - 33% per annum.Costs associated with developing or maintaining computer softwareprogrammes are recognised as an expense as incurred.Other intangible assets:Other intangible assets that are acquired by Far North DistrictCouncil are stated at cost less accumulated amortisation andimpairment losses. Easements and Resource Consents areincluded in this category and have useful lives as follows:Resource Consents 5-25 years 4 - 20%Easements 100 years 1%IT Software 3-10 years 10-33%Public Access Rights 15 years 6.67%Where Council invests at least $100,000 in a project, but willnot ultimately own an asset, and the Community has the right touse the facility, and in terms of the contract, that right exists forlonger than 12 months, the cost of the right will be treated as anintangible asset. In all instances the cost will be amortised overthe shorter of 60% of the expected life of the asset or the termof the contract rights.FAR NORTH ANNUAL PLAN 2011-2012 73

ACCOUNTING POLICIESNGA KAUPAPA KAUTECoastal permits and licenses:The coastal permits and licences are recorded at fair value inaccordance with annual independent valuation obtained from thesame valuer who values the property, plant and equipment andinvestment property. Assumptions made by the valuer are thatthe coastal permits and licences will be renewed. The coastalpermits and licences are for a finite period, however it is expectedthat these will be renewed on an ongoing basis. Therefore, theyhave been treated as having an indefinite life and have not beenamortised.Subsequent expenditure:Subsequent expenditure on capitalised intangible assets iscapitalised only when it increases the future economic benefi tsembodied in the specifi c asset to which it relates, and it meetsthe defi nition of, and recognition criteria for, an intangible asset.All other expenditure is expensed as incurred.Amortisation:An intangible asset with a fi nite useful life is amortised over theperiod of that life, annually assessed for indicators of impairmentand tested for impairment if indicators of impairment exist andcarried at cost less accumulated amortisation and accumulatedimpairment losses.An intangible asset with an indefi nite useful life is not amortised,but is tested for impairment annually, and is carried at cost lessaccumulated impairment losses.(i) Forestry AssetsForestry assets are stated at fair value less point of sale costs andare independently revalued to estimate market valuation basedon net present value. The net gain or loss arising from changes inthe forest asset valuation is included in the Statement of FinancialPerformance. All revenues from harvesting are recognised in theStatement of Financial Performance when realised. Related costsare expensed as incurred.(j) Employee EntitlementsSick leave is measured as the amount of unused entitlementaccumulated at the balance sheet date that the entity anticipatesemployees will use in future periods in excess of the days thatthey will be entitled to in each of those periods.Wages and salaries, annual leave and other entitlements that areexpected to be settled within twelve months of reporting dateare measured at nominal values on an actual entitlement basis atcurrent rate of pay.Far North Holdings Limited recognises a liability and an expensefor bonuses where contractually obliged or where there is apast practice that has created a constructive obligation.Defined Benefit Schemes:Far North District Council belongs to the Defi ned Benefi t PlanContributors Scheme (the scheme), which is managed by theBoard of Trustees of the National Provident Fund. The scheme isa multi-employer defi ned benefi t scheme.Insuffi cient information is available to use defi ned benefi t accounting,as it is not possible to determine from the terms ofthe scheme, the extent to which the surplus/(defi cit) will affectfuture contributions by individual employers, as there is no prescribedbasis for allocation. The scheme is therefore accountedfor as a defi ned contribution scheme. Further information onthis scheme is disclosed in Note 24.(k) EquityEquity is the community’s interest in the Council and its subsidiaries,and is measured as the difference between total assetsand liabilities. Public equity is disaggregated and classifi ed into anumber of reserves to enable clearer identifi cation of the specified uses that the Council makes of its accumulated surpluses.The components of equity are:Accumulated funds:• Asset revaluation reserves• Revenue reserves – including special funds• Capital reserves.Reserves:Funds that are received or set aside for particular purposes, andhave legislative restrictions placed upon them, are considered asrestricted funds. These include some special funds or reserves andsinking funds created prior to the repeal of the Local AuthoritiesLoans Act. The portion of these funds not required in the currentyear has been shown as restricted funds within Term Investments.Reserves are a component of equity generally representing aparticular use to which various parts of equity have been assigned.Reserves may be legally restricted or created by the Council.Restricted reserves are those reserves subject to specific conditionsaccepted as binding by the Council and which may not berevised by the Council without reference to the Courts or thirdparty. Transfers from these reserves may be made only for certainspecified purposes or when certain specified conditions are met.Council-created reserves are reserves established by Councildecision. The Council may alter them without reference to anythird party or the Courts. Transfers to and from these reservesare at the discretion of Council.(l) Trade and other receivables:Trade and other receivables are stated at expected realisablevalue, less any provision for impairment.(m) Revenue:Sale of GoodsRevenue from the sale of goods is recognised in the Statementof Financial Performance when the signifi cant risks and rewardsof ownership have been transferred to the buyer.Services RenderedRevenue from services rendered is recognised in the Statementof fi nancial performance in proportion to the stage of completionof the transaction at the Statement of Financial Positiondate. The stage of completion is assessed by reference tosurveys of work performed. No revenue is recognised if thereare signifi cant uncertainties regarding recovery of the considerationdue, associated costs or the possible return of goods alsocontinuing management involvement with the goods.74 FAR NORTH ANNUAL PLAN 2011-2012

ACCOUNTING POLICIESNGA KAUPAPA KAUTEDevelopment ContributionsThe revenue recognition point for development contributionsis the later of the point when Council is ready to provide theservice for which the contribution is levied or the event thatwill give rise to a requirement for a development contributionunder the legislation.Rental IncomeRental income from investment property is recognised in theStatement of Financial Performance on a straight-line basis overthe term of the lease. Lease incentives granted are recognisedas an integral part of the total rental income.Government GrantsGrants from the government, such as Land Transport NZ roadingsubsidies, are recognised at their fair value where there isa reasonable assurance that the grant will be received and FarNorth District Council will comply with all attached conditions.Rates RevenueRates are set annually by resolution from Council and relate to afi nancial year. All ratepayers are invoiced within the fi nancial yearto which the rates have been set. Rates revenue is classifi ed as anon exchange transaction and is recognised when levied.Water RevenueWater billing revenue is recognised on an accrual basis. Unbilledsales, as a result of unread meters at year-end, are accrued on anaverage usage basis.Other grants and bequestsOther grants and bequests, and assets vested in the Council –with or without conditions – are recognised as revenue whencontrol over the assets is obtained. Where a physical asset isacquired for nil or nominal consideration the fair value of theasset received is recognised as revenue when control over theasset is obtained.DividendsDividends are recognised on an accrual basis net of imputationcredits.Third party/agency incomeWhere revenue is derived by acting as an agent for anotherparty, the revenue that is recognised is the commission or feeon the transaction.InterestInterest income is recognised using the effective interest method.(n) Trade and other payablesA liability is recognised when the service has been provided orthe goods received or when it has been established that the rewardsof ownership have been transferred from the seller/providerto the Council and when it is certain that an obligation topay arises. Trade and other payables are measured at fair value.(o) LeasesFinance lease:Leases that effectively transfer to the lessee substantially all risksand benefi ts incident to ownership of the leased item are classified as fi nance leases. At the commencement of the lease term,Far North District Council recognises the fi nance leases asassets and capitalises them at the lower of the fair value of theasset or the present value of the minimum lease payments. Theleased assets and corresponding lease liabilities are recognisedin the Statement of Financial Position. The leased assets aredepreciated over the shorter of the lease term or its useful life.Operational lease:Leases where the lessor effectively retains substantially all therisks and benefi ts of ownership of the leased items are classifi edas operating leases. Payments under these leases are charged asexpenses in the periods in which they are incurred.(p) BorrowingBorrowing:Interest-bearing borrowings are recognised initially at fair valueless attributable transaction costs. Subsequent to initial recognition,interest-bearing borrowings are stated at amortised costwith any difference between cost and redemption value beingrecognised in the Statement of Financial Performance over theperiod of the borrowings on an effective interest basis.Borrowing costsBorrowing costs are recognised in the period in which they areincurred.(q) Development CostsExpenditure on development projects is carried forward to beexpended against future revenue to be derived from the project.Expenditure carried forward is expensed in the Statement ofFinancial Performance at such time Council determine thatthe project has ceased or no identified future benefi ts will bederived.(r) Cash and Cash EquivalentsCash and cash equivalents includes cash in hand, deposits held atcall with banks, other short-term highly liquid investments withoriginal maturities of three months or less, and bank overdrafts.Bank overdrafts are shown within borrowings in current liabilitiesin the Statement of Financial Position.(s) Financial AssetsFar North District Council classifi es its investments in the followingcategories:i) Financial assets or financial liabilities at fair valuethrough profit or lossThis category has two sub-categories: fi nancial assets held fortrading, and those designated at fair value through profi t orloss at inception. A fi nancial asset is classifi ed in this category ifacquired principally for the purpose of selling in the short termor if so designated by management. Far North District Councildoes not have any fi nancial assets that meet this defi nition.ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixedor determinable payments that are not quoted in an active market.After initial recognition they are measured at amortised cost usingthe effective interest method. Gains and losses when the assetis impaired or derecognized are recognised in the statement of FinancialPerformance. Loans and receivables are classified as “tradeand other receivables” in the Statement of Financial Position.FAR NORTH ANNUAL PLAN 2011-2012 75

ACCOUNTING POLICIESNGA KAUPAPA KAUTEiii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative fi nancial assetswith fixed or determinable payments and fi xed maturities thatmanagement has the positive intention and ability to hold tomaturity. Far North District Council does not have any fi nancialassets that meet this defi nition.iv) Available-for-sale financial assetsAvailable-for-sale fi nancial assets are non-derivatives that areeither designated in this category or not classifi ed in any of theother categories. Financial assets that are included in this categoryare shares in Local Government Insurance Corp Ltd.The classifi cation depends on the purpose for which the investmentswere acquired.Management determines the classifi cation of its investmentsat initial recognition and re-evaluates this designation at everyreporting date.For the purposes of the parent company fi nancial statements,Far North District Council equity investment in its subsidiarycompany is stated at cost.(t) Goods and Services Tax (GST)All items in the fi nancial statements are exclusive of GST.Where GST is not recoverable as an input tax then it is recognisedas part of the related asset or expense.The net amount of GST recoverable from, or payable to, theInland Revenue Department (IRD) is included as part or receivablesor payables in the Statement of Financial Position.The net GST paid to, or received from the IRD, including theGST relating to investing and fi nancing activities, is classifi ed asan operating cash fl ow in the statement of cash fl ows.Commitments and contingencies are disclosed exclusive of GST.(u) Inventories and Work In ProgressInventories are valued at the lower of cost (determined on a76 FAR NORTH ANNUAL PLAN 2011-2012fi rst-in fi rst-out basis) and net realisable value. This valuationincludes allowances for slow moving and obsolete inventories.Work in progress is valued at cost. Inventories held for distributionat no charge, or for a nominal amount, are stated at thelower of cost and current replacement cost.The write down from cost to current replacement cost ornet realisable value is recognised in the Statement of FinancialPerformance.(v) Investment Properties and PropertiesIntended For ResaleInvestment properties are properties which are held either toearn rental income or for capital appreciation or for both.Investment property is measured initially at its cost, includingtransaction costs.After initial recognition, Far North District Council measuresall investment properties at fair value determined annually byan independent valuer. The fair values are based on marketvalues, being the estimated amount for which a property couldbe exchanged on the date of valuation between a willing buyerand a willing seller in an arm’s length transaction after propermarketing wherein the parties had each acted knowledgeably,prudently and without compulsion.Any gain or loss arising from a change in fair value is recognisedin the Statement of Financial Performance. There is no depreciationon investment properties.Rental income from investment property is accounted for asdescribed in the accounting policy for Revenue Recognition.When an item of property, plant and equipment is transferred toinvestment property following a change in its use, any differencesarising at the date of transfer between the carrying amountof the item immediately prior to transfer and its fair value isrecognised directly in equity if it is a gain. Upon disposal of theitem the gain is transferred to retained earnings. Any loss arisingin this manner is recognised immediately in the Statement ofFinancial Performance.If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment and its fair value at thedate of reclassifi cation becomes its cost for accounting purposesof subsequent recording. When Far North District Councilor its subsidiary begins to redevelop an existing investmentproperty for continued future use as investment property, theproperty remains an investment property, which is measuredbased on fair value, and is not reclassifi ed as property, plant andequipment during the redevelopment.(w) ProvisionsA provision is recognised in the Statement of Financial Positionwhen the Council has a present legal or constructive obligationas a result of a past event, and it is probable that an outfl ow ofeconomic benefi ts, the amount of which can be reliably estimated,will be required to settle the obligation. If the effect ismaterial, provisions are determined by discounting the expectedfuture cash fl ows at a pre-tax rate that refl ects current marketassessments of the time value of money and, where appropriate,the risks specifi c to the liability.LANDFILL POST – CLOSURE COSTSThe Council as an operator of both closed and operationallandfills has a legal obligation under the Resource ManagementAct (1991) to provide ongoing maintenance and monitoringservices at the landfi ll sites after closure. A provision for postclosure costs is recognized as a liability when the obligation forpost closures arises.The provision is measured based on the present value of futurecash fl ows expected to be incurred, taking into account ongoingfuture events including new legal requirements and knownimprovements in technology. The provision includes all costsassociated with landfi ll post closure.Far North District Council measures landfi ll assets using thecost model with changes in the provision for decommissioningcosts being added to, or deducted from, the asset value untilclosure of the asset, at which time all changes to the provisionare taken to the Statement of Financial Performance.

ACCOUNTING POLICIESNGA KAUPAPA KAUTEThe discount rate used is a pre-tax rate that refl ects currentmarket assessments of time value of money and risks specifi c tothe Council.(x) Statement of Cash FlowsCash or cash equivalents means cash balances on hand, held inbank accounts, demand deposits of 90 days or less and otherhighly liquid investments in which the Council or its subsidiaryinvests as part of its day-to-day cash management.Operating activities include cash received from all incomesources of the Council and record the cash payments made forthe supply of goods and services. Agency transactions (for example,the collection of Regional Council rates) are recognisedas receipts and payments in the Statement of Cash Flows giventhat they fl ow through Council’s main bank account.Investing activities are those activities relating to the acquisitionand disposal of non-current assets.Financing activities comprise the change in equity and debt capitalstructure of Council and its subsidiary, Far North HoldingsLimited.(y) TaxationIncome tax on the profit or loss for the year comprises currentand deferred tax. Income tax is recognised in the Statement ofFinancial Performance except to the extent that it relates to itemsrecognised directly in equity, in which case it is recognised in equity.Current tax is the expected tax payable on the taxable incomefor the year, using tax rates enacted at the Statement of FinancialPosition date, and any adjustment to tax payable in respectof previous years.Deferred tax is provided using the Statement of Financial Positionliability method, providing for temporary differences betweenthe carrying amounts of assets and liabilities for fi nancialreporting purposes and the amounts used for taxation purposes.The following temporary differences are not provided for:goodwill not deductible for tax purposes, the initial recognitionof assets or liabilities that affect neither accounting nor taxableprofi t, and differences relating to investments in subsidiaries tothe extent that they will probably not reverse in the foreseeablefuture. The amount of deferred tax provided is based on theexpected manner of realisation or settlement of the carryingamount of assets and liabilities, using tax rates enacted or substantivelyenacted at the Statement of Financial Position date.A deferred tax asset is recognised only to the extent that itis probable that future taxable profi ts will be available againstwhich the asset can be utilised. Deferred tax assets are reducedto the extent that it is no longer probable that the related taxbenefi t will be realised.(z) ImpairmentNon fi nancial assets that have an indefi nite useful life are notsubject to amortisation and are tested annually for impairment.Assets that have a fi nite life are reviewed for impairment whenever events or changes in circumstances indicate that the carryamount may not be recoverable. An impairment loss is recognisedfor the amount by which the asset’s carrying amountexceeds the recoverable amount. The recoverable amount is thehigher of an asset’s fair value less costs to sell and value in use.Value in use is depreciated replacement cost for an asset wherethe future economic benefits or service potential of an assetare not primarily dependent on the assets ability to generatenet cash infl ows and where the entity would, if deprived of theasset, replace it’s remaining future economic benefi ts or servicepotential.The carrying amounts of Far North District Council and thegroup’s assets are reviewed at each Statement of FinancialPosition date to determine whether there is any indication ofimpairment. If any such indication exists, the asset’s recoverableamount is estimated.An impairment loss is recognised whenever the carrying amountof an asset exceeds its recoverable amount. Impairment lossesare recognised in the statement of Financial Performance.Impairment losses on revalued assets offset any balance in theasset revaluation reserve, with any remaining impairment lossbeing posted to the statement of fi nancial performance.The reversal of an impairment loss on a revalued asset is creditedto the revaluation reserve. However, to the extent that an impairmentloss for that class of asset was previously recognised in theStatement of Financial Performance, a reversal of the impairmentloss is also recognised in the Statement of Financial Performance.(ab) Non Current Assets Held for SaleNon-current assets are classifi ed as held for sale and statedat the lower of their carrying amount and fair value less coststo sell if their carrying amount will be recovered principallythrough a sale transaction rather than through continuing use.An impairment loss is recognised for any initial or subsequentwrite down of the asset to fair value less costs to sell. A gain isrecognised for any subsequent increases in fair value less coststo sell of an asset but not in excess of any cumulative impairmentloss previously recognised. A gain or loss not previouslyrecognised by the date of the sale of the non-current asset isrecognised at the date of de-recognition.Non-current assets are not depreciated or amortised whilethey are classifi ed as held for sale. Interest and other expensesattributable to the liabilities classifi ed as held for sale continueto be recognised.Non-current assets classifi ed as held for sale are presentedseparately from the other assets in the Statement of FinancialPosition.(ac) Financial InstrumentsThe Council undertakes fi nancial instrument arrangement aspart of its normal operations. These fi nancial instruments includecash and bank balances, investments, receivables, payablesand borrowings. All fi nancial instruments are recognised in theStatement of Financial Position and all revenues and expenses inrelation to fi nancial instruments are recognised in the Statementof Financial Performance.Far North District Council does not enter into forward contractsand interest rate swaps although the Treasury Policy does allow forthis should it be necessary to manage exposure to risk on debt.FAR NORTH ANNUAL PLAN 2011-2012 77

ACCOUNTING POLICIESNGA KAUPAPA KAUTE(ad) Critical accounting estimates and assumptionsIn preparing these fi nancial statements, Far North DistrictCouncil has made estimates and assumptions concerning thefuture. These estimates and assumptions may differ from thesubsequent actual results. Estimates and judgments are continuallyevaluated and are based on historical experience and otherfactors, including expectations or future events that are believedto be reasonable under the circumstances. The estimates andassumptions that have a signifi cant risk of causing a material adjustmentto the carrying amounts of assets and liabilities withinthe next fi nancial year are discussed below:Landfill aftercare provision:Note 18 discloses an analysis of the exposure of Far NorthDistrict Council in relation to the estimates and uncertaintiessurrounding the landfi ll aftercare provision.Infrastructural Assets:There are a number of assumptions and estimates used when performingDRC valuations over infrastructural assets. These include:• the physical deterioration and condition of an asset. FarNorth District Council may be carrying an asset at anamount that does not refl ect its actual condition. This isparticularly so for those assets that are not visible, such asstormwater, wastewater and water supply pipes that areunderground. This risk is minimised by Council performingphysical inspections and assessments;• Estimating any obsolescence or surplus capacity of an asset;and• Estimates are made when determining the remaining usefullives over which the asset will be depreciated. If useful livesdo not refl ect the actual consumption of the benefi ts ofthe asset, then Far North District Council could be over orunder estimating the annual depreciation charge recognisedas an expense in the Statement of Financial Performance.To minimise this risk, Far North District Council’s infrastructuralasset useful lives have been determined with reference to theNZ Infrastructural Asset Valuation and Depreciation Guidelinespublished by the National Asset Management Steering Group andhave been adjusted for local conditions based upon past experience.Experienced independent valuers perform the Council’s infrastructuralasset revaluations.(ae) Derivative financial instruments and hedgeaccountingFar North District Council uses derivative fi nancial instrumentsto hedge interest rate risks arising from fi nancing activities. Inaccordance with its treasury policy, Far North District Councildoes not hold or issue derivative fi nancial instruments for tradingpurposes.Derivatives are initially recognised at fair value on the date aderivative contract is entered into and are subsequently remeasuredat their fair value at each balance date. The method ofrecognising the resulting gain or loss depends on whether thederivative is designated as a hedging instrument, and if so, thenature of the item being hedged.The associated gains or losses of derivatives that are not hedgeaccounted are recognised in the statement of fi nancial performance.Far North District Council designates certain derivativesas either:o hedges of the fair value of recognised assets or liabilitiesor a fi rm commitment (fair value hedge); oro hedges of highly probable forecast transactions (cash fl owhedge).The Far North District Council documents at the inception ofthe transaction the relationship between hedging instrumentsand hedged items, as well as its risk management objective andstrategy for undertaking various hedge transactions. Far NorthDistrict Council also documents its assessment, both at hedgeinception and on an ongoing basis, of whether the derivativesthat are used in hedging transactions are highly effective in offsettingchanges in fair values or cash fl ows of hedged items.The full fair value of hedging derivatives is classifi ed as noncurrentif the remaining maturity of the hedged item is morethan 12 months and as current if the remaining maturity of thehedged item is less than 12 months.Fair value hedge:The gain or loss from remeasuring the hedging instrument at fairvalue, along with the changes in the fair value on the hedged itemattributable to the hedged risk, is recognised in the statement offinancial performance. Far North District Council only appliesfair value hedge accounting for hedging fixed interest risk onborrowings. The gain or loss relating to the effective portion ofinterest rate swaps hedging fixed rate borrowings is recognised inthe statement of financial performance within “finance costs”. Thegain or loss relating to the ineffective portion is recognised in thestatement of financial performance as part of “gains” or “otherexpenses”. Changes in the fair value of the hedged fixed rateborrowings attributable to interest rate risk are recognised in thestatement of financial performance within “finance costs”.If the hedge no longer meets the criteria for hedge accounting,the adjustment to the carrying amount of a hedged itemfor which the effective interest method is used is amortised toprofi t or loss over the period to maturity.Cash flow hedge:The portion of the gain or loss on a hedging instrument thatis determined to be an effective hedge is recognized directly inequity through the statement of changes in equity and the ineffectiveportion of the gain or loss on the hedging instrument isrecognised in the statement of fi nancial performance as part of“gains” or “other expenses”.If a hedge of a forecast transaction subsequently results in therecognition of a fi nancial asset or a fi nancial liability, the associatedgains or losses that were recognised directly in equity willbe reclassifi ed into profi t or loss in the same period or periodsduring which the asset acquired or liability assumed affectsprofi t or loss.However, if Far North District Council expects that all or a portionof a loss recognised directly in equity will not be recoveredin one or more future periods, it will reclassify into profi t orloss the amount that is not expected to be recovered.78 FAR NORTH ANNUAL PLAN 2011-2012

ACCOUNTING POLICIESNGA KAUPAPA KAUTEWhen a hedge of a forecast transaction subsequently results inthe recognition of a non-fi nancial asset or a nonfi nancial liability,or a forecast transaction for a non-fi nancial asset or non-fi nancialliability becomes a fi rm commitment for which fair valuehedge accounting is applied, then the associated gains and lossesthat were recognised directly in equity will be included in theinitial cost or carrying amount of the asset or liability.If a hedging instrument expires or is sold, terminated, exercisedor revoked, or it no longer meets the criteria for hedge accounting,the cumulative gain or loss on the hedging instrument thatremains recognised directly in equity from the period when thehedge was effective will remain separately recognised in equityuntil the forecast transaction occurs. When the forecast transactionis no longer expected to occur any related cumulative gain orloss on the hedging instrument that remains recognised directlyin equity from the period when the hedge was effective will berecognised in the statement of financial performance.Critical judgments in applying Far North DistrictCouncil’s accounting policiesManagement has exercised the following critical judgments inapplying the Far North District Council accounting policies forthe period ended 30 June:Classification of propertyFar North District Council owns a number of properties whichare maintained primarily to provide housing to pensioners.The receipt of market-based rental from these properties isincidental to holding these properties. These properties are heldfor service delivery objectives as part of the Far North DistrictCouncil’s social housing policy. These properties are accountedfor as property, plant and equipment.FAR NORTH ANNUAL PLAN 2011-2012 79

COUNCIL CONTACTSNGA WHAKAPANGA O TE KAUNIHERAIMPORTANT INFORMATIONTe Reo Maori• Council Contacts• Important Contact Details80 FAR NORTH ANNUAL PLAN 2011-2012COUNCIL CONTACTSNga whakapanga o te kauniheraMAYOR WAYNE BROWNPHONE 021 735 315EMAIL biznewz@xtra.co.nzDEPUTY MAYOR/BAY OF ISLANDS/WHANGAROA WARDCOUNCILLOR ANN COURTPHONE 027 29 55 550EMAIL thebarnhouse@xtra.co.nzTE HIKU WARDCOUNCILLOR COLIN KITCHENPHONE 0274 762 079EMAIL kitchenc@xtra.co.nzCOUNCILLOR MONTY KNIGHTPHONE 0274 358 388EMAIL amkl@xtra.co.nzCOUNCILLOR MATE RADICHPHONE 09 406 7015EMAIL materadich@xtra.co.nzKAIKOHE - HOKIANGA WARDCOUNCILLOR TRACY DALTONPHONE 021 401 236EMAIL trydalton@gmail.comCOUNCILLOR SALLY MACAULEYPHONE 021 244 3185EMAIL sallygmac@xtra.co.nzBAY OF ISLANDS - WHANGAROA WARDCOUNCILLOR TOM BAKERPHONE 09 407 6115EMAIL tom.baker@clear.net.nzCOUNCILLOR DI MAXWELLPHONE 0274 973 757EMAIL di@creative-edge.co.nzCOUNCILLOR STEVE McNALLYPHONE 0274 978 633EMAIL steve@mcnallyvaluation.co.nzCOMMUNITY BOARD CONTACTSNga whaka panga o nga poari haporiTE HIKU COMMUNITY BOARDDENNIS BOWMAN – CHAIRPERSONPHONE 0273 056 625EMAIL bowmane@xnet.co.nzLAWRIE ATKINSONPh: 09 408 7565Email: lawrielyn@callsouth.net.nzCLARA LUGNETPh: 09 406 2030Email: clara.doubtlessbay@gmail.comDAVID SENIORPh: 09 408 4135Email: davidogman@gmail.comWILLY VAN DER SLUISPh: 09 409 7718Email: willieneta@ihug.co.nzYVONNE SMITHPh: 09 408 0888Email: offi ce.monty.knight@100percent.co.nzKAIKOHE-HOKIANGA COMMUNITY BOARDWIN STEPHENS – CHAIRPERSONPHONE 09 401 0729EMAIL winstephens@gmail.comMARK ANDERSONPh: 027 2058784Email: mark.andy@ihug.co.nzHIKU CHERRINGTONPh: 09 405 4864Email: hiku_venus@clear.net.nzWARREN GUNDRYPh: 09 405 2560Email: warren.gundry@windowslive.comLEIF PAKAIPh: 09 405 3936Email: pakai@xtra.co.nz

COUNCIL CONTACTSNGA WHAKAPANGA O TE KAUNIHERACOMMUNITY BOARD CONTACTSNga whaka panga o nga poari haporiEXECUTIVE MANAGEMENTTe ropu kaiwhakahaereCUSTOMER ENQUIRIESNga patai o nga kaiutuKAIKOHE-HOKIANGA COMMUNITY BOARD (CONTINUED)JOHN SCHOLLUMPh: 021 1133 073Email: project@maxnet.co.nzBAY OF ISLANDS-WHANGAROA COMMUNITY BOARDFLORENCE ANNISON – CHAIRPERSONPHONE 09 407 6555EMAIL calamity.jane@xtra.co.nzHARKO BROWNPh: 09 407 3977Email: harkobrown@gmail.comJOHNSON DAVISPh: 09 404 0636Email: kruza@xtra.co.nzTERRY GREENINGPh: 09 403 8559Email: terry.lizg@kinect.co.nzBRUCE MILLSPh: 09 405 0209Email: bruce-mills@hotmail.co.nzDOUG TURNERPh: 09 407 9551Email: jstrauss@xtra.co.nzCHIEF EXECUTIVEDAVID EDMUNDSGENERAL MANAGER - INFRASTRUCTURE AND ASSETMANAGEMENTDAVID PENNYGENERAL MANAGER – CORPORATE SERVICESBERNARD MURPHYGENERAL MANAGER – ENVIRONMENTAL MANAGEMENTFRAN MIKULICICMANAGER - COMMUNITY AND CUSTOMER SERVICESJACINE WARMINGTONTELEPHONE: 0800 920 029 or (09) 405 2750FACSIMILE: 09 401 5363WEBSITE: www.fndc.govt.nzADDRESS: Private Bag 752, Kaikohe 0440Telephones operate a 24-hour service for reporting emergency faults.FAR NORTH ANNUAL PLAN 2011-2012 81

Our Path ForwardTo Matou Ara o Nga Ra WhakaekeFar North District Council: Memorial Ave, KaikohePrivate Bag 752, Kaikohe 0440TELEPHONE: 0800 920 029 or 09 405 2750 FACSIMILE: 09 401 5363WEBSITE: www.fndc.govt.nzA special thank you to the Far North community for allowing us to photograph them or for providing us withimages. Thank you also to Fred Sadler for his translations and to Chris McBride at atelier41° for his images.Remaining images courtesy of the FNDC digital photo library.