LTCCP 2009-2019 Volume 1a - Complete Volume - Far North ...

FAR NORTHFUTURE PLAN2009-2019Our footprint on the futureTa matou tapuwae o nga ra whakaekeFINALLong-Term Council Community Plan 2009/2019 – Volume I

Far North District CouncilOur footprint on the future Ta matou tapuwae o nga ra whakaeke2FAR NORTH FUTURE PLAN 2009-2019

ContentsSECTION 1 WELCOME TO THIS PLAN 4Welcome to this PlanMission StatementMessages from the Mayor and Chief ExecutiveCommunity Feedback and Changes to the PlanSECTION 2BUILDING THE PLANOUR PLACE 12OUR PROGRESS 15WHAT MATTERS TO YOU 16LOOKING AHEAD 22OUR VISION FOR THE FUTURE 29COUNCIL’S STRATEGIC PRIORITIES 30BUILDING THE BUDGET – Council’s Financial Strategy 36SECTION 3 COUNCIL’S ACTIVITIES 43SECTION 4 ROADS AND STORMWATER 47SECTION 5 WATER, WASTEWATER AND REFUSE 85SECTION 6 DISTRICT FACILITIES 125SECTION 7 SUSTAINABLE ENVIRONMENT AND CONSENTS 197SECTION 8 GOVERNANCE AND CORPORATE 219SECTION 9 COUNCIL CONTROLLED ORGANISATIONS 267SECTION 10 MONEY MATTERS 271SECTION 11 CONTACTS AND GLOSSARY 285FAR NORTH FUTURE PLAN 2009-2019 3

WELCOME TO THIS PLANWELCOME TO THE FAR NORTH DISTRICT COUNCIL’SLong Term PLAN FOR 2009-2019WELCOME TO THIS PLANWelcome to the Far North District Council’s Long TermCouncil Community Plan (LTCCP) for 2009/2019.This plan is the most important document Council produces.It sets out Council’s thinking on the major issuesfacing our district and details its proposed priorities forthe next decade.Council is required to review and refresh its LTCCPevery three years. This document builds on the directionset in 2006 and tells you what Council has achieved sincethen. It also takes account of how the world and our districthave moved on over the last three years and of thenew issues and challenges facing us.HOW THE PLAN WORKSmajor projects for the next ten years, financial projections,and performance targets that will help you to judgehow Council is doing.Also in Volume 1 you will find information about FarNorth Holdings Ltd, the Council Controlled Organisation(CCO) responsible for the ownership and management ofa number of key infrastructure assets, including airportsand maritime assets.Volume 2 of the plan provides all the detail on key Councilpolicies covering key areas like rates and developmentcontributions.As a requirement of the Local Government Act 2002 thisPlan has been audited by Audit New Zealand. Their Auditopinion can be found at the end of Volume 2.Council has taken account of community feedback on thelast LTCCP in producing this plan. It has been reducedfrom four volumes to two whilst still containing theimportant information the community needs to knowand all the details Council is obliged to include under theprovisions of the Local Government Act 2002. Throughgreater use of in-house skills and resources productioncosts of the plan have been more than halved.Volume 1 provides key facts, figures and background information,along with discussion of the important issues andchallenges facing the Far North. The bulk of Volume 1is then devoted to providing detailed information aboutCouncil’s activities – what it does and why, priorities and4FAR NORTH FUTURE PLAN 2009-2019

mission statementFAR NORTH DISTRICTOur Footprint on the FutureTE TAITOKERAU KI TE RAKITa matou tapuwae o nga ra whakaekeCOUNCIL’S MISSION STATEMENTNGA MAHI WHAKAHIAHIA O TE KAUNIHERA••To provide effective leadership and responsive, affordable services••Kia tika te mahi arahi i te iwi; horo rawa te tuku, iti rawa te utu••To value our diverse lifestyles and unique environment••Whakanuitia nga mea o te rangi, o te whenua, tae atu ki tena, ki tena o tatou••To build trust within stronger and safer communities••Kia hanga ai te whakapono, te kaha me te rangimarie, i waenganui i nga iwi••To promote the economic, social, environmental and cultural advancement ofthe Far North••Ka whakapaohonuitia Te Tai Tokerau i nga mea whai rawa, whai tikanga, hau orame te taiaoFAR NORTH FUTURE PLAN 2009-20195

Letter to the community from the mayorKia ora koutouThanks to those who took part in the Council’s Far NorthFuture Plan submissions process,(even if it was a very small percentageof ratepayers and residents), during which we receivedsome helpful feedback to help us determine our strategic directionfor the next decade. After two days of intense deliberationson the 1,879 submissions received, we are now able to be moredefinitive on a number of the issues raised and to produce abasic budget in keeping with the times.In particular we have taken a hard look at questions of affordabilityand have deferred capital projects which have not metthe criteria of being essential, able to attract external financialsupport, or projects to which the Council is already committed.We have also reduced operational expenditure to ensure as anorganisation we live within the budgets set and we continue tolook for ways to do things in a more cost effective way.For the current year, a number of capital projects have eitherbeen deferred until later in the 10-year programme or havebeen dropped indefinitely. My council makes no apologies forthis – we cannot continue to borrow to fund projects which itwould be nice to see go ahead but which we really cannot afford.This approach has particularly been applied to projects forwhich we had intended to borrow against future DevelopmentContributions. These projects will now have to wait until theeconomy picks up and contributions from developers start toflow again.It is interesting to note that our operational expenditure growthprojections reflect favourably against the national average as expressedrecently by the Minister for Local Government. We areworking on a projected 33% growth in operational costs over10 years (national average 41%) and rate income growth overthe same period of 42.5% (national average 48%).These are harsh economic times and while we are acting responsibly,there is no room for complacency in the foreseeablefuture. We must continue to keep a clear focus on what we canand can’t afford to do. While we have not been able to accommodatethe majority of requests for additional spending, therehave been some notable exceptions. A $9.5 million commitmenthas been made to the Te Ahu project at Kaitaia, a $2.7 millioncommitment to the ongoing development of the new sportsfields at Kerikeri and $675,000 to assist the final constructionphase at The Centre in Kerikeri.There are still some issues which remain unresolved - inparticular the vexed question of how to create more equity inthe way in which rates are levied. Although I strongly believea change to a Capital Value rate base would have addressed anumber of existing anomalies, this was not what the submittingcommunity told us it wanted. The issues still remain and, duringthe next 12 months, we will be taking another long, hard lookat some aspects of the way we raise funds, including a review ofward rates, the commercial rates differential and the farmlandrates postponement scheme.There has been a continuation of above-inflation cost pressuresduring the last year, particularly in terms of asset maintenanceand renewal. Some assets have not been well maintained inprevious years and need a lot spent on them to bring them backup to standard. The council is seeking to reduce this financialburden by quitting surplus property and, where suitable, returningcommunity assets, such as community halls, cemeteries andpensioner housing to community committees, trusts, or otherappropriate providers.Supplier costs are another pressure area and the Council isdetermined to continue to look for ways to reduce the amountwe spend on externally provided goods and services. The councilis getting its own house in order – reducing staff and the useof consultants, only appointing new staff in line with rigorousnew recruitment procedures, and saving millions of dollars bycutting costs whenever and wherever possible.This year it is planned to take a big picture view of the wholesubject of wastewater and how growth, replacement and environmentalneeds can be more sensibly addressed. For example itmakes little sense to be spending millions to meet ever increasingdischarge standards, without addressing the wider issuesfacing the harbour into which the discharge is going. The Councilis increasingly battling its way through the Environment Courton renewal projects and there has to be a better and morecost-effective way to deal with these matters.We have also carefully noted the ongoing debate in NewZealand on local government structures and the need for morecost-effective units. We have reconfirmed our commitment toexamine closely all options to minimise bureaucracy, simplifystructures, maximise service delivery and reduce costs in theFar North, and simplify engagement with local government at alllevels.These are just some of the issues considered and decisionsmade by the Council as a result of the Future Plan process. Iurge you to look within these pages for a more comprehensivepicture of what can be expected in the 2009/2010 financial yearand beyond.While we are still a long way from resolving some of the morecomplicated issues the Far North faces, we are making progress.It remains very important that the community continues tomake its views known and we look forward to working with youin the best interests of the Fabulous Far North.Ka Kite AnoWayne BrownMayor6FAR NORTH FUTURE PLAN 2009-2019

Letter to the community from the chief executiveKia oraHaving recently assumed office as Chief Executive, thisreview of the Far North Future Plan has been my firstreal opportunity to take a comprehensive look at the waythe Council operates and to begin to influence the path ittakes into the future. It is very clear that this is not a timefor expansion, given that local government and in fact thecommunity alike, is facing one of the most difficult fiscalperiods ever experienced. Therefore the approach beingtaken is pragmatic whilst tending toward the conservative.On the one hand, emphasis has had to be placed onremodelling objectives to meet the changing economiccircumstances, and on the other hand give effect to someof the new goals and directions expected by the electedcouncil.Much has already been achieved through streamliningservices and improving customer relations and these efficienciesand economies will be strengthened as a resultof restructuring currently underway.However the reality is that we have had to make somedifficult choices. Last year the Council had one of thelowest average levels of rate increase in the nation andthe initial projections for this year were to hold the averagegeneral rate increase to just 1per cent. While this recognisedthe restraint needed at a time when the economyis anything but buoyant, in real terms(i.e. when weighedagainst the movement in inflation), it would have been adecrease with longer term implications for ratepayers. Itwould only have been achieved with noticeable reductionsin the level of services currently provided.Public debt servicing costs, the first call on annual rateincome, have risen progressively during recent years. Thiscannot continue unabated without creating a cripplingdebt legacy for the community in the years ahead. To pullback the level of borrowing, the capital works programmefor the next 10 years has been cut by more than $80million and projected borrowing levels reduced by $40million over the same period. A number of projects inthe current year have also been deferred, abandoned orsubjected to cost cuts.Even with this cautious approach, to maintain a fiscallyprudent level of service and to complete outstandingstorm repair work incurred in 2007, the Council has hadlittle option but to consider a higher level of rate increasethis year. The 2009/10 budget calls for an increase in theGeneral Rate by an average of 3.92 per cent. Coupledwith increases in service charges to address a backlog ofinfrastructural renewal projects, this will mean an averageoverall increase of around 12 per cent for ratepayersreceiving water and wastewater services.While the Council has a responsibility to address the economic,environmental, cultural and social wellbeing of thedistrict, in difficult times financially it is critical to focuson the priorities and to be aware of opportunities whichwill encourage employment and economic growth. In thisreview we have attempted to moderate caution with theneed to encourage projects which are community-basedand growth-related. To this end, encouragement is beinggiven to growth through targeted changes to the DevelopmentContributions policy and to the rates requirementon new subdivisions. Encouragement is also beinggiven to projects for which there are external subsidies.The plan is proposing capital expenditure on key infrastructureof $394 million over the 10-year programme.This includes capital expenditure of $239 million on roadsand stormwater, $84 million on water, wastewater andsolid waste, and $60 million on district facilities includinghalls, museums, swimming pools, parks, reserves, camps,emergency management, recreational maritime facilities,libraries, cemeteries, information centres, street lighting,airports, pensioner housing, footpaths and rural firecontrol.Details of where expenditure will be targeted on a yearby-yearbasis are contained within the plan, which is a keyreference document for the Council’s planned activitiesand budgets for the next decade.As a newcomer, I have valued the submissions processand the opportunity to hear the views of our Far Northcommunities first hand. I look forward to working withyou for the benefit of all people of the Far North and thedistrict’s ongoing development.David EdmundsChief ExecutiveFAR NORTH FUTURE PLAN 2009-2019 7

Community Feedback and Changes to the Plan1Submissions on the draft planCouncil consulted the community on the draft LTCCPduring March and April 2009 and received 1,879 submissionson it making some 3,245 individual points. 173 submittersput their points to councillors in person duringsix days of hearings on the plan in May 2009.Council has taken careful account of all submissionsreceived and has approved relevant submission responses,which will be sent to submitters in July 2009 followingpublication of this plan.Key issuesTwo main issues dominated the submissions – capitalvalue rating (opposed by the large majority of people whosubmitted on it) and the Te Ahu project (with significantnumbers of submitters supporting the project). Otherprincipal issues arising from submissions and key decisionsmade by Council are detailed below.Capital expenditureCouncil signalled in the draft plan that there was a needto reduce forecast levels of capital expenditure in the lightof a reduced inflow of development contributions andescalating levels of borrowing.Submitter feedback in this respect was mixed. A range ofpossible areas for reducing capital expenditure was identifiedby submitters but at the same time others requestednew projects or the bringing forward of projects scheduledfor later years in the ten year plan.In its further consideration of these issues Council identifieda number of important guiding principles:•• Council supports growth and growth-related capitalexpenditure in the Far North but:o Will not spend excessively in anticipation of devel-opment contribution revenueo Will give priority to projects that attract subsidyor other external support, provided ongoing costsremain affordableo Will focus on projects that have already started orto which Council is committed, whilst deferring orcancelling other expenditure to keep borrowingdowno Will seek to minimise borrowing whilst not com-promising receipt of subsidies.In the light of these principles Council has decided tomake significant reductions in the number and value ofcapital projects detailed in the LTCCP. This has beenachieved by deferring or deleting schemes from the capitalprogramme included in the draft LTCCP. The overallimpact is a reduction in forecast capital expenditure in theplan from $475m to $394m and a reduction in the forecastlevel of borrowing from $150m in year ten to $115m.The reduction in capital expenditure has had knock-oneffects in reducing projected rates increases as detailedbelow.RatesSignificant numbers of submitters responded to Council’sconsultation on rates options, with a majority amongstthose who expressed a view opposed to further increasesin the General Rate for the various purposes set out inthe draft plan. Council has taken account of the viewsexpressed and has decided against proceeding with mostof the options for rates increases that were set out in thedraft plan.8FAR NORTH FUTURE PLAN 2009-2019

COMMUNITY FEEDBACK AND CHANGES TO THE PLANHowever, Council has decided that a limited increase inthe average general rate is required to provide for certainpriority areas of expenditure – principally roads andstorm damage provision, as well as other limited spendingrequirements identified from the submissions process(see below). Overall this amounts to a projected increasein the average residential rate of 3.92% for 2009/2010.As a consequence of these reductions forecast levels ofrates increase for years two to ten of this LTCCP havealso come down. For 2010/2011 the average increase isnow projected at 3.94% as compared to 8% in the draftLTCCP.Projected increases for the remainder of the ten year planrange between 1.6% and 4.3%. These figures are indicativeonly at this stage and will be subject to change asCouncil’s operating environment changes. Neverthelessthey provide a clear signal of this Council’s intention thatfuture rates increases should be kept to affordable levels.Council will of course consult separately on future years’rates levels through the normal annual / LTCCP planningprocesses.Decisions arising from submissionsSummarised below are the other main issues consideredand decisions taken by Council during deliberations onsubmissions received:•• There was substantial opposition from submitters tomaking a change to a rating system based on capitalvalue and in the light of this Council has decidedagainst making such a change•• Council confirmed the proposals in the draft LTCCP inrespect of a new policy to provide rating relief to ratepayerswho provide coastal access across their land•• Council confirmed an extension to the policy for theremission of certain charges on subdivisions or othersimilar developments for a term of up to six yearsrather than the current three-year limit•• In the light of various submissions received Councilrequested a review of the following rating policies witha view to possible introduction of future changes byway of LTCCP amendments in due course:o Use of targeted rates (e.g. for roading)o Ward rateso The commercial rates differentialo Farmland rates postponement•• Council confirmed retention of the current fundingmechanism for Russell sewerage i.e. it will continue tobe charged on a district-wide basis•• Council has extended to 30 June 2010 the periodfor qualifying landowners in Russell to connect theirproperties to the reticulated Russell sewerage systembefore they become liable for the payment of developmentcontributions•• Council confirmed removal of the 10% discount fromwater-by-meter accounts and the addition of a 10%penalty for late payment•• Council confirmed changes to development contributionspolicies as detailed in the draft LTCCP. Theserelate to:o Possible waiver or reduction of certain contributionclasses for residential housing where a propertyowner is building a first residence for personal occupationon a site they have owned for at least 10yearso Clarification of the need to charge contributionsfor small commercial developments in existing fullyserviced communities. Council will consider waivingcertain contributions where it can be shown thatthe commercial development will not add to infrastructuredemandso Charging of contributions to charitable and not-for-profit organisations – such organisations will beliable for contributions where applicable but undercertain conditions they may be eligible for a grant tooffset the contributionso The timing for setting contributions and for whenthey become payable•• Council confirmed its support for the Te Ahu project,including the planned site and:o Reconfirmed funding of $4.764m contained in the2006/2016 LTCCPo Resolved that $1.9m of accumulated depreciationfunds from the Kaitaia Community Centre be usedfor the Community Centre component of the TeAhu developmento Confirmed that funding up to an estimated $1.7mshould be provided from property sales within theNorthern ward and up to $1.1m should be fundedfrom development contributions, subject to availabilityo Resolved that any further advances of funding tothe Te Ahu Charitable Trust will only be made onceCouncil has signed off a completed business plan.•• Council approved an additional 1.5% on the generalrate for roading expenditure to undertake storm damagerepairs and other roading work on the basis ofpriorities to be determined by the Roading Manager•• Council resolved that a full review of Hokianga Ferrycosts should be conducted during 2009/2010 with aview to establishing funding mechanisms that decreasethe service’s reliance on rates•• Council agreed to look further at both electoral andnon-electoral options for the engagement and involvementof Maori in Council’s decision-making processes.It also requested a report back by September 2009 onan action plan for Maori Development and Engagementencompassing the following key areas:1FAR NORTH FUTURE PLAN 2009-2019 9

COMMUNITY FEEDBACK AND CHANGES TO THE PLANo How Council can work better to include the prin-ciples of the Treaty of Waitangi across all its areas ofworko Maori Representationo Maori Consultationo Maori Economic Developmento Maori Social Developmento Capacity building to improve Council engagementon Maori issueso Maori land ratingo Working with Iwi / Maori and other partners todevelop appropriate and affordable communityinfrastructure•• Council decided against providing additional funding forDistrict Plan rule changes related to a district-wide carparking strategy and other issues. It was agreed insteadthat District Plan rule changes should be carried out aspart of the general business of Council•• Council confirmed its commitment to the implementationof the Kerikeri / Waipapa structure plan andrequested quarterly reports on progress being made.Council also reviewed the proposal in the draft LTCCPto complete structure plans for eight other parts ofthe district by 2012. It was considered that due tolimited resourcing and budget constraints this wouldbe unachievable. Council agreed instead that communityplans should be produced for the areas concerned.Whilst not fully-fledged structure plans, these would beintended to help guide the district’s response to futuregrowth and development•• Council signalled its intent to explore options forsewerage charging over the coming year to considerwhether there are any more equitable approaches thanthe current methodology. If Council felt that alternativeoptions were worth pursuing there would be fullconsultation as part of the annual plan process priorto any change. Council also indicated there was a needfor a wider debate to assist in confirming long-termdirection in respect of wastewater service provision.This should include:o Clarifying future use of subsidieso Improving water qualityo Addressing the requirements on people to connectwhen a new system is installed•• Council resolved that the fluoridation system willremain turned off in Kaitaia and Kaikohe pendingreceipt of information on the results of the trial in linewith the original resolution passed by Council. Furthercommunity consultation will be commenced in themeantime•• Council decided that in the light of current budgetconstraints it could not support free library membershipas requested by some submitters•• Council agreed to continue to examine options fordivesting pensioner housing stock and noted that keyissues to be addressed before a decision can be madewill be safeguarding the interests of current and futuretenants and likely future rent levels•• Council noted the ongoing debate in New Zealandabout local government structures. It confirmed itscommitment to examining local government optionsfor the Far North that minimise bureaucracy, simplifystructures and deliver maximised services at minimisedcosts•• Council indicated that wherever possible it supportedthe transfer of cemetery management to local committees.In light of resource constraints it also decidedagainst providing an additional public cemetery / burialplace for the Opononi, Omapere and Koutu communityarea•• Whilst deciding against the allocation of additionalfunding to the i-Site at Opononi Council indicated thatit intends to consider alternative options for touristinformation services in the Hokianga•• Council decided against:o Assisting the Kaikohe Lions United Rugby LeagueClub to acquire its own sports field and associatedamenities. Council indicated that it favoured theencouragement of strong multi-code clubso Reclaiming (at no cost) ownership of Kaikohe Air-field from Far North Holdings (FNHL). This wouldnot meet business expectations on FNHL andCouncil sees no compelling reason to make such achange. Council noted that whilst some submittershad requested that air corridors be secured, greatercontrol over land use can be achieved by designationof the airport and this process could includeestablishing flight lines and noise boundary restrictions10FAR NORTH FUTURE PLAN 2009-2019

COMMUNITY FEEDBACK AND CHANGES TO THE PLAN•• Council confirmed its commitment to working withthe local community towards the development ofParkdale Reserve in Kaitaia•• Council reiterated its support for the Kaikohe PioneerVillage but decided against supporting the Trust becomingan information centre for Kaikohe•• Council noted and supported ongoing work towardsthe development of the Hundertwasser Centre, whichoffers significant potential to Kawakawa. Council awaitsmore detailed proposals with a view to considering theproject further in its future planning processes•• Council decided against subsidising Far North Holdings’costs of recreational maritime refuse but favouredexploration of wider use of alternative schemesoperating successfully elsewhere in the district e.g.Mangonui•• Council noted that in the light of further informationnow available about the funding requirements for TheCentre in Kerikeri the overall requirement for developmentcontribution funding could be reduced andretimed to be spread over the ten years of the LTCCP.Council also instructed that the sale proceeds of KerikeriMemorial Hall should be factored into the fundingarrangements•• Within the overall projected average rates increase of3.92% Council agreed limited additional funding for thefollowing purposes:o Kaeo storm damage provision / ongoing storm dam-age contingency: $400,000o Geophysical survey seed funding to explore miner-als potential: $100,000o Bay of Islands Arts Festival: $20,000o Citizens Advice Bureau Kerikeri: $18,000o Kaitaia People’s Centre: $12,000o Swimming pool subsidies to increase public access:$40,000•• Whilst generally cutting back on capital expenditureas indicated above Council resolved that the followingadditional provisions should be included in the capitalprogramme:o $100,000 to underwrite provision of KaikoheHockey turf lights should other funding contributionsprovide insufficiento $10,000 for improvements at Totara North Cem-eteryo $50,000 for beautification / improvements relatedto the Paihia Service Lane.Changes to the PlanWhere necessary the LTCCP has now been amended toreflect decisions taken in respect of the above issues.FAR NORTH FUTURE PLAN 2009-2019 11

OUR PLACEBut this land had other secrets. The mighty kauri forestsprovided timber, masts for ships, and gum to make varnish.With its huge timber mill, Kohukohu on the Hokianga becamea major timber port. Remnants of the kauri forestsstill exist in the Waipoua, with Tane Mahuta as an indicationof what must have been. Many came from EasternEurope to harvest the trees and dig the gum. Their historyshows in the names of some of our oldest families, andforestry continues to be one of our major industries.Nearly 200 years later, new people who want to call theFar North their home continue to arrive from all parts ofthe globe. But the traces of our rich historical past are allaround – more than 7,000 archaeological sites lie in theFar North District, mostly around our coastline. Thereis a greater concentration here than in any other part ofNew Zealand; they include pa, pits, terraces, midden, gardensites, gum holes and gum diggers camps, rock art, missionhouses and many more. Each one is unique and tellsits own story. Together, they testify to a shared history, tobe protected for our descendants to enjoy and revere.key facts and figuresHere are a few of the key facts and figures about ourdistrict, which have helped to shape the thinking behindthis plan:•• The Far North’s population is currently around 55,845people. That’s 1.4% of the total population of NewZealand and makes us the 18th largest district in thecountry. The district is growing and saw a 2.3% increasein population between Census 2001 and Census 2006.The year to June 2008 saw 870 resident births in theFar North (slightly down on the previous year) and480 resident deaths (slightly up)•• Increases in the numbers of tourists (estimated to bearound 110,000 summer holiday season) and secondhome owners are one of the most marked features ofthe recent growth of the district. The growth in nonresidentpopulation creates a need for infrastructureto cope with peak impact demands, usually duringholiday periods•• Around 14% of the population was born overseas. Inthe year to March 2008 there were 579 immigrantarrivals in the district – that’s 0.7% of total arrivals inNew Zealand and an increase of 22.4% on the previousyear. Over the same period there were 739 permanentand long-term departures from the district leading tonet migration of minus 160 people. The trend in bothimmigrant arrivals and immigrant departures has beenon the increase for the last six years but with departuresalways exceeding arrivals. This suggests that thedistrict’s population growth mainly reflects a combinationof former Far North residents returning homeand the excess of births over deaths, rather than alarge influx of migrants•• Our large geographical area combined with ourpopulation gives us a low population density of 7.6people per square kilometre (14.9 nationally)•• The median age of our population (just over 39 years)is about three years older than for New Zealandas a whole. Around 13.8% of us are over 65 (a 2.6%increase since 1996) whilst nearly a quarter of us areunder 15. Each of these figures is higher than the NewZealand average. The percentage of people over 65 hasshow a gradual increase in recent years•• The Far North has a lower-than-average proportion ofpeople of European origin and a higher-than-averageproportion of people of Maori origin (42.9% of ourpopulation)•• There are ten Iwi authorities in the Far North and 124marae. 33.7% of the Maori population and 16.1% of thetotal population can hold an everyday conversation inMaori•• There is a large road network in the district – 2,530kilometres of road administered by this Council, ofwhich 33.5% is sealed, plus another 490 kilometresadministered by the New Zealand Transport Authority(NZTA)•• There are three main airports – Bay of Islands(Kerikeri), Kaitaia and Kaikohe (recreational). Railwayfacilities are limited and there are just two freight tripsa day to the district.•• Some 49.3% of Far North households have access tothe internet (NZ 60.5%), 84.1% have access to a telephone(NZ 91.6%), and 67.1% have cellphone access(NZ 74.2%)FAR NORTH FUTURE PLAN 2009-2019 13

OUR PLACE•• There are some 20,700 households and the averagehousehold size is 2.7 people••56.3% of our population are home owners (NZ 54.5%)•• During the year ended March 2008 a total of 389 newdwellings worth over $120m were authorized forconstruction in the district. The number of consentshas declined over the last three years since peaking in2005•• The average residential sales price is $359,400 andaverage rentals for a four bedroom house are in the$200-$300 range•• The number of non-residential building consents issuedin the year to March 2008 (287) was a decrease of6.8% on the previous year and the total value ($40.5m)was 37% down on the previous year•• Around 70% of the population aged 25-64 have at leastan upper secondary qualification (NZ 75.2%) and justover 10% have a tertiary qualification (NZ 18%). Therespective figures for Maori are 55.9% (NZ 62.6%) and5.4% (NZ 9.1%)•• Education standards in the Far North are improvingand in 2006 the district had 23.7% of students leavingsecondary schools with the university entrance standard,an increase of 7.8% from 2005, compared with anational increase of 3.4% (36.3% up from 32.9%). Theproportion of students leavings secondary schools inthe Far North with little or no formal attainment was12.4% in 2006, a decrease of 2.8% from the previousyear and compared with a decrease of 1.8% nationally(11.1% down from 12.9%)•• A total of 7,787 businesses are located in the FarNorth, representing 1.6% of all businesses in NewZealand. These businesses employ some 19,400 people.The principal industry is agriculture, forestry and fishing,which accounts for about a third of all businessesin the district. The next most significant industry in thedistrict is property and business services•• Tourism rates in the Far North have been relativelystable in recent years. In the March quarter 2008accommodation was provided for nearly 485,000 guestnights, an increase of just less than 1% on the previousyear•• The average income in the district is $19,200,compared to a New Zealand average of $24,400. Overhalf the people in the district aged 15 or over earnless than $20,000 a year (NZ 43.2%), whilst nearly 11%earn over $50,000 (NZ 18%). The median income ofMaori in the Far North is $16,400 (NZ $20,900)•• 14.8% of employees are in the retail trade, 11.6% inhealth and community services, 11.2% in agriculture,forestry and fishing, 11.1% in accommodation, cafesand restaurants, 11.1% in education, and 8.1% inmanufacturing•• Unemployment amongst the general population standsat 7.6% (NZ 5.1%). Maori unemployment is 14.8% (NZMaori 11%)•• And finally... there are no traffic lights in the whole ofthe Far North district!14FAR NORTH FUTURE PLAN 2009-2019

Our Progressrecent progress•• Here are a few highlights of what Council has achievedsince it published its last ten year plan (the Far NorthFuture Plan) in 2006. Since then Council has:•• Completed Kerikeri Heritage Bypass and implementedthe permanent one way system•• Completed 33 kilometres (km) of seal extensions and120 km of reseals across the district•• Completed 195 permanent slip repairs following thesevere storms of 2007•• Undertaken substantial work to upgrade wastewater(sewerage) mains, treatment plants and emergencystorage tanks to reduce spills and improve the qualityof effluent discharged•• Implemented new infrastructure and systems to improvedrinking water quality•• Constructed a new (refuse) resource recovery centrein Kaitaia•• Introduced kerbside recycling collections in parts ofthe eastern ward•• Resolved 98% of appeals on the District Plan•• Adopted the Kerikeri / Waipapa structure plan•• Improved consents processing times and achievedbuilding consent accreditation reflecting higher performancestandards•• Completed the Mangonui Waterfront redevelopment•• Constructed new public toilets and upgraded othersacross the district•• Continued Mainstreet improvements in Kerikeri, Kaikohe,Kaitaia and Kawakawa•• Developed promotional campaigns to market the FarNorth as a place to live, work and invest and encouragepeople to Buy Far North•• Extended library opening hours•• Progressed the Te Ahu project for Kaitaia•• Delivered 8.5 km of new footpaths and 2 km of footpathrenewals•• Undertaken maritime renewals in Hokianga•• Delivered improvements in recreational facilities acrossthe district•• Introduced changes to telephone call handling to improvecustomer service•• Targeted ongoing problems of wandering stock andillegal rubbish dumping•• Achieved savings of $11m in operating costs over thelast two years•• Implemented changes to its development contributionspolicy to promote growth and affordable development•• Done away with unnecessary committees to improvethe way Council works•• Achieved all of the above whilst keeping average ratesincreases towards the lower end of figures nationally.Last year’s increase of 3% was amongst the lowest inthe country.•• You will find more detail of what Council has been doingover the last three years in the activity statementslater in this Volume.things council has not yet achievedWhilst good progress has been made on a number offronts over the last three years other planned work hasbeen hindered or delayed by a variety of circumstances:•• The major storms of 2007 caused extensive damageto Council infrastructure such as roads, water andwastewater plant, and footbridges. This led to a significantshift in funding and resources and meant thatscheduled maintenance and improvements had to bedeferred. This has been taken into account in determiningthe priorities for this new plan•• Expected Government subsidy for new water andwastewater developments has not yet been madeavailable, meaning that a number of new capital developmentsincluded in the Future Plan have not yetprogressed.FAR NORTH FUTURE PLAN 2009-2019 15

What Matters to Youcommunity outcomesIn preparing the 2006 Far North Future Plan Councilundertook a wide range of consultation with the FarNorth community (surveys, personal interviews, hui andyouth workshops) to identify issues and outcomes ofimportance to local people. These covered the followingseven areas:Public HealthKey health issues of all residents are identified andaddressed.Public SafetyOur community and visitors to the district feel safe andsecure at any time of the day or night.TransportTransport networks are maintained and developed toenable access to, from and within the district.EnvironmentThe Far North’s built environment and infrastructure arefurther developed in a sustainable way, which contributesto the well-being of people, communities, and the naturalenvironment, both now and in the future.Education, Training and BusinessOpportunitiesOpportunities in the Far North are sufficient to attractskilled professionals to the district and to reduce thenumber of young people leaving the area.Services that Support CommunitiesThe cohesiveness of our communities is maintained orincreased by retaining the services they need.Culture and Heritage:Having a strong and positive district identity that includesawareness and knowledge of the Far North’s uniqueheritage and history.Council considers these outcomes to be still relevant andhas not undertaken any wholesale revision of them forthis LTCCP. They will however be reviewed in the run upto the publication of the 2012 LTCCP.The outcomes cover a very broad spectrum and includeareas well beyond Council’s direct responsibility. Counciltherefore sees its role in respect of community outcomesas threefold:•• Identifying and pursuing policies and initiatives withinits own remit that will make a positive contributionto community outcomes. To do this Council takesaccount of community outcomes in key strategicplanning processes and documents e.g. activity managementplans, asset management plans, structure planningand the District Plan•• Encouraging and working with Government and partneragencies to address outcomes within their ownspheres of influence•• Monitoring and reporting back to the community onprogress against outcomes.The Far North Future Plan set out what Council intendedto do and how it would work with others towardsthe achievement of community outcomes. Since then,Council has made positive progress towards communityoutcomes in its own areas of responsibility. This has beenreported in detail in Council’s last two annual reportsPartnership working on community outcomes hasprogressed well and over the period of this plan Councilintends to continue working with a range of agencies andstakeholders including:•• Local organisations such as the Police and Healthsector (particularly on matters of public health andpublic safety, such as drug and alcohol abuse)•• Northland Regional Council (on environmental andpublic safety issues, such as flood mitigation)•• Maori (on a wide range of issues, including culturaland heritage protection and business developmentopportunities)•• Central government, agencies and relevant nongovernmentorganisations (on the full range ofoutcomes)•• The private sector (to provide efficient and effectiveservices that support communities).Council will produce a more detailed report on progressagainst community outcomes later in 2009. Council willalso monitor and report on progress against communityoutcomes in future annual reports.In the meantime Council has taken the opportunity inthis plan to consider what it needs to do next in workingtowards community outcomes. This is included in the detailedinformation about Council activities shown below.16FAR NORTH FUTURE PLAN 2009-2019

community feedbackFEEDBACK on EARLIER PLANSFor the past several years Council has submitted its draftplans for community consultation. Feedback has beenextensive and varied, highlighting both the keen interestwithin the district in Council and what it is (or is not)doing and the diverse range of views and priorities in differentparts of the Far North.Each year brings a set of issues, depending on the mattersthat happen to be in the public eye at the time. Councildoes its best to gauge the mood of public feeling and toact in the overall community interest in addressing thesematters as they arise.Apart from the one-off issues there are also a numberof common themes that recur in the feedback each year.These include:•• Improved road maintenance and additionalsealing: Only 33% of the Council’s total road networkis sealed; the national average is 60%. Many of the FarNorth’s unsealed roads fail to satisfy cost / benefitcriteria used in assessing eligibility for central governmentsubsidy funding. Without subsidy all costs fall onCouncil and the ratepayers. Having said that, Councilbelieves it is important to respond positively to communityfeedback and increase roads expenditure withinachievable limits.••More footpaths: Council will continue to maintainexisting footpaths and provide new ones as and when itis able to do so within the limits of current affordability•• Improved town maintenance, public toilets andother community facilities: Council is well aware ofthe importance that local people place on a good lookfor our towns and decent community facilities. Anadditional $700,000 was allocated to respond to this inlast year’s annual plan.••Maori engagement: An increasing number of Maorisubmitters in recent years have stressed the importanceof Council building effective working relationshipswith the Maori community. This will be of vitalimportance to future social and economic developmentin the Far North and this plan includes Council’sproposals for working with Maori over the next tenyears••Structure planning/Community Planning:Council is progressing with the implementation of theKerikeri / Waipapa structure plan and key initiativesare included in this plan. Council also aims to makeprogress with community plans for other parts of thedistrict over the next few years••Equity across the district: The old adage thatyou can’t please all of the people all of the time wasnever truer than for a Council serving as diverse andchallenging community as the Far North. Each yearjealousies emerge in feedback on Council’s plans overdifferent parts of the district receiving more than theirfair share of available resources. The extensive developmentin the Eastern ward in recent years has been aparticular bone of contention. However, critics oftenmiss the fundamental point that growth is paying forgrowth through the development contributions policy.In 2008/2009 Council adjusted that policy in an effortto encourage growth in other parts of the districtand future development contribution expenditurepatterns will reflect this. Council has also reviewed itsrates policies (see below) and is prepared to introducemore targeted rates so that if people are prepared topay more they will get more in terms of services andfacilitiesFAR NORTH FUTURE PLAN 2009-2019 17

community feedback••Rates levels: Nobody likes rates rises and in contrastto many other councils in the country in recent yearsthe Far North has seen relatively modest averageincreases. For many ratepayers in the district, however,2008 brought rates rises well above the averagebecause of the independently conducted rating revaluation.Overall the amount Council collected reflectedits policy of limiting the average rates increase to 3%but the revaluation meant that ratepayers in the Westand North had increases well above the average, whilstratepayers in the East saw rates reductions. The impactof the revaluation was to create an “evening up” ofdisparities in rates levels across the district becauseratepayers in the West and North had, in recent years,been contributing a proportionately smaller shareof the district’s overall rates take. The revaluationcorrected that developing imbalance. After the 2007revaluation the Eastern ward accounts of 57% of totalvalues and rates collection in the district, the Northernward 28% and the Western ward 15%. Council remainsconcerned to achieve a fair rating system within theconstraints of current legislation••Genetically Modified Organisms (GMOs): TheEnvironmental Risk Management Authority (ERMA)was established under the Hazardous Substances andNew Organisms Act 1996 (HSNO Act) with its mainrole being to make decisions on applications to import(or manufacture hazardous substances), develop orfield test new organisms in New Zealand. The HSNOAct provides national regulation on how to managethe release of GMOs to the environment. The issue ofwhether Council has a role in managing the release ofGMOs to the environment via the Resource ManagementAct (RMA)1991 and/or the Local GovernmentAct (LGA) 2002, has been an ongoing debate anddilemma since mid 2003. To date, even after feedbackreceived from the Ministry for the Environment anda Crown Law Opinion, there is still an unresolvedissue as to whether there are potential liabilities thatCouncil could face should there be an ERMA approvedrelease of GMOs to the environment.Since August 2004 Council has been a participatingmember of the Inter-Council Working Party (ICWP)looking at issues of risk and liability related to therelease of GMOs, and how to develop a commonapproach to the effective management of these risks.The ICWP is a collaborative process that seeks to:o Lower costso Ensure that regulation by local authorities under theRMA &/or LGA is co-ordinated and implementedon a regional basis.The ICWP’s work is focused on two activities. Thefirst of these is the lobbying of central governmentto address the risk and liability issues. The secondinvolves working on a proposal to undertake marketresearch to determine the community’s views inrelation to the local management of GMOs.As part of Council’s commitment to the ICWP, it hasresolved to:o Take every opportunity to lobby and work withGovernment to address the issue of regulatory gapsin the HSNO Act and the resulting environmental,economic and liability risks which are potentiallyfaced by local government in respect of the fieldrelease of GMOso Support the addressing of GMO liability issuesthrough inclusion in the Northland Regional CouncilRegional Policy Statement which is currently beingreviewedo Gauge the community’s views on the potential re-lease of GMOs to the environment by participatingin a community consultation programme.Once the community feedback has been receivedand analysed, Council will assess its options as part ofits ICWP commitment, which may include analysis ofany required changes to the District Plan.••Walking and Cycling: Council undertook consultationon a walking and cycling strategy some time agoand will continue to work with partners and localcommunities to develop a range of walking/ cyclingopportunities in the District. Dedicated cycle laneswill be provided on Waipapa Road as the three stageprogramme for widening and reconstructing that roadprogresses and will also be included on other roads asand when it is feasible to do so.18FAR NORTH FUTURE PLAN 2009-2019

community feedbackcommunitrak surveysPeriodically Council undertakes “Communitrak” surveysto gauge levels of satisfaction with Council services.Detailed feedback and findings are included within theCouncil activities pages later in this volume and have beentaken into account in planning future levels of serviceprovision.Amongst the findings in the most recent (2008) surveyCouncil has noted that:•• The main areas where people would like to see Councilspending more are roads (see above) and stormwaterdrainage. The latter tends to reflect the impactof the severe flooding of 2007 and it is important tonote that Council’s main responsibility lies in the areaof urban stormwater, whilst NRC is the lead player inflood plain management and floods mitigation. Since2007 Council has worked extensively with both NRCand central government to pursue flood mitigationissues including seeking assistance for families at risk inthe worst hit areas of the district, such as Kaeo.•• Planning, building and inspection services are the mainarea where the community questions whether valueis being provided to ratepayers and where improvementis seen as needed. Since its election in 2007this Council has prioritised these areas for improvementand substantial changes have been made, leadingto reduced service costs and improved processingtimes for resource and building consents. Accreditationhas been received as a building consent authorityand this reflects a number of quality improvementsthat have been made. Council has also lobbied centralgovernment extensively and with some successto cut through the jungle of statutory red tape andbureaucracy that now surrounds these services. It willcontinue to work on this with the new Government.feedback from community boardsIn developing this plan Council asked its CommunityBoards, who act as its eyes and ears on the ground, whatmatters most in their areas and what priorities Councilshould be focusing on in the future. The Boards were alsoasked to put forward ideas for locally driven projects,which might be pursued with or without direct Councilsupport.the eastern community boardThe Eastern Community Board identified the followingpriority issues:•• Strategic transport routes•• An efficient public transport system•• Kawakawa bypass and Mainstreet development•• Recreation area development, including Baysportcompletion•• Structure planning for the Bay of Islands•• Stormwater and flood protection•• Sewerage•• Public toilet improvements•• Green waste dump•• Purchase of strategic land e.g. to facilitate coastalaccess or anticipate future growth and development•• Transportation developments•• Economic growth.The Board identified the following community initiatives,which might be pursued in partnership with groups orcommunity trusts:•• Develop Kawakawa as an art/tourist destination•• Promote Kerikeri as “boutique” hub conference centre•• Walkway development\maintenance and townbeautification.FAR NORTH FUTURE PLAN 2009-2019 19

community feedbackthe western community boardThe Western Community Board identified the followingpriority issues:••Economic development:o Improved roading to stimulate tourismo Retention of Kaikohe airport for futuredevelopmento Supporting growing / market gardeningo Business incubation.•• Community integration/well-being:o Upgrade and sealing of alternative link routes fortourism, production, a reliable roading networkduring flood events, access to specific communitiessuch as Otaua, Waihou, Panguru and Horeke, and toensure a reliable network for the school bus routeso Disability strategyo Maori engagement strategyo Maori land development initiativeso Improved Broadband access and improved cellphonecoverageo Community Planning for Kaikoheo Swimming pool access (Kaikohe)o Maritime carparkso A safe 24-hour toilet for Kaikoheo Lighting for the Kaikohe Astroturfo Ongoing road upgradeso Equity across the district.The Board identified the following community initiatives,which might be pursued in partnership with groups andpossibly using labour available from the Ngawha prison:•• Okaihau-Kaikohe walkway / cycle track•• Kaikohe Pioneer Village development•• Support Maori land development for production•• Public access to swimming pools••Community Planning for Kaikohe.The Board supports:•• Council’s public statements that it wants to promotethe economic growth of Kaikohe and assist in attractingnew industries to the town. The Board wantsCouncil to take a strong leadership role by confirmingKaikohe as its central hub and retaining the majority ofits staff and Civic activities here. This support will helpquell the perceived negative perceptions of the area.Kaikohe has the strategic location of being a centrepoint within the district•• The development of a partnership with the Ngawhaprison. It proposes that the prison’s labour team, whichsuccessfully manages the prison’s entranceway andlandscaped gardens, be invited to provide the labourfor the maintenance of the Hone Heke MonumentPark at Kaikohe•• Making the FNDC library services within the westernfree to residents and ratepayers of this ward, and fundingthe cost through a community rate•• Transferring the Kaikohe airport property from FNHLto FNDC in recognition of it being a recreationalfacility with a future prospect of being a commercialairport and that in the meantime zoning status of ‘freeair above the airport’ should apply•• Reviewing the service delivery contracts available fromcouncil including exploring the option of in-housebusiness units or working with local communities toundertake tasks such as park / town maintenance.The Western Community Board is also seeking Councilsupport for a full time staff member to work on behalf ofthe Board on Board generated business, with funding tobe provided through rates.20FAR NORTH FUTURE PLAN 2009-2019

community feedbackthe northern community boardThe Northern Community Board identified the followingpriority issues:•• Te Ahu development/Far North Community Centremaintenance and revamp•• Roading/Transport including continued developmentof the Kaitaia airport and re-routing State HighwayMangonui-Taipa including a 2-lane bridge at Taipa•• Stormwater and flood protection (urban)•• A recreational facility / aquatic Facilities – improving orbuilding on existing facilities•• Structure planning for Doubtless Bay and Ahipara•• Sewerage (urban reticulated) to provide for growth•• Foreshore/parking facilities at Ahipara and Rangiputa•• Kaitaia Mainstreet development completion in full•• Improved Asset Management – plans and cyclicalmaintenance in place.The Board identified the following community initiatives,which might be pursued in partnership with groups andworking together with partners to create project workfor unemployed / underemployed youth:Whilst welcoming this input, which has been discussedin detail with Board chairs, Council feels that it is importantto manage expectations of what is achievable givencurrent economic circumstances and financial constraints.Wishlists of major road developments, for example, areunrealistic at present and Council expects the Boards towork with it in getting the message back to local communitiesabout what is and is not achievable.That said, the Boards’ priorities have been taken intoaccount in determining priorities for the next ten years,which are discussed in detail below. Council managershave also been instructed to explore ways in which someof the proposed community-driven projects can be takenforward with appropriate levels of Council input andfacilitation.••••••••••••••••Te Ahu recreation hubSupport for Doubtless Bay Information CentreStructure Plans for Doubtless Bay and AhiparaPukenui Domain and Rawara DomainMainstreet / walkwaysLakes Ngatu, Coca Cola and Waiparera recreationareasRangiputa facilitiesKaitaia Mainstreet.FAR NORTH FUTURE PLAN 2009-2019 21

Looking Aheadcouncil’s aspirations for the far northIn putting together this plan Council has focused on whatit can do to make our communities and our district:•• Stronger•• Safer•• Healthier•• Economically successful•• Mobile and accessible•• Sustainable•• Culturally rich and diverse.The sections below set out how Council intends to worktowards realising these aspirations and outline:•• Key issues and influences that Council has taken intoaccount in addition to the community feedback andissues noted above•• The eight key priorities that form the basis of thedetailed ten-year proposals contained in the body ofthe plan•• Council’s financial strategy, budget projections andfunding proposalskey influences – issues and challengesCUSTOMER SERVICESince its election in 2007 this Council has focused onimproving the standard and quality of services providedto the public. This will remain a top priority during thelife of this plan as Council strives to provide faster, better,cheaper services. The key to this is ensuring that we havethe right people in the right places working with the rightprocesses to deliver what the public wants and expects.A top-down restructuring of the organisation is currentlybeing driven through to provide the basis for this.Economic prospectsThis plan has been put together during the period ofgreatest economic uncertainty and instability the worldhas seen since the Great Depression. After years of positivegrowth recession has now hit and its impact seemslikely to resonate for several years to come.Council has assumed that the economic slowdown willbe an important feature during the first two years of thisplan, following which moderate economic growth will beresumed. This has important implications for both costsand revenue. The recession and recent falls in global oilprices are a reversal of the escalating costs Council hasseen in recent years and should help to maintain thecosts base at a sustainable level. At the same time Councilrecognises that recession threatens rates affordability andfor this reason it is offering a range of rates options tothe community for the year ahead.Council’s assumption for years 2 to 10 is that costs andrates requirements will rise broadly in line with generalinflation levels and that, over time, growth within thedistrict (see below) will provide scope for additional infrastructurespending.GrowthCensus data indicate growth of 2.4% in our district’spopulation between 2001 and 2006. This relatively modestoverall change hides some significant dynamics, in particularrapid growth in parts of the Eastern ward, particularlyaround Kerikeri (+20%), together with some areas ofsignificant population decline, such as Omapere/Opononi(-20%), parts of the Hokianga, Moerewa and Houhora (alldown around 8%-9%).At the same time all parts of the district have witnessednew building development in recent years and, when setalongside the decline in resident population, this highlightsa marked increase in the number of second homes inthe Far North. This factor is very important because itadds significantly to population within the district duringpeak holiday periods. Council’s figures indicate that peakimpact population currently exceeds resident populationby (4,000 – 5,000), adding to the demand for services andinfrastructure for which Council must cater.22FAR NORTH FUTURE PLAN 2009-2019

looking aheadLooking ahead both Council’s own projections and thoseof Statistics New Zealand suggest that by the 2031 Censusresident population will have risen to between 63,500and 65,000 (a 10% increase using the Statistics NZ calculations).Council calculates that peak impact populationmay increase by over 30,000 over the next thirty years.It remains to be seen what impact recession and economicslowdown will have on growth trends within thedistrict over the longer term. There is no doubt that thenext few years will not see a continuation of the rapidgrowth experienced since 2000. The depressed housingmarket and a surplus of available sections in the FarNorth are further negative factors to be taken into account.Whilst Council remains optimistic that the district willcontinue to grow over the longer term and that currentgrowth projections may well prove correct, it anticipatesa dip in development contribution income in the shortto medium term. Because of this Council has seen it asprudent to review the number capital projects included inthe Far North Future Plan. This plan presents a reducedprogramme of development over the next ten years. Themain area in which the capital programme has reducedcompared to 2006 is in development contributionsfunded road projects.Council will continue to monitor growth trends and towork towards a comprehensive growth strategy for theFar North, supported by area-based structure plans. Thiswill be important in seeking to influence future Governmentspending decisions. Council will also retain flexibilityin its infrastructure planning and will be ready to bringforward additional growth-funding spending proposalsonce the economic cycle turns up and the growth trendresumes.FundingDespite being the third largest district in the country, theFar North includes large areas of land that are unrateable,such as Department of Conservation lands. These landsaffect the amount of rates Council can collect and impacton the provision of infrastructure and services.In these circumstances it is imperative to ensure thatCouncil maximises collection of rates income availableand increased emphasis on debt collection in recent yearshas yielded positive results.The Rating Inquiry:Shortly after the last ten year plan was adopted the Governmentannounced it had established an IndependentInquiry into local government rates.The Inquiry reported in August 2007, making 97 recommendationsto the Government and to local councils forchanges to the way:• local government is funded• councils manage their finances• councils plan and explain their plans to the public.The previous government spent much of the last eighteenmonths considering the recommendations.In some areas such as the rating of Maori freehold land,and valuation, the previous government called for furtherinformation and discussion. In other areas the previousgovernment had not made any decisions before the electionwas called. This includes decisions around the typesof rates that councils are allowed to levy and whethersome properties should be exempt from paying rates(mostly land owned by the Government).FAR NORTH FUTURE PLAN 2009-2019 23

looking aheadAll of the decisions made to this point will result in littleor no change for most ratepayers.The previous government thought that:•• Rates are the best means of funding the services thatcouncils provide. It rejected other alternatives such asproviding councils with part of the money it collectsfrom income tax or GST•• There was no overriding need to provide additionalfunding for local authorities as a group. Rather, itwanted to target those councils where the level ofneed is greatest (which in the past has meant small,poor communities) and to target the things it consideredmost important (roads, passenger transport, anddrinking water and sewage schemes in small communities).The new government has not made it clear which of therecommendations it wants to adopt, if any. Until it doesthis Council, like most others, is not expecting to receiveany additional funding as a result of the Inquiry, so it isunlikely there will be any real impact for ratepayers as aresult.Demographics and social trendsThe Far North has many attractions but, as our statisticalanalysis shows (see key facts above), the district doesnot score well in terms of educational achievement andhas relatively low income and high unemployment levels.Deprivation levels in some parts of the district are alsorelatively high.These issues are holding the district back economicallyand also have an impact on its overall wealth base andability to invest in, and pay for, new infrastructure and additionalpublic services.These challenges require a multi-agency approach andCouncil is working with a number of partners throughthe Northern Intersectoral Forum to tackle them. Councilsees itself as making a direct contribution through itswork on economic development, whilst also seeking toinfluence the new Government to devote a greater shareof national resources to assist development in the FarNorth.The statistics also show growth in the number of peopleaged 65 or over in the district’s population. The FarNorth’s percentage of older people increased from11.2% in 1996 to 13.8% by 2006, moving from below thenational average to some 1.5% above it. Council has takenaccount of this trend in considering its future plans. Fromthe point of view of Council’s own services it recognisesthe importance of ensuring that older people living inrural areas are not disadvantaged when accessing services.Council is also aware of the need to work collaborativelywith key agencies and organisations on other issues affectingolder people, including affordable housing, publictransport and community safety.The image of the district is another important factor andit is vital that it does not become seen simply as a retirementhaven or quiet backwater. We all have a part to playin promoting everything that is best about the FabulousFar North.24FAR NORTH FUTURE PLAN 2009-2019

looking aheadGeography / locationThe Far North’s geographical spread and its location atthe top of the country are both strengths and weaknesses.From a positive point of view the opportunity to escapeto the peace and serenity of one of the most beautifulplaces on the planet is what attracts millions of visitors tothe district and draws people to settle here from all overthe world.Conversely our geography and remoteness present bigchallenges in terms of logistics and demands for new servicesand infrastructure amongst a sparse population withrelatively low affordability levels.Council does not believe that sufficient recognition isgiven to these factors at national level and is working toinfluence the factors and formulae that are used to calculatehow the national cake is shared.Community expectationsOur discussion on community feedback has highlightedthe huge expectations in the Far North about whatCouncil should be delivering. But the reality is that thedistrict and its Council faces trade-offs between what itneeds and what it is prepared to pay for. It is importantthat we all develop realistic expectations in these circumstances.This is a key theme of this plan and is the reason whyCouncil set out a number of choices and options forcommunity consultation in the draft LTCCP. Council’s jobis to set out a picture of what is possible and to makesure it delivers what is wanted as efficiently and effectivelyas possible.Council is working hard to up its game in this respect butit needs the community to play its part too by helpingto develop a vision of where we all want to get to in thefuture and how much we are prepared to invest to do so.TAKING A SUSTAINABLE DEVELOPMENT APPROACHIn planning its work for the next ten years Council islooking to take a “sustainable development” approach.Sustainable Development is not just about the naturalenvironment. It may be defined as ensuring communitywellbeing now and in the future. This encompasses social,cultural, economic and environmental wellbeing. In theCouncil Activities sections later in this plan you will finddetails of projects and initiatives aimed at achieving theseobjectives. These include:•• Work on the impacts of climate change (see also sectionbelow)•• Considering the intergenerational effects of rates andfunding requirements•• Looking at what Council itself can do to operate in asustainable manner e.g. cutting down on vehicle usageby making sure staff are located in the best place tomeet customer needs and looking for opportunities toimprove public transport•• Promoting sustainable water usage•• Increasing waste recycling.Council is also keen to spread the message of sustainabilitythroughout the Far North community. We all have ourpart to play in safeguarding the district’s wellbeing intothe future.Climate Change:Climate change may present significant challenges forthe district, particularly over the long term. Key impactspredicted include temperature warming, higher intensitystorm events, reduced annual rainfall and sea level rise. Amid range annual temperature increase of approximately2°C is predicted for Northland between 1990 and 2090.Whilst average annual rainfall is forecast to reduce by justover 5% during the same time frame, individual stormevents are expected to become more intense, leadingto a more severe flood hazard than the region currentlyexperiences. Local authorities are also being advised byGovernment to allow between 0.5m to 0.8m for sea levelrise up to the end of this century, and an additional 10mmper year beyond 2100.The predicted impacts of climate change would have farreaching consequences for the district over the long term,from increased flood risk, coastal inundation and relatederosion hazard, to reduced water availability for urbanwater supply. Council intends to incorporate these andother anticipated impacts into long term strategic planningand risk management, so that appropriateadjustments related to climate change can be madeprogressively.Council is in the early stages of developing a climatechange strategy. This will be based on an assessment ofspecific impacts of climate change on the district, so thatoptions for adaptation can be identified and prioritised.It is anticipated that strategic infrastructure and high risksettlements will be the initial focus of resultant initiatives.The other strand of strategy development will relateto emissions reduction. At a national level this is beingaddressed through the Emissions Trading Scheme (ETS),which will have implications for both Council and the FarNorth economy. A particular impact for Council will beFAR NORTH FUTURE PLAN 2009-2019 25

looking aheadin the costs of managing emissions associated with wastedisposal. Council is currently working on an emissionsinventory and will set emissions reduction goals, and establishan action plan for achieving those goals, during thefirst year of this LTCCP.The ETS is currently due to commence in 2012. Paymentsunder it for waste disposal will be made on the basis ofemissions at operational landfills, and will be paid by thelandfill owner. Council currently owns two operationallandfills - Ahipara, which will be closed by the time theETS starts, and Russell, which may still be operational.Council may therefore need to make payments directlyunder the ETS as owner of Russell landfill. The majority ofwaste from the Far North will be deposited at a commerciallandfill outside the district, owned and operatedby others. They will be liable for payments under theETS. Irrespective of who owns the landfill, the costs willbe passed on to end users by the landfill owner. This willlead to an increase in the cost of a refuse bag or in refusetransfer station charges from 2012.Apart from the impact on waste disposal, Councilanticipates the main effect of the ETS will be on energycosts. An additional inflation adjustment (some 1.7%) hasbeen included in Council’s expenditure projections for2010/2011 to allow for this.The new GovernmentOver recent years Council has sought to work positivelyboth with national Government and local Members ofParliament to further the interests of the Far North. Sincehis election the Mayor has been a strong advocate for thedistrict in Wellington and further afield, and all councillorsare actively supporting these efforts.It is essential that both the district’s ambition and itsunique circumstances and needs are recognised at nationallevel if the district is to compete successfully for itsproper share of resources. Council has established a dialoguewith the Government about where the Far Northwants to be and will continue to advocate strenuously onthe district’s behalf.Here is Council‘s shortlist of key points on which it ispressing for Government action:•• Restructuring of local government to improve efficiencyand effectiveness and enable a better focus inaddresing the needs of the Far North•• Additional subsidy support to help the Far North makeup ground with the rest of the country in basic infrastructureprovision – roads, sewerage, water. Subsidysupport needs to recognise both initial capital costsand downstream running costs which are unaffordablein areas of sparse population•• Passenger transport subsidy to offset ferry costs andhelp with public transport development•• Economic development incentives to boost the FarNorth’s economy•• Abolition of nonsense rules and regulations under theResource Management Act and Building and HousingRegulations that add hugely to both costs and bureaucracyand take no account of local circumstances e.g.new home insulation regulations that are pointless foran area like the Far North•• Reductions in other Government imposed costs –such as the high levels of audit and related fees associatedwith the annual planning and LTCCP processes.A Unitary CouncilA unitary authority is a territorial authority (i.e. a city ordistrict council) that also has the responsibilities, duties,and powers of a regional authority. If Council becomes aunitary authority it would take over such responsibilitiesfor its own area from Northland Regional Council.Council is actively exploring the establishment of aunitary authority for the Far North for a number of reasonsthat predominantly relate to:26FAR NORTH FUTURE PLAN 2009-2019

looking ahead•• Improving the organisation by providing significant efficiencygains and seamless service•• Reducing confusion about who is responsible for what,and improving public service transparency and accountability•• Removing the current duplication of services – resultingin cost savings•• Having all district issues dealt with “at home” bymembers of the Far North community or theirrepresentatives•• Making it easier for the Council to both respond tocommunities’ needs and attract development and/or investment, as there would be only one regulatoryagency with which people needed to work.A proposal to become a unitary authority follows a rigorousand lengthy legislative process that is managed andadministered by the Local Government Commission. TheCommission is mostly concerned with promoting goodlocal government, determining boundaries, and providingfair and effective representation for communities.There are a number of advantages and disadvantages ofbecoming a unitary authority. On the plus side, Councilbelieves:•• A single tier is easier to understand and to hold accountable.It will minimise confusion, duplication, andinefficiencies. Rationalisation of services will lead toincreased efficiencies i.e. a simplified structure will resultin more effective, informed, coordinated and rapiddecision making processes•• A single tier system would be more effective for Maoribecause there would be one organisation with whichto do business•• There will be more direct access to local decisionmakerson all facets of governance leading to increasedlevels of community engagement•• The rating system would be simplified with a singlelocal authority rate each year•• Future plans and policies would be improved bycombining regional and district planning functions•• Far North’s ability to lobby for equitable roading subsidieswill be increased. A unitary authority would bedirectly responsible for the preparation of a regionalland transport strategy and regional public passengertransport plan for its district. It would be able to setits own priorities for transport, roading and public passengertransport services based upon an assessment oflocal needs and to seek funding for these directly fromcentral government•• More efficient services could be delivered by a ‘onestop shop’ for resource management advice, processingconsent applications and monitoring.Disadvantages of a unitary council could include thepotential for:•• A disruptive effect on residents, council organisationsand delivery of services during the period of changeto the new council•• Possible confusion over catchment responsibilities•• Detrimental impacts on planning, environmentalmanagement and transportation planning for the widerNorthland region.If, following further analysis, Council concludes that theunitary council option is worth pursuing, there will befurther public consultation before the proposal can beimplemented.FAR NORTH FUTURE PLAN 2009-2019 27

looking aheadStructure Planning/community planningIn the wider context of growth within the district Councilundertakes structure planning to enable detailed consultationand discussion on future development in key parts ofthe Far North. From Council’s perspective structure planningoffers the basis for decision making on infrastructureand service provision. For the community and stakeholderagencies it offers a blueprint to guide and inform futuredevelopment.Reflecting growth pressures in the east of the districtCouncil’s first structure plan, which was agreed in 2007,focused on the Kerikeri / Waipapa area. The plan addressesall growth needs of the area and provides a package ofintegrated proposals covering:•• The location and provision of physical infrastructure•• Identification of future commercial, industrial andresidential development areas•• Priorities for social provision, such as health andeducation•• Heritage preservation•• Provision of recreation and community facilities.Although the structure plan proposes new “policy area”changes, they have no weighting until Council carries outa “Plan Change” to the District Plan. An important firststep towards this has been gathering of historical flooddata and modelling of future flood events. This needs tobe supported by further information gathering for landscape,biodiversity and heritage assessments. Once theinformation gathering is complete Council will undertakethe prescribed consultation process and all affected landownerswill be notified as the Plan Change process itselfgets underway.Initial work on other parts of the district has been progressedthrough the use of “Constraint and Opportunity”mapping. Through analysis of all known physical, naturaland historical characteristics this mapping identifies theland most suitable for urban growth. This information canthen be used to inform future Council decision makinge.g. on areas of benefit for reticulated water and wastewatertreatment. It also offers the basis for the developmentof community plans over the next two to threeyears. Subject to the availability of resources Council aimsto progress such plans for the following areas:The implementation of the structure plan is integratedacross a number of organisations and across a numberof Council departments. Projects covering roads, water,sewerage, community and recreation facilities are includedlater in this plan in the various sections on Council activities.Projects identified as required by the structure planbut not included in this LTCCP for affordability or otherreasons will be considered further in future years’ plans.••••••••••••••••Bay of IslandsDoubtless BayAhiparaOmapere/OpononiKaikoheKaitaiaKawakawaKaeo.28FAR NORTH FUTURE PLAN 2009-2019

Our Vision for the Futureour district - the fabulous far northThis section of the plan is entitled “our vision for thefuture” because Council believes the whole communityshould play its part in developing that vision. Councilwants to hear your views as part of your feedback on thisplan. Set out below is Council’s current thinking aboutour district and your Council.Over the next ten years the Far North will:•• Experience a period of retrenchment reflecting theglobal economic situation followed by a resumptionof gradual growth. Council’s vision is that all of thedistrict should benefit from growth, not just the areason the East coast•• Continue to be recognised for its relaxed lifestyle butnot at the expense of being seen only as a retirementor holiday destination. It will be a place for familieswho will find everything they need in the district to beable to live happy and prosperous lives•• Enjoy sustained economic growth matched by improvementsin education and skills levels, averageearnings and employment. In ten years time Councilenvisages that many new businesses will have beencreated in the Far North•• See its infrastructure improved with further investmentin roads, water and sewerage systems funded bya combination of Government subsidy and affordableongoing contributions from the local communities thatbenefit from this investment•• Continue to be a district at peace with itself retainingthe unique character that makes it so special•• Be recognised as a safe and harmonious place to be,built on its multicultural and diverse communitiesworking together to make the Fabulous Far Northeven better.your councilOver the next ten years you can also expect yourCouncil to be:•• Customer-focused and providing a high standard ofservice•• Business-like and noted for its efficiency•• Positive and forward-looking with none of the negativeentrenched attitudes that have blighted it in the past•• An agent for change and progress rather than aninefficient barrier to change•• Staffed by people who will promote the district as aplace to live and do business, actively helping people tosettle here, rather than discouraging them•• Financially well managed, containing costs to a reasonableminimum whilst still providing the services andinfrastructure the community wants•• Recognised and valued by its community as offering theleadership the district requires and fairly representingthe views and aspirations of its community•• A council that interacts positively and easily with itspopulation at all levels•• A council that is seen as offering value to the communityand its ratepayers rather than an expensiveirrelevance.After considering the issues and challenges facing the FarNorth Council has identified eight strategic priorities,which form the basis for this ten year plan:•• Value for ratepayers•• The economic development of the Far North•• Responding effectively to the growth of the district•• Investment in new infrastructure as and whenaffordable•• A leaner, more customer-focused organisation•• Safeguarding our communities•• Improving the quality of life in the Far North•• Community Development.The sections below explain how these priorities haveshaped Council’s detailed plans.FAR NORTH FUTURE PLAN 2009-2019 29

Council’s Strategic Prioritiespriority 1: value for ratepayersValue for ratepayers means:••Reducing costs across the organisation: In itsfirst budget round last year Council achieved one ofthe lowest average rates increases in the country afterfinding $8m of savings. A further $3m has been identifiedthis year to offset above-inflation cost increasesand Council continues to view cost containment andcuts in bureaucracy as absolute priorities. The pointhas now been reached that future cost reductions arelikely to be achievable only at the expense of cuts inlevels of service. For this reason Council consulted thecommunity in the draft plan on several rates optionswhich offered the prospect of additional spending inkey areas (particularly roads expenditure) if the communitywas willing to pay for it through above-inflationrates increases (see Community Feedback above)••Putting pressure on suppliers: In addition to reducinginternal costs Council is challenging its suppliers tooffer improved value-for-money. Council will negotiatehard when long-term contracts come up for renewaland will maintain close control over contract variationsto ensure that cost increases are kept to a minimum••A fairer rating system with fewer anomalies:Council consulted informally on changes to achieve amore equitable rating system within the constraintsof current legislation. The consultation was basedon a possible change from land value to capital valuebased rating. Four possible capital value options werecompared to the current land value system, with all••ratepayers being informed of the potential impacton their rates and offered the opportunity to submitcomments on the alternative systems. Over 800 submissionswere received but there was no overwhelmingstrength of feeling in the direction of either landvalue or capital value. In the light of feedback receivedCouncil invited formal feedback through the draft planon the two options of retaining the land value systemor moving to a capital value based system. Followingreceipt of submissions, Council has decided against achange to Capital Value and the current rating systemwill be retainedAffordable services of an acceptable quality:Over the last year Council, through its Finance andAudit Committee, has undertaken a systematic reviewof all areas of Council activity. Managers have beenrequired to explain in detail what they do and why,which areas are statutory requirements and whichare discretionary, what it achieves and what is plannedfor the future, how much it all costs, and how spendingand staff numbers compare with those of othercouncils. Council has challenged the ways that thingshave been done in the past and identified a number ofareas in which change and improvement are required,as reflected in this plan••Government must come to the party: Throughthe personal leadership of the Mayor Council willcontinue to lobby Government and key agencies, suchas the New Zealand Transport Authority (NZTA) toincrease the Far North’s share of the national fundingcake, particularly for key infrastructure.30FAR NORTH FUTURE PLAN 2009-2019

strategic prioritiespriority 2: the economic developmentof the far northEconomic development is vital to the future growth, prosperityand success of the Far North. Council will workwith others to:•• Market the Far North through its “Live, work, invest”strategy•• Continue to encourage tourism•• Support primary production and core industries, suchas farming and timber•• Encourage new business development, particularly inareas such as research, science and technology•• Develop an industrial park•• Strengthen and promote the local brand through the“Buy Far North” campaign•• Help the district realise the major economic benefitsoffered by the 2011 Rugby World Cup•• Attract at least one other major sporting event to thedistrict•• Tackle the demographic challenges – low skills, literacyand numeracy levels - that currently mean the districtpunches below its weight•• Work towards exploitation of the district’s mineralspotential.•• Limit rates rises by deferring capital works during theeconomic slowdown.priority 3: responding effectively tothe growth of the districtWhilst growth has slowed at this point in the economiccycle, Council remains convinced that prospects for thelonger term are positive. Council intends to ensure thatgrowth is sustainable, environmentally friendly and culturallyacceptable and will:•• Develop a growth strategy, which aligns with widergrowth planning for the Northland region and offersthe basis for attracting additional Government fundingfor the Far North. Council sees this strategy as alsoforming the basis for dialogue with key agencies in areassuch as health and education to enable an effectivepartnership-based response to the growth challenge•• Develop community plans for more parts of the districtto help guide growth and the implementation ofrequired services and infrastructure•• Implement District Plan changes to facilitate growthand development, whilst, at the same time, improvingpublic understanding of, and accessibility to, theDistrict Plan•• Pursue a Development Contributions policy that doesnot stifle growth but enables growth to pay for growth.Council wants the policy to offer suitable incentives toachieve balanced growth in different parts of the district,not just those areas in the eastern ward that havewitnessed such rapid growth in recent years.FAR NORTH FUTURE PLAN 2009-2019 31

strategic prioritiespriority 4: investment in newinfrastructure as and whenaffordableCouncil has to weigh demands for additional infrastructurein the Far North with the district’s ability to pay forboth the infrastructure itself and its ongoing maintenanceand renewal costs. The first of these (infrastructure capitalfunding) is the easiest to address. Council has a numberof sources of capital funding available to it, includingdevelopment contributions, Government subsidy, borrowing,and funds from the programme of surplus assetsales that Council initiated last year. The difficulty lies inthe affordability of maintenance and renewal, which, apartfrom some elements of roads renewals, tend to requireratepayer funding.Previous LTCCPs have reflected a policy of maximisingcapital expenditure in order to provide growth-relatedinfrastructure. Recent escalations in maintenance and renewalcosts have convinced this Council that such a policyis no longer sustainable. Proper provision for maintenanceand renewal of assets has been a neglected area in recentyears and Council has been concerned to discover abacklog of halls maintenance, combined with a shortfall inprovision for the replacement of major assets.The Far North’s road network in particular is becomingincreasingly unaffordable to maintain and replace. Renewalsbudgets have come under pressure from increasedmaintenance demands and this threatens forthcomingreplacement programmes. Replacement of existing assetsneeds to be addressed before contemplating future sealextensions. Council believes it is very important that thecommunity understands this critical message – for theforeseeable future there will be little prospect of Councilbeing able to respond positively to the annual clamourfor many kilometres of additional road sealing across thedistrict unless ratepayers are prepared to pay significantlymore towards the costs of maintenance and renewal.During the preparation of this LTCCP asset managementplans (AMPs) covering all of Council’s principal assetgroups have been updated to enable proper provisionfor future maintenance and renewal costs. This is one ofthe reasons for the additional pressure on rates outlinedabove. It is essential that the current generation pays itsfair share of such costs, rather than leaving a bigger billfor future generations to pay.In view of this Council has undertaken a comprehensivereview and revision of the capital programme that was setout in the last LTCCP. Capital spending plans have beenrevised downwards to reflect not only the challenges ofongoing maintenance and renewal but also an overemphasison unachievable development contribution funding.Under this “back to basics” approach Council will focuson the following infrastructure priorities:••Transportation: In the short to medium termCouncil will concentrate on the roads assets it alreadyhas, with spending aimed at maintenance, renewal andsafety improvements. Already committed projects willgo ahead and Council will lobby for more Governmentfunding to share the burden of escalating costs. Councilwill also progress a limited number of new sealprojects. Over time Council aims to increase roadsexpenditure as a proportion of overall spending. Overthe longer term Council intends to match transportationexpenditure with growth in the district.••Water: Council’s priorities are:o Improving current systems to achieve better waterquality where sensible and justifiedo Safeguarding public health by extending and improv-ing water mains and treatment plants and implementinga bylaw for private water tankso Protecting the environment and ensuring long-termsustainability by reducing the water take from rivers,improving conservation and storage, and reducinglosses from the systemo Encouraging private water supplierso Responding to future growth via subsidy-fundedsystems upgrades and extensions – treatment plants,storage, water mains, and new systems – providedthe ongoing costs are affordable.••Sewerage: The key themes reflected in this plan arethe environment, sustainability and public health.Council will focus on:o Upgrading treatment plantso Controlling and minimising overflows and spillso Raising community awarenesso Ensuring compliance with the onsite treatmentbylawo Extending the sewerage network, subject to theavailability of subsidy and ongoing affordability.••Refuse: Council’s main focus is on minimising wastesent to landfill through a combination of extended recyclingand public education. Council will also continueto work with partners to investigate long-term wastedisposal options.32FAR NORTH FUTURE PLAN 2009-2019

strategic PRIORITIESpriority 5: a leaner, more customerfocusedorganisationThis Council is working hard to bring a change ofapproach in the way that Council staff work and serve thepublic. There is an emphasis on:•• Excellent customer services – better, faster, cheaper –right person, right place, right processes. Council willcontinue to build on changes introduced during thelast year to improve customer contact in person, overthe telephone, in writing, and via email and the internet.Staff will be upskilled to enable them to deal with moreissues at the first point of contact and avoid customersbeing passed from person to person. This will alsoenable speedier resolution of queries and fewerabandoned calls to Council•• Flexibility and finding innovative ways to help peoplerather than being rules-driven and erecting unnecessarybarriers to progress. Council is also fighting hardto persuade central Government to drop some of thestatutory regulations that add to costs and frustrationwithout adding real valueprovision either where Council lacks particular skillsand expertise, or where the market offers bettervalue-for-money. However this does not mean an opencheque for Council’s suppliers and particular area offocus for the future will be on negotiating the bestdeals for Far North ratepayers and ensuring that theneed for economies and cost reductions is recognisedexternally as well as internally•• Developing staff capability and changing the culture ofthe organisation from “can’t do” to “can do”. This is atop down process and Council is looking to the newchief executive and restructured senior managementteam to drive through fundamental changes in cultureand ways of working. There will be greater emphasison accountability and responsibility, together with stafftraining and skills development to change the ways inwhich Council does business.•• Breaking down departmental silos and developingmulti-functional teams working across the organisation.This means staff will work together to find the bestsolution for people’s problems, rather than sendingthem on a never-ending journey between departments•• Making better use of information technology (IT) toimprove efficiency, reduce costs and provide betteraccess to data•• Achieving best value from suppliers and consultants.Council favours a mixed market approach to the provisionof public services, making effective use of externalFAR NORTH FUTURE PLAN 2009-2019 33

strategic prioritiespriority 6: safeguardingour communitiesThe severe storms of 2007 starkly illustrated the implicationsof climate change for this district and the effects arestill being felt. Council faces an ongoing roads repair billand has allocated additional funding to address this.As part of its decisions on the final content of this LTCCP,Council has allocated $400,000 towards storm damageprovision with a view to building a contingency reserveover the longer term.Over the last year Council has continued to work withaffected householders, Government and NRC to find longterm solutions for properties most at risk of repeatedsevere flooding. The regional council is continuing toundertake studies to provide the basis for mitigationmeasures and this Council will continue to advocate onbehalf of Far North communities to ensure that appropriateprotection is put in place.In putting together this plan Council has assumed thatthe district will be hit by one or two more exceptionalweather events over the next ten years. EmergencyManagement staff will continue to work with individualcommunities to improve preparedness and prepare CommunityResponse Plans.The other side of climate change for both Council andthe district is the importance of reducing carbon footprint.Council is currently focusing on its own areas ofresponsibility and ways in which it can achieve reductionsin key areas like energy usage and vehicle travel. Overthe life of this plan, however, Council also anticipates anongoing dialogue with the wider community about howthe district can play its full part in responding to climatechange.34FAR NORTH FUTURE PLAN 2009-2019

strategic prioritiespriority 7: improving the qualityof life in the far northWhilst the Far North is already a great place to be,Council knows from the feedback it receives, both fromCommunity Boards and direct from the public, that thereare many ways in which we can make our district evenbetter if we are able to find the money to do so. Detailedbelow are a number of initiatives that Council intendsto pursue during the life of this plan, subject to ongoingaffordability, which will be kept under review as part ofCouncil’s annual planning round:•• Modernising the Far North’s towns:o Enhanced services – town maintenance, graffitiremoval, beautificationo Public toilet renewals and improvementso Development of Business Improvement Districts tolever additional funding into improvement works.priority 8: community developmentCouncil is committed to the further development ofthe Far North’s diverse communities and protecting itsunique culture and heritage. Initiatives such as joint workwith smaller communities to prepare Community DevelopmentPlans will continue.Reflecting submissions to recent plans, Council is providingmore detail in this plan of its proposals to work withMaori on a number of issues, including:•• Enabling effective Maori representation•• Management of Maori land rating•• Maori land development opportunities•• Social and economic development of the Far North’sMaori community through facilitation, capacity building,advocacy and multi-agency working.••••••Making the Far North a better place to play:o Development of sports facilities and recreation hubso Improved maintenance of a lower number of publichalls.Tackling social issues:o Working with others to tackle drug and alcoholabuseo Reducing illegal dumpingo Tackling persistent problems of wandering stocko Noise controlo Safeguarding the Far North’s culture and heritage.Working with key groups in our community:o Ensuring adequate facilities are available for olderpeopleo Improving provision for disabled people in the FarNorth.FAR NORTH FUTURE PLAN 2009-2019 35

Building the Budget - Council’s Financial StrategybackgroundCouncil spends money on day to day running costs andservice provision (this is known as operational expenditure)and on investing in new infrastructure and capitalassets, such as roads, water and sewerage facilities, stormwaterdrainage, and community facilities like public toilets,halls, and libraries (this is known as capital expenditure).Council spending is funded by rates, Government subsidy,borrowing and a number of other funding sources, asexplained more fully below.operational expenditureThe starting point for financial planning over the nextten years has been the 2008/2009 budget. In 2008/2009Council’s budgeted operating expenditure (i.e. day to dayrunning costs) amounted to around $84.1m. Of this:•• About 39% ($33.2m) was contractor and professionalfees•• About 25% ($21.5m) was depreciation costs. Depreciationspreads the cost of an asset over its life to recogniseits deterioration in value through wear and tearand usage over time. Council is required to provide fordepreciation in its accounts and this generates fundingfor asset renewal/replacement•• About 18% ($15.5m) was staff-related expenditure.challenging the base budget –cost reductionThrough its Finance and Audit Committee Council hasundertaken detailed scrutiny of the base budget, challengingmanagers to justify their current levels of expenditureand to find economies. As a result:•• $8m of savings achieved in building the 2008/2009budget has been maintained•• A further $3m of savings has been identified to offsetnew cost pressures (see below).cost pressures – asset maintenanceand renewalIn common with all councils in New Zealand FNDC hasexperienced a continuation of above-inflation cost pressuresover the last year. The most significant part of thisis the amount Council needs to set aside to provide forthe depreciation of its assets and their eventual renewal.These costs, which are globally driven and influenced byfactors such as oil prices, have escalated in recent years.Total depreciation provision for 2009/2010 is $23.2m, ofwhich:•• $14.1m relates to roads and stormwater•• $5.0m relates to water and sewerage•• $3.8m relates to community facilities - public toilets,halls, and the like.In preparing for this plan Council has undertaken extensiveanalysis of the costs of maintaining and renewing itsassets in order to ensure that forecast costs do not placean unfair burden on either current ratepayers or futuregenerations of ratepayers. The analysis that has beenundertaken offers some very clear messages:•• Council has a relatively large asset base reflecting itsextensive geographical area and past spending decisions•• All new capital spending (i.e. spending on assets andinfrastructure) brings additional operating costs with it:o Maintenance costso Operating expenseso Depreciation.36FAR NORTH FUTURE PLAN 2009-2019

uilding the budget•• There is no free lunch – the more we spend the higherthe ongoing costs we face•• Council cannot sensibly avoid meeting the legitimatecosts of asset maintenance and renewal. Previouscouncils have sought to keep the rates down by notproviding enough for the maintenance of key assets –this is why some of our public halls are now in a poorstate of repair. Added to this funds set aside in thepast to provide for asset renewal have been used tosupplement under-pressure maintenance budgets, withthe result that renewals reserves are now at a verylow level.Council has drawn three important conclusions from allthis, which have influenced the financial strategy underpinningthis plan:•• Future capital expenditure must be based on affordability.Council does not consider that the level ofcapital expenditure set out in the last ten year plan wassustainable over time given the ongoing cost pressuresidentified here. For that reason Council has undertakena fresh review of the entire capital programme leadingto the reduced – but affordable programme containedin this plan•• Council must properly maintain and provide for thereplacement of its core assets and infrastructure i.e.roads, water, sewerage, stormwater, and key communityfacilities•• It is not realistic for Council to seek to maintain andrenew all of its current assets. In some cases e.g. communityhalls Council and the community would be betteroff if the assets were either divested to communitytrusts able to maintain them properly over the longterm, or sold off completely rather than becoming aneyesore and an embarrassment to local communities.cost pressures – supplier costsAnother area of pressure is supplier costs – the amountCouncil spends on externally-provided goods and services.Some success has already been achieved in findingreductions in these costs (e.g. telephone, insurance andvehicle costs). However, Council believes that greatersavings should be achievable as major supplier contractsare renegotiated or retendered during the life of thisplan. Council’s aim is to achieve better value from suchcontracts whilst avoiding detrimental reductions in levelsof service.Looking ahead Council anticipates cost increases resultingfrom the Emissions Trading Scheme during the life of thisplan e.g. in energy costs. Council’s aim is to offset suchincreases through cost savings elsewhere in the budgetbut there may be a knock-on impact on user charges e.g.in the area of refuse collection and disposal.cost pressures – staff-relatedexpenditureThe third main area of Council’s costs lies in salaries andother staff-related expenditure, which have also beensubject to detailed review and challenge. The Finance andAudit Committee has considered benchmark comparisonsof Council’s staff numbers, which have been reducedin a number of areas since 2007.A recruitment freeze and a pay freeze are now in operationand proposals for new or replacement appointmentsare subject to detailed scrutiny before being approved.Council has also cut down on the use of consultantsand a saving of $40,000 has been made in business travelexpenditure.Staff numbers in the Development Consents departmenthave been reduced to reflect the downturn in the propertymarket and lower levels of activity. This area of workis largely funded by fees and Council will consider futureincreases in staff numbers as and when market demanddictates that they are necessary.FAR NORTH FUTURE PLAN 2009-2019 37

uilding the budgetfunding operational expenditureUsing the 2008/2009 budget as an example the funding ofCouncil’s operational expenditure comes from the followingsources:•• General rate funding 50.1%•• Targeted rate funding 26.5%•• Other rate funding 0.8%•• Fees and charges 12.5%•• Operational subsidy funding 8.3%•• Other income 1.8%.This serves to illustrate Council’s heavy reliance on ratesfunding and the difficult balance that needs to be struckbetween maintaining rates at affordable levels whilst alsoresponding effectively to the community’s demands forbetter Council services.rates fundingIn the face of the cost pressures outlined above Councilhas sought, with some success, to limit average rates risesand increases in the Far North have been amongst thelowest nationally in the last two years. In 2008/2009 theaverage increase was limited to 3%.In spite of this the average General Rate in the FarNorth is still within the top quartile in New Zealand. Thisreflects a number of hard challenges, some of which arepeculiar to the Far North, including:•• A relatively large asset base combined with a very largegeographical area and dispersed population•• Levels of capital expenditure in recent years adding tothe operating costs bill•• Large areas of unrateable land and multiple-owned••••••••••••Maori land that is either landlocked, unoccupied and/orunderdevelopedAreas of deprivation and major differences in propertyvalues across the districtA significant amount of uncollected rates debtA large volume of contract costs beyond Council’sdirect controlThe legacy of recent storm eventsAn absence of reserves to soften the blow on rates.A complete lack of economies of scale due to manysmall towns all wanting infrastructure.These are difficult circumstances and, when combinedwith the major cost pressures outlined above, they helpto illustrate why Council’s efforts at cost reductionhave served only to limit average rates rises rather thanachieve rates reductions.rates revaluationThe independent rates revaluation undertaken in 2007meant that within the overall average rates increase of3% there were a number of winners and losers acrossthe district. Rates went down for many Eastern wardratepayers, whilst increasing significantly more than 3% forsome ratepayers elsewhere in the district. This outcomewas entirely due to the revaluation and not attributableto Council’s actions or the level of its total budget, whichequated to only a 3% average rates rise.The impact of the revaluation was to effect a degree of“evening up” in relative rates levels across the district offsettingdisproportionate increases in Eastern ward rates,which had built up over the preceding years. Subsequentto the revaluation a number of ratepayers who saw themselvesas unfairly treated have successfully appealed theirrevaluations and achieved reductions in their rates bills.rates reviewPartly as a result of ratepayer dissatisfaction followingthe revaluation Council instigated a rating review with aparticular focus on the possibility of moving from a systembased on land values to one based on capital values.This was the subject of informal community consultationtowards the end of 2008.Following that consultation, as indicated above, Councilconsulted as part of the LTCCP process on the optionsof retaining the current land value based rating systemor moving to a capital value based system. In the light ofsubmissions received Council has decided against a moveto a Capital Value based system.38FAR NORTH FUTURE PLAN 2009-2019

uilding the budgetwater and sewerage chargesCouncil has taken the opportunity to review water andsewerage charges as part of this LTCCP process. BothCouncil’s water and sewerage accounts are currently runningat a deficit reflecting decisions by previous Councilsnot to impose break-even levels of charges. Over thelonger term this position is not sustainable given the needto provide adequately for the maintenance and renewalof the assets involved.As detailed more fully in the section on Water and WasteManagement below:•• Capital expenditure demands for water and wastewaterare showing a significant increase over the next10 years. This has the effect of increasing the rates forboth services as a result of the need to recover costs•• Previous Councils have kept the price of both waterand wastewater down to avoid large rate increases.This is no longer sustainable•• The combined effect of the above is to lead to aboveinflationincreases in water and sewerage charges overthe life of this plan.For water Council has decided that:•• The 10% discount is cancelled and instead a 10% penaltyadded for late payment.•• The operating deficit will be recovered over 10 years•• The fixed line fee will be increased from $109 to$200 per rating unit in 2009/2010. It will subsequentlyincrease by 3% pa thereafter.The rating effect of these steps is shown in the next table:year LINE CHARGE chaRge percubic metre2008/092009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19$ 109$ 200$ 206$ 212$ 219$ 225$ 232$ 239$ 246$ 253$ 261$2.52$2.69$2.70$2.77$2.78$2.78$2.65$2.88$3.08$2.94$2.98This is the equivalent of a 139% increase in the linecharge and an 18% increase in the meter charge over the10 years 2009/2019.For wastewater Council has decided that:•• The number of “free” pans available to commercialproperties will be reduced from 3 to 2 from 1 July2009•• The additional pan charge will be increased from 44%to 60% from 1 July 2009The rating effect of these steps is shown in the next table:year LINE CHARGE % change2008/092009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19$ 606$ 701$ 755$ 810$ 825$ 859$ 920$ 931$ 963$ 984$ 99716%8%7%2%4%7%1%3%2%1%This is the equivalent of a 65% increase in the years2009/2019.The ongoing funding of water and wastewater infrastructureis a real challenge for a district like the Far North,where sparse population densities mean that muchneededschemes are often uneconomic to run if relianceis placed entirely on user charges. Council has benefittedin the past from Government subsidies for the installationof both water and sewerage infrastructure. Whilstthis has been extremely helpful to the district, there is anadditional requirement for further subsidy to help withoperating costs over time. (Council benefits from suchsubsidy for roads and this helps to offset deprecationcosts in that area.)Council is now working with local Members of Parliamentto press the new Government to amend the fundingregime to take account of these sorts of difficulties. This isa crucial issue as Council addresses the need for furthermajor infrastructure projects in the district, not least adecent sewerage system for Kerikeri.FAR NORTH FUTURE PLAN 2009-2019 39

uilding the budgetDuring final deliberations on this LTCCP, Council hasdecided to undertake further work on options forwastewater charging during the coming year with a viewto possible introduction of a different charging systemthrough an LTCCP amendment in next year’s annual plan.This would be subject to community consultation as partof the planning process.russell wastewaterCouncil specifically requested that the rating impact ofthe Russell Wastewater scheme be separately identifiedin the draft plan. The reason for this relates to thespecial nature of and the way that this scheme is currentlyfunded.Council recognised that this was a difficult and controversialissue so sought submissions on how the Russellsewerage funding shortfall should be addressed.Following consultation, Council decided to continue touse the current funding mechanism.Under the Development Contributions Policy any newconnection to the Russell wastewater scheme will requirethe payment of the appropriate contributions. When therating policy changed in 2006, Council gave Russell propertyowners a period of three years to connect lots thatwere created prior to 30 June 2006, without becomingliable for the contributions. As a result of submissions theexemption period has been extended to 30 June 2010.Other funding sourcesIn order to reduce pressure on rates levels Council hasexamined opportunities for increases in other fundingsources:•• Government and New Zealand TransportAgency subsidy: As indicated above, Council iscontinuing to lobby for increases in levels of subsidyavailable to the Far North••Development Consents fees and charges: A newset of charges was introduced in 2008 following adetailed review••Hokianga Ferry charges: Ferry costs have risensharply causing Council to consider the level of charges.Council will review all options, including ownership,with a view to minimising the cost to ratepayers ofowning and operating the ferry in 2009/2010••••Far North Holdings dividend: One of this Council’spriorities following its election was to undertakea comprehensive review of Far North Holdings Ltd(FNHL). This has resulted in changes in the operatingobjectives of FNHL, as discussed more fully later in thisplan. As part of these changes Council in future anticipatesreceiving regular dividends from FNHL, whichwill be used to offset cost pressures elsewhere. FNHLis being pressed to sell non income-earning assets••Property sales: During 2008 Council instigated areview of its property holdings with a view to identifyingsurplus assets for disposal. This work is progressingwell and is expected to deliver an ongoing fundingstream over a number of years to come. This will beavailable to help fund future capital expenditure andrelieve pressure on other funding sources such asborrowing••Community/Partnership funding: Council is keento explore other possible funding sources that mightenable quicker progress in delivering future benefitsthan would be the case if Council were the only sourceof funds. For example:o Council is aware that Business Improvement Dis-tricts have proved successful in other parts of theworld as a way of levering business funding of communityassets benefiting town centreso Feedback from the Community Boards has indicateda willingness amongst some of our communities toprovide resources, either in cash or kind, to progressspecific projects benefitting their areaso The Far North already benefits considerably fromvolunteer efforts, particularly in our library service,and Council is looking for opportunities to extendthis type of input, particularly where it might help toreduce the threat of closure of a valued public assetbecause of the need for cost cutso Council is willing to explore innovative public sector/ private sector partnerships that might offer mutualbenefit and safeguard or extend the provision offuture serviceso Council is also keen to work with other serviceproviders around the concept of shared services,which has offered opportunities for economies andefficiencies, particularly in areas such as the provisionof administrative support services and IT.40FAR NORTH FUTURE PLAN 2009-2019

uilding the budgetlooking ahead – council’s budgetapproachIn view of the analysis above Council’s budget strategy forthe next ten years reflects the following approach:•• During the economic slowdown Council will adopt a “backto basics” approach – focusing on vital core services•• A more expansionary approach will be consideredwhen growth funding returns•• Council will continue to challenge its cost base andsqueeze supplier costs•• Future capital expenditure will be constrained withinthe limits of affordability of ongoing operating costs•• Savings impacting on direct service provision to thepublic will be minimised and the community will be offeredthe choice between the saving and a rates rise•• Priority will be given to roads expenditure•• Government contributions will be maximised. Councilwill press the new government to redirect more moneytowards key infrastructure needs in the Far Northand for operational subsidy to help meet consequentongoing costs•• Alternative approaches to funding and delivering serviceswill be exploredBudget projections for years 1 -10 are included in theactivity pages later in this volume of the plan.the budget for year one - 2009/2010Council consulted on seven budget options in the draftLTCCP. The results of this consultation and other decisionsmade following submissions on the draft plan aredetailed in the Community Feedback section at the beginningof this Volume. The overall result is an average ratesincrease of 3.92% for year 1 of the plan.the budget for years 2 to 10 –2010/2019Council will continue to maintain vigilance over costsduring the remaining years of this plan and will stick toits back-to-basics approach whilst the current economicdownturn persists. New capital expenditure will alsocontinue to be limited to affordability.Along with partner organisations in Northland Councilis bidding for the opportunity to host one of the participantteams in the Rugby World Cup 2011. If successfulthis will bring major benefits to the local economy faroutweighing the associated costs, which will mainly fall in2010/2011 and are estimated as being equivalent to 0.5%on the General Rate.Council anticipates that for the remainder of the tenyear plan rates increases will be broadly in line with thegeneral level of inflation. Once the economic cycle picksup and growth kicks in again Council expects to adopt amore expansionary approach with additional infrastructurespending being partly funded by development contributionsbut only on the basis that future operating costscan be met by projected increases in the rating base.Forecast rates increases for years 2-10 are shown in thetable below:forecast 10 yearrate increasesaverage residentialproperty2009/2010 3.92%2010/2011 3.94%2011/2012 4.26%2012/2013 3.62%2013/2014 2.49%2014/2015 2.66%2015/2016 2.75%2016/2017 1.56%2017/2018 3.71%2018/2019 1.90%FAR NORTH FUTURE PLAN 2009-2019 41

uilding the budgetCouncil anticipates that for the remainder of the tenyear plan rates increases will be broadly in line with thegeneral level of inflation. Once the economic cycle picksup and growth kicks in again Council expects to adopt amore expansionary approach with additional infrastructurespending being partly funded by development contributionsbut only on the basis that future operating costscan be met by projected increases in the rating base.capital expenditure and fundingCapital expenditure plans have been substantially revisedfrom those included in the Far North Future Plan to bringthem to an acceptable level of affordability, particularly interms of their impact on operating costs over time.Council has also taken the opportunity to review theprojected level of capital expenditure to be funded bydevelopment contributions and concluded that previousestimates of the growth funded component are not sustainable.The capital programme has been reduced from2006 levels to allow for this.Details of proposed capital projects by ward are includedin the activity statements later in this Volume.Borrowing levelsIncreases in capital expenditure in recent years, combinedwith a revision of the timing and value of developmentcontribution receipts, have increased Council’s borrowingrequirements. Given the infrastructure needs of thedistrict, Council is keen to take further advantage of loanfunding available, provided that borrowing remains withinaffordable limits.reflect sensible levels of financial prudence. The proposedexpenditure set out in this plan would take Council aboveits current borrowing ceiling and it has therefore takenthe opportunity to review its liability management policyas part of this LTCCP process. The policy now reflectsa ceiling of up to twice total annual revenue.which willcomfortably accommodate projected borrowing requirements.key assumptions and risksKey assumptions and risks are detailed more fully elsewherein this plan. The most significant risks are aroundpossible cost escalations beyond the levels of inflationassumed in the plan and unforeseen events – particularlymore severe weather events as a result of climate change.Council will deal with any significant cost increases aspart of its annual planning processes. Should it becomenecessary to consider reduced levels of service to offsetrising costs Council will undertake full community consultationbefore implementing any significant changes.There is a reasonable chance of one or more severestorms causing major disruption to the district and tobusiness-as-usual for Council during the life of this plan.Council has decided to allocate $400,000 towards stormdamange provision with a view to building a contingencyreserve over the longer term.Council works within the limits set out in its liability managementpolicy (see Volume 2) and these are intended to42FAR NORTH FUTURE PLAN 2009-2019

Council’s ActivitiesFAR NORTH FUTURE PLAN 2009-2019 43

Council’s ActivitiesCOUNCIL’S ACTIVITIESThe pages that follow provide detailed information onall of Council’s main areas of activity. They tell you whatCouncil does and why, what Council sees as the big issuesand challenges for the future, what Council is planningto do over the next ten years, how you will be able tomeasure progress being achieved, and how much it will allcost. Here is a brief guide to the way that these pages areset out:Key facts: Basic information and important statistics togive you some background on activity.Why we do it: These sections explain the reason whyCouncil undertakes each activity and outline Council’sbroad vision for what it is seeking to achieve.Contribution to Community Outcomes: An indicationof the ways in which each activity contributes to thekey community outcomes which the Far North communityhas identified as being important to it – Public Safety,Public Health, Transportation, Environment, Education,Training and Business opportunities, Services that SupportCommunities, and Culture and Heritage. Remember,we are talking here only about Council’s contribution tothese outcomes. Other agencies, such as health and educationproviders also need to play their part.Recent Progress - What we have / haven’tachieved: Council has achieved a great deal since itpublished its last long-term plan in 2006. These sectionstell you what has been done and also identify thingsthat Council said it would do but which, for one reasonor another have not yet been achieved.Where are we now? – Key issues and challenges:The main issues that have influenced Council’s forwardplanning are set out here.What you have told us: Details of relevant survey data,together with trends in satisfaction with Council servicesand reasons for dissatisfaction.What we plan to do: Here you will find details ofCouncil’s principal objectives for each service over thenext decade, with an outline of how Council will worktowards achieving those objectives.What we don’t plan to do: In this year’s plan Councilis aiming not only to tell the community what it is proposingto do, but also identify those things that it is notgoing to do, because of financial constraints or for otherreasons. Council sees this as an important way of managingexpectations about what is achievable.Levels of service provision: These tables provide tenyear projections and performance targets to enable youto measure Council’s progress. They are based on themain initiatives that Council is intending to pursue andindicate how they will contribute to community outcomesand how they will impact on Council’s levels ofservice provision. The target figures show the level ofperformance that Council is aiming to achieve. Councilwill report back on its actual achievement against thesetargets in future annual reports.44 FAR NORTH FUTURE PLAN 2009-2019

council’s activitiesCouncil operates a performance monitoring frameworkled by its Finance and Business Performance directorate.This includes:•• Performance monitoring by managers in their ownareas of responsibility•• Monthly performance reporting to Council: Activitymanagers are required to provide regular reports onprogress against strategic objectives and key performanceindicators•• Annual reporting of performance as part of Council’sAnnual Report: This includes reports on progressagainst strategic objectives, community outcomes andkey performance targets.In addition to the above during 2009 Council will providefurther information on progress against the communityoutcomes identified earlier in this plan.identify, in their LTCCPs, any negative effects that theirareas of activity could have on the social, economic, environmental,or cultural wellbeing of its community. Thesetables set out those potential negative effects and showhow Council is working to address them.Financial commentary: These sections explain howmuch Council currently spends in each area of serviceand how this is projected to change under the proposalsset out in this plan. There is also further detail of howCouncil manages, maintains and funds its assets, as well asinformation on how each activity is funded – i.e. whetherfrom rates or other sources. The financial commentariesare followed by detailed financial projections of operatingexpenditure and revenue for the next ten years, alongwith lists of proposed capital projects by ward.Council is in the process of implementing an automatedsystem to improve the efficiency and timeliness of performancereporting. This is expected to go live in July 2009 inparallel with the start of the ten year period covered bythis LTCCP.Key assumptions: Council has set out the main assumptionsunderlying its plans for each area of service. It hasconsidered the potential impact and financial implicationsif these assumptions are incorrect and how it can mitigatesuch potential impacts and implications.Key risks: Council has identified the main risks facingeach of its areas of activity, the level of risk, how Councilis working to mitigate those risks and a revised risk ratingin the light of the mitigation measures being undertaken.Potential negative effects: Under the requirementsof the Local Government Act Councils are required toFAR NORTH FUTURE PLAN 2009-2019 45

46FAR NORTH FUTURE PLAN 2009-2019

Roads and StormwaterFAR NORTH FUTURE PLAN 2009-2019 47

Road NetworkIntroductionKey factsWhy we do it••••Council operates and maintains a network of some2,530 km which includes:o 864 km of sealed roadso 1,666 km of unsealed roadso 700 bridges and large culvertso 1,877 streetlights.Council also:o Operates 1 vehicular ferry, ‘Kohu Ra Tuarua’, on theHokianga Harbouro Owns 8 inactive quarrieso Receives an average of 295 Request for Service eachmonth in regard to the road network. The mostfrequent Requests for Service refer to unsealedroad problems (24%), drainage (12%) and streetlighting (10%).Council’s vision is to provide an effective and sustainableroad network that supports community strength andwellbeing.The road network provides access for people and for themovement of goods and services. It significantly benefitsresidents, businesses and the district as a whole. Hence,maintaining and improving roads are regarded as two ofthe core functions of Council.Contribution to Community Outcomestransport PUBLIC SAFETY SERVICES THAT SUPPORTCOMMUNItiesDevelop and maintain transport networks to enableaccess to, from and within the districtProvide access to, from and for emergency servicesProvide access:•• between communities within the district and the restof the country•• to and from schools, marae and other communityfacilities•• to, from and for public and private utilitiesinfrastructure•• for the majority of goods and services that aretransported into, within and from the district.48FAR NORTH FUTURE PLAN 2009-2019

oad networkRECENT PROGRESS - what we haveachieved since the last planSince 2006 Council has completed the following:•• Kerikeri Heritage Bypass (100% funded by CentralGovernment)•• Kerikeri Central Business District (CBD) one waysystem•• 33 km of seal extensions across the district includingurban streets and sealing outside public facilities•• 25 km of area wide pavement treatment•• 180 km of reseals•• 60 Minor Improvements projects across the district•• 15 km of road improvements for economic development(100% funded by Central Government’s RegionalDevelopment Fund)•• 195 permanent slip repairs•• Undertaken a Traffic Study in Paihia.Council has also developed the followingstrategies and bylaws:•• Road Improvement Strategy•• Pavement Renewal Strategy•• Bridge Management Strategy•• Walking & Cycling Strategy•• Roadside Tree and Shrub Policy•• Speed Limits Bylaw 2008.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsClimate changeLimited sources of good quality road aggregateReducing ability to attract New Zealand Transport Authority (NZTA) funding assistance,especially for improvements and new worksIncreases exposure to road closures and widespread damage to the road network causedby severe stormsIncreases maintenance and construction costsReduces ability to carry out improvements and new projects, including seal extensionsIncreasing demands on the road network from heavy vehiclesIncreases maintenance and renewal costsFAR NORTH FUTURE PLAN 2009-2019 49

oad networkIssues / challenges (Continued)Implications (continued)Large geographic spread of the network, low population density and uneven distribution /expansion of population growthDecreases affordability of the road networkLack of data relating to bridge load carrying capacitiesIncreases exposure to bridge failuresMaintained length of network is based on out-of-date dataResults in dissatisfaction where roads exist outside of maintained lengthIncreasing costs (labour, fuel and materials e.g. price of bitumen rose 60% between May2007 and May 2008)Difficulties attracting and retaining appropriately skilled personnelReduces maintenance levels of service and number of improvements and new projects thatcan be carried out for the same amount of moneyReduces the ability to maximise funding assistance and consistently deliver good qualitywork on time and at the right priceWhat you have told usCouncil’s 2008 residents’ survey showed a 55% satisfactionrating with the road network. This is similar to theresult obtained in the 2006 survey and indicates a higherlevel of dissatisfaction than in the Far North’s peer groupof comparator districts and the national average. Theareas of most dissatisfaction with the road network areits condition, poor quality work and the large proportionof unsealed roads.Other consultation with residents and ratepayers hasyielded similar results to the Residents’ Survey, i.e. dissatisfactionwith the overall condition of the network anda strong desire to see a methodical approach and consistentprogress towards sealing more roads. These viewshave been reinforced by submissions to Council’s AnnualPlans in recent years.50FAR NORTH FUTURE PLAN 2009-2019

oad networkWhat we plan to doIn the first three years of this ten year plan Council willfocus on the priorities detailed below.Objective 1: Carry out improvements to the networkto meet current and future traffic demands and encourageappropriate land use development in areas of populationgrowth by:o Investigating the options for a new road linkingKapiro Road with Waipapa Road in the vicinity ofDoonside Road Kerikerio Continuing to purchase land for a new link road be-tween Kahikatearoa Road and Waipapa Loop Roado Continuing to work with NZTA towards upgradingthe intersection of State Highway (SH) 10 / WaipapaRoad / Waipapa Loop Road to a roundabouto Continuing to widen and improve walking andcycling facilities on Waipapa Roado Continuing to purchase land for a new “ring” roadlinking Butler Road with Clark Road west ofKerikeri CBDo Investigating options and commencing to widen andimprove walking and cycling facilities on Hone HekeRoad including the intersection of Hone Heke Roadwith Kerikeri Roado Investigating the options for a new road linking theKerikeri south eastern light industrial area with KerikeriRoad west of the Kerikeri CBDo Commencing, with NZTA, to purchase land south ofSH 11 through Haruru Falls to service future landdevelopment and to minimise additional traffic movementson to and off SH 11 at Ash Grove Circle.Objective 2: Enhance economic development in thedistrict and improve the quality of life of residents by:o Sealing the following sections of rural roads:Council has made provisions to carry out the following seal extensions provided that funding assistance is availablefrom NZTA:road nametarget length (Km)2009/2010 2010/2011 2011/2012Haruru Falls Road (From Domain) 1.0 1.6Horeke – Taheke Road (From existing end of seal at Horeke ) 2.2Fairburn / Peria Roads (From existing end of seal at Oruru end) 3.0Matawhaia - Maromaku Road (From existing end of seal) 2.3Ngapipito Road 1.5Oturu / Cloughs Roads (From existing end of seal at Oturu2.0Marae)Piccadilly Road (From Mangakahia Road) 1.5 1.5Pungaere Road (Completion) 2.5 1.2Rawhiti Road 2.3 1.2 1.1Waimate North Road (Completion) 3.0TOTAL TARGET LENGTHS 9.3 10.2 8.4Council has made provisions to carry out the following unsubsidised seal extensions:road nametarget length (Km)2009/2010 2010/2011 2011/2012Duncan Road (From existing end of seal) 1.5Horeke Road (From Rangiahua Road) 2.3Iwitaua Road (From SH 1) 0.8Koropewa/Ngapuhi Roads 1.2 1.3Okahu Road (Completion) 1.5Takou Bay Road (From intersection with Otaha Road) 1.6Waikare Road (From existing and of seal at Karetu) 2.0TOTAL TARGET LENGTHS 5.1 7.1FAR NORTH FUTURE PLAN 2009-2019 51

oad networkCouncil will carry out the following seal extensions if funding becomes available (ie. funding is not currently included in theLTCCP but may become available at a later date):target length (Km)road name2009/2010 2010/2011 2011/2012Spains Road (from Bridge A36) 1.5 1.2Hupara Road (from SH1) 1.0 1.1TOTAL TARGET LENGTHS 2.5 2.3o Sealing the following urban streets (to complete thecurrent urban street sealing programme):Council has made provisions to carry out the following seal extensions provided that funding assistance is availablefrom NZTA:target length (Km)location and street name2009/2010 2010/2011 2011/2012Matauri Bay – Tapui Road 1.1TOTAL TARGET LENGTHS 1.1Council has made provisions to carry out the following unsubsidised seal extensions:target length (Km)location and street name2009/2010 2010/2011 2011/2012Houhora – Waterfront Road 0.6- Saleyards Road 0.3Kaimaumau – Hagger St, Lake Road 0.2- Lake Road 0.3Waipapakauri – Rata St 0.1Opononi / Omapere – Waihuka Road 0.8- Martin Road 0.1Kerikeri – Pukewhau Road 0.2- Rowsell Lane 0.3Okiato Point – Deeming Road 0.1- Pipiroa Road 0.2TOTAL TARGET LENGTHS 1.5 1.752FAR NORTH FUTURE PLAN 2009-2019

oad networkCouncil will carry out the following seal extensions if funding becomes available (ie. funding is not currently included in theLTCCP but may become available at a later date):location and street nameKaeo - Cemetery Road 0.3Kawakawa - Settlement Road 0.5Opua - Richardson Street West 0.3TOTAL TARGET LENGTHS 1.1target length (Km)2009/2010 2010/2011 2011/2012o Sealing the road in front of the following publicfacilities (to complete the current public facilitiessealing programme):Council has made provisions to carry out the following seal extensions provided that funding assistance is availablefrom NZTA:facility, road name and localityPawarenga Marae – 1751 Pawarenga Road, Pawarenga 0.3target length (Km)2009/2010 2010/2011 2011/2012Whitiora Marae – Te Tii Road, Te Tii 0.3TOTAL TARGET LENGTHS 0.3 0.3FAR NORTH FUTURE PLAN 2009-2019 53

oad networkCouncil has made provision to carry out the following unsubsidised seal extensions:facility, road name and localitytarget length (Km)2009/2010 2010/2011 2011/2012Mangataipa Marae – 203 Mangataipa Road, Mangamuka 0.3Pupuke Marae – 585 Pupuke- Mangapa Road, Pupuke 0.2Marae – Porotu Road, Pakaraka 0.9Whatuwhiwhi Marae – Whatuwhiwhi Road, Whatuwhiwhi 0.3Tauwhara Marae – Whakataha Road, Waimate North 0.3Kenana Marae – Kenana Road, Mangonui 0.3Ariawa Hall – Ariawa Road , Houhora 0.2Waimanoni Marae – Waimanoni Road, Awanui 0.3Parapara Marae and Church – Parapara – Toatoa Road, Taipa 0.3Owhata Marae – 996 Whangape Road, Whangape 0.3Motukaraka Marae – Motukaraka Point Road, Kohukohu 0.2Te Huia Marae – Te Huia Marae Road, Pupuke 0.2TOTAL TARGET LENGTHS 2.3 1.5Council will carry out the following seal extensions if funding becomes available (ie. funding is not currently included in theLTCCP but may become available at a later date):facility, road name and localityMotuti Marae - 325 Motuti Road, Motuti 0.3Rangi Pt. Marae - 395 Rangi Pt. Marae Road, Panguru 0.4TOTAL TARGET LENGTHS 0.7target length (Km)2009/2010 2010/2011 2011/2012All proposed projects are subject to field validatioin, survey and investigation.54FAR NORTH FUTURE PLAN 2009-2019

oad networkObjective 3: Maintain and renew all road assets toprovide a level of service that is affordable and meetscommunity expectations by:o Improving maintenance levels of service for roaddrainage, unsealed road pavements, roadside vegetation,road signs and road markingo Carrying out a minimum of 2% of sealed road pave-ment rehabilitation (with associated improvementswhere applicable) per annum (in accordance withthe Pavement Renewal Strategy)o Maintaining and improving Tau Henare Drive, whichis in Waitangi National Trust land.o Replace the structure or parts of the structure onthe following bridges (in accordance with the BridgeManagement Strategy)bridge number and road nameP 13 Browns Road (Te Irenga)F 13 Sawyer RoadI 25 Wainui RoadI 48 Matawherohia RoadA 39 Waharua RoadB 13 Quarry Road (Awanui)T 49 Te Raupo Road off Kwakawa - PaihiaE 95 Jasons RoadC13 Churtons RoadW12 Pokapu RoadR 07 Waikuku RoadObjective 4: Reduce the number of fatal and seriousinjury crashes, especially those where the road, alcoholand excessive speed are contributory factors by:o Completing a minimum of 20 minor safety improve-ments on the network each year targeted at reducingthe number of crashes and severity of loss ofcontrol on bends (the most common type of crashon the network)o Identifying and coordinating education, engineeringand enforcement interventions with Police, NZTA,Roadsafe Northland and community groups.Objective 5: Achieve value for ratepayers by:o Maximising the amount of funding assistance for theabove programme from the National Distributed(N) Fund, Regionally Distributed (R) Funds, CommunityTransport (T) Funds, and such other sources asmay become availableplanned replacement2009/2010 2010/2011 2011/2012●●●●●●●●●●●o Supporting, subject to affordability, sealing projectswhere an element of local community contributionis available and where the proposed project is in linewith the relevant Council policy.Objective 6: Improve the availability of public transportin the District by:o Working with the Northland Regional Council andthe NZTA to identify opportunities for, and implementation(where viable) of, subsidised bus servicesin the DistrictObjective 7: Reduce the amount of stock effluent spiltfrom trucks onto Far North roads by:o Requesting farmers to stand stock off grass prior tocartageo Establishing a stock truck effluent disposal site by2012 – this will be part of a national network ofsuch sitesObjective 8: Improve road safety by:o Pursuing community programmes to raise aware-ness and educate communities about high risk areassuch as drink driving, crashes on bends, speed, childrestraint compliancy, and fatigueTOTAL TARGET BRIDGE REPLACEMENTS 3 4 4FAR NORTH FUTURE PLAN 2009-2019 55

oad networkLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKeyProject(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetSafetyBy improving thesafety of road usersPublic SafetyTransportReduce the % offatal and seriouscrashes each year26.20% 24.95% 23.76% 22.63% 21.55% 20.52% 19.54% 18.61% 17.72% 16.88% 16.08%TransportExtending thesealed networkBy maintaining aneffective, sustainable,and integratedtransport networkPublic SafetyServices thatSupportCommunitiesExtend the existingsealed network byat least 7 km peryear864(2008/2009)871 878 885 885 885 885 885 885 885 885Maintaining thesealed networkBy maintaining aneffective, sustainable,and integrated transportnetworkAs AboveAt least 8% of thenetwork resealedper year7% 8% 8% 9% 9% 9% 9% 9% 9% 9% 9%Maintaining thesealed networkBy maintaining aneffective, sustainable,and integratedtransport networkAs AboveAt least 2% of thenetwork PavementRenewals2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%SafetyBridgeRenewalsBy maintaining aneffective, sustainable,and integratedtransport networkAs AboveAt least 3 bridgerenewals per year3 3 3 3 3 3 3 3 3 3 3Responsiveness/EffectivenessBy maintaining aneffective, sustainable,and integratedtransportAs Above% of requestsfor service (RFS)responded to inset time and to appropriatestandard60% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%56 FAR NORTH FUTURE PLAN 2009-2019

oad networkLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICE (continued)KeyProject(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetMeetingCommunityExpectationsBy maintaining aneffective, sustainable,and integrated transportnetworkTransportPublic SafetyServices thatSupportCommunitiesThe % of respondentsindicating they are very/fairly satisfied as measuredby the Communitrak Surveyis not less than 55%55% 55% 55% 55% 55% 55% 55% 55% 55% 55% 55%Alcohol EducationAwareness CheckpointsBy improving thesafety of road usersAs AboveIncrease the number ofAlcohol Education AwarenessCheckpoints aroundthe district by at least 12per year over the next3-years and no less than36 checkpoints thereafter4(2008/2009)12 24 36 36 36 36 36 36 36 36Child RestraintsEducation CheckpointsBy improving thesafety of road usersAs AboveReduce the % of noncompliantchild restraintsthrough Child RestraintEducation Checkpoints30%(2008– MOTstats)20% 10% 5% 5% 5% 5% 5% 5% 5% 5%Fatigue StopsBy improving thesafety of road usersAs AboveNo less that 10 Fatiguestops district wide peryear targeting motorists,trucks and heavy vehicles6(2008/2009)10 10 10 10 10 10 10 10 10 10Driver Educationand LicensingBy improving thesafety of road usersAs AboveIncrease the number oflearners and restricteddriver education programmes,this will increasethe number of licenseddrivers on the road66(2008/2009)76 76 80 80 80 80 80 80 80 80FAR NORTH FUTURE PLAN 2009-2019 57

oad networkKEY ASSUMPTIONSASSUMPTION WHAT MAY HAPPEN INSTEAD LIKELIHOOD IMPACTFINANCIALIMPLICATIONSMITIGATIONGrowth in the district willbe in line with CouncilprojectionsGrowth may be slower than forecastMediumDevelopment Contribution fundingmay be unavailable to supportplanned new developmentsHighGrowth trends are kept under reviewand plans would be adjusted downwardsto reflect any significant variation fromthe trend forecastSubsidy funding will continueat least on the currentbasisSubsidy funding may be reduced Low / MediumPlanned works would need to becut backHighCouncil will work hard to lobby thenew Government to increase the Farnorth’s share of subsidy fundingThe planned roads programmewill not beadversely affected by theimpact of climate changeMore frequent severe storms couldcause major disruptionMediumResources would have to bediverted to repair work and therewould be significant slippage inplanned programmesHighLargely outside Council’s control,though the experiences of 2006 and2007 leave Council better preparedfor future storm events. Council hasdecided against setting a specific contingencyfund aside for storm repairs andwill address funding as and when theneed arises, including ensuring appropriateGovernment supportAsset lives will be in linewith the financial projectionscontained in this planAssets could require renewal beforethe dates assumedLowRenewal expenditure would haveto be brought forward and thismay place pressure on overallCouncil expenditure levelsHighCouncil has undertaken comprehensiveasset management planning as part ofthe preparation for this ten year planFuture cost increases willbe in line with the financialprojections contained inthis planMajor cost escalationsMediumMay require changes to the waythat Council prioritises and approachestransport activitiesMedium / HighCouncil works closely with NZTA andGovernment and aims to anticipate andplan for foreseeable changes in costsRegulations relating toTransport will remainlargely the same over theplanning periodSignificant change in regulationsLowMay require changes to the waythat Council prioritises and approachestransport activitiesMedium / HighCouncil works closely with NZTA andGovernment and aims to anticipateand plan for foreseeable changes inregulations58FAR NORTH FUTURE PLAN 2009-2019

oad networkkey risksRISK current rating MITIGATIONrating aftermitigationWorksite Control – road construction materials left onroad shoulder causing contamination or potential vehicledrift from loose chips, inadequate signage, etc.ExtremeControl construction methods, audit sites and ensure compliancewith Contractor Quality Plans. Impose penalties for non-compliance.Ensure appropriate training and certificationHighLimited knowledge of future renewal profile and bridgeload capacity informationExtremeComplete investigations and analysis on a case by case basis asrequired. Continue to develop Council’s Bridge Management Policy.Continue implementation of the Bridge Management StrategyHighLack of posting – overloading of bridge/structure causingcollapseExtremeReview load postings annually. Undertake network inspections toidentify lack of signage. Continue to review current capacity ofbridgesHighInadequate knowledge of bridge stock – number and conditionunknown for some bridges/structuresExtremeClarify ownership of bridge/structures by identifying all bridges inthe district (private and public)HighPollution – caused by the tipping of contaminants downdrainage facilitiesExtremeReview Council's liability position with NRC.Investigate Environmental controlsExtremeUnavailability of quality aggregate or road metal threateningCouncil's ability to maintain the road network adequatelyinto the futureHighEnsure monitoring through the network contract. Carry out a districtwide investigation of new aggregate sourcesHighFAR NORTH FUTURE PLAN 2009-2019 59

oad networksignificant negative effectspotential negative effecthow we are addressing thisTransportation development may impinge on culturally significant landsTracking and recording consultation procedures and results for each affected Maorigroup(s) for all projects outside the existing road reserveThe cost of desired infrastructure improvements may exceed the community’s ability to pay Consulting with the community on costs and options through the LTCCP processSerious and fatal crashes, particularly those that involve loss of controlFailure to respond effectively to the particular needs of cyclists and pedestrians and theirconflicts with other forms of trafficDust nuisanceNew road construction and / or improvement works may lead to a degree of environmentaldegradation and/or delays to travel timesWorking with NZTA who monitor and record the percentage of accidents caused by lossof controlUndertaking crash reduction studies (CRS) every two years and recommending solutionsImplementing the recommendations from the Walking and Cycling StrategyTracking and addressing via the RFS systemEnsuring road construction sites comply 100% with Environmental Best practice and RegionalCouncil guidelinesImpact of forestry harvesting on local roadsMonitoring and addressing the deterioration of roads affected by heavy forestry traffic60FAR NORTH FUTURE PLAN 2009-2019

oad networkFAR NORTH FUTURE PLAN 2009-2019 61

StormwaterIntroductionKey factsWhy we do it••••Council operates and maintains:o 109.1 km of pipeso 31.8 km of lined and unlined channelso 2,491 manholeso 15 Retention Damso 44 Floodgateso 1,135 Inlets and Outletso 1 Pump Station.An average of 22 Requests for Service are receivedevery month for stormwater.Council undertakes this activity to provide sustainablemanagement of Stormwater runoff within a defined urbancatchment utilising a reticulated Stormwater network. Indoing so Council takes account of current and future development,climate change, system capacity and condition,water quality, financial affordability, and environmentalissues.Contribution to Community Outcomespublic safetyenvironmentReduce potential threats to public safety and to propertyMinimise any adverse effects to the receiving environment.Provide and maintain a reticulated Stormwater networkto manage the adverse environmental effects of urbandevelopment.62FAR NORTH FUTURE PLAN 2009-2019

stormwaterRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Installed and renewed Stormwater lines in Old WharfRoad /SH 12 Omapere; English Bay Road, Opua; DominionRoad, Dunn Street, North Road and WhangataneDrive, Kaitaia; Alexander Street, Mangonui;Coachman’s Way and Heretaunga Crescent, CoopersBeach; Homestead Road and Waipapa Landing Place,Kerikeri; Wynyard Street, Church Street, LeonardStreet and Hospital Road, Kawakawa; Station Road andTawa Street, Kaikohe; Matauwhi Bay Road and FlorenceAvenue, Russell; Yorke Road, Haruru Falls; Inland Road,Whatuwhiwhi; and Gillies Road, Rangiputa•• Installed new flood gates in Hester Place, Pururi Place,Orchard Place and Puckey’s Avenue, KaitaiaRecent progress – what we haven’tachieved since the last planSince 2006 Council has not achieved the following:• The CCTV condition assessment of the reticulatedurban Stormwater network was originally included in theFar North Future Plan but due to economic constraintsthis project was not progressed. In the intervening periodCouncil has undertaken some limited CCTV inspectionsto determine the cause of particular Stormwater issuesto enable a solution to be developed. It is now consideredthat the original proposal for CCTV conditionassessments throughout the District is not economicallyviable and would be of limited practical benefit. Futureuse of these funds will be targeted to Stormwater issueresolution where the cause is not readily identifiable andwhere pipelines require upgrading.•• Developed Stormwater Catchment Management Plans,incorporating Climate Change effects, and floodplainmaps for the defined urban areas throughout the District.Draft Stormwater Catchment Management Planshave been received for Doubtless Bay (Taipa, CableBay, Coopers Beach and Mangonui), Karikari Peninsula(Rangiputa, Tokerau Beach and Whatuwhiwhi), RussellPeninsula (Russell, Tapeka Point and Okiato Point),Opononi/Omapere, Ahipara and Kerikeri/Waipapa.FAR NORTH FUTURE PLAN 2009-2019 63

stormwaterKey issues and challenges facing this ServiceIssues / challengesImplicationsClimate Change Effects: The Ministry for the Environment (MfE) Climate Change Guidelinesare subject to revision and this is likely to impact on Stormwater management plansStormwater Management Plans may require further revisionEffects of development on the reticulated Stormwater networkIn some areas the existing network passes beneath private propertiesThe effects of private Stormwater attenuation devices, i.e. storage tanks, upon the performanceof the Council’s reticulated Stormwater network have not been fully investigated todateThe rate of development will determine the timing of required upgrades. It is proposed tocommence upgrades when the catchment is at a level of 80% of the permitted activity rulesdefined in the District PlanIt will be necessary to re-evaluate the network layout to ensure that the network is accessiblefor all property owners and also accessible for Council’s maintenance operationsRequires further investigationEscalating External Service Provider CostsPuts pressure on Stormwater budgetsPotential for future changes in Environmental StandardsLikely to increase resource consent costsBlanket Stormwater Discharge Resource ConsentsPressure on existing staff resources as a result of increasing service demandsConsideration needs to be given to the continued development of Stormwater CatchmentManagement Plans to obtain Stormwater Discharge Resource Consents for the definedurban areasAdditional, appropriately skilled staff are likely to be required or Council may need to makea greater call on specialist external resources64FAR NORTH FUTURE PLAN 2009-2019

stormwaterWhat you have told us•• Our most recent residents’ survey showed a 53%satisfaction rating. In comparison with other Council’sthe Far North scored above the Peer Group andNational Averages in terms of those not very satisfiedand 5% above the 2006 survey. Those residents whoexpressed dissatisfaction with Council’s Stormwaterdrainage focused on flooding, inadequate drainage,blocked drains and run-off from other areas•• It was clear from the survey results that respondentswere referring to flooding and drainage issues in general(as a result of the bad flooding in 2007) and notspecifically to the Urban Drainage for which Council isresponsible.What we plan to doWhat we don’t plan to doCouncil does not propose to:•• Install pipelines in areas where there are likely to beaccessibility issues that could compromise the abilityof private property owners to realise the full developmentpotential of their properties, provided there arealternative alignments available•• Install any Stormwater treatment devices until suchtime as a better understanding of Stormwater runoffquality issues is available•• Progress stormwater catchment management plans bycontinuing network capacity studies as indicated in thedraft LTCCP. This was dependent upon additional ratesfunding that has not been approved by Council.Objective 1: Commence investigation of options to addressnetwork deficiencies identified by SWCMP capacitystudies by:o Drawing up a prioritised strategy based upondevelopment levels, system deficiencies and fundingavailability.Objective2: Implement Stormwater improvements by:o Designing and installing identified solutions.FAR NORTH FUTURE PLAN 2009-2019 65

stormwaterLevels of service provisionTen year plan measures and levels of serviceKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityoutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetDay to day serviceprovisionPrompt responses torequests for service(RFS)EnvironmentServices thatSupportCommunities% of RFS respondedto in set time andto the appropriatestandard90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%StormwaterimprovementsImproved ProvisionPublic SafetyEnvironmentThe % of respondentsindicatingthey are very/fairlysatisfied as measuredby the CommunitrakSurvey is not lessthan 53%53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53%66FAR NORTH FUTURE PLAN 2009-2019

stormwaterkey assumptionsASSUMPTION what may happen instead likelihood impactfinancialimplicationsMITIGATIONAsset lives will be in linewith the financial projectionsincluded in this planReduced asset lives due to undercapacity of systemsLowWould require earlyreplacement/upgrade of systemcomponentsMedium / HighAdjust future plans and budgets if requiredDevelopment will occur inline with growth assumptionsin this planDevelopment varies fromanticipated growth rateMediumInfrastructure provision mayneed to be slowed down orspeeded upLow / MediumGrowth rates are kept under review andplans and budgets are adjusted as necessaryThere will be no unforeseenrequirements for systemupgrades through privatepropertySystem upgrades are requiredthrough private propertyHighWould require earlyreplacement/upgrade of systemcomponentsMedium / HighNeed to investigate whether alternativealignments are available or what other possibleoptions are possibleExternal service providercosts will be in line with thefinancial projections containedin this planCosts exceed LTCCP budgetsMediumReduced levels of service orincreased ratesMedium / lowAdjust future LTCCP budgets to align withcontract periods and costsEnvironmental Standards willnot be substantially changedduring the life of this planSignificant revision of the existingEnvironmental StandardsLowMay require earlier installationof treatment devicesLow / mediumFuture plans and budgets would be adjustedto take account of any significant revisionswith which Council has to complyFAR NORTH FUTURE PLAN 2009-2019 67

stormwaterkey risksRISK current rating MITIGATIONLEVEL OF RISK AFTERMITIGATIONLocal Natural Hazards – (slips/flooding/coastalerosion/wind) causing damage (roads, property,assets) and/or hindering developmentHighLiaise with NRC to identify hazards and ensure emergencyresponse mechanisms are in place in the event of a hazardoccurringHigh“Global” Natural Hazards – Impact of climatechangeHighIncorporate climate change effects in accordance with the MFEguidelines into the development of the SWCMPHighMaintenance and Management Contracts – substandard workmanship causing liabilityModerateCarry out performance reviews and evaluations throughout theterm of the contract. Review contract in its entirety and makenecessary change. Partnering evaluationsModerateCapacity issues in the pipe network causingfloodingModerateModelling of the urban networks to identify capacity issues anddevelop a prioritised forward programme of improvement worksModerateErosion and scour caused by inappropriateoutfallsModerate Identify priority areas and programme suitable response ModerateLack of a reticulated network causing flooding,ponding and downstream effectsModerateIdentify problematic areas in conjunction with the development ofthe Stormwater Catchment Management Plans and programmepriority works for fundingModerate68FAR NORTH FUTURE PLAN 2009-2019

stormwatersignificant negative effectspotential negative effecthow we are addressing thisEnvironmental degradation at the foreshore outfallsConsideration of possible discharge options at these locationsFlooding and threats to public safetyProviding new infrastructure in urban areas to prevent flooding and increase public safetyFAR NORTH FUTURE PLAN 2009-2019 69

stormwaterassessment of stormwater provisionOverviewThe Local Government Act 2002 (LGA 2002) requiresthat the Long Term Council Community Plan (LTCCP)include a summary of the last assessment made underSection 125 for the provision of water and sanitaryservices in its district. Further to this it requires that anauthority “from time to time, in accordance with sections126 and 127 assess the provision within its district”.Completeness of the AssessmentThe first Assessment of Stormwater services was undertakenin 2005, effectively following the enactment of theLocal Government Act 2002, and in alignment with thedevelopment of the Far North Future Plan 2006/2016. Asignificant amount of work has been undertaken sincethat time, including data capture, GIS mapping and thesubsequent development of the Stormwater CatchmentManagement Plans (SWCMPs). This has led to a greaterunderstanding of the dynamics involved with each of theurban drainage areas, the issues to be addressed and themanagement techniques to be deployed, either physicallyor via legislation, Bylaw development etc.The importance of understanding the current networksand how they operate under extreme rainfall events i.e.50 or 100 year storm events is critical to the ongoingprovision of stormwater services in each urban catchment.Similarly Climate Change is another aspect thatrequires careful consideration. Affordability is key, giventhe community’s willingness to pay for the service andsatisfaction with the service being provided. Hence theongoing need to determine future provision given developmentand growth pressures (in some areas) and thebalance of renewals and maintenance required for wholeof life cycle asset management.The SWCMPs are expected to be completed by the endof 2009. The information contained within the SWCMPsis a culmination of district wide data capture, modelling offlows through the systems to understand capacity issuesand to identify overflows and potential capacity issueswithin the networks. In addition, comprehensive LiDAR(Light Detection and Ranging) information has been usedto accurately determine flood plains and the extent offlooding under the varying rainfall events, developmentlevels and the impacts of Climate Change.The re-evaluation of current and future rankings is basedon information gathered through the review process, theprogress achieved with SWCMPs, and the requirementsdetermined by the legislation, such as consulting NorthlandHealth. For consistency the ranking value remainsHigh to Low to track Council’s progress in determiningthe state of the stormwater systems in the district andachieving the requirements of the LGA 2002.Based on the information gathered during this reviewprocess Council has a ranking of Medium for meeting‘Current Needs’ (with the exception of 126 (1) (f), whichis ‘High’) and a ranking of ‘Medium – Low’ for meeting‘Future Needs’.An overview of the actions taken against the 2005/06Assessment findings is provided below followed by the2008 Stormwater Assessment Ranking Table, covering theappropriate legislative clauses.70FAR NORTH FUTURE PLAN 2009-2019

stormwater2005/06 Assessments Findings Actions to Date (2008)The Area of Benefit (AoB) is not clearly defined for all stormwater urban areas. Thiswill be reviewed in conjunction with the Stormwater Management Plans, which will beprogressively updated over the next two yearsThe Area of Benefit is currently being redefined to align with the AoB for Water andSewerageThe correlation between the Area of Benefit, the urban catchment and the stormwatercatchment is not clearly definedThe Stormwater Management Plans and maps clearly define these areasThe existing Stormwater Management Plans adopted a conservative approach due to alack of precise data. The analysis undertaken highlights the need for further detailedassessments of the capacity of the reticulated networks with regard to future remedial/upgrading costs. These will be progressively updated over the next two yearsMore concise data has been obtained since 2005 including LiDAR, which has enabledgreater assessment of the sub-catchments. Assessments have concentrated on the publicsystem. Work is continuing with the modelling of Council’s reticulated network inconjunction with the development of the SWCMPsA detailed analysis of secondary/overland flow paths has not been undertaken. There is aneed for more detailed survey data and design impactsCouncil has completed Stage I & II of a three Stage programme to identify stormwaterassets. Stage III has been completed for East Coast, Kaitaia, Awanui and Ahipara and will beprogressively completed over the next two years for the remaining urban areasLiDAR data for the region has significantly enhanced the assessment and modelling ofoverland flowpathsData has been captured for all sites to enable the development of StormwaterManagement Plans. LiDAR has enabled accurate definition of overland flowpaths anddrainage channels outside of the reticulated network. No further data capture is requiredat this stageCouncil has commenced development of a Hazard Register and mapping into GIS toidentify risks initially for flooding, erosion including coastal, slips, detention ponds and damsFlooding risks are being identified with the development of the SWCMPsThe piped network condition is largely unknown and the confidence in this information islow. Significant improvement prior to the next valuation being undertaken in June 2009is required. A programme needs to be initiated over a three year period to firstly carryout a sample assessment and where necessary extend the programme to obtain a soundassessment of the condition of the pipes. Funding to implement this programme may be achallenge.Capacity issues rather than condition assessment has been identified as the most criticalelement of the SWCMP development. Condition assessments do not provide suitabletools for determining the physical works as they ultimately affect the valuation only.Condition issues will be dealt with as they arise taking into consideration the capacityFAR NORTH FUTURE PLAN 2009-2019 71

stormwater2005/06 Assessments Findings Actions to Date (2008)It is evident that Council is required to obtain a number of resource consents and the individualassessments have identified this. Council will seek to obtain consent on a Ward basis.Effectively this will enable Council to better manage its assets and responsibilities. The NRChas agreed to this approach in principalAt this time no resource consents have been applied for. Gaining consents at the Wardlevel has also been reconsidered. Council is in regular communication with NRCregarding the Stormwater Management Plan programme and the modelling that hasbeen undertakenThere is inadequate information regarding unserviced communities. Council will continueto improve information and knowledge and work with communities to reach practicalsolutions where possibleFocus at present is on the reticulated urban areas. For other areas in the district, should itbecome apparent that issues are prevalent then these will be dealt with on a case-by-casebasisWhere practicable a community wide information and education programme could beinitiated to raise awareness about stormwater and the potential for contaminationregarding everyday use of household itemsFurther consideration on this item will be given once the SWCMPs have been fullydevelopedCouncil will continue to investigate the effects of on-site effluent systems to bettersafeguard at risk communitiesThis is being undertaken by the Utilities Department. The initiation of three yearly mandatorypump outs of septic tanks is underway. In addition design standards are in place fornew developments requiring onsite treatmentCurrent and future impervious areas have not been populated into GISImpervious areas are considered in conjunction with the development of the SWCMPsConfirmation is required to identify what developmental controls are placed on newdevelopments with particular regard given to sediment and erosion control andstormwater attenuationEngineering Standards are in place. Floodplain maps have been developed for a number ofscenarios and these are currently being added to Councils website to assist with theplanning of developments72FAR NORTH FUTURE PLAN 2009-2019

stormwaterLegislation Assessment Progress (2008)LGARefAssessment RequirementCommentsCurrent FutureNeeds Needs126 (1)(a) (iii)126 (1)(d) (ii)Determine and describe how stormwateris disposed of within the urbancatchment including the extent to whichdrainage works are provided within thecatchment (by TA or any other person)Determine Health and EnvironmentalImpacts of discharges of stormwater(treated or untreated) arising fromcurrent and future demandsSWCMPs are being developed for each of the urban catchmentsbased upon the comprehensive data gathering exercise thatwas completed in 2007. The SWCMPs identify the networkcomponents, capacity and linkages.Key issues are sedimentation and erosion, point and non pointsource pollutants, wastewater overflows, flooding and land instability.The application of the Onsite Wastewater Bylaw in 2006 and threeyearly pump outs should result in a lowering of potential onsite issues.From a human health standpoint it is difficult to determine theimpacts of stormwater in relation to waterborne illnessesHigh Medium Low High Medium Low126 (1)(b)126 (1)(e)126 (1)(f)Assessment of risks to community relatingto absence of stormwater drainageservice (non reticulated, including opendrains that are part of the system)Determine suitability of options forcurrent and future demandsTerritorial Authority to state intendedrole in meeting current and futuredemandThe application of the Onsite Wastewater Bylaw in 2006 and threeyearly pump outs should result in a lowering of potential risksassociated with contamination. Council will continue to maintainstormwater control off public land such as roadsModelling results obtained via the SWCMPs will assist in the developmentof options for current and future demands. The focus is onmanaging developmentCouncil will continue to own, manage and fund the stormwateractivity. Unserviced areas will be evaluated on a case-by-case basisdependant on Community needs. basis126 (1)(g)Territorial Authorities proposals to meetcurrent and future demand includingproposals for any new or replacementinfrastructureCurrently the SWCMPs are being developed to address capacityissues. This work assesses current and future levels of maximumdevelopment and incorporates the implications of Climate Change.System deficiencies within the various urban catchments will beidentified and prioritised during this process. The timing of any upgradeswill be considered and programmed in conjunction with thelevel of development and within any funding constraintsFAR NORTH FUTURE PLAN 2009-2019 73

Financials – Roads and Stormwaterbudget and capital projectsFINANCIAL FORECASTSThe tables that follow show:•• Ten year projections of operating income and expenditure•• Forecast capital expenditure and funding followed bya breakdown of capital projects by ward the latterreflecting Council’s plans to increase asset capacityin response to cater for additional demand and / orimproved levels of service.OVERALL POSITIONAfter considering submissions on the draft LTCCP Councilhas allocated a 1.5% increase in the General Rate forthe purposes of undertaking 2007 storm damage repairsand other roading work on the basis of priorities to bedetermined by the Roading Manager.Asset ManagementTo provide the asset capacity required to meet this activity’sobjectives Council is planning new capital expenditureover the period of this plan. The detail of this, togetherwith funding information is shown below under “CapitalProjects by Ward”.In line with the requirements of Schedule 10 of the LocalGovernment Act 2002 Council has undertaken detailedanalysis of the Costs of Asset maintenance, renewal andreplacement. This analysis is contained in asset managementplans that supplement this LTCCP and relevantexpenditure is included in the tables below.In respect of asset replacement and renewal:•• Council’s 100 year forward projections of road renewalspending requirements indicate a potential shortfallin renewal funding of around $3.7m a year. About halfof this would be subsidy funded leaving the rest to befunded locally. Council has increased depreciation provisionin the outer years of this plan to begin recoveryof the projected long-term renewal funding shortfall•• A bridge management strategy has been preparedand, from condition assessment, has identified bridgesrequiring replacement within the next 10 years. Thespecific bridges have been identified and replacementbrought forward from their financial asset registerexpiry date. Any difference between the asset replacementfunds available and the asset replacement costhas been funded from loan. Continued conditionassessment will be undertaken with the likelihoodof further replacements being brought forward insubsequent LTCCPs. This approach will have the effectof smoothing a peak replacement programme forecastin the 20 years from 2059 to 2078. Bridges assessedto be in sound condition will have their replacementdeferred beyond the financial asset expiry date furthersmoothing the replacement peak•• Pavement Rehabilitation is provided for under aspecific programme determined from activity plansconsistent with the financial information held in thefinancial asset register•• Other road renewals have been programmed consistentwith the financial asset register replacement valuationsand asset expiry dates•• Provision has been made to renew Stormwater minorworks on an annual basis as required•• Major Stormwater renewal works will be determinedfrom the Stormwater Catchment ManagementStrategy. Depreciation funds are being reserved in theinterim.Renewal funding is firstly drawn from available depreciationreserves. Where reserves are diminished, short termloan funding is used. Short term loan funding is programmedto be repaid by depreciation funding in ensuingperiods.new zealand transport agency (NZTA)funding assistanceNZTAThe NZ Transport Agency (NZTA) is a Crown entitywhich was established on 1 August 2008 by merging theformer organisations known as Land Transport New Zealandand Transit New Zealand for the purpose of providingan integrated approach to transport planning, fundingand delivery.NZTA allocates funding assistance from the NationalLand Transport Fund for Council roading activities. Aslong as the planned activities meet NZTA criteria for thefunding assistance Council is effectively able to double theamount of money it collects from rates and allocates totransport, particularly for maintaining and improving thedistrict’s road network. NZTA’s criteria are detailed inits “Planning, Programming and Funding Manual” and aredesigned to ensure that proposals for funding assistanceare assessed and approved in accordance with the NewZealand Land Transport Management Act (2003), contrib-74FAR NORTH FUTURE PLAN 2009-2019

BUDGET AND CAPITAL PROJECTSute to the New Zealand Transport Strategy (2008) andconform to the Government Policy Statement (2008) onland transport funding.Liaison with other Transport AgenciesCouncil also regularly liaises with the NZTA, NorthlandRegional Council, Kaipara District Council and WhangareiDistrict Council on local and regional roading issues. Thiscollaborative approach ensures local planning aligns withboth the national and regional strategic directions.FAR NORTH FUTURE PLAN 2009-2019 75

udget and capital projectsCONSOLIDATED ROADS AND STORMWATERPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIncome13,165 Rates - General 13,975 14,686 15,458 17,025 17,817 18,304 19,196 19,260 20,886 21,453395 Rates - Targeted 401 404 406 408 411 413 415 418 421 424178 Rates - Penalties 184 190 195 200 204 209 214 219 225 230661 Fees & Charges 919 950 973 996 1,019 1,044 1,069 1,094 1,122 1,1506,494 Subsidies Operational 9,859 6,973 7,251 7,063 7,062 7,342 7,479 7,697 8,493 8,66512,216 Subsidies Capital 15,706 13,108 11,658 10,616 10,934 11,262 11,600 11,948 13,143 13,5373,854 Development Contributions 1,895 1,925 2,002 2,004 1,952 1,878 1,805 1,734 1,671 1,6471,003 Other Income 1,354 1,398 1,431 1,464 1,496 1,531 1,567 1,603 1,642 1,68237,967 Total Operating Income 44,293 39,635 39,373 39,776 40,896 41,983 43,346 43,973 47,602 48,788Direct Costs302 Drainage and Stormwater District Wide 361 373 383 393 403 414 424 436 449 462Operations117 Drainage Schemes 92 95 97 99 102 104 107 109 112 1151,456 Emergency Works 4,235 670 686 703 719 736 754 772 791 811796 Ferries 819 1,266 1,130 1,103 1,135 1,194 1,521 1,212 1,303 1,273306 Legalisation 332 343 353 362 371 381 390 401 413 425796 Roading District Wide Operations 884 913 938 964 988 1,014 1,039 1,070 1,101 1,1349,952 Roading Network 10,332 10,453 10,862 11,035 11,536 11,995 12,263 12,641 14,009 14,34296 Roading Unsubsidised Work 96 99 102 104 106 109 112 114 117 120423 Urban Stormwater 540 558 571 585 599 613 628 643 659 675910 Interest 1,644 1,910 2,280 2,630 2,623 2,524 2,452 2,339 2,268 2,28012,643 Depreciation 14,115 14,889 15,706 17,535 18,124 18,730 19,358 20,005 22,006 22,74727,798 Total Direct Operating Expenditure 33,450 31,569 33,108 35,514 36,705 37,813 39,047 39,742 43,227 44,38376FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCONSOLIDATED ROADS AND STORMWATERAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIndirect Costs361 Corporate Costs 314 325 334 339 345 353 360 370 379 389108 Provisions 112 116 119 122 124 127 130 134 137 14079 Rating Costs 192 198 204 209 214 220 225 231 238 245548 Total Indirect Costs 618 639 656 670 684 700 716 734 753 77428,346 Total Operating Expenditure 34,068 32,208 33,764 36,183 37,389 38,513 39,763 40,477 43,980 45,1579,621 NET SURPLUS/(DEFICIT) 10,225 7,427 5,609 3,593 3,507 3,471 3,583 3,496 3,622 3,630STATEMENT OF SOURCE AND APPLICATION OF FUNDSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sCAPITAL STATEMENT9,621 Net Surplus/(Deficit) 10,225 7,427 5,609 3,593 3,507 3,471 3,583 3,496 3,622 3,6304,390 Loan 3,277 4,223 4,539 527 362 507 262 531 935 6573,934 Contribution Funding 2,051 2,732 1,656 887 568 585 603 621 683 1,47012,727 Depreciation Funding 15,406 15,942 17,358 19,101 18,784 19,521 19,716 20,465 22,631 23,127312 Reserve Funding 300 300 350 350 250 200 300 200 200 200(280) Appropriation to Reserves (1,927) (1,927) (1,977) (1,977) (1,877) (1,827) (1,927) (1,827) (1,827) (1,827)30,704 Total Funding 29,332 28,697 27,535 22,480 21,593 22,457 22,536 23,486 26,243 27,257Capital Expenditure26,850 Capital Projects 28,368 27,618 26,299 21,079 20,236 21,149 21,268 22,269 25,060 26,086420 Debt Repayment 963 1,079 1,236 1,401 1,358 1,308 1,268 1,217 1,183 1,17127,270 Total Capital Expenditure 29,332 28,697 27,535 22,480 21,593 22,457 22,536 23,486 26,243 27,2573,434 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0FAR NORTH FUTURE PLAN 2009-2019 77

udget and capital projectsCAPITAL PROJECTS BY WARDROADS AND STORMWATERProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19ROADSNEW WORKSDistrictEmergency WorksDistrict Wide Emergency Storm Damage July 2008 3,586,725 0 0 0 0 0 0 0 0 0Transport Network District WidePaihia Carparks and Service Lanes 170,000 0 0 0 0 0 0 0 0 0Kerikeri Kerikeri CBD Ring Road 499,550 498,146 495,703 479,598 0 0 0 0 0 0Waipapa Other Works 1,390,000 1,649,999 0 0 0 0 0 0 0 0District Wide Pavement 797,797 970,000 1,140,000 1,254,000 1,291,620 1,330,369 1,370,280 1,411,388 1,552,527 1,599,103Whatuwhiwhi Public Facility Sealing 0 690,000 450,000 0 0 0 0 0 0 0Kerikeri Public Facility Sealing T Fund 90,000 90,000 0 0 0 0 0 0 0 0Waipapa Rural Seal Extensions 850,000 4,223,000 4,514,985 0 0 0 0 0 0 0Peria Rural Seal Extensions R Fund 1,050,000 0 525,000 0 0 0 0 0 0 0Rawhiti Rural Seal Extensions T Fund 781,554 407,766 349,992 0 0 0 0 0 0 0District Wide T Fund Local Share 202,241 130,900 106,248 0 0 0 0 0 0 0Waipapakauri Urban Improvements 0 465,000 510,000 0 0 0 0 0 0 0Matauri Bay Urban Improvements T Fund 330,000 0 0 0 0 0 0 0 0 0Eastern Waipapa Roundabout 0 0 0 0 0 0 0 0 0 766,400Mangonui Walkways and Cycleways 552,287 205,500 0 0 0 0 0 0 0 0District Total 10,300,154 9,330,311 8,091,928 1,733,598 1,291,620 1,330,369 1,370,280 1,411,388 1,552,527 2,365,503NEW WORKS Total 10,300,154 9,330,311 8,091,928 1,733,598 1,291,620 1,330,369 1,370,280 1,411,388 1,552,527 2,365,503RENEWAL WORKSDistrictFerryDistrict Wide Ferry 45,000 110,000 39,999 229,994 99,593 233,173 44,999 30,001 279,994 114,995Transport Network District WideDistrict Wide Bridges 358,553 223,178 1,069,007 662,386 341,362 614,359 246,779 768,464 1,245,793 999,934Paihia Carparks and Service Lanes 60,001 0 0 0 0 0 0 0 0 078FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDROADS AND STORMWATERProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19District Wide Drainage 805,500 829,665 854,555 880,191 906,598 933,796 961,810 990,664 1,089,730 1,122,422District Wide Minor Safety 1,730,400 1,782,312 1,835,781 2,019,361 2,079,940 2,142,336 2,206,608 2,272,806 2,500,087 2,575,090District Wide Pavement 6,319,000 6,491,120 6,668,854 7,335,739 7,555,811 7,782,485 8,015,960 8,256,439 9,082,083 9,354,545District Wide Pavement Rehabilitation 5,706,627 5,959,410 5,650,000 6,215,000 6,020,905 6,184,052 6,353,576 6,529,539 7,159,194 7,355,687District Wide Structural Components 530,450 546,364 562,754 619,030 637,601 656,729 676,431 696,724 766,396 789,388District Wide Traffic Services 542,625 558,903 575,670 633,238 652,235 671,800 691,956 712,715 783,986 807,505District Total 16,098,156 16,500,952 17,256,620 18,594,939 18,294,045 19,218,730 19,198,119 20,257,352 22,907,263 23,119,566EasternTransport Network District WideEastern Streetlighting Eastern Renewals 0 0 0 0 0 0 0 0 0 1,334Eastern Total 0 0 0 0 0 0 0 0 0 1,334RENEWAL WORKS Total 16,098,156 16,500,952 17,256,620 18,594,939 18,294,045 19,218,730 19,198,119 20,257,352 22,907,263 23,120,900ROADS TOTAL 26,398,310 25,831,263 25,348,548 20,328,537 19,585,665 20,549,099 20,568,399 21,668,740 24,459,790 25,486,403STORMWATERNEW WORKSDistrictUrban Stormwater/Flood ProtectionDistrict Wide Beach Outlets Improvements 0 0 50,000 49,999 50,002 0 0 0 0 0District Wide Emergency Response 300,000 300,000 299,995 299,993 200,007 200,003 299,989 200,007 199,995 199,992District Total 300,000 300,000 349,995 349,992 250,009 200,003 299,989 200,007 199,995 199,992EasternUrban Stormwater/Flood ProtectionEast Coast East Coast Bays Coopers Beach Slip 350,000 150,000 0 0 0 0 0 0 0 0Russell Long Beach Road 40,000 386,847 0 0 0 0 0 0 0 0Waipapa Waipapa Road 350,000 350,000 0 0 0 0 0 0 0 0Eastern Total 740,000 886,847 0 0 0 0 0 0 0 0FAR NORTH FUTURE PLAN 2009-2019 79

udget and capital projectsCAPITAL PROJECTS BY WARDROADS AND STORMWATERProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19NorthernUrban Stormwater/Flood ProtectionAhipara Ahipara Stormwater Improvements 250,000 0 0 0 0 0 0 0 0 0Ahipara Foreshore Road 230,000 300,000 299,995 0 0 0 0 0 0 0Northern Total 480,000 300,000 299,995 0 0 0 0 0 0 0WesternUrban Stormwater/Flood ProtectionKaikohe Hillcrest Rd Kaikohe 150,000 0 0 0 0 0 0 0 0 0Western Total 150,000 0 0 0 0 0 0 0 0 0NEW WORKS Total 1,670,000 1,486,847 649,990 349,992 250,009 200,003 299,989 200,007 199,995 199,992RENEWAL WORKSDistrictUrban Stormwater/Flood ProtectionDistrict Wide Emergency Response 300,000 300,000 299,995 399,990 400,013 400,005 399,985 400,014 399,990 399,985District Total 300,000 300,000 299,995 399,990 400,013 400,005 399,985 400,014 399,990 399,985RENEWAL WORKS Total 300,000 300,000 299,995 399,990 400,013 400,005 399,985 400,014 399,990 399,985STORMWATER TOTAL 1,970,000 1,786,847 949,985 749,982 650,022 600,008 699,974 600,021 599,985 599,977GRAND TOTAL 28,368,310 27,618,110 26,298,533 21,078,519 20,235,687 21,149,107 21,268,373 22,268,761 25,059,775 26,086,38080FAR NORTH FUTURE PLAN 2009-2019

Water and Waste managementFAR NORTH FUTURE PLAN 2009-2019 81

Water SupplyKey factsWhy we do it••••Council operates and maintains:o Eight potable (drinkable) water systems and onenon-potable systemo 330 kilometres of water mainso 17 pumping stations9,279 properties are connected to Council watersystems.Our vision is for everybody in the Far North to haveaccess to sufficient, safe and reliable sources of drinkingwater that is provided in a sustainable mannerOur water treatment plants, pumping stations and reticulationsystems contribute to that by providing the treatmentand delivery of safe drinking water to communitiesserved by Council owned systems.Water supply is regarded as one of the core functions ofCouncil, as provided by statute. The Local GovernmentAct 2002 generally requires the continued operation ofany water system that Council operated at the time theAct was passed, as well as continuing to operate any newsystem that the Council constructs from that date.Contribution to Community OutcomesPUBLIC HEALTH PUBLIC SAFETY ENVIRONMENT SERVICES THAT SUPPORTCOMMUNItiesProvide and operate drinking waterreticulation systems and treatment plantsProvide and operate drinking waterreticulation systems & treatment plantsMinimise impact of water taken onthe environmentProvide and operate water systems tofacilitate community development82FAR NORTH FUTURE PLAN 2009-2019

water supplyRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Constructed a new membrane treatment plant andnew production borehole (Kaikohe)•• Built a new treated water reservoir and main (Kaitaia)•• Upgraded an intake and treatment plant (Kawakawa)•• Drilled a new borehole (Okaihau)•• Upgraded the telemetry system•• Built a new treatment plant (Opononi)•• Upgraded a filter (Paihia)•• Constructed a new water main and booster station(Waipapa)•• Completed condition assessments of asbestos cementmains.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsClimate change, which threatens to increase the likelihood of droughts and future watershortagesHigher environmental standards – Resource Consents will impose tighter restrictions onthe amount of water we can take from rivers and streamsRequires water conservation measures, community education about water conservation,and action to secure future supplies. Council must take steps to reduce levels of water lostfrom its systems through leakage and unauthorized useIncreased demand for the service as a result of the growth of the district and of tourismRequires upgrades of systems and provision of additional infrastructure in conjunctionwith growth – new treatment plants, treatment plant upgrades, additional treated waterreservoirs, additional bores, upgraded reticulationIncreasing operating costs (power, fuels, chemicals)New NZ fire fighting water supplies standardThe monitoring trial of the effect of fluoridation of water in Kaitaia and Kaikoheended inMarch 2009 and the fluoridation was stopped at that pointRequires cost management via leakage reduction, water conservation, planned maintenanceand power and fuel managementRequires improved flow rates in urban / commercial areastCouncil needs to consider whether to continue with fluoridationFAR NORTH FUTURE PLAN 2009-2019 83

water supplyWhat you have told us•• Our most recent residents’ showed an 82% satisfactionrating amongst people receiving a Council water supply.Satisfaction ratings have shown a steady increasesince 2005 and this compares well with similar councilsbut is below the national satisfaction level. Thoseresidents who expressed dissatisfaction with Council’swater services focused on issues of fluoridation, costsand quality.What we plan to doObjective 1: Improve current systems to comply withnew drinking water standards and provide the districtwith clean safe drinking water by:o Upgrading treatment plants (Kaikohe, Kaitaia, Kerik-eri and Rawene)o Continuing to replace asbestos cement and galva-nised iron water mains across the districto Improving monitoring and alarm systemso Leaving fluoridation turned off pending consulta-tion on whether to continue or cease the trial andreceipt of information on the results of the trial.Objective 4: Provide for future growth in demandwithin the district by:o Upgrading / extending reticulation systems.Objective 5: Comply with NZ fire fighting water suppliescode of practice by:o Progressively improving flow rates in urban / com-mercial areas.What we don’t plan to do•• As a result of financial constraints, community expectationswill have to be carefully managed. Therefore,Council no longer intends to commence consultationregarding new water systems in Russell, Ahipara andWhatuwhiwhi.Objective 2: Safeguard future water supply by:o Constructing new treated water reservoirs(Kerikeri / Waipapa and Rawene)Objective 3: Promote sustainable water usage by:o Reducing water take from riverso Improving water conservation and reducing losseso Introducing a rainwater tank bylaw to require newproperties on reticulated water to have a rainwatertank to store water for gardens etc.84FAR NORTH FUTURE PLAN 2009-2019

water supplylevels of service provisionten year plan measures and levels of serviceKey Project(s) /Initiative(s)How the project(s)/ initiative(s) willimpact on levels ofserviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetTreatment plantupgradesReduce risk of failure ofResource ConsentsProvide fordevelopmentEnvironmentNumber of failuresof Resource Consentdeterminants1 0 0 0 0 0 0 0 0 0 0Treatment plantupgradesImprove NZDWSGradingsPublic HealthPublic SafetyNumber of systemsachieving grade Bb(8 systems in all)0 0 1 2 3 4 5 6 7 8 8Construct additionaltreated water storageReduce risk of failures ofcontinuity of supplyPublic HealthPublic SafetyInterruptions tosupply not to exceed24 hours in any 1year100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Water conservationReduce risk of failure ofResource ConsentsEnvironmentReduction in percapita waterconsumption% of unaccounted forwater (leakage, illegalconnections,unauthorised use)267m3 2% 2% 2% 2% 2% 1.5% 1.5% 1.5% 1.5% 1.5%28%maximum(annualbasis)27% 26% 25% 24% 23% 22% 22% 22% 22% 22%General improvementsin serviceIncrease level ofcustomer satisfactionPublic Safety%age very satisfied/satisfied respondentsin CommunitrakSurvey82% 82% 82% 85% 85% 85% 87% 87% 87% 90% 90%FAR NORTH FUTURE PLAN 2009-2019 85

water supplylevels of service provisionten year plan measures and levels of service (continued)Key Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetCustomer ServiceLevel of customersatisfactionServices thatSupport CommunitiesPercentage (%) ofservice disruptionsresolved inless than 4 hours90% 91% 91% 92% 92% 93% 93% 94% 94% 95% 95%Optimise water flowand pressureReduction in numbersof burstsProvide value formoneyEnvironmentReduction innumber of burstsper km of pipe0.55 0.54 0.53 0.52 0.51 0.50 0.50 0.49 0.48 0.47 0.46Reduce operationalcosts per m3 ofwaterProvide value formoneyServices thatSupportCommunitiesOperational cost($ /cubic metres)1.087 1.065 1.044 1.023 1.002 1.0 1.0 1.0 1.0 1.0 1.0Treatment plantupgradesImprove drinking waterstandardsPublic HealthPercentage compliancewith NewZealand drinkingwater standards97% 98% 98% 98.5% 98.5% 99% 99% 99% 99% 99% 99.5%Extend coverage ofpublic water systemsImprove drinking waterstandardsPublic HealthNumber ofconnections9,279 9,450 9,545 9,640 9,740 9,835 9,930 10,030 10,130 10,230 10,33586FAR NORTH FUTURE PLAN 2009-2019

water supplyKey assumptionsASSUMPTION what may happen instead likelihood impactFINANCIALIMPLICATIONSMITIGATIONPopulation growth is in accordancewith the growth strategy forecastsActual level of growth higher thanassumedActual level of growth lower thanassumedMediumMediumInsufficient capacity availableInfrastructure not fully utilised inperiod of planHighMediumGrowth trends are kept under regularreviewGrowth is expected to occur overtimePer capita demand flowsremains at current levelsPer capita consumption lowerthan forecastMedium Lower income levels MediumIncome levels will be monitored andfuture budgets adjusted if necessary toaccommodate any significant incomeshortfalls over timeRenewed and new Resource Consentswill require greater residualflows in rivers and streamsChanges in resource consentrequirementsIncreased risk of periods of limitedor zero water takeLowLowTighter conditions than assumedwould lead to a requirement forincreased capital expenditureWater shortagesHighMediumAny additional spending requirementwill be balanced by a reduction inexpenditure or deferral of projects infuture capital programmeLevel of unaccounted for waterremains unchanged or decreasesIncrease in unaccounted for water Low Water shortages LowCarry out programme of leakagemanagement and reductions in othersources of unaccounted for waterAsset lives are as detailed in thefinancial commentary belowAssets depreciate more rapidlythan assumedLow Pressure on renewals budgets HighFuture levels of capital expenditurewould be adjusted downwards tocompensateFAR NORTH FUTURE PLAN 2009-2019 87

water supplyKey risksrisk CURRENT RATING mitigation RATING AFTeR MITIGATIONIncrease sources. Demand Management Policy be presented to CouncilEmergency drought orders are available to draw extra water from sourcesDrought causes water shortagesExtremeProvide additional water storage to ensure that there is 2 days storage onall systems at average daily demandHighIdentify extra water sources and obtain Resource Consents, managedemandPower failures affecting treatment plants andpumping stationsHighSet up access to additional generators when required (short term)Increase level of storage at pumping stations ((long term)HighLoss of water supply due to burst pipes High Monitor usage and identify water losses promptly HighContaminants entering water supply lines High Monitor water quality in supply lines HighDisruption of water supply caused by contaminationof supply sourceHigh Implement notification procedure that is already in place MediumMembers of the public are tapping intountreated water supply. Potentially a healthhazard that could result in prosecution ofCouncilMediumManage known connections and notify risksIdentify, where possible, other illegal connectionsLow88FAR NORTH FUTURE PLAN 2009-2019

water supplySignificant negative effectspotential negative effecthow we are addressing thisThe cost of operating and/or improving the infrastructure may exceed the community’sability to payThe inability of the infrastructure to meet the demand for water may cause difficulty andhardship in the communityConsulting with the community on all costs and options for levels of service via the LTCCPprocessImplementing programmes of plant and system improvements and reducing leakage fromthe reticulation systemPoor quality water or interruptions to supply could impact on public healthImplementing programmes of plant and system improvementsFailure or disruption of the service may cause difficulty and hardship in the communityContinuing programmes of plant and system improvements and planned maintenance.Making effective use of improved telemetry systemFAR NORTH FUTURE PLAN 2009-2019 89

water supplyPUBLIC WATER ASSESSMENTS – SUMMARYOF FINDINGSThe tables below represent the public water supplysystems that are presently owned and managed by the FarNorth District Council and illustrate there is a high levelof risk for all public water supply systems.responsible for the respective communities at the time.They have since become owned by the Far North DistrictCouncil which took over responsibility for all localgovernment functions previously carried out by predecessorauthorities following the reorganisation of localgovernment in 1989.key to drinking water standards nz 2003gradingssource works and treatmentplant gradinggradingdescriptionreticulationgradingIn many cases, these systems were built and paid for bythe communities they serve through the Council that wassummary of public water supply systemsTable A1: Overview of the Public Water Supply SystemsSystemPopulation served (winter06/07) 1Length of reticulation 2 kmNo. of pumping stationsNo. of Fire HydrantsDepreciated ReplacementValue 2 $’000Replacement Value 2 $’000No. of connectionsWater SourceAnnual vol of waterproduced Ml *Kaikohe-Ngawha 4,113 62 2 217 9,300 14,474 1,738 River & 529 E/E b/b 305boreholesKaitaia 5,427 65 1 279 12,425 20,411 2,294 River 1,030 A b 450Kawakawa & Moerewa 2,880 38 1 133 7,805 15,260 1,111 River 362 U u 326Kerikeri 4,470 51 1 202 6,811 10,410 2,006 River 433 E b 216Okaihau 416 9 0 17 1,014 1,588 164 Boreholes 51 U u 313Opononi Omapere 700 17 1 47 2,487 3,766 335 River 80 U u 241Paihia - Waitangi 3,784 48 6 146 7,268 11,958 1,598 River 501 U u 314Rawene 592 22 0 74 2,217 3,427 297 River 58 E a 198Russell 0 3 0 3 183 317 NA Boreholes NA NA NA NADistrict 111 152TOTAL 22,382 315 12 1,118 49,621 81,763 9,543 3,049 N/A N/A 3201Population figs are from the 2006 census2 Lengths and valuations are those from the July 2008 valuation of commissioned assets* 2007/2008 production vols. from Transfield Services’ Ltd compliance report to NRCWater Treatment gradingReticulation GradingAv. consumption/connection (m 3 yr)A1Completelysatisfactory.Negligible levelof risk.aDemonstrablyhigh qualityACompletelysatisfactory.Very low level ofarisk.BSatisfactory.Low level of risk.bCMarginal.Moderate levelcof risk.DUnsatisfactory.High level of risk.dECompletelyunsatisfactory.Very high leveleof risk.U Ungraded u90FAR NORTH FUTURE PLAN 2009-2019

water supplyprivate water assessments – summary of findingsTable A2:a) Estimated total number of normally resident people whoseproperties are not currently able to be connected to a publicreticulated water system (includes all rural properties):b) Communities within Far North District that are not fully served bya reticulated public water supply system.Around 33,000There are around 140 small, private, water supply systemswhere numbers of people congregate. These mainlycomprise schools, campgrounds, marae, and hotels/motels.A desktop assessment of these has been undertaken aspart of the Water Activity Management Plan.Name of of Community – Based - on on Census Census Area Area Units Units (CAU) (CAU) &and 2006 2006 census census figs figsEstimated Population NotServed by by a a Public SystemAwanui 351Karikari Peninsula-Maungataniwha 4,230Taipa Bay-Mangonui * 1,569Herekino 1,725Ahipara 1,125North Cape * 501Houhora 837Motutangi-Kareponia 1,755Kaeo 495Mangapa-Matauri bay 2,646Kohukohu 186Hokianga North 1,962Hokianga South ** 2,230Kerikeri ** 1,386Russell 816Bay of Islands 18Kapiro 2,445Waitangi 792Pokere-Waihaha 2,490Okaihau 301Ohaeawai 711Waihou Valley-Hupara 2,336Ngapuhi-Kaikou 2,077Inlet-Hokianga Harbour 3Inlet-Whangaroa Harbour 15Inlet Bay of Islands 6Total 33,008c) Water is generally collected in these unreticulated areas from theroofs of properties but there are also properties that haveboreholes, springs and streams that supply their water needs.d) General issues relating to private water supply systems: Shortages during summer months requiring tank top upsusing water from public water treatment works Water quality issues resulting from wildlife contaminationof roof collection areas Borehole and stream water contamination from a varietyof sources including organic and chemical pollutants.* Doubtless Bay Water Company, a private water supplier, supplies the population in this area but the actual population served is commerciallyprivate information.** Some of the population in these areas are supplied with a raw (non-potable) water supply. These population figures have not been included.FAR NORTH FUTURE PLAN 2009-2019 91

WastewaterKey facts•• Council operates and maintains:o 17 wastewater systemso 16 wastewater treatment plants (11 ponds, 4activated sludge plants)o 333 kilometres of sewer pipeso 150 pumping stationso 9,593 properties are connected to Council’s systemWhy we do itOur vision is that the Far North’s coastal marine, riverwaters and lakes are healthy at all times, so that they supporthealthy marine and freshwater ecosystems, recreationaluse, fishing and shellfisheries.Our sewage treatment plants, pumping stations andreticulation systems contribute to that by controllingthe quality of effluent and minimising the risk of sewageoverflows and spills.Our work programme is driven by community expectationsabout the quality of our environment and the needfor sustainability – reducing our overall impact on theenvironment both now and in the future.The sewerage function is regarded as one of the corefunctions of Council. This is confirmed by statute – theLocal Government Act 2002 generally requires the continuedoperation of any sewerage system that Counciloperated at the time the Act was passed, and continuedoperation of any new system that the Council constructsfrom that date.Contribution to Community OutcomesPUBLIC HEALTH PUBLIC SAFETY ENVIRONMENTProvide and operate sewage reticulation systems andtreatment plants through monitoringReduce the number of overflows andsewage spillsProvide and operate sewage reticulation systems andtreatment plants, by monitoring the performance of onsitetreatment plants92FAR NORTH FUTURE PLAN 2009-2019

wastewaterRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Ahipara - sewer relocation and new pumping station•• East Coast- new emergency storage tank at pumpingstation•• Kaikohe - modifications to ponds at treatment plant•• Kaitaia - new inlet screen and pumping station attreatment plant, upgrading of ponds at treatment plant,replacement rising main•• Kerikeri - new UV installation at treatment plant, newemergency storage tank at pumping station•• Paihia - new anaerobic pond at treatment plant, replacementof asbestos concrete rising main•• Waitangi - emergency storage tank•• Upgraded the telemetry system•• Condition assessment of asbestos concrete mainscompleted.what we have not achieved since thelast planSince 2006 Council has not achieved the following:In the last LTCCP Council also planned to progress anumber of subsidy-funded wastewater schemes. Thesedid not progress in accordance with the programme inthe LTCCP as the subsidy scheme was suspended by theMinistry of Health due to a shortage of funding. This hasnow been resolved, funds are available and a number ofschemes are included in this LTCCP.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsMinimising environmental impactIncreased demand for the service as a result of the growth of the district and oftourismRequires:•• A continued programme of improving environmental awareness throughout thecommunity so that everybody can play their part in protecting our environment•• Action to ensure compliance with the onsite sewage treatment bylaw•• Installation of new sewerage systems and treatment plants in currently unservedcommunities where subsidy support is available.Requires upgrades of systems and provision of additional infrastructureFAR NORTH FUTURE PLAN 2009-2019 93

wastewaterWhere are we now? - Key issues and challenges facing this Service (continued)Issues / challengesImplicationsHigher environmental standards in Resource ConsentsRequires upgrades of existing systems and higher specifications for new systems in orderto improve the quality of treated effluentNeed to reduce sewage spillsRequires improvements to monitoring and control systems (e.g. alarm improvements) and,in key locations, the provision of emergency storageIncreased operating costs (power, fuel, chemicals)Requires programmes to control and optimize return from operating costsContinuation of sanitary subsidy schemeNew systems are dependent on subsidy. Future infrastructure programme will be geared tosubsidy availability and projects will only be confirmed once subsidy is certainClimate changeIncreased costs resulting from need to guard against possible impacts: drought, flood, algae94FAR NORTH FUTURE PLAN 2009-2019

wastewaterWhat you have told usOur most recent residents’ showed an 84% satisfactionrating amongst people using a Council sewerage system.This is the highest satisfaction rating of any Councilservice and compares well with similar councils althoughbelow the national satisfaction level. Those residents whoexpressed dissatisfaction with Council’s services focusedon the need for improved systems and elimination of foulsmells.What we plan to doObjective 1: Increase the level of treatment provided by:o Upgrading treatment plants (Ahipara, Awanui, EastCoast, Hihi, Kaikohe, Kohukohu, Opononi, WaitangiForest, Rangiputa, Rawene, Whatuwhiwhi).Objective 2: Reduce the risk of sewage spills by:o Pursuing a spill management strategy using a risk-based model in agreement with NRCo Installing emergency storage tanks at pumpingstations in Kaeo and Rangiputao Improving monitoring and alarm systems.oto the upgraded treatment plant and abandoning theexisting Kerikeri treatment plantInstalling sewerage pipelines to serve existing andnew developments.Objective 5: Reduce service disruptions by:o Improving monitoring and alarm systemso Implementing a planned renewals programme.Objective 6: Improve the management of our seweragesystems by:o Introducing a wastewater bylaw.Objective 7: Review the sewerage targeted rate systemby:o Considering and consulting on future chargingoptionso Examining the basis on which customers are re-quired to connect to new Council systems.Objective 3: Provide new systems to reduce the risk topublic health and the environment from contaminationwith sewage by:o Subject to obtaining a subsidy, implementing newworks in Ngawha and Awanui.Objective 4: Provide for development in the Kerikeri/Waipapa area by:o Upgrading the existing Waitangi Forest TreatmentPlant (subject to obtaining a Resource Consent)o Installing pipework to transfer flows from KerikeriFAR NORTH FUTURE PLAN 2009-2019 95

wastewaterLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKeyProject(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetTreatment plantupgradesReduce risk of failureof Resource ConsentsPublic HealthEnvironmentNumber offailures ofResource Consentdeterminants22 22 20 18 16 14 12 12 12 12 12Implementation ofspill managementprogrammeReduce risk of spills ofsewage to theenvironmentPublic HealthPublic SafetyEnvironmentNumber of spillsof sewage towater11 11 10 9 8 7 6 6 6 6 6General serviceimprovementsIncrease level ofcustomer satisfactionPublic HealthEnvironment% very satisfied/satisfied respondentsin CommunitrakSurvey84% 84% 84% 85% 85% 85% 87% 87% 87% 90% 90%Improvements ininfrastructure andequipmentImprove continuity ofservicePublic Health% of service disruptionsresolvedin less than 4hours90% 92% 95% 95% 95% 95% 95% 95% 95% 95% 95%Extend coverageof public wastewatersystemsImprove wastewaterfacilitiesPublic HealthEnvironmentNumber ofconnections 10,576 10,600 10,700 10,900 11,100 11,350 11,600 11,850 12,200 12,450 12,60096FAR NORTH FUTURE PLAN 2009-2019

wastewaterkey assumptionsASSUMPTIONwhat may happeninsteadlikelihoodimpactFINANCIALIMPLICATIONSMITIGATIONPopulation growth is in accordancewith the growth strategy forecastsPer capita generation of sewage flowsremains at constant levelsActual levels higher than assumedActual levels lower than assumedMediumMediumInsufficient capacity availableInfrastructure not fully utilisedin period of planHighLowTrends are kept under regular reviewTake up is expected to occur over timeLevel of inflow / infiltration remainsunchanged / decreasesIncreased inflow/infiltrationMediumIncreased operational costsand risk of spills/overflowsLowProgramme of inflow/in filtrationreductionRenewed and new ResourceConsents may include a requirementfor viral reductionRequirement is tighter than hasbeen assumedLowAdditional systems upgradesrequiredHighAny additional spending requirementwill be balanced against a reduction infuture capital programmesAsset lives are as detailed in theaccounting policiesAssets depreciate more rapidlythan assumedLow Pressure on renewals budgets HighFuture levels of capital expenditurewould be adjusted downwards tocompensateFAR NORTH FUTURE PLAN 2009-2019 97

wastewaterkey risksriskassessedlevel of riskmitigationlevel ofrisk aftermitigationAn upgrade programme is underway to increase emergency storage and/orprovide standby pumps at critical pumping stations in the network to 12 hoursContamination caused by sewage overflows as a result ofindividual pumping station failuresExtremeTwo standby generators have been installed in the network, one on Waitangimajor, the other at Kawakawa. The Kawakawa generator is mobile and can bedeployed elsewhere if necessary. A separate risk event outlines the risk of aprolonged power outageHighEmergency storage has been installed at Waitangi Major and Williams Road carpark pumping stations in Paihia and at 1 pumping station in the East Coast.Additional storage will shortly be provided in Kaeo"FNDC's new Resource Consent requires changes to dischargelevelsHighIdentify industry advances in treatment procedures that might reduce eithervolumes or level of environmentally impacting dischargeHighContamination caused by sewage overflows from pipe breaksor network floodingHighReplace failing infrastructurePlanned maintenance and pipe renewal programmes, based on importance ofasset and risk of failure are now implemented"HighPower failures affecting sewage treatment plants and pumpingstationsHighSet up access to additional generators when required (short term) Increase levelof storage at pumping stations ((long term)HighProlonged District-wide power outageHighArrange for guaranteed supply of generators. Emergency Response plan is underdevelopmentMediumCouncil Employee or member of public falls into treatmentpond or tankHighA structured Health and Safety Audit is underway for each site to identify andmitigate hazardsImproved fencing and signsMedium98FAR NORTH FUTURE PLAN 2009-2019

wastewatersignificant negative effectspotential negative effecthow we are addressing thisThe cost of operating and/or improving the infrastructure may exceed the community’sability to payConsulting with the community on all costs and options for levels of service via the LTCCPprocessThe inability of the infrastructure to meet the demand for water may cause difficulty andhardship in the communityPoor quality water or interruptions to supply could impact on public healthImplementing programmes of plant and system improvements and reducing leakage fromthe reticulation systemImplementing programmes of plant and system improvementsFailure or disruption of the service may cause difficulty and hardship in the communityContinuing programmes of plant and system improvements and planned maintenance.Making effective use of improved telemetry systemFAR NORTH FUTURE PLAN 2009-2019 99

wastewaterPUBLIC wastewATER ASSESSMENTS –SUMMARY OF FINDINGSThe tables below represent public wastewater systemsthat are presently owned and managed by the Far NorthDistrict Council.summaryThe Public SystemThe total usually resident population of the Far NorthDistrict is 55,845 (2006 census). The Council owns andmanages 17 separate wastewater systems.All these public systems have a piped sewerage network(reticulation), which connects to a variety of centralisedtreatment works that process the wastewater andthen discharge the treated wastewater onto the land orthrough wetlands or direct into watercourses.A summary of the public systems is shown in the tablebelow:The total usually resident population of the Far North District is 55,845 (2006 census). The Councilowns and manages 17 separate wastewater systems and full details of each of these publicsystems are shown separately in the relevant Appendix ‘X’ which is a separate set of documentsX1 to X17 covering the 17 public wastewater systems.All these public systems have a piped sewerage network (reticulation), which connects to a varietyof centralised treatment works that process the wastewater and then discharge the treatedwastewater onto the land or through wetlands or direct into watercourses. A summary of the publiccommunities systems is shown with in Table public A1 below: wastewatersystemsTable A1: Communities with public wastewater systemsCommunity PopulationServed(winter) 1Length ofReticulationkm 2DepreciatedReplacementValue ($,000)inc. land 2ReplacementValue($’000) inc.land 2No ofConnections(from the rateaccount)Method ofTreatmentAhipara 1,034 17.9 3,473 5,420 427 Oxidation ponds &wetlandsAwanui 400 5.2 1,328 2,443 122 Activated sludge,filter, UV & wetlandsEast Coast 2,080 51.6 10,914 15,595 1129 Aerated ponds &wetlandsHihi 312 4.3 993 1,723 140 Activated sludge &wetlandsKaeo 556 10.7 1,572 3,204 156 Oxidation ponds &wetlandsAnnualDischarge 3Volumes m 3Dischargevolume perConnection(m 3 /year)54,977 12942,969 352156,436 13926,196 18792,080 590Kaikohe 4,271 37.3 6,247 12,147 1386 Oxidation ponds & 676,024 488wetlandsKaitaia 5,327 48.6 6,536 16,869 2011 Oxidation ponds 1,171,593 583Kawakawa 1,608 13.4 5,608 7,989 512 Bio reactor, filter, UV& wetlandsKerikeri 2,115 25.4 7,165 9,541 743 RBCs,sedimentation, UV &wetlandsKohukohu 230 5.1 619 1,290 77 Oxidation ponds &wetlandsOpononi 700 12.7 2,398 3,856 298 Aerated pond andwetlandsPaihia 3,780 48.6 17,219 23,659 1,456 Oxidation ponds andwetlandsRangiputa 72 2.5 733 1,079 74 Oxidation ponds andground disposalRawene 592 10.0 2,163 3,443 213 Oxidation ponds andwetlands111,347 217147,325 19811,785 15355,615 187602,663 4140 075,112 353Russell 1,781 17.2 7,105 8,335 300 SBR, filter, UV and 75,608 252borehole dischargeWhangaroa 150 0.7 237 379 10 No treatment 0 0Whatuwhiwhi 464 26.6 5,437 7,429 524 Aerated pond andwetlands36,450 70District wide 423 610TOTAL 25,472 337.8 80,170 125,011 9,578 3,336,179 351 41Population figs are from the 2006 census2 Lengths and valuations are those from the July 2008 valuation of commissioned assets3 Discharge volumes are for the year July 2007-June 20084 Discharge per connection ignores connections for Rangiputa and Whangaroa100FAR NORTH FUTURE PLAN 2009-2019

wastewaterprivate wastewater assessments –summary of findingsA summary of all private wastewater systems is shown below:a) Estimated total number of normally resident people whose propertiesare not currently able to be connected to a reticulated wastewatersystem (includes all rural properties):b) Communities within Far North District that are not fully served by areticulated public wastewater system. (In areas that are part servedby a public system the estimated remaining population not servedis included in the figures below).Around 31,000There are also around 140 small, private wastewater systems, comprisingschools, campgrounds, marae and hospitals.Name of Community - Based on Census Area Units (CAU) &2006 census figsEstimated Population Not Served by PublicSystemKarikari Peninsula-Maungataniwha 1,080Herekino 1,950North Cape 501Houhora 837Motutangi-Kareponia 1,755Kaeo 0Mangapa-Matauri bay 2,646Hokianga North 1,962Hokianga South 2,607Kerikeri 3,656Russell 67Opua East 104Moerewa 1,536Opua West 129Bay of Islands 18Kapiro 2,445Waitangi 792Pokere-Waihaha 2,490Okaihau 717Ohaeawai 711Waihou Valley-Hupara 2,952Ngapuhi-Kaikou 2,514Inlet-Hokianga Harbour 3Total 31,478c) Wastewater is generally collected and disposed of in theseunreticulated areas by septic tanks but there are also properties thatstill use long drops.d) General issues relating to private wastewater systems: In a number of areas of the Far North the privatewastewater systems (mainly septic tanks) are failing.In some cases this is due to lack of adequatemaintenance by the owners but there are also manysystems that need to be replaced. Due to the groundconditions and section size this replacement will haveto include the possibility of some form of reticulationand centralised treatment for public health andenvironmental reasons.FAR NORTH FUTURE PLAN 2009-2019 101

Refuse and RecyclingKey facts•• Council operates and maintains:o 14 Refuse Transfer Stationso Landfills at Ahipara and Russello Resource Recovery Centre at Kaitaia.Why we do itOur vision is for the Far North to waste nothing of valueor use, that the amount of waste generated in the FarNorth is kept to a minimum and maximum value isrealised from our renewable resources.Our refuse and recycling services contribute to that byproviding the facilities and opportunities enabling thecommunities in the district to dispose of their waste soas to minimize the harmful environmental effects andmaximize recycling.Council is involved in refuse and recycling because theeffective management of refuse and recycling is necessaryto protect public health and the environment.Contribution to Community OutcomesPUBLIC HEALTHENVIRONMENTProvide waste disposal and recycling facilitiesProvide waste disposal and recycling services andencourage reduction in waste sent to landfills102FAR NORTH FUTURE PLAN 2009-2019

efuse and recyclingRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Constructed a new resource recovery centre in Kaitaia•• Installed 5 Molok Recycling Bins•• Implemented kerbside recycling collections in the Kerikeri/Waipapaareas in July 2008•• Implemented kerbside recycling•• Provided education modules on Waste minimizationand environmental awareness in 65 schools in theDistrict.what we have not achieved since thelast planSince 2006 Council has not achieved thefollowing:•• Constructed a new resource recovery centre atKerikeri – this is deferred pending the outcome ofthe trial of kerbside recycling in the Kerikeri area.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsNeed to provide security to meet long term disposal requirementsWaste minimisation bill requiring minimization of waste to landfill and imposing a levy interms of $/tonne of waste disposed of at landfillChanging transport / fuel costsChanges in market value of recyclablesRequires consideration of disposal options and minimisation of the amount of waste sent tolandfillIncrease in costs due to the waste levyRequires recycling and education programmesMust be addressed as part of considering future landfill options as location impacts ontransport costsMay restrict materials that can be recycledChanges in community expectations regarding refuse and recycling servicesExpectations may not be affordable for the communityFAR NORTH FUTURE PLAN 2009-2019 103

efuse and recyclingWhat you have told us•• Our most recent residents’ survey showed a 71%satisfaction rating for refuse disposal services. Satisfactionratings have been on the increase since 2003 andthe recorded level of satisfaction is higher than forother similar councils and above the national satisfactionlevel. Those Far North residents who expresseddissatisfaction focused on costs and facilities•• Satisfaction with recycling services is 75%, which ishigher than the rating for other similar councils, thoughbelow the national average. Far North residents expressingdissatisfaction were concerned about the lackof recycling facilities in their area.What we plan to doObjective 1: Work towards meeting long-term wastedisposal needs by:o Exploring disposal options for the district, includinga regional landfill in Whangarei DC and possiblesites for large landfill within the district.Objective 2: Increase waste recycling by:o Improving access to recycling services across thedistrict – increasing kerbside recycling, providing“Molok” kerbside local recycling units and resourcerecovery centres, and extending the range of recycledmaterials (subject to the market in recyclables).Objective 3: Encourage environmental awareness andwaste minimisation and reduce our impact on the environmentby:o Continuing to provide information, support andadvice to the community on ways they can reducethe waste they generate.Objective 4: Manage costs by:o Using available space in the current landfills in theDistrict where cost effective until the long termwaste disposal option is operationalo Reviewing the status of Russell landfill.Objective 5: Update relevant plans and bylaws by:o Reviewing Solid Waste Bylaw and Solid WasteManagement Plan by 2010o Introducing a Waste Licencing Bylaw.104FAR NORTH FUTURE PLAN 2009-2019

efuse and recyclingLEVELS OF SERVICE PROVISIONtEN YEAR PLAN MEASURES AND LEVELS OF SERVICeKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetImprovements inrecycling facilitiesIncrease amount ofwaste that is recycledEnvironmentPublic Health% by tonnage ofwaste that isrecycled/reused46% 49% 52% 55% 58% 61% 64% 67% 70% 70% 70%Introduction ofgreenwasteprocessingImplementation ofenvironmental awarenessprogrammeReduce volumesdisposed of in landfillsEnvironmentPer capita volumeof refuse fromDistrict disposed ofat landfills1.64m3 1.62 1.58 1.55 1.52 1.49 1.46 1.43 1.40 1.37 1.34General improvementsin the refuseserviceImprove customersatisfaction with therefuse serviceEnvironmentPublic Health% respondents verysatisfied /satisfiedwith refuse service inCommunitrak survey71% 71% 71% 75% 75% 75% 80% 80% 80% 85% 85%Improvements inrecycling facilitiesImprove customersatisfaction with therecycling serviceEnvironment% respondents verysatisfied /satisfiedwith recyclingservices inCommunitrak Survey75% 75% 75% 80% 80% 80% 85% 85% 85% 90% 90%FAR NORTH FUTURE PLAN 2009-2019 105

efuse and RecyclingKey assumptionsASSUMPTIONwhat may happeninsteadlikelihoodimpactfinancialimplicationsMITIGATIONPopulation growth is in accordancewith the growth strategy forecastsActual level of growthhigher than assumedActual level of growthlower than assumedMediumMediumInsufficient capacity availableInfrastructure not fully utilised inperiod of planLowLowGrowth trends are kept under regularreviewGrowth is expected to occur over timePer capita generation of waste disposedof to landfill reduces by 2% a yearPer capita generation of recyclablesincreases by 5% a yearHigher than anticipatedwaste volumesLower than anticipatedrecyclingMediumMediumPressure on landfill resources andincreased costsAs aboveMediumMediumRecycling education, recyclingcampaigns, and increase in recyclingfacilities / schemes e.g. kerbsidecollectionAs above106FAR NORTH FUTURE PLAN 2009-2019

efuse and recyclingKey risksrisk current rating mitigation rating after mitigationInsufficient further recycling facilitiesHighRefuse and recycling facilities are currentlyunder review by CouncilHighSignificant increase in number of illegaldumpings and abandoned vehiclesHighOffer incentives offered to residents tobring old cars to the Refuse TransferStationsDevelop promotional and educationalprogrammeMediumPublic health risks at landfills and RefuseTransfer StationsHighContinually review site specific Health andSafety proceduresHighLack of suitable disposal sitesHighInvestigate out of district and in districtoptiionsMediumContamination from closed landfillsunknownHighIdentify all known closed landfill sitesthrough a desk top exercise and developpost closure management plansMediumCustomers not prepared to pay rubbishdisposal chargesHighPromote any increase in charges sufficientlyand in a timely mannerMediumFAR NORTH FUTURE PLAN 2009-2019 107

efuse and recyclingsignificant negative effectspotential negative effecthow we are addressing thisLocation of disposal/recycling facilities may attract community oppositionResearching most appropriate and cost effective locations and taking account of communityviews in deciding locationsInability to deal with waste and recyclables generated may cause difficulty and hardship tothe communityEnsuring that adequate services are providedSummary of Solid Waste ManagementPlanIn accordance with section 3 Schedule 10 of the LocalGovernment Act 2002, the following section summarisesCouncil’s existing Solid Waste Management Plan.The Council’s goal is to assist the community to protectpublic health and to protect the environment by providingfor the reduction, recycling and disposal of solid waste by:Waste reduction•• Developing public awareness of the importance ofwaste prevention and to encourage people to preventwaste at source•• Encouraging the reduction in the amount of food andgarden waste put into landfills•• Allocating funding to waste minimisation.Recycling•• Encouraging recycling so as to reduce the amount ofwaste going into landfills. The markets for recyclablesare varied. Bins for recyclables are provided at allGroup 1 and 2 transfer stations. Products able to berecycled at transfer stations from time to time,depending on the market of recoverables, are:o Glass – clear, green, brown (not window glass)o Paper and cardboardo Plastic – HDPE (milk bottles), PET (soft drink) threecolourso Aluminium and alloyso Ferrous metals.Collections•• Facilitating efficient refuse collection and/or transferservice operation for the Far North district.Disposal•• Ensuring safe, economic and environmentally soundrefuse disposal in landfills.Hazardous waste•• Encouraging the safe collection and specialised disposalof hazardous waste.Monitoring•• Monitoring the performance of the Waste ManagementSystem in terms of its effectiveness, efficiency andimpact on the environment.108FAR NORTH FUTURE PLAN 2009-2019

Financials – Water and Waste ManagementFINANCIAL FORECASTSThe tables that follow show:•• Ten year projections of operating income and expenditure•• Forecast capital expenditure and funding followed bya breakdown of capital projects by ward, the latterreflecting Council’s plans to increase asset capacityin response to cater for additional demand and / orimproved levels of service.Overall positionBoth the water and wastewater accounts are in deficitreflecting decisions of past Councils not to impose levelsof charges required to break even. This position is notsustainable over the longer term because Council hasto make adequate provision for the maintenance andrenewal of the infrastructure involved. Council is thereforereviewing the level of charges as part of this LTCCPprocess.Added to this the capital expenditure proposals set outin this plan to support the development of the districtwould add further to district-wide charges.Council recognises the need to get the balance rightbetween the benefits that new reticulated systems wouldundoubtedly bring and a reasonable level of user charges.It aims to tackle these issues by:•• Challenging unnecessary costs associated with the developmentof new systems e.g. the huge costs imposedby RMA resource consent processes•• Seeking Government support for both the initial costsof the infrastructure and the ongoing costs of maintainingand renewing it•• limiting capital expenditure to the absolute essentials•• Considering the use of alternative funding sources e.g.receipts from surplus property sales.water chargesIn considering future water charges Council has takenaccount of the following key factors:•• The quantity of water sales is not increasing as rapidlyas anticipated in previous budget forecasts•• There is a need to recover previous years’ deficits onthe water account. For a number of years Council hasartificially kept the price of water low to avoid largerate increases. This has resulted in an operating deficitof over $2.5 million. Following a decision of Councilit has been agreed that the operating deficit will berecovered over the next 10 years•• Whilst Council has endeavoured to limit future capitalexpenditure during the current downturn there is stilla need to undertake a substantial amount of spendingto comply with Resource Consents and New ZealandDrinking Water standards. The following table showsthe change in the expenditure requirements for waterfor the period 2009 to 2019. As can be seen there isa 20% increase proposed for the 2008/09 year with alower increase for the following years.year Required $thousands2008/092009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19$ 6,258$ 7,511$ 7,727$ 8,073$ 8,289$ 8,515$ 8,429$ 9,181$ 9,871$ 9,761$ 10,140% change20%3%4%3%3%-1%9%8%-1%4%The effect of the increased funding demands has led toa requirement for increased rating levels. The followingsteps have been taken to determine the rating levels:•• The 10% discount has been cancelled and instead a10% penalty will be added for late payment•• The operating deficit will be recovered over 10 years•• The fixed line fee has been increased from $109 to$200 per rating unit. It will subsequently increase by3% pa thereafter.FAR NORTH FUTURE PLAN 2009-2019 109

water and waste managementThe rating effect of these steps is shown in the next table:wateryear LINE CHARGE charge percubic metre2008/092009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19This is the equivalent of a 139% increase in the linecharge and a 18% increase in the meter charge over the10 years 2009/2019.Sewerage Charges$ 109$ 200$ 206$ 212$ 219$ 225$ 232$ 239$ 246$ 253$ 261$2.52$2.69$2.70$2.77$2.78$2.78$2.65$2.88$3.08$2.94$2.98Like water, wastewater rate increases have been limitednotwithstanding the increasing costs. In the case ofwastewater, there was an operational surplus which wasused to keep the rating costs low. That surplus has nowbeen exhausted so it is necessary to increase the seweragecharges to compensate.The effect of the increased funding demands has led to arequirement for increased rating levels.Council also needs to ensure that future charges takeaccount of projected capital expenditure requirements.Whilst the latter are being limited to meeting changingenvironmental standards they will nevertheless be substantialover the life of this plan. The following table showsthe change in the expenditure requirements for wastewaterfor the period 2009 to 2019:wastewateryear Required $thousands2008/092009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19$ 7,176$ 8,934$ 9,690$ 10,481$ 10,750$ 11,278$ 12,180$ 12,417$ 12,945$ 13,321$ 13,606% change24%8%8%3%5%8%2%4%3%2%Taking these factors into account Council has implementedthe following changes in sewerage charges:•• The number of “free” pans available to commercialproperties will be reduced from 3 to 2,•• The additional pan charge will be increased from 44%to 60%The rating effect of these steps is shown in the next table.year LINE CHARGE % change2008/092009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19$ 606$ 702$ 755$ 810$ 825$ 859$ 921$ 931$ 963$ 984$ 99716%8%7%2%4%7%1%3%2%1%This is the equivalent of a 65% increase in the years2009/2019.Council intends to consider and consult on other optionsfor wastewater charges over the coming year.russell wastewater schemeCouncil specifically requested that the rating impact ofthe Russell Wastewater scheme be separately identifiedin the draft LTCCP. The reason for this relates to thespecial nature of and the way that this scheme is currentlyfunded.Council recognised that this was a difficult and controversialissue so sought submissions on how the Russellsewerage funding shortfall should be addressed.Following consultation, Council has decided to continueto use the current district-wide funding mechanism.110FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsUnder the Development Contributions Policy any newconnection to the Russell wastewater scheme will requirethe payment of the appropriate contributions. When therating policy changed in 2006, Council gave Russell propertyowners a period of three years to connect lots thatwere created prior to 30 June 2006, without becomingliable for the contributions.As a result of submissions the exemption period has beenextended to 30 June 2010.Asset ManagementTo provide the asset capacity required to meet this activity’sobjectives Council is planning new capital expenditureover the period of this plan. The detail of this, togetherwith funding information is shown below under “CapitalProjects by Ward”.In line with the requirements of Schedule 10 of the LocalGovernment Act 2002 Council has undertaken detailedanalysis of the costs of costs of asset maintenance,renewal and replacement. This analysis is contained inasset management plans that supplement this LTCCP andrelevant expenditure is included in the tables below.In respect of asset replacement and renewal:•• Water and wastewater renewals and replacements:o Resource consents are scheduled to be renewed atthe expiry of the existing consento Annual provision is made to renew minor works asrequiredo Major upgrades which include the renewal of exist-ing assets are included in ‘New Works’ with therenewal component separately funded from depreciationreserves•• Refuse renewals and replacements: Renewal of assetsto be replaced has been programmed consistent withthe financial asset register replacement valuations andasset expiry dates.Renewal funding is firstly drawn from available depreciationreserves. Where reserves are diminished, short termloan funding is used. Short term loan funding is programmedto be repaid by depreciation funding in ensuingperiods.FAR NORTH FUTURE PLAN 2009-2019 111

udget and capital projectsCONSOLIDATED WATER, WASTEWATER AND REFUSEPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIncome4,813 Rates - General 4,644 4,788 5,235 5,424 5,519 5,623 5,715 5,828 5,950 6,06713,572 Rates - Targeted 16,443 17,414 18,570 19,036 19,789 20,605 21,594 22,811 23,077 23,741223 Rates - Penalties 231 238 244 250 256 262 268 275 281 2891,415 Fees & Charges 2,376 2,534 2,021 2,157 2,177 2,210 2,244 2,278 2,316 2,354825 Subsidies Capital 2,293 2,076 3,736 2,783 450 2,250 180 0 0 02,745 Development Contributions 2,550 2,508 2,431 2,342 2,267 2,208 2,123 1,624 1,543 1,456113 Other Income 4 4 4 4 4 4 4 4 4 523,706 Total Operating Income 28,541 29,562 32,241 31,996 30,462 33,162 32,128 32,821 33,171 33,911Direct Costs425 Landfills 866 895 697 390 24 25 25 26 27 27115 Recycling & Waste Minimisation 165 192 197 202 206 211 216 222 227 233611 Refuse District Wide Operations 583 603 618 634 650 666 683 701 721 7410 Septic Tank Response 2 2 2 2 2 2 2 2 2 2204 Special Collections 173 179 184 188 192 197 202 207 212 2173,606 Transfer Stations 3,737 3,864 3,956 4,507 4,964 5,068 5,174 5,283 5,400 5,520659 Wastewater District Wide Operations 598 618 635 653 669 687 705 726 748 7703,430 Wastewater Schemes 3,271 3,413 3,581 3,703 3,815 4,118 4,308 4,463 4,626 4,811581 Water District Wide Operations 605 624 642 659 676 694 712 733 755 7783,314 Water Schemes 3,320 3,473 3,557 3,642 3,726 3,466 3,987 4,083 4,186 4,4833,867 Interest 4,619 5,092 5,405 5,257 5,326 5,532 5,411 5,156 4,982 4,7794,471 Depreciation 5,000 5,651 6,083 6,494 6,908 7,290 7,633 7,901 8,264 8,54321,284 Total Direct Operating Expenditure 22,940 24,606 25,557 26,331 27,157 27,956 29,059 29,503 30,149 30,904112FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCONSOLIDATED WATER, WASTEWATER AND REFUSEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIndirect Costs629 Corporate Costs 394 408 419 426 434 444 453 464 476 488171 Provisions 177 183 187 192 196 201 206 211 216 22188 Rating Costs 204 211 217 223 228 234 239 246 253 261888 Total Indirect Costs 776 802 823 840 858 878 898 921 945 97022,172 Total Operating Expenditure 23,716 25,408 26,380 27,171 28,015 28,834 29,956 30,424 31,093 31,8741,534 NET SURPLUS/(DEFICIT) 4,825 4,154 5,861 4,825 2,447 4,328 2,172 2,397 2,078 2,037STATEMENT OF SOURCE AND APPLICATION OF FUNDSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sCAPITAL STATEMENT1,534 Net Surplus/(Deficit) 4,825 4,154 5,861 4,825 2,447 4,328 2,172 2,397 2,078 2,0374,420 Loan 10,360 8,368 4,112 6,418 7,650 3,102 1,346 2,140 1,742 3,3274,976 Contribution Funding 796 312 128 329 566 179 0 237 159 3582,866 Depreciation Funding 4,470 4,485 4,283 4,422 4,809 4,859 5,004 4,665 4,581 4,3220 Reserve Funding 953 498 546 463 418 499 412 818 498 4572,041 Appropriation to Reserves (2,532) (2,078) (2,125) (2,042) (1,997) (2,078) (1,992) (2,397) (2,078) (2,037)15,837 Total Funding 18,871 15,740 12,805 14,415 13,891 10,889 6,942 7,859 6,981 8,464Capital Expenditure13,087 Capital Projects 16,350 12,826 9,619 11,183 10,499 7,284 3,362 4,391 3,579 5,1451,720 Debt Repayment 2,522 2,914 3,186 3,233 3,392 3,605 3,580 3,468 3,402 3,31914,807 Total Capital Expenditure 18,871 15,740 12,805 14,415 13,891 10,889 6,942 7,859 6,981 8,4641,030 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0FAR NORTH FUTURE PLAN 2009-2019 113

udget and capital projectsCAPITAL PROJECTS BY WARDWATER, WASTEWATER AND REFUSEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19REFUSENEW WORKSDistrictTransfer StationsDistrict Wide Install Health Safety and Security 20,000 10,000 20,000 10,000 5,000 5,000 5,000 5,000 5,000 5,000District Wide Recycling Facilities 30,078 0 0 0 0 0 0 0 0 0District Wide Transfer Station Upgrades 25,000 26,000 24,999 27,999 25,000 30,000 19,999 25,001 29,999 24,999District Total 75,078 36,000 44,999 37,999 30,000 35,000 24,999 30,001 34,999 29,999EasternTransfer StationsRussell Recycling Facilities 0 50,000 0 0 0 0 0 0 0 0Russell Refuse Transfer Station 0 0 0 69,998 0 0 0 0 0 0Eastern Total 0 50,000 0 69,998 0 0 0 0 0 0NorthernLandfillAhipara Ahipara Landfill 300,000 0 249,996 0 0 0 0 0 0 0Transfer StationsHouhora Refuse Transfer Station 50,000 0 0 0 0 0 0 0 0 0Taipa Recycling Facilities 50,000 0 0 0 0 0 0 0 0 0Northern Total 400,000 0 249,996 0 0 0 0 0 0 0NEW WORKS Total 475,078 86,000 294,995 107,997 30,000 35,000 24,999 30,001 34,999 29,999RENEWAL WORKSDistrictLandfillDistrict Wide Landfills Pumps and Security Renewals 12,771 0 0 18,901 0 6,232 69,517 0 9,706 0Transfer StationsDistrict Wide Transfer Station Renewals 55,200 35,000 68,699 109,998 58,702 50,000 29,998 40,001 220,495 113,495District Total 67,971 35,000 68,699 128,899 58,702 56,232 99,515 40,001 230,201 113,495114FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDWATER, WASTEWATER AND REFUSEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19RENEWAL WORKS Total 67,971 35,000 68,699 128,899 58,702 56,232 99,515 40,001 230,201 113,495REFUSE TOTAL 543,049 121,000 363,694 236,896 88,702 91,232 124,514 70,002 265,200 143,494WASTEWATERNEW WORKSDistrictWastewater SchemesDistrict Wide Reticulation Extensions 0 0 94,999 0 0 95,002 0 0 94,997 49,998District Wide Telemetry Upgrades 400,000 50,000 24,999 24,999 0 0 0 0 0 0District Total 400,000 50,000 119,998 24,999 0 95,002 0 0 94,997 49,998EasternWastewater SchemesKaeo Spill Management Programme 0 0 0 76,998 128,004 0 0 0 0 0Kawakawa Inflow & Infiltration Improvements 0 0 10,000 189,995 1,000,031 0 0 0 0 0Kerikeri Bay Of Islands Core Infrastructure 0 370,000 389,994 3,049,923 3,500,611 500,006 0 0 0 0Kerikeri Bay Of Islands Kerikeri Township 0 0 0 0 0 0 0 400,014 1,199,970 3,199,875Kerikeri Bay Of Islands Waipapa Area 0 0 0 0 0 0 0 0 199,995 86,997Paihia Reticulation Extensions 0 0 0 0 60,002 0 0 0 0 0Paihia Wastewater Subsidy Scheme 160,000 227,000 1,762,973 1,999,949 500,016 2,500,033 199,993 0 0 0Paihia Wastewater Treatment Plant Upgrade 2,235,000 2,300,000 699,990 0 0 0 0 0 0 0Russell Land Utilisation and Development 0 0 0 0 0 0 49,999 0 0 0Eastern Total 2,395,000 2,897,000 2,862,957 5,316,865 5,188,664 3,000,039 249,992 400,014 1,399,965 3,286,872NorthernWastewater SchemesEast Coast Pump Stations 0 0 0 0 0 0 0 0 0 239,990Kaitaia Wastewater Subsidy Scheme 1,308,000 1,281,000 3,171,952 1,980,949 0 0 0 0 0 0Rangiputa Legalise Pipe Easement 0 0 0 39,999 0 0 0 0 0 0Rangiputa Spill Management Programme 0 0 0 127,996 0 0 0 0 0 0Whatuwhiwhi Treatment Plants 4,780,000 900,000 0 202,994 1,437,045 550,008 0 1,313,048 288,992 0FAR NORTH FUTURE PLAN 2009-2019 115

udget and capital projectsCAPITAL PROJECTS BY WARDWATER, WASTEWATER AND REFUSEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19Northern Total 6,088,000 2,181,000 3,171,952 2,351,938 1,437,045 550,008 0 1,313,048 288,992 239,990WesternWastewater SchemesKaikohe New Schemes 1,600,000 1,300,000 0 0 0 0 0 0 0 0Rawene Treatment Plants 878,000 1,892,000 59,999 711,983 1,000,031 0 0 168,006 0 0Western Total 2,478,000 3,192,000 59,999 711,983 1,000,031 0 0 168,006 0 0NEW WORKS Total 11,361,000 8,320,000 6,214,906 8,405,785 7,625,740 3,645,049 249,992 1,881,068 1,783,954 3,576,860RENEWAL WORKSDistrictWastewater SchemesDistrict Wide Minor Works 750,000 749,999 749,988 749,981 750,023 750,010 749,972 750,027 749,981 749,971District Total 750,000 749,999 749,988 749,981 750,023 750,010 749,972 750,027 749,981 749,971EasternWastewater SchemesRussell Resource Consents 20,000 300,000 249,996 0 0 0 0 0 0 0Eastern Total 20,000 300,000 249,996 0 0 0 0 0 0 0NorthernWastewater SchemesEast Coast Resource Consents 133,000 100,000 0 0 0 0 0 0 0 0Northern Total 133,000 100,000 0 0 0 0 0 0 0 0WesternWastewater SchemesRawene Resource Consents 132,000 0 0 0 0 80,001 0 0 0 0Western Total 132,000 0 0 0 0 80,001 0 0 0 0RENEWAL WORKS Total 1,035,000 1,149,999 999,984 749,981 750,023 830,011 749,972 750,027 749,981 749,971WASTEWATER TOTAL 12,396,000 9,469,999 7,214,890 9,155,766 8,375,763 4,475,060 999,964 2,631,095 2,533,935 4,326,831116 FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDWATER, WASTEWATER AND REFUSEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19WATERNEW WORKSDistrictWater SchemesDistrict Wide Health and Safety Improvements 25,000 25,000 24,999 24,999 24,999 25,000 25,000 25,000 25,001 25,000District Wide Reticulation 0 0 0 179,998 0 0 0 159,999 160,004 0District Wide Telemetry 300,000 50,000 24,999 24,999 0 0 0 499,997 0 0District Total 325,000 75,000 49,998 229,996 24,999 25,000 25,000 684,996 185,005 25,000EasternWater SchemesPaihia Reservoir 0 0 0 399,997 1,199,981 999,987 0 0 0 0Paihia Treatment 1,948,500 1,350,000 179,994 74,999 74,999 0 0 0 0 0Eastern Total 1,948,500 1,350,000 179,994 474,996 1,274,980 999,987 0 0 0 0NorthernWater SchemesKaitaia Treatment 0 0 0 0 89,999 809,990 1,350,011 404,998 45,001 0Northern Total 0 0 0 0 89,999 809,990 1,350,011 404,998 45,001 0WesternWater SchemesKaikohe Source 0 0 134,996 134,999 0 0 0 0 0 0Rawene Reservoir 0 40,000 599,980 0 0 0 0 0 0 0Rawene Reticulation 27,000 500,000 399,987 0 0 0 0 0 0 0Rawene Treatment 450,000 720,000 0 0 119,998 332,496 212,501 0 0 0Western Total 477,000 1,260,000 1,134,963 134,999 119,998 332,496 212,501 0 0 0NEW WORKS Total 2,750,500 2,685,000 1,364,955 839,991 1,509,976 2,167,473 1,587,512 1,089,994 230,006 25,000FAR NORTH FUTURE PLAN 2009-2019 117

efuse and RecyclingCAPITAL PROJECTS BY WARDWATER, WASTEWATER AND REFUSEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19RENEWAL WORKSDistrictWater SchemesDistrict Wide Minor Capital Works 500,000 500,000 499,983 499,996 499,992 499,993 500,004 499,997 500,013 499,987District Total 500,000 500,000 499,983 499,996 499,992 499,993 500,004 499,997 500,013 499,987EasternWater SchemesPaihia RC Renewal Source 50,000 0 49,998 99,999 0 25,000 25,000 0 0 49,999Paihia RC Renewal Treatment 0 0 0 0 0 25,000 50,000 25,000 0 0Eastern Total 50,000 0 49,998 99,999 0 50,000 75,000 25,000 0 49,999NorthernWater SchemesKaitaia RC Renewal Source 0 0 24,999 124,999 0 0 50,000 50,000 50,001 0Northern Total 0 0 24,999 124,999 0 0 50,000 50,000 50,001 0WesternWater SchemesRawene RC Renewal Source 110,000 50,000 99,996 224,998 24,999 0 25,000 25,000 0 99,998Western Total 110,000 50,000 99,996 224,998 24,999 0 25,000 25,000 0 99,998RENEWAL WORKS Total 660,000 550,000 674,976 949,992 524,991 549,993 650,004 599,997 550,014 649,984WATER TOTAL 3,410,500 3,235,000 2,039,931 1,789,983 2,034,967 2,717,466 2,237,516 1,689,991 780,020 674,984GRAND TOTAL 16,349,549 12,825,999 9,618,515 11,182,645 10,499,432 7,283,758 3,361,994 4,391,088 3,579,155 5,145,309118FAR NORTH FUTURE PLAN 2009-2019

District FacilitiesFAR NORTH FUTURE PLAN 2009-2019 119

Airports and MaritimeKey factsCouncil owns the following maritime facilities:•• 21 boat ramps•• 13 jetties•• 4 pontoons•• 6 wharves•• 1 tide grid.The following commercial airports are in the district:••Kaitaia – Crown owned, leased to Council and managedby Far North Holdings Ltd (FNHL)••Bay of Islands Kerikeri – owned by FNHL••Kaikohe airport – owned by FNHL and primarilyused as a recreational airportWhy we do itAccess to the sea is important to residents and visitors tothe district. Council provides maritime facilities to ensurethat safe, affordable and appropriately situated access isavailable.Airports are an important component of a moderntransport network and they provide a link to the rest ofthe country for the transportation of goods and people.Council has determined that FNHL is best placed to manageand develop the district’s airports.Contribution to Community Outcomestransporteducation, training andbusiness opportunitiesPUBLIC SAFETY ENVIRONMENT SERVICES THAT SUPPORTCOMMUNITiesDevelop and maintain transportnetworks to enable access to,from and within the districtProvide facilities for touristsand visitors benefitting the localeconomy.Provide commercial airports importantto industry sectors suchas horticulture and agricultureEnsure that maritime assets aresafe for use by residents andvisitors in the districtFNHL ensures that industry safetyregulations and standards areconsistently applied across allfacilitiesMinimise the impact on the maritimeenvironment by monitoringand controlling the use of wharvesand other landing places, grids,pontoons, and trailer-boat launchingrampsFNHL ensures the effect of noisepollution on the airport environmentare within current standardsEnable easy access to the sea.This is an important reason thatresidents live in this districtAirports enable residents andvisitors to travel to and from thedistrict120FAR NORTH FUTURE PLAN 2009-2019

airports and maritimeRecent progress – what we haveachieved since the last planSince 2006 Council has:•• Up dated by-laws and undertaken a review of fees andcharges•• Completed a significant renewal program in Hokiangathat included installation of new pontoons at Kohukohuand Rawene, up-grading of landings at Omapereand Opononi, removal of the pontoon at The Narrowsand replacement with a fishing platform, and upgradesfor Mangunu and Te Karaka•• Undertaken car park extensions at Waitangi BoatRamp•• Refurbished the Marlin Jetty and Pontoon at Whangaroa•• Rebuilt the Tapeka point ramp after storm damage•• Undertaken major repair work on the Omapere ramp•• Improved the hardstand and ramp area at Mill Bay•• Installed a pontoon at Taipa•• Up-graded the jetty and installed a pontoon atWaipapa Landing•• Developed stage 1 of Windsor Landing boat ramp access•• Resealed Kaitaia main run way and up-graded airportbuildings.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesIncreasing demand for services from a growing population and increasing seasonal tourismClimate change is increasing the incidence of erosion and undermining of maritime facilitiesHigher environmental standardsExpectation of the provision of land-based facilities to service moorings and marinasIn response to national and international events it can be anticipated that regional airportsecurity will be increased over time by airport operatorsJet A1 fuel is not currently available at KaitaiaThe land at Kaitaia airport is under a land claim which is being considered by the Office ofTreaty SettlementsKaitaia Airport is likely to require Certification under Civil Aviation Authority Regulationswhere regular passenger aircraft in excess of 19 seats are used. It is likely Kaitaia will upgradeto larger domestic aircraft such as the Q300 within the horizon of this PlanImplicationsThe increased demand must be managed within available funding by delivering agreed levelsof service within existing budgets and the use of partnering and/or innovationCosts of maintaining maritime assets are increasingIncreased costs of complianceIncreased cost of improved effluent disposal systemsIncreased costs of complianceDemand is emerging and infrastructure will need to be providedLand ownership changes may influence airport operations, development and investmentCost of Certification will need to be metFAR NORTH FUTURE PLAN 2009-2019 121

airports and maritimeWhat you have told usThere has been no recent survey of residents or visitors.Past data from 2006 indicates a satisfaction level of58% with recreational jetties and boat ramps. In puttingtogether this plan Council has taken account of feedbackreceived in submissions to previous plans relating to bothmaritime and airports issues.levels of service provisionten year plan measures and levels of serviceWhat we plan to doObjective 1: Improve airport facilities by:•• Resurfacing the main runway at Bay of Islands Airport.Objective 2: Review and improve maritime structures by:•• Carrying out an engineering structural integrity surveyof all maritime structures, excluding the Hokiangastructures•• Implementing renewals to ensure that maritime facilitiesremain safe•• Completing minor structural maintenance at Te Karaka•• Developing a concept plan for an improved boat••launching facility at Opononi and considering theremoval of Omapere boat rampRemove boat ramp at Hihi and install suitable access toenable beach boat launching.What we don’t plan to do•• Council does not intend to continue to charge a maritimelicense fee (including mooring fee) for the use ofmaritime facilities. The fee has become uneconomic tocollect. Council will make up the funding shortfall formaritime improvements through normal capital fundingstreams.Key Project(s) /Initiative(s)How the project(s)/ initiative(s) willimpact on levels ofserviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetMaintain maritimeassetsEnsure the provision ofsafe, affordable and appropriatelysituated access tothe seaEducation, Trainingand BusinessOpportunitiesPublic SafetyServices thatSupportCommunitiesResidentsatisfaction withrecreationalboat ramps andjetties(CommunitrakSurvey)58%(2006survey)58% 58% 59% 59% 59% 60% 60% 60% 60% 60%EnvironmentMaintain airportassetsEnsure the provision ofsafe, affordable and appropriatelysituated airportsTransport andsame as aboveCustomersatisfaction withairports (UserSurvey)Newmeasure65% 65% 65% 65% 65% 65% 65% 65% 65% 65%122FAR NORTH FUTURE PLAN 2009-2019

airports and maritimekey assumptionsassumptions what may happen instead likelihood impactfinancialimplicationsMITIGATIONFNHL will continue to manage themaritime facilities under acontract arrangement and willmeet community expectationsFNHL’s prioritisation may notalways match communityexpectationsLowCouncil may need to provideadditional funding to meetcommunity expectationsMediumEffective communication betweenCouncil and FNHL to ensure keypriorities are agreed and metDiscontinuance of the maritimelicense fee will not impactdetrimentally on future maritimeimprovementsThere will be insufficient fundsfor required maintenance andup-gradesMediumAssets will decline unless an alternativefunding source is providedLowCouncil and FNHL will need toensure sufficient ongoing investmentin maritime facilitiesFAR NORTH FUTURE PLAN 2009-2019 123

airports and maritimekey risksRISK current rating MITIGATION rating after mitigationAir crash at Far North airportHigh(based on consequencenot likelihood)Strong adherence to, and continual review of, safety andemergency response proceduresHighAirport(s) unable to be used due to damage ordeterioration of runway or facilitiesMediumEnsure effective asset planning, maintenance andrenewalLowNew moorings planned by NRC require landbased facilities which FNDC may be forced tofundHighCouncil is liaising with the Northland Regional Councilto ensure affordabilityMediumSignificant negative effectspotential negative effecthow we are addressing thisIllegal dumping of rubbish or discharges into the sea causing environmental pollutionInsufficient parking provided on-site for some recreational facilities causing spill over ontoadjacent roadsProviding rubbish collection points at or near maritime assets (increasing collection duringpeak usage times) and supporting NRC in their role to monitor illegal dischargesCouncil continues to increase car parking near maritime facilities as usage increases124FAR NORTH FUTURE PLAN 2009-2019

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Cemeteries, Public Toilets and Town MaintenanceKey factsCouncil operates and maintains:•• 11 cemeteries•• 15 cemeteries run by committee•• 61 Public Toilets located strategically at 43 locationsthroughout the district• town maintenance services to 19 towns in the district.Why we do itCemeteriesCouncil carries out cemetery activities, as required bystatute, for the public good in those areas of the districtwhere the service is not provided by others.Public ToiletsCouncil provides Public Toilets for the benefit of publichealth.Town maintenanceThrough quality urban design and the provision and maintenanceof tidy, safe and attractive streetscapes Councilwill contribute to a sense of pride in our communities,and sense of place in our towns.Contribution to Community OutcomesEDUCATION, TRAINING ANDBUSINESS OPPORTUNITIESPUBLIC health ENVIRONMENT SERVICES THAT SUPPORTCOMMUNITiesTown Maintenance:Undertake mainstreet developments tocreate townscapes that are attractive forbusinesses and promote local economicdevelopmentCemeteries:Ensure provision of places of remembrancethat meet public health standardsPublic Toilets:Reduce public health risk through theprovision of toilets at key locations, that areclean, hygienic, and functionalTown Maintenance:Sweep the streets and keep them freeof litter to minimize health risks in towncentresPublic Toilets:Ensure that toilets are strategically locatedand the public feel safe using them, as theyhave open view access ways and haveadequate internal lightingTown Maintenance:Maintain and develop townships to createplaces that are less susceptible to crimeand enhance perceptions of public safetyCemeteries:Provide grave sites that are well presented,appropriately dressed and available on timeso as to lessen the burden on the bereavedPublic Toilets:Locate at least one public toilet facility(with disability facilities) in each townshipTown Maintenance:Ensure towns are tidy, safe and attractive126FAR NORTH FUTURE PLAN 2009-2019

cemeteries, public Toilets and Town MaintenanceRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:Town maintenance•• Undertaken mainstreet developments in Kerikeri,Kaitaia, Kaikohe and Kawakawa•• Undertaken a reclamation and townscape developmentat Mangonui•• Developed Urban Amenity plans for Kerikeri andKaitaia•• Implemented the Pride of Place programme to supportbeautification in Kerikeri, Kaitaia, Kaikohe, andKawakawa•• Increased the level of service provided by the CommunityServices contract by providing beach grooming,custodians and additional pavement cleans.Cemeteries•• Increased the standard of mowing at most cemeteries•• Continued cemetery developments in Kerikeri, Paihia,Kawakawa, Kaikohe and Russell and received fundingfrom Veteran Affairs to up-grade all servicemancemeteries•• Ensured the cenotaphs at Kaikohe, Whirinaki, Kohukohu,Kaitaia, Mangonui, Waipapakauri, Paihia, andKawakawa are well presented on ANZAC Day.Public toilets•• Constructed new toilets at Lilly Pond, Waipapa, TeHapua, Panguru, Hundertwasser (replacement) andAhipara township•• Up-graded toilets at Te Ngaire, Mangonui Hall, MelbaStreet, Coopers Beach, Cable Bay, Pukenui, Rawene,Foreshore Road, Ohaeawai, and Long Beach.What we haven’t achieved sincethe last planSince 2006 Council has not yet been able to progress/ complete the following:•• Marsden Road up-grade and Paihia service lane upgrade•• The Narrows toilet up-grade•• Kaitaia cemetery up-grade•• Cobham Road Kerikeri toilet up-grade.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsIncreasing operational costs (power, fuel, chemicals, labour)Increasing costs of the Community Services contract may require decreased level of serviceto remain within existing budgets. Council makes strenuous efforts in negotiations withsuppliers and contractors to achieve maximum value for ratepayer dollarsCommunity expectations for higher levels of service must managed along with Council’sdesire to minimise rate increasesAny reduction in budget will have a corresponding decrease in level of serviceResident satisfaction levels with cemeteries and public toilets are well below othercomparator groupsCouncil must seek to improve levels of service whilst maintaining budgetary prudenceFAR NORTH FUTURE PLAN 2009-2019 127

cemeteries, public Toilets and Town MaintenanceWhat you have told usOur most recent resident satisfaction survey showed that:•• Only 54% of residents were satisfied with the maintenanceof cemeteries and this compares with 75%satisfaction within our comparator group of councilsgroup. Those residents who expressed dissatisfactionwere focused on issues of maintenance•• Only 54% of residents were satisfied with the provisionof public toilets and this compares with 73% satisfactionwithin our comparator group. Those residentswho expressed dissatisfaction were focused on issuesof hygiene, opening hours and provision of toilets inareas with no current provision.What we plan to doObjective 1: Create a positive image of the district forlocals and visitors alike by:o Continuing mainstreet development in Kaitaia andKawakawa.Objective 4: Improve cemetery facilities by:o Extending the Kaitaia cemeteryo Investigating a possible cemetery site in Opononi/Omapere.What we don’t plan to doCouncil is not planning to:•• Dispose of the Melba Street toilets.Objective 2: Create a sense of pride in towns acrossthe district by:o Undertaking small town beautification at 13locations within the district.Objective 3: Improve toilet facilities across the districtby:o Upgrading toilets at Houhora Heads, Kaimaumau,Waipapa Landing, Cobham Road, Broadwood,Opononi and Russell Esplanade.128FAR NORTH FUTURE PLAN 2009-2019

cemeteries, public Toilets and Town MaintenanceLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)Improve cemeteryprovisionImprove toilet facilitiesHow theproject(s) /initiative(s) willimpact on levelsof serviceImprove cemeterystandardsImprove toiletstandardsCommUnityOutcomesPublic HealthServices thatSupportCommunitiesPublic HealthServices thatSupportCommunitiesEnvironmentPublic HealthMeasure% satisfied withcemeteryprovision inCommunitraksurvey% satisfied withpublic toilets inCommunitraksurveyToilets RFScompletion(urgent within 3hours non-urgentwithin 5 days)% of toilets thatcomply with NZS4241 1999 PublicToilet standardsBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19Target54% 60% 62% 65% 65% 65% 65% 65% 65% 65% 65%54% 54% 55% 56% 56% 57% 57% 58% 58% 59% 60%95% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%70% 70% 70% 70% 75% 75% 75% 75% 75% 75% 75%Improve townmaintenanceImprove the lookof our towns andpublic placesServices thatSupportCommunitiesBusinessOpportunitiesPercentage ofgraffiti removedwithin 48 hoursof reporting85% 90% 95% 95% 95% 95% 95% 95% 95% 95% 95%EnvironmentFAR NORTH FUTURE PLAN 2009-2019 129

cemeteries, public Toilets and Town MaintenanceKEY ASSUMPTIONSASSUMPTION what may happen instead likelihood impactCurrent levels of service will beable to be maintained when theCommunity Services contract isrenewedCost pressures may force reviewof levels of serviceMediumIncreased costs of the contract ordecrease in level of service to staywithin budgetFINANCIALIMPlicationsMediumMITIGATIONSingle contract tendering processand hard negotiation with shortlistedproviderKEY RISKSrisk current rating mitigation rating after mitigationDamage to public toilets from erosion ofcoastal and river marginsMajor pandemic leading to multiple fatalities andputting pressure on cemetery resourcesMedium Council has implemented material damage insurance cover MediumLow Contingency plans have been drawn up Low130FAR NORTH FUTURE PLAN 2009-2019

cemeteries, public Toilets and Town MaintenanceSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISPublic ToiletsEnvironmental damage due to failure of water supply or effluent fieldEconomic damage caused from general impressions that Council toilets are not meetingpublic health standards under NZS 4241 1999 Public ToiletsVandalism/ youth gang hang outs/drug takingReviewing all effluent fields annually to ensure they are effective and have capacityReviewing supply of water to ensure it has capacity for high summer usageVisiting high profile toilets regularly to ensure they are functioningRegular monitoring of toilets particularly high profile facilities in tourist townsImproving security and ensure prompt graffiti removalCemeteriesEnvironmental damage from possible leachates into waterways from cemeteriesReluctance to have a cemetery as a neighbourTown maintenanceMainstreet up grades can lead to higher numbers of youth hanging aboutEnsure compliance with resource consentsInclude, in resource consents, a clause on reverse sensitivity protecting the cemeteriesrights to operateCreating areas in towns less susceptible to crime and enabling people to feel morecomfortable when visiting and shoppingFAR NORTH FUTURE PLAN 2009-2019 131

Community ActivitiesCommunity Centres, Halls,Museums, Pensioner HousingKey factsWhy we do itCouncil operates and maintains:•• The Far North Community Centre•• 29 Community Halls•• 156 Housing Units for the Elderly Units•• 1 Museum – Far North Regional Museum.Council recognises the importance of accessible, affordable,safe, well-maintained and strategically located publicmeeting places across the district.Generally, Council is responsible for the exterior maintenanceof halls and the local management committee isresponsible for the management of the facility and interiormaintenance. The activity will focus over the nextthree years to look for opportunities to divest facilitiesback to the community where appropriate.Housing for the Elderly is designed to meet the needs ofpensioners of modest means.Contribution to Community Outcomesculture and heritageSERVICES THAT SUPPORTCOMMUNITiesProvide facilities that will showcase, communicate andpreserve cultural knowledgeMaintain and increase the cohesiveness of ourcommunities through the provision of these facilitiesProvide a safe gathering place for the community tointeract and hold events132FAR NORTH FUTURE PLAN 2009-2019

Community centres, halls, Museums, Pensioner HousingRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Replaced the roof on the Kohukohu Hall•• Fully repainted the interior of Kaikohe Memorial Hall•• Renewed the Kaingaroa Hall car park•• Completed an electrical upgrade at the Kaingaroa Hall•• Implemented a renewal program for Halls•• Fully repainted Rawene Town Hall•• Re-roofed Rawene Town Hall•• Re-roofed Totara North Hall•• Completed renewal of numerous pensioner housingunits, including repainting, recarpeting, replacement/ renewal of various fixtures and fittings and sundryother maintenance jobs.Recent Progress – What we haven’tachieved since the last planThe following projects have not proceeded asoriginally planned in 2006:•• Oruru Hall upgrade•• Kaitaia Community Centre re-roof – on hold pendingoutcome of the Te Ahu development•• Health and Safety improvements – Western Halls –This project was refocused to accommodate there-roofing of Rawene Town Hall.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesCouncil needs to balance maintenance and upgrade costs with what the community canafford. Council is hampered by its ability to rate sufficiently to bring some of the buildings /assets up to community expectations. The cost of depreciation provision for asset renewalis a significant burden on the budgetHall use has declined over recent years as a wider choice of venues is now available to thecommunityThere is a need for improved marketing / promotion of key facilitiesImplicationsIn the case of community halls these issues call for a fundamental reappraisal, in consultationwith the community, of Council’s role in owning, maintaining and promoting these facilities.A better solution may be for Council to divest certain halls to community ownership, whilstretaining a limited number of affordable strategic facilities that Council can own and manageeffectivelyIn the case of Housing for the Elderly as already signaled in previous plans Council isexploring options for divestment, which may offer a more sustainable future for the housingstock, whilst also safeguarding the interests of residentsFAR NORTH FUTURE PLAN 2009-2019 133

Community centres, halls, Museums, Pensioner Housingwhat you have told usPublic controversy over the future of the Kerikeri MemorialHall during the past year has highlighted the importancethat many in our community place on the retentionand availability of these sorts of facilities. Similar discussionsaround the Te Ahu development in Kaitaia have alsoserved to emphasise this point.At the same time the community expresses conflictingviews over the costs of maintaining a significant numberof halls across the district. Some feel it is appropriate touse ratepayer funds to rescue old and dilapidated buildings.Others feel that the time has come to move on andtake advantage of some of the newer facilities that havebeen developed, such as the Centre in Kerikeri and theproposed new facility in Kaitaia and that the old halls haveoutlived their usefulness.What we plan to doObjective 1: Develop a more robust approach to themaintenance and renewal of community facilities by:o Prioritising renewals on the key aspects of proper-ties that need to be addressed if alternative ownershopoptions are to be realistically considered.o Utilising appropriate expertise where and when re-quired to ensure a professional approach to buildingmaintenance and renewal issueso Putting out to tender regular preventative annualwork required on all facilities and also tenderingother relevant maintenance / renewal work.Objective 2: Develop a sustainable approach to themanagement and provision of community halls by:o Undertaking a review of alternative managementand/or ownership models for community facilitieso Working with hall committees and local communi-ties to determine wants, needs and expectations inrespect of their halls and to consider possible localinvolvement in running those facilitieso Identifying a limited number of facilities of strategicimportance to the community, which should remainin Council ownership and ensuring appropriatefinancial provision for the future maintenance andrenewal of those facilitieso Exploring with the communities concerned oppor-tunities for divestment of other halls to communityownership.Objective 3: Objective 3: Ensure adequate facilities areavailable for older people by:o Continuing to work with Housing New Zealand onthe future provision of housing for the elderly inorder to identify social providers who could takeover the provision of the service and then workingtowards a managed transition to an appropriateprovidero Considering other needs of older people in ourcommunity and identifying ways in which Council orother agencies can best respond to those needs.Objective 4: Support the development of key localcommunity centres by:o Making development contribution funding availableto support the Centre in Kerikerio Providing funding and logistical support for the TeAhu development in Kaitaia.What we don’t plan to do•• Apart from supporting the Te Ahu developmentCouncil has no intention of building or constructingany new hall facilities•• Following divestment of any community hall to a localcommittee Council will not take back the managementof that hall where a committee fails to continue.Rather assistance will be given to the community toestablish a viable committee so that the communityhas continued use of their facility•• Council does not intend to purchase any additionalHousing for the Elderly units.134FAR NORTH FUTURE PLAN 2009-2019

Community centres, halls, Museums, Pensioner HousingLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetHalls maintenanceand renewalReduce further riskof deterioration ofhallsServicesthat SupportCommunitiesCulture andHeritageCompletion ofpreventative andregular maintenancechecksand remedialwork within settimescale (2 daysurgent, 5 days noturgent)New 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%Reduction of RFSreceived annually400 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%Maintaining Housingfor the Elderly Unitsin good conditionMaintain value ofAsset and reduce riskof deteriorationServicesthat SupportCommunities% of faultsresponded to inset time (2 daysurgent, 5 daysnon-urgent90% 90.5% 91% 91.5% 92% 92.5% 93% 93.5% 94% 94.5% 95%FAR NORTH FUTURE PLAN 2009-2019 135

Community centres, halls, Museums, Pensioner HousingKEY ASSUMPTIONSASSUMPTIONwhat may happeninsteadlikelihoodimpactfinancialimplicationsmitigationCouncil will continue to maintainand renew a core number ofcommunity facilitiesAffordability may be an issuefor Council when looking atthe overall needs of the districtMedium Possible loss of local facilities MediumCouncil will pursue a strategyof brining maintenance and renewalneeds in line with forecast affordabilityand will explore divestmentopportunities with localcommunitiesHall committees will continue tomanage the interior workrefurbishment and bookingsOver time fewer people will beavailable to participate in a hallcommitteeMediumCouncil would be forced either to takeon the hall and manage it or close thedoorsMediumThis issue will be driven by localcommunity perceptions and theamount of input local people areprepared to provideKEY RISKSrisk current rating mitigation rating after mitigationFailure of community facilities due to inadequatemaintenance / renewalHigh / mediumCouncil is working on an achievable balance betweenmaintenance / renewal needs and affordabilityMedium / LowSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISLoss of community halls through inadequate maintenance renewal could have detrimentaleffect on community-based educational programmes, meeting places that promote socialcohesion, and places that represent or showcase our history / cultural heritageExploring future provision with local communities and identifying alternative options wherecurrent facilities are likely to be unsustainable136FAR NORTH FUTURE PLAN 2009-2019

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Community and Economic DevelopmentKey factsCouncil supports or manages a number of economicdevelopment initiatives including:•• The “Live Work Invest” promotional campaign andwebsite•• The “Buy Far North” promotional campaign and website•• The Business Navigation service•• Promotional and informational and multimedia displaysfor economic expos•• Four or more events annuallyContribution to Community OutcomesCouncil also:•• Administers external funding for Crime Prevention(from the Ministry of Justice)•• Facilitates community-based decision making forthe use of Small Town Beautification grants (and hasworked with 51 communities over the last four years)•• Produces three Community Development plans peryear•• Works with one disability group in each ward plus adistrict overview group•• Undertakes work on community outcomes and theirmonitoring.EDUCATION, TRAINING ANDBUSINESS OPPORTUNITIESpublic safety ENVIRONMENT SERVICES THAT SUPPORTCOMMUNITiesWork to strengthen the District economyand attract new business to the Far Northby promoting it as an investment destination.This includes working to ensure thatCouncil delivers on its promise to be abusiness friendly organisationSupport Civil Defence and related activitySupport community initiatives and facilitatecommunity activity in environmentalrestoration projects, renewable energy andsustainable land managementWork with communities to plan for thesustainable use of these key resourcesWork with businesses and educationproviders to ensure that appropriate andtimely skills training is available to thecommunity138FAR NORTH FUTURE PLAN 2009-2019

Community and economic developmentWhy we do itIn relation to economic development, Council works tocontribute to a strong, growing and sustainable Districteconomy that makes a tangible and positive difference tothe people of the Far North, with a particular focus onattracting investment to the District.In community development, Council brings together keydecision makers and funders to work on the sustainabledevelopment of local communities. The three keyenablers are:•• Helping communities to identify, agree and articulatetheir priorities and visions for the future•• Increasing the capacity of Council to contribute tocommunity wellbeing•• Working with Government and non–government organisationsto channel support to local communities.Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Completed 70% of projects specified in the local economicdevelopment strategy•• Developed a Live Work invest promotional campaign•• Developed a Buy Far North promotional campaign•• Developed a Live Work Invest Portable promotionaldisplay for use at tradeshows, expos and other suchevents•• Developed the Live Work Invest website(www.farnorthnz.com)•• Developed the Buy Far North website(www.buyfarnorthnz.com)•• Developed a business navigational capacity•• Secured $141,000 annual Ministry of Justice crimeprevention funding•• Completed 38 Small Town Beautification Projects•• Completed six Community Development Plans (Kohukohu,Ohaewai, Pukenui Houhora, Okaihau, Moerewaand Awanui)•• Progressed two other significant events to the planningstage – Sovereign Ocean Swim Series and the 2011Rugby World Cup•• Supported the Minerals Sector Group to develop theMinerals Resource Assessment – GNS Science report2006/07•• Obtained funding from Ministry of Social Development’sEnterprising Communities grant funding for thePioneer Village to employ a project manger.Recent Progress – What we haven’tachieved since the last planSince 2006 Council has not achieved the following:•• 30% of projects from the local economic developmentstrategy, mostly dependant on external funding or partnering,or as a result of changed circumstances•• Implementation of Council’s Social Development Plan•• Preparation of a Youth Development Plan•• A review and update to the Economic DevelopmentStrategy – as Council has provided a clear focus foreconomic development work going forward.FAR NORTH FUTURE PLAN 2009-2019 139

Community and economic developmentWhere are we now? – Key issues and challenges facing this ServiceIssues / challengesIncreased competition to attract investment – due to both the state of the global andnational economies and increased competition among regions:•• More difficult to attract investment and achieve a growing local economy•• Lifestyle positives of living in the Far North become of less relevance and attraction•• Small businesses will struggle to expand•• New businesses will be more difficult to set up without significant up-front capital•• Potential for businesses to relocate closer to major markets.Implications•• Need for promotion of district as a place to live, work and invest:o Awareness raising and establishment of a positive Far North profileo Effective communication with target marketso Efforts to overcome negative perceptions and perceived constraints to businessesrelocating to the District•• Buy Far North message takes on greater importance.Community engagement may raise expectations that cannot be delivered leading to:•• Dissatisfied communities•• Ongoing lack of trust between government and non-government stakeholders•• Exclusion of some segments of the community•• Potential for long-term division in the community.What you have told usThere have been no recent surveys of residents or visitors,however during the community outcome processone of the main issues for the community was whetheropportunities in the Far North are sufficient to attractskilled professionals to the district and to reduce thenumber of young people leaving the area.What we plan to doObjective 1: Support the economic development of theFar North and attract inward investment by :o Pursuing funding /investment opportunitieso Supporting new business opportunitieso Working with business associations and other keynetworkso Supporting Maori economic developmento Supporting work to develop a better understandingof the District’s minerals potential• Requires clarity during the engagement process over what is, and is not, achievable.o Supporting regional efforts to contribute to theeconomy of the districto Continuing to support initiatives to increase broad-band coverageo Working with Enterprise Northland and DestinationNorthland on joint projects to:øø Create an effective growth platformøø Raise capabilitiesøø Improve economic profileObjective 2: Continue the wider promotion of thedistrict by:o Marketing the Far North as a place to live, work andinvesto Building on the success of the Buy Far North cam-paigno Supporting preparations for Rugby World Cup 2011o Supporting key sporting events.Objective 3: Contribute positively to community developmentby:o Supporting small communities in the district to pro-duce Community Development Plans that set outtheir desired future directiono Working with 12 small towns a year to implement aSmall Town Beautification programmeo Developing and implementing a community out-come process for the 2012 Far North Future Plano Seeking to increase the amount of funding for FarNorth Communities from Central Government(Crime Prevention as an example)o Working with the Far North Disability ReferenceGroup to:øø Achieve a change in the Far North mindset tomake our district more disability friendlyøø Develop a district-wide Disability Strategyøø Establish a formal mechanism through which thegroup’s concerns and issues can be factoredinto Council processes and plans through theCommunity Boards.140FAR NORTH FUTURE PLAN 2009-2019

Community and economic developmentObjective 4: Work towards the improvement of fireservices by:o Investigating opportunities for integration of, andpartnership working between, urban and rural fireservices.What we don’t plan to doFor resourcing or other reasons there are no plans, atthis stage, to:•• Review and update the economic developmentstrategy•• Implement the Social Development Plan•• Continue the Council Cadet Scheme•• Develop a Youth Development Plan.FAR NORTH FUTURE PLAN 2009-2019 141

Community and economic developmentLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetLive Work InvestmentpromotionNew businessattracted to theFar NorthEducation,Training andBusinessOpportunitiesPercentage annualincrease inLive, Work, Investwebsite visitorsNewMeasure5% 5% 5% 5% 5% 5% 5% 5% 5% 5%Buy Far North campaignIncrease in promotionof Far NorthbusinessesEducation,Training andBusinessOpportunitiesNumber ofbusinessesregisteredNumber ofwebsite hits/month270280350320400350450400500450500500500500500500500500500500500500Event attractionNew major eventsattracted to the FarNorth deliveringeconomic benefitEducation,Training andBusinessOpportunitiesNumber ofmajor high profileevents attractedto the District1 1 1 1 1 1 1 1 1 1 1Community PlansStronger more networkedcommunitiesServicesthat SupportCommunitiesPublic Safety% communitysupport for planin eachcommunityNewmeasure75% 75% 75% 75% 75% 75% 75% 75% 75% 75%Small Town BeautificationprojectsImproved aestheticsof the Districts smalltown and strongermore networkedcommunitiesServices thatSupport theCommunityEnvironment% communitysupport for theoutcome of eachprojectNewmeasure75% 75% 75% 75% 75% 75% 75% 75% 75% 75%142FAR NORTH FUTURE PLAN 2009-2019

Community and economic developmentLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICE (continued)Key Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetPursuing InwardInvestmentSupport local economicdevelopmentEducation,Training andBusinessOpportunitiesNumber of newprojects benefitingfrom inwardinvestmentNewMeasure10 10 10 10 10 10 10 10 10 10Supporting new businessopportunitiesPromote local economicdevelopmentAs AboveNumber of newbusiness opportunitiesassistedNewMeasure25 30 35 40 45 50 50 50 50 50KEY ASSUMPTIONSASSUMPTION what may happen next likelihood impactNational and global economy willrecover from economic andfinancial crisisRecovery is more prolongedthan predicted and damage tolocal economy is greaterMediumInvestment attraction into the Districtwill be much more difficult as willretaining existing businessesFINANCIALIMPlicationsMedium forFNDC but highfor the localeconomyMITIGATIONDevelop incentives to attract investmentand ensure that Councilis business friendly and that nounnecessary barriers are in placePopulation growth will be in accordancewith projections in Council’s“Planning for Growth” documentThe actual level of growth maybe lower than assumedMediumLower discretionary capacity to providenon core financial support to communityprojects or events.LowGrowth is expected to occur overtime. Growth trends are keptunder regular reviewFAR NORTH FUTURE PLAN 2009-2019 143

Community and economic developmentKEY RISKSrisk current rating mitigation rating after mitigationInvestment promotion targets inappropriatetarget marketMediumContract marketing professionals to develop promotionalcampaignsLowNegative events in the district (e.g. floods,increase in crime rates) create negative perceptionof the districtMediumA high level of promotional activity to reinforce and embedpositive perceptions of the district as a place to live, workand investMediumUnable to overcome the negative perceptionsof certain economic sectors of the district as aplace to investMediumFocus promotions on overcoming these perceptions and supportby targeted events and communications with relevant industrygroupsLowSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISEngagement creates opportunities for communities to voice their aspirations but theprocess can also raise expectations that cannot be deliveredEnsuring Council’s role is clearly stated at the start of the processEnsuring that the community is well represented by those around the table and that allcommunity members are able to input into the processCommunity reacts negatively to a major event held in their townFocusing communications on selling the benefits of the event to the community144FAR NORTH FUTURE PLAN 2009-2019

i-SITEsKey factsWhy we do it••Council operates and maintains:o three i-SITE travel centres dealing with over 340,000visitors a year.Our vision is to encourage visitors to stay longer, enjoymore activities and spend more money in the Far Northby providing them with a positive image of our district.We do this through the provision of information servicesand facilities that are affordable, accessible and contributeto the district development needs.Contribution to Community Outcomeseducation, training andbusiness opportunitiesculture and heritageSERVICES THAT SUPPORTCOMMUNITiesWork closely with central and regional government aswell as the local tourism industry to provide a seamlessservice to visitors to the districtAim to enhance the tourism experience through i-SITEsand consequently generate wealth and promote newemployment opportunitiesDeliver trustworthy and unbiased tourism informationto visitors in the Far North through a reliable and stabledelivery mechanismAttract more visitors to the Far North by working effectivelywith the leisure, event, tourism, accommodation andrelated industries, both in the district and regionally.Promote a strong and positive district identity that includesawareness and knowledge of the Far North’s unique heritageand historyShowcase, communicate and preserve cultural knowledgeProvide the community with a connection to our heritageProvide an intercultural environment to explore and understanddifferent culturesFAR NORTH FUTURE PLAN 2009-2019 145

i-sitesRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Retained accreditation with i-SITE New Zealand•• Installed the IBIS (Integrated Booking Information System)vouchering system in all three locations•• Been awarded first place – Best VIN (Visitor InformationNetwork) – Small Category – Intercity Awards2006•• Been awarded first place – Agent of the Year – MediumCategory - Intercity Awards 2007•• Worked towards reducing ratepayer subsidy of thei-SITEs by:o establishing an Industry Advisory Boardo developing an e-commerce enabled i-SITE website(www.visitfarnorthnz.com)o increasing supplier chargeso improving signageo extending booking capacity to other Councilfacilitieso increasing the sales culture among i-SITE staff.A key component of this has been the introductionof a performance-based remuneration system for allstaff.what we have not achievedsince the last planSince 2006 Council has not achieved the following:•• Relocation of the Hokianga i-SITE to the newcommercial centre in Opononi•• Relocation of the Bay or Islands i-SITE into the newcommercial building as part of the Paihia waterfrontdevelopment.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsAchieving a cost neutral status for information centres, thereby reducing the ratepayersubsidy to operate i-SITEsDeveloping a cooperative framework with other agencies and tourism promoters in theregion in order to:•• Make best use of resources•• Provide seamless service•• Offer a broader range of services•• Regional partners in i-SITE service delivery include Destination Northland, theDepartment of Conservation, and other VIN accredited i-SITEsCouncil is addressing this via a financial recovery plan. If the plan succeeds then there willbe no debate over Council continuing to operate i-SITEs. If this is not achieved, Councilwill need to review its continued involvement in the provision of i-SITEsThis requires a shift in i-SITEs’ current focus, from a reactive to a more proactive way ofconducting business. There is the opportunity to develop a more integrated economic andtourism development strategy benefiting all Far North Communities146FAR NORTH FUTURE PLAN 2009-2019

i-sitesWhat you have told usIn our last annual i-SITEs customer survey, we had a 97%satisfaction rating from customers and an 85% satisfactionrating from suppliers.What we plan to doObjective 1: Reduce the ratepayer subsidy required tooperate i-SITEs to nil by:o Generating additional revenueo Reducing i-SITEs costso Increasing volunteer input.Objective 2: Deliver a quality visitor experience by:o Providing a welcoming, friendly and professionalserviceo Providing a comprehensive and current informa-tion base on the district and the surrounding region– including attractions transport, accommodation,facilities and eventso Remaining aware of the changes required to theservice through time and meeting changing requirementsto working with other providers.FAR NORTH FUTURE PLAN 2009-2019 147

i-siteslevels of service provisionten year plan measures and levels of serviceKey Project(s)/ Initiative(s)How theproject(s) /initiative(s)will impacton levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetDeliver a qualityvisitor experienceImprovedsatisfactionlevels amongstcustomers andsuppliersEducation,Training andBusinessOpportunitiesServices thatSupportCommunitiesAnnualsuppliersatisfactionratingAnnualcustomersatisfactionrating85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85%98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98%Culture andHeritageAchieveannual visitorinfo network(VIN)accreditation100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%148FAR NORTH FUTURE PLAN 2009-2019

i-siteskey assumptionsASSUMPTIONWHAT MAY HAPPENINSTEADLIKELIHOODIMPACTFINANCIALIMPLICATIONSMITIGATIONHokianga i-SITE remains operableEscalation of erosion aroundthe Hokianga i-SITE rendersthe facility either inoperable orpartially inoperableLowLoss of income earning potential fromHokianga i-SITELow Facility move scheduled for 2009Financial targets will be meti-SITEs fail to deliver forecastedrevenue streamsMediumRatepayer subsidy still required tooperate i-SITEsHokianga continues to be subsidizedto a large extent by the ratepayer andloses its viability as a council operationLow/MediumDrive performance improvementsto achieve break-even positionVisitor numbers will remain stableor increaseAny catastrophic overseasevent (e.g. tsunami or terroristattacks) leads to a reduction intourist numbersMediumLoss of income and loss of economicbenefit to the districtLowCouncil would cut back on i-SITEactivity to save costs if there wasa catastrophic decline in visitornumberskey risksRISK current rating MITIGATION rating after mitigationFailure to meet financial targets to break evenHighA budget is in place for 2008/2011 against which performance ismeasured monthlyHighReduced visitor numbers as a result of a catastrophicworld eventMediumOutside Council’s direct control but Council will continue to workwith others to promote the Far North as a tourist destinationMediumFAR NORTH FUTURE PLAN 2009-2019 149

i-sitessignificant negative effectspotential negative effecthow we are addressing thisDetrimental impact on tourist experience as a result of poor customer service or provisionof inaccurate adviceEnsuring staff are appropriately trained and that a culture of excellent customer serviceprevailsNegative impact on culture / heritage if an over-commercialised approach is adoptedEnsuring the appropriate balance between commercial performance and the i-SITEs role inpromoting the culture and heritage of the district150FAR NORTH FUTURE PLAN 2009-2019

FAR NORTH FUTURE PLAN 2009-2019 151

LibrariesKey facts••Council operates and maintains seven librariescontaining over 124,000 items.Why we do itOur vision is to engage, inspire and inform communitiesby providing recreational, educational and life-long learning,as well as cultural enrichment through the provisionof library services and facilities that are affordable, accessibleand meet community needs.Contribution to Community Outcomeseducation, training andbusiness opportunitiesculture and heritageSERVICES THAT SUPPORTTHE COMMUNITYLibraries:•• Provide a range of community based educationalopportunities•• Support education and skill developmentLibraries:•• Offer a mechanism to showcase, communicate andpreserve cultural knowledge•• Provide connection to our heritage and to the heritageof others•• Provide a safe intercultural environment to explore andunderstand different culturesLibraries provide a safe gathering place for the community tointeract and hold events152FAR NORTH FUTURE PLAN 2009-2019

librariesRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Extended opening hours in Procter library, Kerikeri andWilliams House, Paihia library•• Upgraded the Library Management System and introduceda specialised systems position•• Centralised technical services•• Improved the currency and relevance of our librarycollections•• Instigated an archives project•• Introduced additional formats in collections•• Increased the number of external databases availableonline•• Set up community library loan collections•• Established a library at Northland Correctional facility.what we have not achievedsince the last planSince 2006 Council has not yet been able to progressthe following:•• Introduction of free internet throughout libraries•• Specialised library services for Maori readers and childrenand young adults.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsLibraries need to be made more accessible, including the possibility of co-location withother agencies or services where appropriateLibraries need to reach beyond their current physical locations through virtual library andoutreach servicesRequires:•• Accessible locations as well as more opening hours, including Saturdays and late nights•• Consideration of the case for a mobile library service given the geographical rural spreadof the Far North•• Council to pursue the “library without walls” concept to close the gap betweencustomer expectations and what council delivers.Ensuring the community, Council and key stakeholders understand the role and importanceof libraries within the framework of a sustainable approachRequires taking advantage of both technology and community volunteers to release stafftime and enhance library services where specialist knowledge is requiredFAR NORTH FUTURE PLAN 2009-2019 153

librariesIssues / challengesImplicationsPursuing regional co-operation at an operational level where there is scope to collaboratewith other public library systems immediately adjacent to the Far North DistrictRequires joint work with other providers to develop shared services into the futureTackling traditional stereotypes of librariesLibraries need to be promoted as leaders of change in the digital environmentThe “library without walls” concept needs to be promoted to close the gap betweencustomer expectations and what council deliversWhat you have told usOur most recent residents’ survey showed a 70% satisfactionwith libraries, while 8% were dissatisfied (comparedwith a 2% national average for dissatisfaction). Dissatisfactionis mainly due to the continued borrowing fee for usersover the age of 18 and facilities that require upgradingin the Northern and Western wards. Satisfaction levelsamongst library users are higher (80%).What we plan to doObjective 1: Make libraries more accessible and able tomeet the community’s needs by:o Continuing to support a network of accessible com-munity operated libraries (by providing a range ofloan material and funding overheads where existingagreements exist)o Developing library services that reach beyondbuildingso Investigating better use of technology.Objective 2: Develop libraries that support ourcommunities by:o Celebrating culture, heritage and the artso Meeting the educational needs of the communityo Establishing specialised library support services.Objective 3: Develop libraries that assist the communityin meeting life long learning and educational needs by:o Providing access to information and ideaso Providing a learning for life environmento Providing enhanced electronic services.Objective 4: Provide Libraries that are current andrelevant by:o Maximising relationships with stakeholders and thecommunityo Maximising the use of community volunteers acrossthe libraries where appropriateo Reducing costs and maximising use of volunteers.What we don’t plan to do•• As a result of financial constraints, community expectationswill need to be carefully managed, therefore,Council will no longer establish new fully-fundedlibraries outside those in current locations.154FAR NORTH FUTURE PLAN 2009-2019

librariesLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommUnityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19Target% satisfaction ofusers80% 85% 85% 85% 90% 90% 90% 95% 95% 100% 100%Make libraries moreaccessible and able tomeet the community’sneedsIncrease library usageand user satisfactionEducation,Training andBusinessOpportunitiesServices thatSupportCommunities% population whoare membersIssue rate perlibrary memberper annum32% 33% 33% 33% 33% 33% 33% 33% 33% 33% 33%7 7 7 7 7 7 7 7 7 7 7Culture andHeritageYear on year %increase in doorcounts per annumover previousyear’s figure2008/2009will bebasefigure2% 2% 2% 2% 2% 2% 2% 2% 2% 2%FAR NORTH FUTURE PLAN 2009-2019 155

librarieskey assumptionsASSUMPTIONwhat may happeninsteadlikelihoodimpactfinancialimplicationsmitigationThe library service will besustainable in its current stateLibraries in some parts of thedistrict will become increasingunsustainable without crosssubsidy from wider libraryresources. This could hold backlibrary provision in growthareasMediumLevel of service decreases in areas ofgrowthLowReview of library locations as partof the strategic planning exerciseand completion of mobile libraryinitiativeLibraries will continue to berelevant to local communitiesThe service will fail to keepabreast of changing technologyand customer expectationsFunding spent on resourcesdon’t match customer demandMedium Decline in library usage LowParticipation and collaborationwith regional and national digitalinitiatives to develop the relevanceof the service in the modern agekey risksRISK current rating MITIGATION rating after mitigationNew Zealand Public Library standardsare not metMediumStaff training, ensuring best use of facilities andeffective renewals programmeLowMisuse / abuse of library internetfacilitiesMedium Staff vigilance and monitoring Low156FAR NORTH FUTURE PLAN 2009-2019

librariessignificant negative effectspotential negative effecthow we are addressing thisNegative cultural effects could arise from the perception that, given the low literacy ratesamong Maori and usage of libraries by Maori (nationwide), libraries serve predominantlynon-Maori needsA draft bi-cultural library plan has been prepared and is been consulted on with a group ofstakeholdersLibraries have not yet catered sufficiently for people who speak English as a secondlanguage, although there is an awareness of the need to develop a multilingual resourceA languages collection is beginning in the Procter libraryUnanticipated abuse of the internet service, either through criminal activity, or throughaccess to objectionable material. This may result in a decrease in membership (especially ofchildren and youth) and a poor reputation based on a loss of community trustCurrently, this is managed by placing the terminal with internet access adjacent to the circulationcounter. This provides continuous policing of the terminalFAR NORTH FUTURE PLAN 2009-2019 157

Lighting, Carparks and FootpathsKey factsCouncil operates and maintains:•• 155km of footpaths•• 21 carparks•• Amenity lighting at Paihia waterfront, Kaitaia mainstreet,Mangonui reclamation and Kerikeri mainstreet.Why we do it•• Council provides a footpath network so that the thecommunity, especially children and older people, havesafe routes to use as they move to and from places intheir community and to encourage walking as a recreationalactivitiy•• Council provides carparks so there are sufficient carparks for residents and visitors (both able and disabled)in commercial, recreational and business areas•• Council provides amenity lighting in towns to makethem feel safe and look attractive.Contribution to Community Outcomespublic safety ENVIRONMENT SERVICES THAT SUPPORTCOMMUNITiesProvision of lighting enhances public safetyA well developed footpath network provides access to manyof the environmental treasures of the Far NorthA well developed footpath network enablescommunities to interact and mix socially as they walkCouncil ensures towns are well lit and safe to provide asense of pride in our communities, and sense of place inour townsProvision of sufficient car parking at commercial, recreationaland business areas supports communities as theygo about their business158FAR NORTH FUTURE PLAN 2009-2019

Lighting, carparks and footpathsRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• New or additional car parking has been developed atthe rear of the Hundertwasser toilets - Kawakawa,Butler Road – Kerikeri, Mangonui Reclamation, andOpononi•• A total of 8.5km of new paths and 2km of renewals(not including renewals undertaken as part of mainstreetupgrades). These include:o Edkins Road, Butler Road, Jacaranda Place walkway,Kerikeri Inlet Road, Riverview Road, ShepherdsRoad, Access Road, Skudders Beach Road, RangitaneRoad, Kendall Road, Darwin Road, Kerikeri Roadoooooooooooooand the Heritage by-pass in Kerikeri.Marsden Road, PaihiaJames Street and Baker Street, RussellParnell Street RaweneState Highway 12, WhirinakiMangakahia Road, TautoroOpua Boardwalk, OpuaRaymond Street, KawakawaJames Henare Place, MoerewaOromahoe School Road, OromahoeKlinac Lane, WaipapaSettlers Way, Lake Road, OkaihauTennyson Street OhaeawaiBerghan Road and State Highway 10, CoopersBeacho Kakapo St Ahipara,o Mission Place, Kaitaiao Gills Road, Awanuio Oruru Road, Taipa.This does not include the significant amount of footpathsthat have been created as part of various developments inthe district and have vested in Council.What we haven’t achieved sincethe last planSince 2006 Council did not achieve the following:•• Construct a footpath at Hazard Street, Russell ascompletion of Baker Street was a higher priority.Where are we now? – Key issues and challenges facing this ServiceIssues / challengesEnsuring sufficient number of car parks are available with adequate signage and markingsEnsuring adequate number of disabled car parks are available and adequately signed andmarked and facilities for blind and vision-impaired pedestriansEnsuring unsafe footpaths are identified and addressedImplicationsRequires monitoring of demand and supply during peak periods (i.e. weekends andSummer) and compliance with Council’s Engineering Standards and GuidelinesRequires compliance with the provisions in the District Plan, Road and Transport Series 14– Guidelines for facilities for blind and vision-impaired pedestrians and liaison withstakeholders through the disability forumsRequires monitoring to identify potential problems at an early stage and enable them to beprogrammed into planned maintenance or renewalsManaging the demand for additional footpathsCommunity aspirations sometimes exceed Council’s resources, however requests will beprioritised, with first priority being the 2 km from primary schools and 3.8 km from highschoolsFAR NORTH FUTURE PLAN 2009-2019 159

Lighting, carparks and footpathsWhat you have told usOur most recent survey showed that 63% of residentswere satisfied with footpaths in the district. This is downfrom the 2006 survey when satisfaction rates were 71%.The main reason for dissatisfaction was a lack of footpaths.Residents’ satisfaction with carparks and amenitylighting has not yet been surveyed.LEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEWhat we plan to doObjective 1: Implement initiatives in the Walking andCycling strategy by:o Applying for funding from the New Zealand Trans-port Authority (NZTA) for footpath/cycle ways onKerikeri Road [from Hall Road to Access Road],Omaunu Road, Kaeo [from Turner Street to StateHighway 10] and North Road, Kaitaia [from town tothe Mill]o Investigating the development of a public walkway,fitness trail and visitor attraction in the formerOkaihau – Kaikohe rail corridor.Objective 2: Ensure the footpath and carpark networkremains safe and encourages people to visit or walkaround our towns by:o Implementing the planned renewal programme.Objective 3: Develop new footpaths by:o Prioritising requests based on contribution fromproperty owners, distance from schools, links toother paths, speed limits, classification of road(collector, arterial etc) and suitability of theexisting bermo Working with NZTA to increase footpaths on StateHighways.KeyProject(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetMaintain andextend the footpathnetwork asresources permitCreation of aneffective, sustainableand integratedfootpath networkwill enhancecommunitysatisfactionPublic SafetyEnvironmentServicesthat SupportCommunitiesExtend the footpathnetwork by 1.5km perannumRenew 2.0km of footpathper annum% of residents satisfiedwith footpath network2.8km/annum1.5km 1.5km 1.5km 1.5km 1.5km 1.5km 1.5km 1.5km 1.5km 1.5km0.6km 2.0km 2.0km 2.0km 2.0km 2.0km 2.0km 2.0km 2.0km 2.0km 2.0km63% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70%Ensure the footpathand car parknetwork remainssafeReducecommunity concernsabout lightingand car parkmaintenancePublic Safety% of complaints aboutmaintenance of amenitylighting responded towithin 48 hours% of complaints aboutcar park maintenance respondedto within 3 days80% 75% 76% 77% 78% 79% 80% 81% 82% 83% 84%90% 85% 85% 86% 86% 87% 87% 88% 88% 89% 90%160FAR NORTH FUTURE PLAN 2009-2019

Lighting, carparks and footpathsKEY ASSUMPTIONSASSUMPTION what may happen next liklihood impactFINANCIALIMPlicationsMITIGATIONCouncil’s existing and planned footpathprovision will meet communityexpectationsCommunity expectations mayexceed Council’s ability toprovide additional footpathsMedium Reduced resident satisfaction Low / mediumManage community expectationsthrough appropriate consultationand communicationKEY RISKSASSUMPTION current rating mitigation rating after mitigationAccident and injury to the public as a result ofinadequately maintained / renewed footpathsLowCouncil staff closely monitor and respond to requests for servicewith a focus on accident reduction by maintaining safe footpathsLowSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISReinstatement of footpaths by utility providers does not always meet engineering standardThere is inadequate footpath lighting in some townshipsMonitoring the installation of services within footpaths to ensure safe footpaths aremaintainedCouncil has an on-going street lighting programme to make footpaths safer at nightFAR NORTH FUTURE PLAN 2009-2019 161

Motor CampsKey factsCouncil owns and leases out motor camps at:• Russell• Tauranga Bay• Houhora HeadsWhy we do itThe high market value of coastal land makes it unprofitablefor private enterprise to retain coastal propertiesas campgrounds. Council’s ownership ensures campingholidays are an option for residents, visitors and ensuresequitable access to our natural treasures.Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:Completed a camping review that determined Councilneeds to:•• Regularly update its Camping Information pamphletand promote licensed camping grounds within thedistrict•• Monitor the provision of camping on the west coast ofthe district•• Review the provision of camping at the peak campingperiod between December and January•• Formalise occupation of esplanade reserves / legalroads by camping operators through a lease / licencearrangement to ensure surety of use, security of property,agreement on maintenance levels, appropriaterental levels, and public access (on a case by case basis).Recent Progress – What we haven’tachieved since the last planSince 2006 Council has not achieved the following:Council was considering developing additional motorcamps in partnership with the private sector / Departmentof Conservation. However the review undertakenconcluded that the current provision generally met theneeds of the district. A number of initiatives were proposedbut they have not all been advanced at this point.Contribution to Community OutcomesEDUCATION, TRAINING ANDBUSINESS OPPORTUNITIESPUBLIC healthSERVICES THAT SUPPORTcommunitiesBring visitors to our district who contribute to the localeconomyProvide facilities such as toilets and grey water disposal thatother un-controlled camping does not provideProvide community and families with an affordableopportunity to be together for holidays162FAR NORTH FUTURE PLAN 2009-2019

Motor CampsWhat you have told usCouncil’s most recent survey indicated that overall 76%of residents were satisfied with access to beaches butsatisfaction was considerably less in the eastern ward.What we plan to doObjective 1: Ensure sufficient camping capacity for thepeak period by:o Formalising the occupation of esplanade reserves /legal roads by camping operators to enable sufficientcamping capacity for the peak period.Objective 2: In line with Council policy, work withdevelopers to improve coastal access as part of anycoastal resource consents approved.What we don’t plan to doCouncil has no plans to purchase additional campgrounds.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesLimited resources available for motor camp developmentTrend towards freedom campingImplicationsCouncil will limit future development to match resources availableCouncil has no plans to develop policy or by-laws that promote freedom camping withinthe district. However, the use of Council’s reserves for camping may be permitted on a caseby case basisLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetFormalise the occupationof esplanade reserves/legal roads by campingoperators to enablesufficient camping capacityfor the peak periodSufficient campingcapacity will beavailable at the peakperiod betweenDecember-JanuaryEducation,Training andBusinessOpportunitiesPublic HealthServicesthat SupportCommunitiesYear on year %increase incamping numbersat registeredmotor campsCommunitysatisfaction withcampingprovision2008/2009will bebaseline5% 5% 5% 5% 5% 5% 5% 5% 5% 5%76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76%FAR NORTH FUTURE PLAN 2009-2019 163

Motor CampsLEVELS OF SERVICE PROVISION (continued)Key Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetEnsure sufficientcamping capacityfor the peak periodReduce problems ofillegal campingServicesthat SupportCommunities% of complaints about illegalcamping respondedto within 48 hours90% 90% 90% 92% 92% 92% 94% 94% 94% 95% 95%KEY ASSUMPTIONSASSUMPTION what may happen next likelihood impactFINANCIALIMPlicationsMITIGATIONCouncil will continue to leasemotor camps for long termtenure to private operatorsCouncil has no control overmanagement of motor campsor the setting of feesLowFee structure of motor campsmaybe too high to attract visitorsresulting in low visitor numbersLowLessees will want to weigh up fees against visitornumbers to ensure an appropriate balance tomaximise their returns on investmentCouncil will not invest in infrastructureat motor campsCamp grounds could becomerun downLow /MediumLessees will cancel leases and handmotor camps back in a run downstateMediumMotor camps are leased for long periods so thatlessees can have a financial return on any investmentthey make in motor camp infrastructureKEY RISKSThere are no significant risks to report for this activity.SIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTEnvironmental and social impact of illegal campingat Council reserves particularly by campers withoutappropriate facilities i.e. not self containedHOW WE ARE ADDRESSING THISProviding signage indicating No Camping with a phone number to find the nearest safe camping spotMonitoring illegal camping over the peak period at the hot spot areas and providing an adequate network of dumping sites164FAR NORTH FUTURE PLAN 2009-2019

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Community Activities – RecreationKey factsCouncil operates and maintains:•• 228 hectares of public space•• 24 playgrounds•• 3 skate parks•• 3 swimming pools•• 30 leases for community space, 22 leases with sportsclubs and 7 grazing licenses.Why we do itCouncil contributes to community development throughthe provision and maintenance of recreation facilities,encouraging the use of these facilities and organising /supporting events that will contribute to communitywell-being.Contribution to Community OutcomesEDUCATION, TRAINING ANDBUSINESS OPPORTUNITIESPUBLIC healthSERVICES THAT SUPPORTcommunitiesBenefit local businesses and create opportunities forother economic activity by supporting / developing sportingand recreational events that gather people togetherand sometimes draw large crowds into the Far NorthImprove the general health of the community by encouragingrecreation and sports activitiesEncourage participation in recreation and sports toenhance community ties166FAR NORTH FUTURE PLAN 2009-2019

community activities – recreationRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Upgraded the ablution block at Kaitaia swimming pool,improved access to Kawakawa heated pool and ASBRecreation Centre and developed a swimming poolstrategy•• Developed or renewed playgrounds at Pukenui, Rangitane,Memorial Park, Marsden Road, Horeke•• Undertaken Taipa Foreshore improvements•• Assisted the development of a gymnastics facility inKaitaia•• Acquired additional land adjacent to Rarawa Domain,up-graded the entrance and commenced soccer fielddevelopment•• Resealed the courts at the Mangonui Netball Centre,Taheke, Horeke and Umawera•• Reviewed and decreased the Awanui Sports Complexrent•• Achieved rugby league and rugby sharing Centre Parkfields and clubroom•• Contributed towards the development of the firststage of the BaySport stadium for in-line skating andbasketball , assisted the relocation of tennis (4 courts,lights and relocated clubrooms), constructed an additionaljunior soccer field and secured agreement topurchase Harmony Lane and additional land for carparking at BaySport•• Developed three rugby fields, access way and car parkat Kerikeri Sports Complex, pedestrian links to townalong the heritage by-pass and allocated funding torelocate netball and construct nine courts•• Assisted the development of clubrooms at RussellSports Complex•• Developed a hockey turf at Lindvart Park•• Improved the cricket wicket at Bledisloe Domain•• Facilitated the relocation and construction of newclubrooms for Opua Cruising Club•• Facilitated the creation of an easement in gross grantingvehicular and pedestrian access to Lake Manuwaiand developed and adopted a management plan for theuse of this area•• Adopted a Sport and Recreation policy and appointedEastern and Western Sports Coordinators•• Reclassified the Waimate Road cemetery land andnegotiated a lease with Riding for the Disabled•• Formalised beach access and improved parking atMatauri Bay and allocated funding for public toilets.•• Provided grants towards the development of awalkway from Okiato to Te Wahapu•• Facilitated a recreational needs assessment for Rawene•• Assisted the development of Coopers Beach tennisfacility•• Commenced Pukenui field development•• Assisted as a partner organisation in the developmentof the Northland Sport and Physical Activity Strategyfollowing which a number of initiatives have beenundertaken including:o Mapping and branding 10,000 step walkways inKaikohe, Kerikeri, Kaitaia, Moerewa, Opononi, Paihia,Taumatakuku – Kawakawa (railway track), Mitimiti,Punguru, Ahipara, Kaeo and developing disc golf atJohnson Park and Matthews Park, Kaitaiao Developing and marketing the Virtual Walk AroundNZ and on-line support for the 10,000 stepsprogrammeo Expanding the green prescription programmeo Developing the Active Northland website – thisincludes a directory of all Far North clubs, groups,a calendar of events, a portal to resource webpages, and a tool to enable local clubs to up-date itthemselves.What we haven’t achieved sincethe last planSince 2006 Council has not progressed the followingprojects included in its earlier plans:•• Undertaken any further work on beautifying KaikoheLandfill•• Purchased any land at Karikari Peninsula•• Constructed a pedestrian footbridge – Golf View toRainbow Falls as the proposed development has noteventuated•• Completed Pukenui and Rarawa sports fielddevelopment•• Kaitaia recreation hub development.FAR NORTH FUTURE PLAN 2009-2019 167

community activities – recreationWhere are we now? - Key issues and challenges facing this ServiceIssues / challengesIncreasing demand for services from growing population and seasonal tourism growthImplicationsThe increased demand must be managed within available funding by delivering agreed levelsof service and exploring opportunities for partnering and/or innovation. Council’s involvementin the Northland Sport and Physical Activity strategy is a good example of this. Council’sshare is $28,500 which is used to leverage $2,426,000 for Northland to implement thestrategyBalancing community aspirations and Council’s ability to respond, particularly whenresources are tightCommunity aspirations sometimes exceed Council’s resources and projects are may bedelayed because of the difficulty in getting community consensus. However Council workshard to achieve consensus and also encourages communities to work collaboratively todevelop their own community assetsIncreasing operational costs (power, fuel, chemicals, labour)Increasing costs of the Community Services contract may require decreased levels of serviceto remain within existing budgets. Council makes strenuous efforts in negotiations withsuppliers and contractors to achieve maximum value for ratepayer dollarsClimate change is increasing the incidence of erosion at coastal reservesUncertain government funding policies and increased competition for these fundsCouncil will not undertake works to protect coastal reserves from erosion despitecommunity expectationsFunding to the Far North district may reduce. Council will work hard to lobby Governmentto provide the Far North with its fair share of national resources168FAR NORTH FUTURE PLAN 2009-2019

community activities – recreationWhat you have told us•• Council’s most recent resident satisfaction surveyshowed 76% satisfaction with parks and reserves. Thishas remained consistent since 2006 but is less than theaverage for our peer group of comparator councils(89%). Those residents who expressed dissatisfactionwith Council’s parks and reserves focused on the lackof maintenance, and the need for more parks and betterfacilities•• Council sought residents’ feedback on swimming poolsfor the first time in its 2008 survey. Only a limitednumber of residents commented either favourably orunfavourably and the majority (61%) indicated that theydidn’t know anything about Council pools. It is hopedthat the planned improvements in pool access will leadto an improved rate of satisfaction in future surveys•• Residents’ feedback on Playgrounds has been surveyedin 2006 and 2008. The number of not very satisfiedresidents has increased from 6% to 12%. Eastern wardand western residents want more playgrounds andnorthern ward residents want better maintenance.What we plan to doObjective 1: Bring economic benefits to the district by:o Working collaboratively to develop a regional bid tohost a team in the Bay of Islands during the RugbyWorld Cup 2011 and attracting NPC games to thedistrict.Objective 2: Improve recreation provision in the districtby:o Creating recreational hub facilities, which will en-able recreation to be managed and provided in themost effective and efficient manner by co-locatingsporting clubs/ groups together to enable sharing ofbuildings, fields, courts, car parks and volunteers. InKaitaia, such development will recognise the potentialfor integration of Council owned resources withthose of the Kaitaia and Districts Agricultural andPastoral AssociationDeveloping a significant sub-regional recreation cen-tre in Kerikeri based on the facilities to be offeredvia Kerikeri Domain, Kerikeri Sports Complex andBaySport IncProviding safe and well maintained playgroundsat most towns and some high profile touristdestinations.ooObjective 3: Promote public health and fitness by:o Continuing to ensure Regional Sports Organisationsupport and development of Far North clubso Sponsoring the Far North Sports Awardso Contracting Sport Northland to provide threedistrict sports co-ordinators to increase physicalactivity, create stronger clubs and ensure a varietyof recreational events and sports are available in thedistrict.Objective 4: Bring economic and recreational benefitsto the district by:o Supporting flagship events such as Bay of IslandsRegatta, Waipoua Forest run, and the Ocean SwimSeries as well as continuing to support localcommunity events.Objective 5: Improve swimming pool facilities in thedistrict by:o Negotiating grants to enable increased communityaccess to a range of Ministry of Education-fundedpoolso Investigating opportunities for limited access to theNorthland College pool over the summer, as wellas assessing renewal and upgrade requirements, inorder to determine whether future Council investmentin the pool is justified.Objective 6: Increase recreational activity in the districtby:o Continuing to work with partners and various ser-vice groups to develop a range of walking / cyclingopportunities in the district.What we don’t plan to doAt this stage Council does not plan to undertake:•• Any further work on beautifying Kaikohe Landfill•• Further investigation into a Kerikeri Event Centre orbuild a new heated swimming pool in Kerikeri•• Any significant works on Kaitaia pool prior to itsrenewal in 2014/15.FAR NORTH FUTURE PLAN 2009-2019 169

community activities – recreationLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceBaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetProvision of parks andreservesCommunitysatisfaction willimprovePublic HealthServicesthat SupportCommunities% of users satisfiedwith parksand reserves76% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%Development of hubfacilities capable ofhosting national, regional,district and communityeventsIncreased communityparticipation inrecreational activitiesPublic HealthServicesthat SupportCommunitiesEducation,Training andBusinessOpportunitiesYear on year %increase in thenumber of district/ regional eventsheld at KerikeriDomain, KerikeriSports Complexor BaySport Inc.2008/2009will bebaseline5% 5% 5% 5% 5% 5% 5% 5% 5% 5%Public HealthResidentsatisfaction withswimming pools29% 50% 55% 60% 60% 60% 60% 60% 60% 60% 60%Improve access toaquatic facilitiesIncreased usage andsatisfactionServicesthat SupportCommunitiesPoolSafeAccreditation 66% 66% 66% 66% 66% 66% 66% 66% 66% 66% 66%Increase in PoolusageTo bedetermined2008season10%increase10% 10% 10% 10% 10% 10% 10% 10% 10%170FAR NORTH FUTURE PLAN 2009-2019

community activities – recreationLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICE (continued)Key Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommUnityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetProvision of playgroundsIncreased satisfaction.and improved safetyPublic HealthServices thatSupportCommunities% of playgroundssafety auditedeach month andany safety issuesresolved withinone month% satisfactionwith playgrounds90% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%69% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%Service delivery forparks and reservesCurrent levels ofservice will be maintainedand contractorperformancewill meet contractrequirementsServices thatSupportCommunities% of urgent requestsfor serviceresolved within 3hours and nonurgentwithin 5daysThe number offinancial deductionsfrom thecontractor fornon performance95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%0.5% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%FAR NORTH FUTURE PLAN 2009-2019 171

community activities – recreationKEY ASSUMPTIONSASSUMPTION what may happen instead liklihood impactFINANCIALIMPlicationsMITIGATIONThe Community Services contractorwill safely undertake all work inaccordance with the Quality planWork may be undertaken onCouncil reserves in an unsafemannerLow Potential for injury Low / mediumContinue to monitor the contractto ensure work is carried out inaccordance with the Quality PlanKEY RISKSrisk current rating mitigation rating after mitigationDrowning at Council run aquatic facilityHighSite specific safety controls and processes are in place in conjunctionwith ensuring pools are “Pool Safe”MediumSerious injury at Council run playgroundHighSite specific safety controls and processes are in place along withmonthly inspections of all areasMediumDamage from coastal erosion leading to liabilityclaimsHighDo not undertake or approve coastal protection works on Councilproperty which may lead to liability claimsLow172FAR NORTH FUTURE PLAN 2009-2019

community activities – recreationSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTParks and reserves can be a meeting place where unsavoury activities take place, whereillegal dumping of rubbish occurs and where illegal camping is common especially bycampervans without appropriate self containment facilitiesCoastal reserves becoming destinations for late night parties with inappropriate behavioursuch as lighting fires, burning of Council signs and dangerous vehicle behaviourProperty security issues for residents living adjacent to a Council reserveVehicles on beachesThe desire by the community to access the coast can raise cultural issues if access is closeto sacred Maori landHOW WE ARE ADDRESSING THISEnsuring good passive surveillance, good lighting, appropriate signage, and well maintainedvegetation to reduce places to hide. Also increasing monitoring in the hot spot areas overthe peak holiday periodDesigning car parks to reduce the ability for “doughnuts” to be made, close car parks atnight, have good lighting and passive surveillance, and encouraging residents to contact thePolice if they feel unsafeEnsuring the boundaries between private and public land are obvious, installing signage ifrequired and if the problem continues closing access to Council reserves at nightWorking with NRC to develop policies to enable enforcement of standardsEngage with iwi to determine what areas should not be made available to the general public.This has been identified as an outcome of the Coastal Access StrategyFAR NORTH FUTURE PLAN 2009-2019 173

Financials – District Facilitiesbudget and capital projectsFINANCIAL FORECASTSThe tables that follow show:•• Ten year projections of operating income and expenditure•• Forecast capital expenditure and funding followed bya breakdown of capital projects by ward the latterreflecting Council’s plans to increase asset capacityin response to cater for additional demand and / orimproved levels of service.overall positionFollowing consultation in the draft LTCCP Council hasdecided against any increases in the District Facilitiesbudgets beyond the levels shown in the draft LTCCPexcept for the small additions detailed in the CommunityFeedback section at the start of this Volume.Asset ManagementTo provide the asset capacity required to meet this activity’sobjectives Council is planning new capital expenditureover the period of this plan. The detail of this, togetherwith funding information is shown below under “CapitalProjects by Ward”.In line with the requirements of Schedule 10 of the LocalGovernment Act 2002 Council has undertaken detailedanalysis of the costs of costs of asset maintenance,renewal and replacement. This analysis is contained inasset management plans that supplement this LTCCP andrelevant expenditure is included in the tables below. Inrespect of other asset replacement and renewal:•• Cemeteries, public toilets and town maintenance renewalsand replacements: Upgrades which include therenewal of existing assets are included in ‘New Works’with the renewal portion separately funded•• Community Centres, Halls, Museums, Pensioner Housingrenewals and replacements: Renewal of assets tobe replaced has been programmed consistent withthe financial asset register replacement valuations andasset expiry dates. Significant refit replacement costsare included based on the asset valuations and thevaluers forecast asset life. Asset condition assessmentand policy with regard to Council’s future intentionsin dealing with these assets is to be assessed prior todetermining the renewal programme•• Information Centres (i-Site) renewals and replacements:Renewal of assets to be replaced has beenprogrammed consistent with the financial asset registerreplacement valuations and asset expiry dates•• Lighting, car parks and footpaths renewals and replacements:Renewal funding for amenity lighting, carparksand street lighting assets to be replaced has beenprogrammed consistent with the financial asset registerreplacement valuations and asset expiry dates. Footpathrenewals are programmed in accordance with theactivity’s condition assessment•• Motor camps renewals and replacements: Renewal ofassets to be replaced has been programmed consistentwith the financial asset register replacement valuationsand asset expiry dates174FAR NORTH FUTURE PLAN 2009-2019

community activities – recreation•• Recreation renewals and replacements: Renewal ofassets to be replaced has been programmed consistentwith the financial asset register replacement valuationsand asset expiry dates. Kaitaia swimming pool renewalfunding has been re-timed for 2014/2015•• Libraries renewals and replacements: Annual provisionis made for book replacement. Renewal of otherlibrary assets to be replaced has been programmedconsistent with the financial asset register replacementvaluations and asset expiry dates•• Renewal funding is firstly drawn from available depreciationreserves. Where reserves are diminished, shortterm loan funding is used. Short term loan funding isprogrammed to be repaid by depreciation funding inensuing periods.FAR NORTH FUTURE PLAN 2009-2019 175

udget and capital projectsCONSOLIDATED DISTRICT FACILITIESPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIncome4,846 Rates - General 4,973 5,202 4,980 4,846 4,731 4,904 5,018 5,165 5,257 5,3836,852 Rates - Targeted 6,535 7,225 8,035 8,128 8,422 8,887 9,280 9,525 9,712 9,92291 Rates - Penalties 94 97 100 102 105 107 110 112 115 1181,895 Fees & Charges 1,762 2,061 2,304 2,713 3,013 3,086 3,160 3,236 3,316 3,3995,019 Development Contributions 2,397 2,561 2,570 2,484 2,481 2,444 2,393 2,336 2,252 2,170137 Other Income 138 124 126 130 132 136 139 142 146 14918,841 Total Operating Income 15,899 17,269 18,115 18,403 18,886 19,563 20,099 20,516 20,799 21,142Direct Costs12 Afforestation 19 15 15 15 16 16 16 17 17 1844 Airports 19 58 19 45 19 53 20 45 20 4530 Amenity Lighting 30 31 32 33 33 34 35 36 37 3818 Carparks 29 30 31 32 33 33 34 35 36 3783 Cemeteries 81 84 86 88 90 92 95 97 99 102155 Civil Defence 136 141 145 148 152 156 160 164 169 17476 Community Centres 23 24 25 26 27 28 29 30 31 33956 Community Services (Ward) District WideOperations16 16 17 17 18 18 18 19 19 201,149 Community Services District WideOperations269 279 289 299 308 318 327 340 353 36685 Economic Development 0 0 0 0 0 0 0 0 0 00 Economic Planning 219 123 126 129 132 135 139 142 146 149260 Footpaths 261 270 277 283 290 297 304 311 319 327143 Halls 94 192 256 151 111 108 111 114 117 120835 Information Centre 826 1,088 1,147 1,272 1,352 1,387 1,422 1,461 1,501 1,5440 Koropiro Basin Project 45 46 48 49 50 51 52 54 55 561,178 Libraries 1,184 1,134 1,168 1,201 1,231 1,265 1,297 1,337 1,378 1,421176FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCONSOLIDATED DISTRICT FACILITIESPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s135 Maritime Facilities 51 53 54 55 57 58 60 61 63 6416 Motor Camps 2 2 2 2 2 3 3 3 3 3107 Museums 110 110 110 111 111 111 111 111 111 1111,232 Parks & Reserves 1,320 1,297 1,328 1,359 1,391 1,424 1,459 1,494 1,531 1,569583 Pensioner Housing 582 601 616 631 646 662 678 695 713 7071 Public Safety District Wide Operations 0 0 0 0 0 0 0 0 0 0663 Public Toilets 687 710 727 745 762 780 799 819 840 861291 Recreation 186 400 177 181 186 190 195 200 205 210276 Rural Fires 305 315 324 332 340 349 357 367 377 387433 Structural Planning 100 103 106 108 111 113 116 119 122 125353 Swimming Pools 543 561 574 588 602 617 632 647 663 68040 Targeted Economic Development 0 0 0 0 0 0 0 0 0 01,170 Town Maintenance 1,139 1,165 1,192 1,221 1,249 1,279 1,310 1,341 1,375 1,409148 Interest 759 1,200 1,613 1,520 1,568 1,738 1,795 1,718 1,565 1,4213,100 Depreciation 3,797 4,121 4,490 4,625 4,846 5,075 5,337 5,523 5,691 5,86913,572 Total Direct Operating Expenditure 12,833 14,171 14,993 15,268 15,732 16,390 16,909 17,299 17,555 17,867Indirect Costs910 Corporate Costs 1,046 1,081 1,111 1,129 1,151 1,176 1,200 1,231 1,261 1,295101 Provisions 105 108 111 114 116 119 122 125 128 13197 Rating Costs 144 149 153 157 161 165 169 174 179 1841,108 Total Indirect Costs 1,295 1,339 1,375 1,400 1,428 1,460 1,491 1,530 1,568 1,61014,680 Total Operating Expenditure 14,128 15,509 16,368 16,667 17,160 17,850 18,400 18,828 19,123 19,4774,161 NET SURPLUS/(DEFICIT) 1,771 1,760 1,747 1,736 1,726 1,713 1,699 1,688 1,676 1,665FAR NORTH FUTURE PLAN 2009-2019 177

udget and capital projectsCONSOLIDATED DISTRICT FACILITIESSTATEMENT OF SOURCE AND APPLICATION OF FUNDSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sCAPITAL STATEMENT4,161 Net Surplus/(Deficit) 1,771 1,760 1,747 1,736 1,726 1,713 1,699 1,688 1,676 1,6651,060 Loan 4,019 5,762 603 1,318 856 963 432 411 272 3697,283 Contribution Funding 4,416 1,819 393 2,597 2,125 2,046 1,363 533 1,009 6761,599 Depreciation Funding 2,187 3,480 2,104 2,155 8,994 4,532 5,008 2,371 2,239 6,64186 Reserve Funding 54 54 54 54 54 54 54 54 54 54(86) Appropriation to Reserves (2,217) (2,217) (2,217) (2,217) (2,217) (2,217) (2,217) (2,217) (2,217) (2,217)14,103 Total Funding 10,230 10,657 2,684 5,643 11,537 7,090 6,339 2,840 3,033 7,189Capital Expenditure9,676 Capital Projects 9,897 10,140 1,904 4,872 10,739 6,289 5,530 2,050 2,261 6,44271 Debt Repayment 333 517 780 771 798 801 809 790 771 7469,747 Total Capital Expenditure 10,230 10,657 2,684 5,643 11,537 7,090 6,339 2,840 3,033 7,1894,356 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0178FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19COMMUNITY SERVICESNEW WORKSEasternCemeteriesKawakawa Kawakawa Cemetery 0 0 0 10,001 10,000 0 0 0 0 0Totara North Totara Nth Cemetery 0 0 0 0 0 0 0 20,000 0 0Community CentresKerikeri The Centre Kerikeri 300,000 375,000 113,034 113,033 113,040 113,039 113,034 113,039 113,042 113,038Public ToiletsRussell Rawhiti Boat Ramp New Toilet 0 0 0 49,999 0 0 0 0 0 0ReservesWaipapa Baysport 440,000 160,000 0 300,000 0 0 0 0 0 0Kerikeri Beach Access Esplanade Reserve 100,000 0 0 0 0 0 0 0 0 0Kerikeri Civic Space Acquisition 0 0 299,995 300,000 300,000 150,004 100,000 300,000 300,010 0Kerikeri Implementation of Strategic Plans 0 0 0 100,000 100,001 100,002 100,000 100,000 100,003 100,001Kerikeri Kerikeri Domain 0 0 0 500,000 0 0 0 0 0 0Kerikeri Kerikeri Domain Development 800,000 0 0 0 0 0 0 0 0 0Kerikeri Kerikeri Sports Complex 2,000,000 700,000 0 0 0 0 0 0 0 0Kerikeri Kerikeri Walkways 40,500 0 0 0 0 0 0 0 0 0Kerikeri Land Banking 0 0 0 500,000 500,000 500,000 500,000 0 0 0Paihia Playground Sun Shades 0 0 0 40,000 0 0 0 0 0 0Russell Russell Sportsground 0 0 0 100,000 0 0 0 0 0 0Kerikeri Walkways and Cycleways 0 0 0 20,000 20,001 20,000 19,999 20,000 20,000 20,000Swimming PoolsKerikeri Kerikeri Pool 0 0 0 0 0 140,003 0 0 0 0FootpathsEastern Footpaths New - Eastern 0 97,276 48,543 315,994 872,579 888,563 636,983 260,004 700,024 600,008MaritimeKerikeri Windsor Landing Ramp and Carpark 185,000 0 0 0 0 0 0 0 0 0FAR NORTH FUTURE PLAN 2009-2019 179

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19Eastern Total 3,865,500 1,332,276 461,572 2,349,027 1,915,621 1,911,611 1,470,016 813,043 1,233,079 833,047NorthernCemeteriesKaeo Kaeo Cemetery 0 0 0 0 0 0 20,000 0 0 0Kaitaia Kaitaia Cemetery 0 0 0 10,001 10,000 10,001 0 0 0 0Community CentresKaitaia Te Ahu Centre 4,000,000 4,200,000 0 0 0 0 0 0 0 0Public ToiletsKaitaia Kaitaia Public Toilet 0 70,039 0 0 0 0 0 0 0 0ReservesKaitaia Centennial Park 0 0 0 50,000 0 0 0 0 0 0Hihi Hihi Beach Access 59,000 0 0 0 0 0 0 0 0 0Houhora Houhora Big Game Fishing Club 0 0 0 0 135,000 0 0 0 0 0Kaitaia Kaitaia Recreation Hub 0 0 0 300,000 0 0 0 0 0 0Northern Local Recreational Facilities 0 0 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000Kaitaia Parkdale Reserve 15,000 80,000 0 0 0 0 0 0 0 0Pukenui Pukenui Domain 37,699 0 0 0 0 0 0 0 0 0Northern Rarawa Domain 78,000 0 0 0 0 0 0 0 0 0Whatuwhiwhi Recreation Hub Development 0 0 49,999 550,000 0 500,010 0 0 0 0Swimming PoolsKaitaia Kaitaia Pool 0 0 0 0 120,004 0 0 0 0 0AirportsKaitaia Taxiway/Apron Stabilise and seal0 132,000 0 0 0 162,999 0 0 0 171,319(8900sqm)CarparksKaitaia Kaitaia Car Park 0 900,159 0 0 0 0 0 0 0 0FootpathsNorthern Footpaths New - Northern 0 486,381 59,999 119,996 524,014 120,003 79,997 0 0 0Northern Total 4,189,699 5,868,579 129,998 1,049,997 809,018 813,013 119,997 20,000 20,000 191,319180FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19WesternCemeteriesKaikohe Kaikohe Cemetery 0 0 0 10,001 10,000 10,001 0 0 0 0Kohukohu Kohukohu Cemetery 0 0 0 0 0 0 0 0 10,001 10,000Okaihau Okaihau Cemetery 0 0 0 0 0 0 0 0 10,001 10,000Rawene Rawene Cemetery 0 0 0 0 10,000 10,001 0 0 0 0Public ToiletsWestern North Hokianga New Toilet 0 0 50,000 0 0 0 0 0 0 0ReservesKaikohe Community Seed Funding - Assets 100,000 0 0 0 0 0 0 0 0 0Kaikohe Lindvart Park 50,000 0 39,999 0 0 0 0 0 0 0Rawene Playground 0 60,000 0 0 0 0 0 0 0 0FootpathsWestern Footpaths New - Western 110,000 100,001 119,998 199,996 140,003 66,002 79,997 90,002 0 0Western Total 260,000 160,001 209,997 209,997 160,003 86,004 79,997 90,002 20,002 20,000NEW WORKS Total 8,315,199 7,360,856 801,567 3,609,021 2,884,642 2,810,628 1,670,010 923,045 1,273,081 1,044,366RENEWAL WORKSDistrictMotor CampsDistrict Wide Motor Camps Renewals 13,695 73,600 95,554 6,633 624,516 84,301 22,799 27,298 0 0MaritimeDistrict Wide Maritime Facilities Renewals 163,000 410,900 65,199 144,695 254,107 467,510 915,473 508,307 6,600 394,404District Total 176,695 484,500 160,753 151,328 878,623 551,811 938,272 535,605 6,600 394,404EasternAmenity LightingEastern Amenity Lighting Eastern Renewals 0 0 0 0 34,079 18,773 184,257 0 15,936 7,708CemeteriesKawakawa Kawakawa Cemetery 15,000 20,000 0 0 0 0 0 0 0 0FAR NORTH FUTURE PLAN 2009-2019 181

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19Community CentresEastern Community Centres Eastern Renewals 0 2,209 0 0 235,386 327,257 8,591 0 0 409,505HallsEastern Halls Eastern Renewals 2,810 32,744 14,027 0 1,397,239 0 33,106 0 0 1,030,590Public ToiletsKerikeri Cobham Road Public Toilets 0 0 0 248,834 0 0 0 0 0 0Taupo Bay Taupo Bay Toilets 0 16,000 0 0 0 0 0 0 0 0Paihia Te Haumi Toilets 0 0 0 0 0 0 0 0 50,001 0Waipapa Waipapa Land Toilets 0 0 30,000 0 0 0 0 0 0 0Paihia Williams Rd Toilets 0 0 0 0 0 15,000 0 0 0 0Pensioner HousingKawakawaPensioner Housing KawakawaRenewals7,350 3,645 0 0 0 0 0 0 0 0Kerikeri Pensioner Housing Kerikeri Renewals 0 26,415 0 0 0 0 0 0 0 0MangonuiPensioner Housing MangonuiRenewals0 7,500 0 0 0 0 0 0 0 0Russell Pensioner Housing Russell Renewals 0 22,783 0 0 0 0 0 0 0 0ReservesEastern Parks & Reserves Eastern Renewals 102,132 210,230 85,918 22,302 195,026 94,721 457,622 75,400 140,255 92,849CarparksKawakawa Commercial St Car Park 0 0 0 0 0 0 0 0 0 95,975Kerikeri Hobson Rd Car Park 0 0 0 0 0 0 0 0 0 114,493Kerikeri Homestead Rd Car Park 0 0 0 0 0 0 0 0 0 29,340Whangaroa Kent Bay Car Park 0 0 0 0 0 0 1,259 0 0 0Paihia Marsden Rd Car Park 0 0 0 0 84,045 0 0 0 0 0Eastern Taronui Bay Car Park 0 0 0 0 4,264 0 0 0 0 4,263Kawakawa Whangae Rd Car Park 0 0 0 0 0 0 8,272 0 0 0Russell York St Car Park 0 0 0 4,487 0 0 0 0 0 0182FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19FootpathsKerikeri Amokura Road 0 0 2,700 0 0 0 0 0 0 0Kerikeri Cobham Court 0 0 4,500 0 0 0 0 0 0 0Kawakawa Gillies Road SH1 5,400 0 0 0 0 0 0 0 0 0Kawakawa Gills Drive 2,700 0 0 0 0 0 0 0 0 0Kawakawa Greenacres Drive 0 0 4,950 0 0 0 0 0 0 0Kawakawa Grey Street 0 0 2,700 0 0 0 0 0 0 0Kawakawa Harry's Place 0 0 2,700 0 0 0 0 0 0 0Paihia Kings Road 0 0 2,700 0 0 0 0 0 0 0Kerikeri Landing Road 0 0 2,700 0 0 0 0 0 0 0Taupo Bay Mako Street 18,000 0 0 0 0 0 0 0 0 0Taupo Bay Marlin Drive 22,500 0 0 0 0 0 0 0 0 0Paihia Marsden Road 0 0 3,600 0 0 0 0 0 0 0Moerewa Mason Avenue 0 0 2,700 0 0 0 0 0 0 0Moerewa Massey Street 0 0 21,999 0 0 0 0 0 0 0Russell Matauwhi Road 0 0 2,700 0 0 0 0 0 0 0Waipapa Mawson Avenue 0 0 2,700 0 0 0 0 0 0 0Moerewa Nisbet Street 0 31,500 0 0 0 0 0 0 0 0Kawakawa North Road SH11 0 8,100 0 0 0 0 0 0 0 0Kawakawa Raymond Street 14,000 0 0 0 0 0 0 0 0 0Eastern Renewal Programme 0 0 0 15,309 15,309 15,309 15,309 15,309 15,310 15,309Kerikeri Sammaree Place 0 0 6,749 0 0 0 0 0 0 0Paihia Seaview Road 0 0 2,700 0 0 0 0 0 0 0Moerewa SH1 Moerewa 0 11,700 0 0 0 0 0 0 0 0Moerewa Wynyard Street 0 2,700 0 0 0 0 0 0 0 0Russell York Street 0 0 2,700 0 0 0 0 0 0 0Eastern Total 189,892 395,526 198,743 290,932 1,965,348 471,060 708,416 90,709 221,502 1,800,032FAR NORTH FUTURE PLAN 2009-2019 183

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19NorthernAmenity LightingNorthern Amenity Lighting Northern Renewals 0 0 0 0 6,442 9,324 6,569 12,980 5,889 4,067CemeteriesKaitaia Kaitaia Cemetery 0 0 0 0 20,001 0 0 0 0 0Community CentresNorthern Community Centres Northern0 0 0 0 326,134 563,512 147,792 6,136 0 349,143RenewalsHallsNorthern Halls Northern Renewals 6,750 3,659 0 0 1,462,260 0 23,287 0 0 449,987MuseumsNorthern Museums Northern Renewals 0 8,182 0 0 218,005 201,837 0 0 0 0Public ToiletsBroadwood Broadwood Toilets 0 0 0 59,999 0 0 0 0 0 0Waiharara Kaimaumau Toilets 0 0 0 0 0 0 0 80,001 0 0Houhora Public Toilets Houhora Heads 0 0 0 0 60,001 0 0 0 0 0Rangiputa Rangiputa Toilets 0 0 0 40,000 0 0 0 0 0 0Pensioner HousingAhipara Pensioner Housing Ahipara Renewals 17,425 20,225 0 0 0 0 0 0 0 0Awanui Pensioner Housing Awanui Renewals 14,280 72,560 0 0 0 0 0 0 0 0Kaitaia Pensioner Housing Kaitaia Renewals 21,216 376,807 0 0 0 0 0 0 0 0Waima Pensioner Housing Omanaia/Waima 6,334 1,000 0 0 0 0 0 0 0 0RenewalsReservesNorthern Parks & Reserves Northern Renewals 73,125 184,415 112,813 45,667 208,337 0 457,575 26,070 103,608 568,437Swimming PoolsKaitaia Kaitaia Pool 0 0 0 0 0 1,221,774 0 6,984 0 6,983AirportsKaitaia Airports Renewals 1,072 0 0 26,021 0 27,093 40,716 32,125 25,528 26,022Kaitaia Reseal Touchdown Areas 0 136,000 0 0 0 0 0 0 0 0184FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19CarparksKaitaia Melba St Car Park 132,417 0 0 0 0 0 0 0 0 0Kaitaia North Rd Car Park 0 0 0 0 6,014 0 0 0 0 0FootpathsAhipara Ahipara Road 0 0 2,700 0 0 0 0 0 0 0Kaitaia Bank Street 97,200 0 0 0 0 0 0 0 0 0Mangonui Colonel Mould Drive 0 0 9,000 0 0 0 0 0 0 0Kaitaia Commerce Street 89,720 0 0 0 0 0 0 0 0 0Kaitaia Donald Lane 0 0 4,950 0 0 0 0 0 0 0Kaitaia Jamieson Road 0 0 2,700 0 0 0 0 0 0 0Kaitaia Lake Road 0 81,000 0 0 0 0 0 0 0 0Kaitaia Masfen Terrace 0 0 3,240 0 0 0 0 0 0 0Kaitaia Masters Street 0 0 6,300 0 0 0 0 0 0 0Kaitaia Melba Street 0 0 2,700 0 0 0 0 0 0 0Kaitaia North Road 0 0 13,500 0 0 0 0 0 0 0Kaitaia Oxford Street 0 0 2,700 0 0 0 0 0 0 0Kaitaia Puckey Avenue 0 0 7,740 0 0 0 0 0 0 0Kaitaia Pukepoto Road 0 69,300 11,700 0 0 0 0 0 0 0Kaitaia Taaffe Street 0 0 12,600 0 0 0 0 0 0 0Kaitaia Tangonge Crescent 0 0 8,100 0 0 0 0 0 0 0Northern Total 459,539 953,148 200,743 171,687 2,307,194 2,023,540 675,939 164,296 135,025 1,404,639WesternAmenity LightingWestern Amenity Lighting Western Renewals 0 0 0 0 0 0 0 1,025 1,830 7,098CemeteriesKaikohe Kaikohe Cemetery 0 0 0 20,000 0 0 0 0 0 0Kohukohu Kohukohu Cemetery 5,000 0 0 0 0 0 0 0 0 0Okaihau Okaihau Cemetery 0 0 5,000 0 0 0 0 0 0 0FAR NORTH FUTURE PLAN 2009-2019 185

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19Community CentresHallsWestern Community Centres Western Renewals 0 0 0 0 84,646 51,334 9,818 0 0 251,713Western Halls Western Renewals 295,434 128,967 0 0 2,027,028 0 397,261 32,702 226,554 1,061,150Public ToiletsKohukohu Narrows Ferry Landing Toilets Upgrade 43,000 0 0 0 0 0 0 0 0 0Opononi Opononi Toilets 40,000 0 0 0 0 0 0 0 0 0Rawene Russell Esplanade Toilets 0 0 0 0 0 0 149,999 0 0 0Pensioner HousingHoreke Pensioner Housing Horeke Renewals 0 2,380 0 0 0 0 0 0 0 0Kaikohe Pensioner Housing Kaikohe Renewals 117,317 102,687 0 0 0 0 0 0 0 0Kohukohu Pensioner Housing Kohukohu0 16,680 0 0 0 0 0 0 0 0RenewalsOpononi Pensioner Housing Opononi Renewals 0 54,000 0 0 0 0 0 0 0 0Rawene Pensioner Housing Rawene Renewals 0 39,164 0 0 0 0 0 0 0 0ReservesWestern Parks & Reserves Western Renewals 21,570 98,320 223,045 230,200 116,850 1,100 372,440 3,550 11,100 142,807CarparksKaikohe Memorial Ave Car Park 0 0 0 0 0 0 162,995 0 0 0FootpathsKohukohu Kohukohu Road 0 0 67,999 29,999 30,001 30,001 0 0 0 0Western Renewal Programme 0 0 0 0 0 0 18,266 18,267 18,267 18,267Western Total 522,321 442,198 296,044 280,199 2,258,525 82,435 1,110,779 55,544 257,751 1,481,035RENEWAL WORKS Total 1,348,447 2,275,372 856,283 894,146 7,409,690 3,128,846 3,433,406 846,154 620,878 5,080,110COMMUNITY SERVICES TOTAL 9,663,646 9,636,228 1,657,850 4,503,167 10,294,332 5,939,474 5,103,416 1,769,199 1,893,959 6,124,476186FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCAPITAL PROJECTS BY WARDDISTRICT FACILITIESProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19CUSTOMER SERVICESRENEWAL WORKSDistrictInformation CentresDistrict Wide Information Centre Renewals 3,001 159,715 0 51,306 63,722 41,610 12,364 5,576 57,765 29,079LibrariesDistrict Wide Books 227,788 237,289 246,525 256,401 254,649 261,043 267,732 275,420 284,329 288,799District Wide Libraries General 2,560 106,429 0 61,055 125,951 47,108 145,653 0 25,356 0District Total 233,349 503,433 246,525 368,762 444,322 349,761 425,749 280,996 367,450 317,878RENEWAL WORKS Total 233,349 503,433 246,525 368,762 444,322 349,761 425,749 280,996 367,450 317,878CUSTOMER SERVICES TOTAL 233,349 503,433 246,525 368,762 444,322 349,761 425,749 280,996 367,450 317,878PUBLIC SAFETYRENEWAL WORKSDistrictCivil DefenceDistrict Wide Civil Defence Vehicle Renewals 0 0 0 0 0 0 1,030 0 0 0District Total 0 0 0 0 0 0 1,030 0 0 0RENEWAL WORKS Total 0 0 0 0 0 0 1,030 0 0 0PUBLIC SAFETY TOTAL 0 0 0 0 0 0 1,030 0 0 0GRAND TOTAL 9,896,995 10,139,661 1,904,375 4,871,929 10,738,654 6,289,235 5,530,195 2,050,195 2,261,409 6,442,354FAR NORTH FUTURE PLAN 2009-2019 187

188FAR NORTH FUTURE PLAN 2009-2019

Sustainable Environment & ConsentsFAR NORTH FUTURE PLAN 2009-2019 189

Development ConsentsIntroductionKey factsDuring 2007/2008 Council processed:•• 836 resource consents•• 1,142 residential unit buildings permits•• 1,165 Project Information Memorandum (PIM)applications.Why we do itThe vision of the Development Consents department isto promote sustainable development in the Far Northleading to healthier lifestyles, safe buildings and protectionof the district’s environment. Council aims to achieve thisby:•• Supporting development and growth in the district•• Protecting the natural / coastal landscape•• Ensuring buildings are constructed in accordance withBuilding Act regulations•• Safeguarding the physical appearance of the Far North•• Protecting and enhancing coastal access for the public•• Promoting responsible use of alcohol.Contribution to Community OutcomesPUBLIC HEALTH/public safetyenvironmentPromote safe, healthy buildingsTake account of environmental issues in consentsprocesses190 FAR NORTH FUTURE PLAN 2009-2019

Development consentsRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Built stronger relationships with contractors, buildersand architects so that there is a better understandingof legislative requirements•• Introduced changes to improve the user-friendliness ofconsents processes and support available to applicants•• Improved consents processing times, though not yet tothe level Council would wish•• Relocated staff to Kerikeri in order to improve communicationwith the industry and public•• Obtained a certificate of registration for Building Accreditationas required under section 273(1) of theBuilding Act•• Reviewed and revised Development Consent fees andcharges have been adopted by Council in order toreflect the costs of the service and ensure a fair contributionfrom those who benefit from it•• Developed a “Statement on Coastal Access” to enablewider better access to the Far North’s unique coastallandscape•• Developed a Geographical Information System (GIS)containing natural hazard information as supplied byNorthland Regional Council and information obtainedfrom the two extreme weather events of 2007.what we have not achieved since thelast planSince 2006 Council has not achieved the following:•• A Helpdesk System to co-ordinate monitoring activitiestogether with a centralised booking system forfield inspections•• Recruitment of sufficient technical staff within the resourceplanning area. With world shortages of trainedengineers and planners this will continue to be an areaof challenge.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesMeeting processing targets for consentsDecrease in application numbersImplicationsThe forecast economic slowdown will reduce workload and enable processing times to beimproved. However, economic growth is expected to resume over the longer term andthis will mean that pressures to improve processing times will return. Council will continueto seek to recruit suitably qualified staff to enable more in-house processing and reduceturnaround timesIncreases pressure for cost reductions to minimise the rates funding requirementFAR NORTH FUTURE PLAN 2009-2019 191

Development consentsIssues / challenges (continued)Implications (Continued)Lack of public understanding of the respective legislative responsibilities of regional andlocal governmentThe Development Consents department will continue to work closely with CentralGovernment and the Department of Building and Housing with the aim of clarifyinglegislative responsibilitiesCouncil will consider the development of a Far North unitary council to simplify localgovernment structuresWork will continue to communicate with and better inform local communities about central,regional and local government roles and responsibilitiesIncreased responsibilities imposed by new legislation leading to cost increases with anadverse impact on service user feesRequires continued lobbying of Government to get rid of some of the rules and regulationsthat are unnecessary or irrelevant to the Far North192FAR NORTH FUTURE PLAN 2009-2019

Development consentsWhat you have told usCouncil’s most recent residents’ survey in 2008 showed alow percentage satisfaction rating (30%). This is over 20%below the national average and the average for Council’speer group of most directly comparable councils.Residents’ reasons for dissatisfaction focused on slowturnaround times, development costs, too much bureaucracyand red tape, and too many regulations. Councilregards it as a key priority to achieve improvement in thisarea of service and is actively addressing the shortcomingsidentified.What we plan to doObjective 1: Match resources to business needs by:•• Reducing costs to reflect the current downturn inconsents numbers•• Ensuring that when growth resumes Council is able torecruit and retain the necessary specialist resources.Objective 2: Continue to improve Resource Consentprocessing and inspection services by:o Completing the new revised resource consentdocumentation and development packo Putting a system on-line so that customers canassess their resource consent application againstDistrict Plan and RMA requirementso Continuing education programmes with the devel-opment industry on the RMA process and DistrictPlan requirements.o Continuing education programmes about the Build-ing Consent process with the development industryo Improving onsite inspector services.Objective 4: Continue to improve the delivery of LiquorLicensing services by:o Continuing to work with all agencies in the FarNorth Liquor accord, (N.Z. Police, Fire Service,Northland Health)o Continuing to be proactive in the delivery and edu-cation of the liquor licencing process.Objective 5: Continue to inform and support the FarNorth development industry by:o Using seminars, factsheets, website information andother means to provide information about relevantlegislation and regulationso Continuing education programmeso Continuing to provide and improve the conceptdevelopment and application pre-vetting processfor both Resource Consent and Building Consentapplications.Objective 3: Continue to improve Building Consentprocessing and inspection services by:o Completing the revision of Building Consent docu-mentation and the development packo Putting a system on-line so that customers can as-sess their Building Consent application requirementsFAR NORTH FUTURE PLAN 2009-2019 193

Development consentslevels of service provisionten year plan measures and levels of serviceKey Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetLevel of satisfactionwith planning,building or inspectionservices30% 35% 40% 45% 50% 55% 60% 60% 60% 60% 60%Continue toimprove ConsentsprocessingContinued improvementShould have a positiveeffect on processingtimes and customersatisfactionPublic HealthPublic SafetyEnvironmentAverage numberof days to processbuilding consents excludingtime on hold% of resourceconsents completedwithin statutorytimeframes12 12 12 12 12 12 12 12 12 12 1237% 70% 80% 90% 92% 94% 96% 98% 98% 98% 98%Average numberof days to processsubdivision consentsexcluding time onhold57 50 45 40 35 35 35 35 35 35 35194FAR NORTH FUTURE PLAN 2009-2019

Development consentslevels of service provisionten year plan measures and levels of serviceKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetImprove the deliveryof liquor licensingservicesIncrease efforts topromote good hostresponsibilityPublic HealthPublic SafetyPercentage ofliquor licensedpremises visitedto promotegood hostresponsibility12.3% 15% 20% 25% 33% 33% 33% 33% 33% 33% 33%KEY ASSUMPTIONSASSUMPTION what may happen next likelihood impactFINANCIALIMPlicationsMITIGATIONCouncil will be able to recruitsufficient staff of the right calibre toenable improvements in Consentsprocessing to be achievedCouncil may be unable torecruit sufficient staffHighPoor levels of service in Building andResource Consent processing andinspectionOngoing reliance on bought-inconsultant supportHighRecruitment and retention ofsuitably qualified staff is a toppriorityGrowth projections are reliableSignificant variation fromCouncil’s growth projectionsLow/mediumMay increase or decrease resourcerequirements and income projectionsMedium/HighMonitoring of growth statisticsand forecasts and adjustment ofbudgets as necessaryFAR NORTH FUTURE PLAN 2009-2019 195

Development consentsKEY RISKSrisk current rating mitigation rating after mitigationRising costs of the service may deter complianceif people feel that the risk of not complyingis equivalent to the cost of complyingHighContinue to focus on cost containment and process efficienciesto reduce the need for fee increasesHighLegal or other challenge to inappropriatedecisionsHighMaintain insurance cover.Ensure adherence to proper processes and procedures tominimise the likelihood of future claimsMediumSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISInaccurate advice given by inexperienced staff may have detrimental effects on keycommunity outcomes – public health, public safety, and / or environmentEnsuring appropriate oversight by more experienced staff and provide required trainingand developmentNegative impact of failure to comply with statutory timescalesSeeking to recruit additional staff and enhancing training of existing staff, as well as usingconsultancy services as a back-up196FAR NORTH FUTURE PLAN 2009-2019

FAR NORTH FUTURE PLAN 2009-2019 197

District Plan & Structure PlanningKey facts•• The District Plan was declared operative in part on 12October 2007•• 98% of appeals to the District Plan have been resolved(there is one outstanding appeal)•• The Kerikeri-Waipapa Structure Plan was adopted byCouncil in September 2007.Why we do itOur vision is to provide for planned growth and developmentin the Far North, ensuring our natural and physicalresources are managed in a sustainable manner, and providingopportunities for our communities and future generationsto prosper socially, economically and culturally. The DistrictPlan is the key tool for achieving this.Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Finalised the District Plan Monitoring Strategy andcommenced implementation•• Adopted and begun implementation of the Kerikeri /Waipapa Structure Plan•• Prepared the Draft Renewable Energy and EnergyEfficiency plan change for release•• Commenced work on the internal review of the DistrictPlan•• Resolved 98% of appeals to the District Plan•• Joined the Community for Climate Change Protectionprogramme (CCP-NZ).•• Participated as a member of the inter-council workingparty on Genetically Modified Organisms (GMOs).what we have not achieved since thelast planSince 2006 Council has not achieved the following:•• Initiated a public programme to improve awareness of theDistrict Plan•• Progressed Structure Plans for other parts of the district.Contribution to Community Outcomesculture and heritage ENVIRONMENT SERVICES THAT SUPPORTCOMMUNITiesMaintain, protect and enhance the Far North’s culture andheritageProvide for the development of the Far North while safeguardingthe environmentEnsure the planning framework accommodates servicesrequired by our communities198FAR NORTH FUTURE PLAN 2009-2019

district plan & structure planningWhere are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsLack of robust natural hazard information available (including flood data), and the high costsassociated with the research and provision of this informationFinancial constraints limiting the amount of work that can be done on the District PlanClimate change may present significant challenges for the district, particularly over the longterm. Key impacts predicted include temperature warming, higher intensity storm events,reduced annual rainfall and sea level riseSustainable growth and development of the districtDevelopment of Iwi and Hapu management plans. These are policy statements that consolidatethe intent of hapu / iwi regarding their social, economic, cultural and environmental development.They provide a framework and guidelines to facilitate the development of resourcemanagement strategies for the sustainable development of natural and physical resources. Theplans are not a substitute for consultation or partnershipNeed to ensure priority is given to hazard research and information at central and regionalgovernment levelsThe prioritisation of plan changes to the District Plan will need careful consideration. Priorityfor plan changes will be given to those issues that cannot be appropriately resolved throughalternative mechanismsThe predicted impacts of climate change would have far reaching consequences for the district,from increased flood risk, coastal inundation and related erosion hazard, to reduced wateravailability for urban water supply. Whilst Council needs to incorporate these, and other risksinto long term planning and hazard management, priority should also be given to monitoringand reducing our carbon foot print in line with International efforts to reduce green house gasemissionsRequires development of structure plans for key parts of the districtCouncil supports the development of these plans and is statutorily required to take them intoaccount as part of its decision-making processes. Council is currently developing a policy onhow these plans will be given due considerationFAR NORTH FUTURE PLAN 2009-2019 199

district plan & structure planningWhat you have told usFor the first time in 2008 Council used its residents’ surveyto test awareness of the District Plan. 50% of residents saidthey felt either very well informed or well informed aboutthe Plan. This figure will be used as a benchmark in the futureto test how well Council keeps residents informed aboutDistrict Plan matters.What we plan to doObjective 1: Develop Council’s capacity to report on theeffectiveness of the District Plan, consents, complaints andthe State of the Environment by:o Implementing the District Plan Monitoring Strategyo Analysing and reporting trends.Objective 2: Resolve issues identified as part of the internalreview of the District Plan by:o Completing the necessary plan change(s).Objective 4: Respond to growth in the district by:o Developing Community Plans for:øø Bay of Islandsøø Doubtless Bayøø Omapere/Opononiøø Ahiparaøø Kaikoheøø Kaitaiaøø Kawakawaøø KaeoObjective 5: Respond effectively to climate change by:o Developing and implementing a strategy to respond toclimate change impactso Progressively reducing green house gas emissionsdistrict wide.Objective 6: Improve public awareness around the DistrictPlan, Renewable Energy and Energy Efficiency by:o Developing and implementing an awarenessprogramme.ooSupporting a community survey on GMOsContinuing to pursue issues around where liability liesif there is an accidental release of GMOs.Objective 3: Continue to progress the implementation ofthe Kerikeri-Waipapa Structure Plan by:o Identifying key projects required to implement theStructure Plan and ensuring sufficient budget isprovided for their completiono Pursuing effective approaches to achieving the request-ed District Plan changeso Requiring developers to provide on-site water andwastewater reticulation infrastructure such that itcan be connected to Council’s water and wastewaterpipework when it is availableo Requiring developers in the interim to provide forroofwater supplies and either an on-site treatment anddisposal system, or an alternate approved means ofremoval of sewerage from the developmentObjective 7: Increase the number of communities withrobust hazard information by:o Investigating and advocating (with regional and nationalgovernment) for research into natural hazards affectingthe Far North.Objective 8: Ensure hapu / iwi management plans are appropriatelytaken into account by Council by:o Developing a guideline on how to take these plans intoaccount when developing Council plans and policyo Incorporating input from the plans in future Councildecision making.Objective 9: Continue to participate in work on GMOs by:o Actively participating in the inter-council workinggroup on GMOs200FAR NORTH FUTURE PLAN 2009-2019

district plan & structure planningWaipapa Inset MapRoundabouts0.0 0.3 0.6Potential Local Retail CentreKilometresEnhanced Environmental Habitat and Protection Area (EEHP)Gateway Landscape AmenityCBD Inset MapKerikeri CBD Mixed Use (KCBD-MU)Main Street Plan AreaConservation and Heritage Preservation OverlayCoastal Lifestyle (CL)High Density (HD)Waipapa Industry & Employment Centre (WEC)Retail & Commerce Centre (RC)Rural Lifestyle (RL)Rural Lifestyle with Community Service (RL/CS)Urban Residential (UR)Key RoadsFuture Key Routes/LinksExisting District Plan ZonesRiparian & Stream Management0.0 0.2 0.4Wastewater Reticulation Area of Benefit (2006-2016 LTCCP)KilometresStudy AreaThis map shows indicative "Policy Areas" for growth.It is anticipated that the Policy Areas identified in theStructure Plan will provide further direction for landuse and development. However, final zone boundariesare subject to detailed investigation and Statutory Process.Kerikeri - Waipapa Structure Plan Map(INDICATIVE ONLY)Main Map Scale0.0 1.0 2.0 3.0 4.0KilometresContains Crown Copyright Data.Crown Copyright Reserved.This map contains data derived in part orwholly from sources other than Beca, andtherefore, no representations or warrantieare made by Beca as to the accuracy orcompleteness of this information.FAR NORTH FUTURE PLAN 2009-2019 201

district plan & structure planninglevels of service provisionten year plan measures and levels of serviceKey Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12 Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19Target% of District Plan monitoringstrategy indicatorscurrently beingmeasuredNewMeasure20% 30% 40% 50% 60% 70% 80% 95% 100% 100%District Plan MonitoringStrategy and PlanchangesIdentify issues impactingon the effectivenessof the District PlanEnvironment% of residents whofeel either very wellinformed or wellinformed about theDistrict Plan50% 50% 52% 52% 55% 55% 57% 57% 60% 60% 60%% of solutions identifiedwithin the year forissues identified via themonitoring strategyNewMeasure50% 55% 60% 65% 70% 75% 80% 85% 90% 95%Complete StructurePlans for key parts ofthe District by 2012Support effective responsesto growth anddevelopment in the FarNorthCulture andHeritageServices thatSupportCommunitiesNumber of structure/community plans inplace1 2 3 4 5 6 7 8 8 8 8Investigate and advocatefor research intonatural hazards affectingthe Far North.Ensure developmentoccurs in appropriatelocationsCulture andHeritageNumber of communitieswith robust hazardinformation or numberof hazard researchprojects completed1 2 4 6 8 10 12 14 16 18 20202FAR NORTH FUTURE PLAN 2009-2019

district plan & structure planninglevels of service provisionten year plan measures and levels of serviceKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetDevelop guidelines onhow to take Hapu / Iwimanagement plans intoaccount when developingCouncil plans and policyImprove understandingof Hapu and Iwi planningaspirations, and howCouncil can assist withachieving theseEnvironmentCulture andHeritageNumber of Hapu/Iwi managementplans taken intoaccount by Council100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%key assumptionsASSUMPTIONwhat may happeninsteadlikelihoodimpactfinancialimplicationsMITIGATIONThe Ministry for the Environment’s(MfE) forecasts of climate changeimpacts up to the end of the centuryare within the range predicted. (Theselevels are used in the development ofthe Climate Change Strategy and otherplanned infrastructure works)Actual level of climate change impactsup to the end of this centuryare higher than assumedActual levels of climate changeimpact up to the end of thiscentury are lower than assumedLowLowAdverse impacts oninfrastructure andcommunities aregreater than theranges provided forUnnecessary additionalworks andservice provision isundertakenMedium/HighLowCouncil planning should allow for at least mid-rangeestimates of climate change impact, as set out by theMfECouncil planning should allow for at least the midrangeestimates of climate change impact. Climatechange impacts are predicted to continue beyond theend of this centuryThe District Plan is, in themajority, consistent with any nationaland/or regional policy direction thatmay eventuateNational and/or regional policydirection may be inconsistent withthe District Plan necessitatingmajor changes to the District PlanMediumAdditional budgetwill need to beprovided for planchanges to theDistrict PlanMedium/HighContinue to seek to influence and comment onnational and regional policy proposals identifying anyissues of concern to our communities and Council.Consider any additional budget need in future annualplanning processesFAR NORTH FUTURE PLAN 2009-2019 203

district plan & structure planningkey risksRISK current rating MITIGATIONrating aftermitigationChanges in political direction requiring changes to theDistrict Plan increase the cost of the activity and delayfinalisation of the PlanHighContinue process to resolve the final appeal. This issue rests with theEnvironment Court and Council has minimal influence on the processMedium / HighLegislative changes may require the District Plan toaddress energy efficiency and climate changeHighContinue to work towards giving effect to relevant changes inlegislationMonitor likely changes in national or regional policy in order toanticipate the need for changesMediumChanges in national or regional policy may require Councilto make changes to the District Plan, which could increasethe cost and resources required for this service, especiallywhere the changes are contested e.g. incorporation ofhazard management provisions and maps into the DistrictPlanHighMonitor potential national or regional policy changes that may impacton the District Plan and endeavour to influence as appropriateEnsure plan change processes are supported by well conceived publicconsultation initiativesMediumFailure to identify future risks and issues when planning forgrowth e.g. when rezoning for more intensivedevelopmentHighContinue training and access to appropriate resources to ensureforward planning is undertaken by properly skilled people with accessto relevant information sources. Continue effective consultation withappropriate groupsMedium204FAR NORTH FUTURE PLAN 2009-2019

district plan & structure planningsignificant negative effectspotential negative effecthow we are addressing thisLack of input from hapu and iwi into forward planning decision-making for the districtEncouraging and supporting the development of hapu and iwi management plans, and ensuring a policyis developed which clearly outlines how these plans will be taken into account in Council’s future policymakingDeveloping practices which encourage active participation of hapu and iwi in forward planning, includingthe district plan and structure plan processesAdverse reaction to environmental disasters if it becomes apparent that District Planprovisions were deficientIdentifying and rectifying potential weaknesses in the PlanFAR NORTH FUTURE PLAN 2009-2019 205

Financials – Sustainable Environment and ConsentsFINANCIAL FORECASTSThe tables that follow show:• Ten year projections of operating income and expenditure• Forecast capital expenditure and funding followed by abreakdown of capital projects by ward the latter reflectingCouncil’s plans to increase asset capacity in response to caterfor additional demand and / or improved levels of service.Overall positionCouncil undertook an extensive review of developmentconsents fees during 2008. Since that review the economicslowdown has brought a major downturn in levels of business,with higher value building consents down 50%, resourceconsents down 25% and a significant drop-off in largerdevelopments.The combination of lower volume and lower value businesshas led Council to reforecast future fees income and in theyear ahead it is anticipated that the budget shortfall will beequivalent to around 4% of the General Rate. As this is avolume-driven area of business Council will make savings inexternal consultant expenditure and internal costs to offsetthe reduction in income.Asset ManagementThere are no significant assets involved in these areas ofCouncil’s work.206FAR NORTH FUTURE PLAN 2009-2019

udget and capital projectsCONSOLIDATED SUSTAINABLE ENVIRONMENT AND CONSENTSPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIncome2,884 Rates - General 4,650 5,869 6,042 6,196 6,346 6,512 6,673 6,878 7,084 7,30443 Rates - Penalties 33 33 33 34 34 34 34 35 35 355,340 Fees & Charges 4,456 3,538 3,623 3,710 3,795 3,886 3,980 4,075 4,177 4,2828,267 Total Operating Income 9,138 9,440 9,699 9,939 10,176 10,433 10,688 10,988 11,296 11,620Direct Costs2,361 Building Act 2,847 2,942 3,026 3,109 3,188 3,273 3,357 3,457 3,560 3,66730 Climate Change 30 31 32 33 33 34 35 36 37 38767 District Plan 723 748 768 788 807 827 848 871 895 921193 Environmental Health 287 297 304 312 319 327 334 343 351 360(6) Illegal Dumping (0) (0) (0) (0) (0) (0) (0) (0) (1) (1)199 Iwi Services 235 244 251 258 265 272 279 288 296 305167 Liquor Licencing 211 218 224 230 236 242 248 255 263 271113 Maori Engagement 114 118 120 123 126 129 132 135 139 142237 Parking Enforcement 253 261 268 274 281 287 294 301 309 317619 Regulatory Services District WideOperations(44) (45) (46) (46) (47) (48) (49) (50) (51) (52)2,093 Resource Consents Administration 2,175 2,245 2,307 2,369 2,429 2,492 2,556 2,631 2,708 2,788233 Resource Consents Appeals 183 189 194 199 203 208 213 219 224 230265 Sustainable Environment AdministrationDistrict Wide Operations311 320 329 338 346 355 364 375 387 3980 Interest 21 20 19 18 17 16 15 14 14 13120 Depreciation 181 187 191 195 199 204 209 213 218 2247,388 Total Direct Operating Expenditure 7,527 7,774 7,986 8,199 8,401 8,619 8,836 9,088 9,350 9,622FAR NORTH FUTURE PLAN 2009-2019 207

udget and capital projectCONSOLIDATED SUSTAINABLE ENVIRONMENT AND CONSENTSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIndirect Costs538 Corporate Costs 1,531 1,583 1,627 1,653 1,685 1,722 1,757 1,802 1,847 1,89633 Provisions 35 36 37 37 38 39 40 41 42 4312 Rating Costs 46 48 49 50 52 53 54 56 57 59584 Total Indirect Costs 1,612 1,667 1,713 1,741 1,775 1,814 1,852 1,899 1,946 1,9987,972 Total Operating Expenditure 9,138 9,440 9,699 9,939 10,176 10,433 10,688 10,988 11,296 11,620295 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0STATEMENT OF SOURCE AND APPLICATION OF FUNDSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sCAPITAL STATEMENT295 Net Surplus/(Deficit) 0 0 0 0 0 0 0 0 0 00 Loan 0 0 0 0 0 0 0 0 0 00 Contribution Funding 0 0 0 0 0 0 0 0 0 00 Depreciation Funding 15 14 13 13 12 11 11 10 10 90 Reserve Funding 0 0 0 0 0 0 0 0 0 0(289) Appropriation to Reserves 0 0 0 0 0 0 0 0 0 06 Total Funding 15 14 13 13 12 11 11 10 10 9Capital Expenditure0 Capital Projects 0 0 0 0 0 0 0 0 0 00 Debt Repayment 15 14 13 13 12 11 11 10 10 90 Total Capital Expenditure 15 14 13 13 12 11 11 10 10 96 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0208FAR NORTH FUTURE PLAN 2009-2019

Governance and CorporateFAR NORTH FUTURE PLAN 2009-2019 209

Customer ServicesKey factsCouncil operates and maintains:•• Six Service Centres throughout the District•• One Contact Centre.Why we do itCustomer Service delivers essential functions for theCouncil•• To act as first point of contact face to face, contactcentre and via the Far North District Website•• To handle customer requests for information andservice•• To receive and process payments•• To liaise with all departments throughout theorganisation for our customers•• To value our diverse lifestyles and unique environment.Contribution to Community OutcomesSERVICES THAT SUPPORTCOMMUNITiesProvide information on Council services and assistmembers of the community in doing business withCouncilRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Introduced an Interactive Voice Recognition (IVR)system to enable telephone calls to be more swiftlyrouted to Council staff best placed to deal with them,specifically in respect of rates and development contributions•• Implemented a “Return call” (message tracking)management system to enable customer queries to behandled more effectively•• Implemented a new Compliments and Complaintsprocess•• Progressed from a Call Centre to a Contact Centrebasedapproach in order to achieve better resolutionof customer queries at first point of contact and avoidunnecessary call transfers and call waiting.What you have told usA customer service survey was conducted by FNDC inMarch 2008 to gather a measure of the customer experienceprior to commencing Customer Service trainingacross all FNDC staff. Overall, this survey concluded thatcustomer expectations were met or exceeded for allareas questioned. However, there were five areas where10% or more of respondents were dissatisfied with service:Acknowledgement, Approach, Manner and Attitude,Knowledge and Responsibility.A second survey was held in October 2008 followingstaff training. Overall, customer expectations were met orexceeded for all areas questioned. The second survey hasalso shown a decrease in “dissatisfied” responses particularlyin the five areas above.Council also used its 2008 residents’ survey to gaugeviews about contact with Council. This showed that:•• 43% of residents had contacted Council within the lastyear•• There was a 58% satisfaction rating amongst thosewho had contacted Council by telephone. This wasdown on previous years and significantly below bothnational averages and the average for Council’s peergroup of comparator councils. Those expressing dissatisfactionwere unhappy about the standard of service,not being able to get through to the right person, poorresponses or an unhelpful attitude•• The satisfaction rating with Council’s 0800 24-hourtelephone service was 75% and compares well withother councils•• Satisfaction amongst residents who have visited a210FAR NORTH FUTURE PLAN 2009-2019

customer services••••Council office or service centre was high (87%) andthis is on a par with the national average and betterthan our comparator groupSatisfaction when contacting Council in writing is low(45%) and shows a downward trend over recent years.The FNDC rating is significantly below both nationaland peer group averages. Residents expressing dissatisfactionwere critical of Council’s failure to respond andinefficiency in replyingSatisfaction when contacting Council by email was 72%and this compares well with other councils.Council is using this survey information to focus its effortsto improve service standards. Whilst it is encouragingthat there is a positive rating for face-to-face contactwith Council staff at service centres and Council offices,levels of service both over the telephone and in writinghave been earmarked for improvement.What we plan to doObjective 1: Continue to improve customer service by:o Improving the rate of resolution of customerqueries at the first point of contacto Improving telephone service and reducing thenumber of abandoned callso Multi-skilling staff to enable them to deal effectivelywith a wider range of issues and reduce the needfor customers to be transferred amongst severalmembers of staffo Developing appropriate service standards andquality controlso Ensuring that Customer service staff live andbreathe our key maxims:øø We are making things easier, getting it right, anddoing what we say we will doøø We are putting the customer firstøø We are adopting a more business-like approachøø We are focusing on maximising servicesøø We are reducing operating costs in order to buildWhere are we now? - Key issues and challenges facing this Serviceoinfrastructure like roads, sewerage and stormwatersystemsøø The Far North is a great place to live and Councilwants to help its people prosperøø We welcome development that doesn’t harm theenvironmentøø We promote opportunities for investment in ourdistrictImproving timeliness of staff responses to customerenquiries.Issues / challengesImplicationsImproving customer serviceCouncil will continue to focus on improving service at the first point of contact anddeveloping customer service staff who act as the “voice of the customer” to ensureresolution of issues and problemsOpportunities to improve efficiency of response to customer requestsFuture of the Service Centre network is yet to be determinedIT system improvements and user training are required to support new ways of workingPotential benefits of centralisation need to be weighed against the value to the communityof local service centres. Opportunities for co-location with other service providers toenhance the viability of local centres needs to be further exploredFAR NORTH FUTURE PLAN 2009-2019 211

customer serviceslevels of service provisionten year plan measures and levels of serviceKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetSatisfaction whencontacting theCouncil by telephone58% 63% 68% 73% 78% 80% 80% 80% 80% 80% 80%Satisfaction whencontacting theCouncil in writing45% 48% 51% 54% 57% 60% 60% 60% 60% 60% 60%Continue to improvecustomer servicestandardsImproved resolutionof customer queries.Improvements incustomer satisfactionServices thatsupportCommunitiesOverall satisfactionwhen contactingCouncil% of calls answeredin 20 seconds78% 80% 82% 85% 85% 85% 85% 85% 85% 85% 85%78.4% 80% 82% 84% 86% 88% 90% 90% 90% 90% 90%% of abandoned calls 7.4% 6% 5.5% 5% 4.5% 4% 3.5% 3.5% 3.5% 3.5% 3.5%% of calls answeredat first point ofcontact64.2% 66% 68% 70% 72% 74% 76% 76% 76% 76% 76%212FAR NORTH FUTURE PLAN 2009-2019

customer servicesKEY ASSUMPTIONSASSUMPTIONwhat may happeninsteadlikelihoodimpactFINANCIALIMPlicationsMITIGATIONAppropriate levels of service willbe maintained to satisfy customerneedInformation required to meetcustomer needs may beinaccurate or out-of-dateMedium Fall in customer satisfaction LowService level agreements are usedto ensure information used isaccurate and up-to-dateKEY RISKSASSUMPTION current rating mitigation rating after mitigationFailure of telephone system due to lack ofmaintenance or ageLack of capacity of the phone system in theevent of a civil defence emergencyHigh Investigating possible upgrade solution MediumMedium Kept under regular review Medium / lowIncorrect release of confidential customerinformationMediumDepartmental policies are in place governing information that canbe made available. Staff are appropriately trainedMediumSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISCost constraints may create pressure for service centre rationalisation, leading to servicecentre closures in some parts of the districtCouncil is investigating options of co-location that would enable a continued servicepresence in remote locationsFAR NORTH FUTURE PLAN 2009-2019 213

Field ServicesKey factsAnimal Control:•• The number of dogs registered annually is around10,500•• The number of dogs impounded annually is in theregion of 450•• Council deals with some 1,300 Requests for Service(RFS) dog-related call-outs a year•• Council responds to around 350 call-outs for wanderingstock.Environmental Health:•• The number of Health Licenses issued annually is in theregion of 460. Some 60 Club Licenses are also issued•• Council deals with around 220 Health Nuisance Requestsfor Service call-outs a year.Parking:•• On average 6,500 Infringement Notices are issued eachyear.Noise Control:•• Officers respond to approximately 1,800 call-outs ayear.Monitoring:•• On-going Monitoring of Resource Consents as andwhen conditions fall due, over the lifespan of specificconsents•• Respond to in the region of 450 Requests for Servicefor Land Use call-outs annually•• In the region of 200 call-outs relating to abandoned ordumped vehicles annually•• In the region of 200 call-outs relating to dumping ofIllegal Rubbish annually•• Respond to in the region of 120 Bylaw relatedRequests for Service annually.Why we do itOur aim is to safeguard public health, welfare, and safetyby ensuring compliance with relevant legislation, Councilpolicies and bylaw. This includes:•• Dealing with animal control, including dog registrationand control, acting as Pound keepers, and dealing withwandering / straying stock•• Monitoring of Resource Consents and ensuring compliancewith Resource Management Act requirements•• Dealing with illegally dumped rubbishContribution to Community OutcomesPUBLIC HEALTH PUBLIC SAFETY SERVICES THAT SUPPORTCOMMUNITiesSafeguard the public against illness that may be attributed tofood-related incidents, or health nuisance that may cause injuryor harmSafeguard the public against injury, harm or risk that may be attributedto animal related incidents (dog attack, stock on roads) or incidentsrelated to non-compliance with bylawsEnsure compliance with Resource Consentconditions that may have an effect on theneighbourhood or residents214FAR NORTH FUTURE PLAN 2009-2019

field services•• Removing abandoned vehicles from the Council’s roads•• Addressing residential smoke nuisance•• Inspecting properties with problematic on-site wastewatersystems•• Dealing with hazardous substances•• Undertaking sanitary surveys/water testing•• Processing Certificate of Public Use applications andinspections•• Safeguarding Environmental Health•• •Inspecting food premises• Reporting on Liquor licensed premises•• Investigating health nuisance, food related illnesses andnotifiable infectious diseases•• Noise control•• Parking control and enforcement•• Enforcement of other council bylaws(e.g. Skateboarding).Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Improved the flexibility of staff to enable them to providea wider range of functions•• Targeted on-going problems of stock wandering ontoroads, with a potential to cause accidents, by workingwith individual owners whose stock are the cause ofthe problem•• Upgraded and refurbished the dog pound facility inKaitaia•• Increased efforts to tackle illegal rubbish dumping•• Undertaken regular inspections of properties withproblematic on-site wastewater systems that may bedischarging effluent to land or water•• Introduced greater flexibility to parking enforcement••by increasing the number of parking permits issued tocommunity groupsCompleted the review of a number of bylaws andpolicies to bring them up to date and make them morerelevant to present day circumstances.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsGeneral:•• Improving efficiency and responsivenessRequires:•• Reliable and ‘real time’ communications equipment in field vehiclesAnimal Control:•• Stock wandering on roads with the potential to cause road accidents•• On-going problems with pigs causing nuisance to neighbouring properties•• Wandering or straying dogs•• Inadequate Pound facilitiesRequires:•• Work with Farmers to ensure fencing is in good state of repair to ensure stock do notwander•• Work with pig keepers to ensure adequate fencing and facilities for keeping pigs are inplace•• Increased patrolling of streets to minimise cases of wandering dogs•• Public education of dog owners responsibilities•• Development of improved pound facilitiesFAR NORTH FUTURE PLAN 2009-2019 215

field servicesWhere are we now? - Key issues and challenges facing this Service (continued)Issues / challengesMonitoring:•• Increase in illegal dumping of rubbishEnvironmental Health:•• Changes to food hygiene regulations require a new approach to the way the service isprovidedParking:•• Review of Council’s Parking & Traffic Control bylawsImplicationsRequires:•• Work with Council’s Refuse department to ensure public awareness of transfer stationfacilitiesRequires:•• Training / upskilling of Environmental Health Officers to carry out assessments andaudits of Food Control Plans•• Provision of information to food operatorsRequires:•• Provision of appropriate parking warden services216FAR NORTH FUTURE PLAN 2009-2019

field servicesWhat you have told us•• Our most recent resident’s survey showed that 66% ofthose surveyed are satisfied with the service relating toAnimal Control (dog and stock)•• The community is concerned about:o The volume of illegally dumped rubbisho Increased numbers of stock wandering on roads,and the possible risk of accidentso The lack of availability of parking, particularly inPaihia and Kerikeri, and the need to review the presentlevel of enforcemento Parking provision for disabled people - locations,size and enforcement•• There is a need to review the bylaw relating to advertisingsigns – people believe there are too many signson footpaths in Paihia and Kerikeri in particular.What we plan to doObjective 1: Address the inadequacy of dog poundfacilities in the south of the district by:o Setting up an arrangement with a privately-runfacility that can accommodate Council’s needs.Objective 2: Improve compliance with ResourceConsents by:o Introducing a new management system for themonitoring of Consents that provides for moreaccessible information and enables tracking ofinspections and Consent status.Objective 3: Ensure compliance with food hygieneregulations by:o Working towards Council accreditation as an asses-sor and auditor by the New Zealand Food SafetyAuthority so that Council will be able to approveFood Control Plans.Objective 4: Ensure that Council’s regulatory bylaws andpolicies meet current and foreseeable needs by:o Continuing the review of the bylaws and polices tocompletion.Objective 5: Improve service provision by:o Increasing dog registrationo Improving response timeso Targeting problems associated with wandering stockand illegal dumping.What we don’t plan to do•• Due to financial constraints Council cannot pursuethe construction of a new dog pound facility in thesouthern area in the near future.FAR NORTH FUTURE PLAN 2009-2019 217

field serviceslevels of service provisionten year plan measures and levels of serviceKey Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetDog registrationLessens the need for‘door to door’ checksof unregistered dogsPublic SafetyPercentage of knowndogs currentlyregistered80% 85% 90% 95% 95% 95% 95% 95% 95% 95% 95%Responding tocomplaints relatingto dogsReduces the numberof wandering andunregistered dogs andincidents of dog attacksPublic SafetyPercentage ofRequests forServices relating todogs responded inrequired time90-95% 90% 92% 95% 95% 95% 95% 95% 95% 95% 95%Increased action toaddress wanderingstockReduces wanderingstock on the roadsPublic SafetyNumber of wanderingstock-related RFS400 380 370 360 350 340 330 320 310 300 300Continue to provideeffective stock anddog control servicesReduce problemscaused by wanderingstock and incidents ofdog attacksServices thatSupportCommunitiesPublic SafetyPercentage ofresidents satisfied wtihthe District’s animalcontrol66% 67% 68% 69% 70% 71% 72% 73% 74% 75% 75%218FAR NORTH FUTURE PLAN 2009-2019

field serviceslevels of service provisionten year plan measures and levels of service (continued)Key Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetAssessment and auditof food safety plansImproves food safetyPublic HealthPercentage of FoodControl Plansassessed andaudited annuallyNewMeasure95% 98% 98% 98% 98% 98% 98% 98% 98% 98%Respond tocomplaints regardingLand Use (DistrictPlan, Bylaws andRMA)Ensures compliancewith District Plan,Bylaws or ResourceManagement Act 1991Services thatSupportCommunitiesPercentage ofRequests forServices respondedin required time77% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%Complete review ofregulatory bylawsand policiesEnsures key regulationsare up to dateServices thatSupportCommunitiesNumber of outstandingbylaws tobe reviewedNewMeasure14 2 1 0 0 0 0 0 0 0Responding to NoisecomplaintsReduction in noisenuisanceServices thatSupportCommunitiesPercentage of noisecomplaints respondedto in requiredtime90 – 95% 92% 95% 98% 98% 98% 98% 98% 98% 98% 98%FAR NORTH FUTURE PLAN 2009-2019 219

field serviceskey RisksRISK current rating MITIGATION rating after mitigationSerious dog attack on person or other animalExtremeContinue to register and micro chip dogs and patrollingfor wandering dogsRespond efficiently to requests for service from thepublic regarding wandering dogsHighAn animal in the control of the FNDC harms either amember of the public or a staff memberHighContinue to ensure procedures, training and facilities areeffective at mitigating riskHighNot maintaining or using firearms correctly results inan injury to either staff or the publicHighContinue regular training and target practice along withscheduled safety checks and ensure Health and Safetyprocedures are in placeHighContinue training around situational assessments todetermine appropriate course of action.Risk of harm to Noise Control officers undertakingtheir dutiesHighConsider call for Police presence where necessaryHighContinue to build and review a knowledge base of riskareasRisk of harm to Monitoring Officers in opening andtracing origin of illegally dumped rubbish. I.e. needles,glass, disease etcHighContinue training around situational assessments todetermine appropriate course of actionHighCouncil’s obligations under the Food Hygiene Regulationsnot met resulting in food born illness (NZ FoodSafety Authority currently reviewing the way in whichpremises are audited)High Consider call for Police presence where necessary High220FAR NORTH FUTURE PLAN 2009-2019

field serviceskey assumptionsASSUMPTIONwhat mayhappen insteadlikelihoodimpactfinancialimplicationsMITIGATIONProsecutions under the Dog ControlAct will be successfulUnsuccessful prosecutionsLowPotential for dog ownersto seek compensationfrom CouncilLowEnsure that all cases presented for prosecutionare complete in their investigation andcontentSignificant negative effectspotential negative effecthow we are addressing thisPoor food hygiene causing danger to public healthEnsuring that Council’s Environmental Health obligations are metVicious dog attack causing danger to public safetyImproving Council’s response to the problem of wandering dogsNegative impact on local communities as a result of failure to comply with ResourceConsent requirementsWorking to improve compliance with Resource Consent conditionsFAR NORTH FUTURE PLAN 2009-2019 221

Finance and Business PerformanceKey facts•• Current operating expenditure (i.e. running costs) issome $84m a year•• Capital expenditure for 2008/2009 is just over $51m•• Council’s asset base is worth some $1.6bn•• There are currently 26,000 ratepayers in the districtowning 34,500 rateable properties•• Council issues around 650 LIMs a year.Contribution to Community OutcomesSERVICES THAT SUPPORTCOMMUNITiesWhy we do itOur vision is to achieve maximum efficiency and effectivenessin supporting each of Council’s activity areas todeliver better services to their customers. We aim to dothis by:•• Managing the Council’s financial affairs and ensuring effectiveplanning, budgeting, accounting, monitoring andreporting arrangements are in place•• Assessing and collecting rates and other charges•• Developing and administering key financial policies e.g.Rates Remissions and Postponement, DevelopmentContributions, and Treasury policy•• Leading Council’s work on long-term strategic planningand performance management•• Undertaking risk analysis and internal audit work, aswell as maintaining Council’s insurance arrangements•• Managing Council’s records and archives•• Issuing Land Information Memoranda (LIMs)•• Developing information policy and strategy•• Providing information systems (IS) and informationtechnology (IT), along with onsite IT support, and websitemanagement and maintenance•• Managing Council’s vehicle fleet•• Running Council’s in-house Publications unit.Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Led Council’s work in identifying a total of $11m savingsin operating costs over the last two years•• Led Council’s work to identify and bring to the marketsurplus property holdings in order to provide a newsource of funds for future capital development•• Reduced the production costs of Council’s long-termplans•• Saved over $50,000 in Council’s most recent insurancerenewal•• Undertaken a review of the rating system, recommendationsfrom which are reflected in this plan•• Revised the Development Contributions policy toencourage the spread of development in the district•• Restructured Council’s IT arrangements focusing onbusiness needs•• Developed and rolled out IS/IT solutions across theCouncil to increase efficiency•• Introduced video-conferencing to cut down on travelto meetings•• Redesigned rating invoices and assessment to improveratepayer understandingFinance and Business provides financial and IT supportto all of Council’s service areas and thus indirectlycontributes to the support that they provide to localcommunities222FAR NORTH FUTURE PLAN 2009-2019

finance and business performance•• Introduced e-payments for water and rates bills•• Introduced the “Rates Easy Pay” scheme to assist ratepayersto make regular payments and avoid penalties•• Improved the look and content of Council’s website•• Led Council’s recovery efforts following the severestorms of 2007•• Outsourced internal audit arrangements and undertakenreviews of a number of key financial systems andprocedures•• Developed new performance management arrangements,including monthly performance reporting toCouncil•• Retendered Council’s banking arrangements to achieveimproved levels of service and better value-for-money•• Reduced staff numbers whilst taking on a wider rangeof functions•• Reduced turnaround times for LIMs from ten days toless than five.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsGlobal economic slowdownGrowth within the district will slow for a time and rates affordability will be limited. Tightbudgetary constraint will be required, together with an ongoing search for further savingsopportunitiesRates reviewWithin the constraints of current rates legislation Council aims to achieve a fair and equitablerates system for the Far North. This plan includes proposals for changes to the ratingsystem to achieve thatRate remissions and postponements are higher than for many other councils, mainly asa result of significant areas of Maori land and the conservation covenant and farmland postponementpoliciesCouncil is taking the opportunity to review rate remission and postponement policies aspart of this planRates debt is a concern, particularly on Maori freehold landMuch of Council’s information management and document handling is outdated,paper-based and inefficientCouncil is increasing collection efforts in order to reduce the overall level of debtCouncil is implementing an electronic document and records management system(EDRMS)FAR NORTH FUTURE PLAN 2009-2019 223

finance and business performanceWhat you have told usOur most recent residents’ survey indicated that peoplewould like to understand more about money mattersat Council. We have taken this feedback on board byproviding a wider range of information in this plan aboutCouncil’s finances and its budget strategy. An importantelement of Council’s communications strategy goingforward will be to ensure that understandable and helpfulfinancial information is provided in the future.What we plan to doObjective 1: Improve the rating system in the Far Northby:o Implementing an updated rating system based oneither land value or capital value followingconsultation through this plano Implementing other changes to rates policies asproposed elsewhere in this plan.Objective 2: Deliver value for Far North ratepayers by:o Continuing to identify opportunities for savings andefficiencies in operating expenditureo Encouraging all Council suppliers to reduce chargesand improve standards of serviceo Reducing consultant costso Supporting the mayor in his efforts to attract ad-ditional funding from Government and other keyagencieso Amending rates remission and postponementpolicies to bring them closer in line with those ofother councilso Reducing vehicle costso Exploring opportunties with joint venture partnersthat will help to enhance services and reduce costs.Objective 3: Reduce levels of rates debt by:o Working with Te Puni Kokiri to help find ways tomanage the issues associated with the rating ofMaori freehold lando Investigating the use of debt collection agencies toassist with the collection of rating debt on generaltitle land.Objective 4: Improve Information Management by:o Implementing an Electronic Document and RecordsManagement System (EDRMS) by July 2010.Objective 5: Make best use of IS/IT to improve efficiencyby:o Exploring opportunities for interactive Councilmeetingso Developing community conferencing / educationo Implementing real-time performance reportingo Moving to electronic timesheets and leave approvalso Upgrading Council’s systems to keep abreast of newtechnological developments.Objective 6: Ensure that Council secures best valuefrom property holdings and office accommodation by:o Continuing to identify properties that are surplusto requirements and can be sold to generate fundsfor other strategic needs (subject to appropriateconsultation where necessary with the local communitiesconcerned)o Continuing to identify properties that can be offeredto the Office of Treaty Settlements as part of theCrown’s commitment to settling Treaty of Waitangigrievances, therefore promoting the developmentof Maori within the Far North. This process will besubject to appropriate consultation with the Officeof Treaty Settlements and will involve the localcommunities concernedo Reviewing Council accommodation needs, costs andopportunities taking account of customer requirements,the importance of Council presence to localcommunities, and the need for appropriate consultationin making long-term accommodation decisions..224FAR NORTH FUTURE PLAN 2009-2019

finance and business performancelevels of service provisionten year plan measures and levels of serviceKey Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19Target% of responses torates / water querieswithin ten days88% 90% 90% 95% 95% 95% 100% 100% 100% 100% 100%Make best use of IS/IT to improveefficiencyImprovements in theways in which peopleand organisationscan do business withCouncilServices thatSupportCommunities% of property fileselectronically storedwithin the EDRMSAverage days toproduce a LIM0% 5% 25% 50% 75% 100% 100% 100% 100% 100% 100%5 5 5 4 3 2 1 1 1 1 1Number of daysafter the month endto produce financialreports6 5 5 5 5 5 5 5 5 5 5Reduce levels ofrates debtIncrease budgetavailability for otherservicesServices thatSupportCommunitiesRates outstanding as% of rates billed12.5% 12% 11% 11% 10% 10% 9% 9% 9% 8% 8%Improve InformationManagementImproved EfficiencyServices thatSupportCommunities% of requests toHelpdesk resolvedwithin timescalesNewMeasure90% 90% 90% 90% 95% 95% 95% 95% 95% 95%Improve InformationManagementImproved EfficiencyServices thatSupportCommunities% of requests resolvedat point of call(Gen-i)NewMeasure30% 30% 35% 35% 35% 40% 40% 40% 40% 40%FAR NORTH FUTURE PLAN 2009-2019225

finance and business performanceKeyProject(s) /Initiative(s)How theproject(s) /initiative(s)will impacton levels ofserviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetUpgrade Council’ssystems tokeep abreastof new technologicaldevelopmentsMaintenanceof up-to-datesystemsServices thatSupportCommunitiesAvailabilityof softwareand serversNewMeasure97.5% 97.5% 98% 98.5% 98.5% 99% 99% 99% 99% 99%Deliver valuefor Far NorthRatepayersManage CouncilcostsServices thatSupportCommunitiesMonitoringpublic debt:Revenueratio overborrowingas per policy1:1 2:1 2:1 2:1 2:1 2:1 2:1 2:1 2:1 2:1 2:1Deliver valuefor Far NorthRatepayersManage CouncilcostsServices thatSupportCommunitiesLevel ofdebt (within10%) of plan($ms)NewMeasure139.613 154.200 154.781 155.425 156.428 151.979 144.036 136.714 130.035 126.774226FAR NORTH FUTURE PLAN 2009-2019

finance and business performanceKey AssumptionsASSUMPTION WHAT MAY HAPPEN LIKELIHOOD IMPACTFINANCIALIMPLICATIONSMITIGATIONThere will be no further nationalreview of local government funding inthe life of this planGovernment may instigateanother rates reviewLow at least forthe next threeyearsAny significant changes to, or movesaway from, the rating system wouldentail major changes to Council’srates administration systemsMedium / HighThis issue is beyond Council’s directcontrolResources will be available to enableCouncil to take advantage of theopportunities offered by ITdevelopmentsFinancial constraints hamperfuture IT investmentand / or the progress ofkey projectsLow / MediumInability to realise potentialefficiency gainsMedium / HighKey projects will be driven by robustbusiness cases showing downstreambenefits from initial investment ofresourcesCouncil will continue to have accessto sufficient suitably qualified Financeand IT staffCouncil may have difficultyrecruiting suitably qualifiedand experienced staffMediumDetrimental impact on the effectivemanagement and administration ofCouncil’s financial affairs and its IT/IS managementMedium / HighCouncil already makes use of outsourcingand bought-in externalexpertise where required to cover forinternal staff shortages and where itoffers value for ratepayersNote: Additional financial assumptions are included in the table of Council-wide assumptions included in the Money Matters section of this plan.FAR NORTH FUTURE PLAN 2009-2019 227

finance and business performancekey risksRISK CURRENT RATING MITIGATION RATING AFTER MITIGATIONExternal cost escalationsHighContingency provision is included in budgetsbut Council remains subject to world economictrendsHigh / mediumSignificant reduction in subsidy fundingMediumCouncil will aim to work with the newGovernment to secure ongoing subsidyfunding for the Far NorthMediumSignificant overspending of eitheroperational or capital expenditureagainst budgetMediumImprovements in budgeting systems, especially keyareas like depreciation budgeting, are reducing thelikelihood of significant variancesMedium / LowMajor systems failure Medium Business continuity planning and systems back-up Medium/LowFinancial loss due to severe weatherevent or similar civil defenceemergencyMedium/HighInsurance cover is in place. Council is betterprepared following the severe storms of 2007.Government has announced a scheme for advancepayments of response / recovery costsMediumLoss of paper records / use or supplyof incorrect information due to unreliablerecordsMedium Being addressed via EDRMS project Low228FAR NORTH FUTURE PLAN 2009-2019

finance and business performanceSignificant negative effectspotential negative effecthow we are addressing thisRates levels are detrimental to the wellbeing of people on low or fixed incomesCouncil is putting heavy emphasis on cost containment and keeping rates increases down.Rates relief, remission, postponement may offer assistance in some casesThe trend towards e-government disenfranchises people who are not IT literate or havenot got access to IT facilitiesBudget reductions impact detrimentally on levels of service provisionCouncil is using IT to increase the number of ways in which people can do business withit. There is no intention to cut-off more traditional ways of doing business where thesecontinue to be neededCouncil has aimed to find savings in back-office services that do not directly impact onservice provision to the public. However the need for ongoing savings is increasingly threateninglevels of service. That is why Council is consulting on budget options with levels ofservice implications in this planFAR NORTH FUTURE PLAN 2009-2019 229

GovernanceKey facts•• Council’s Governance Unit provides the followingservices to the district council organisation and to theelected members of the Far North:o Democracy Services (i.e. preparation of formalmeeting agendas and meeting management)o Communications (media releases, ratepayer news-letters, etc)o Legal Services.Contribution to Community OutcomesSERVICES THAT SUPPORTCOMMUNITiesWhy we do it•• Planning and Governance are the foundation of almosteverything Council does. The elected members of thecommunity, combined with the technical expertise ofstaff, provide the direction and objectives of Council’sactivities in the District. Governance is not only a legalrequirement, but a commitment to delivering value formoney and prudent management that contributes toall community outcomes•• The elected members of the District are the community’srepresentatives, making decisions on behalfof and in the interests of the community. DemocracyServices oversees the election and induction processes,and then provides support to elected membersthroughout the triennium•• Local government impacts everyone so it is importantfor Council to communicate with people about whatit does, what is planned, and how it may impact theDistrict•• Local government administers over 150 legislative Acts,regulations and rules. Legal Services ensure Counciladministers these correctly.Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Implemented on-line agendas, leading to a 56%decrease in the amount of paper used for printedagendas•• Developed an in-house technical library•• Conducted local body triennial elections in 2007•• Maintained ISO certification for governance services•• Initiated representation review of district’s electoralarrangements•• Reviewed and developed stream-lined communityfunding programmes•• Reduced governance costs•• Adopted a corporate communications strategy andwork-plan•• Completed and implemented a review of delegationsto the Chief Executive•• Completed a successful external renewal audit ofCouncil’s ACC Workplace Safety and ManagementPractices programme. This entitles council to 20%discount on levies.••••••Administer community funding programmesCommunicate Council news to residents and, ratepayersSupport provision of compliant local governance230FAR NORTH FUTURE PLAN 2009-2019

GovernanceWhere are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsUnitary Authority statusRequires development of a compelling case to convince Government and the LocalGovernment CommissionManaging community expectations of local government during uncertain economic outlookRequires Council to find an acceptable balance between competing pressures – demandfor better infrastructure / services against the need to keep rates rises downLegal ComplianceCentral government has increasingly devolved functions and responsibilities to localgovernment but has not yet developed alternative funding methods to support these. Thecosts of legal compliance need to be weighed against the benefitsFAR NORTH FUTURE PLAN 2009-2019 231

GovernanceWhat you have told usOur most recent residents’ satisfaction survey told usthat:•• In terms of councillor-approachability, 35% of FarNorth residents believe their Councillors welcomequestions, comments, and requests. This is similar tothe national average•• The Far North is similar to peer group and nationalaverages in terms of residents’ impressions of Councillors’open-mindedness and ratings are up on the previoussurvey in 2006•• 80% of residents have confidence to a greater or lesserextent in Council to make decisions that are in thebest interests of the district•• 46% of residents rate the performance of mayor andcouncillors as very / fairly good (43% in 2006). Thisresult is below both peer group (56%) and national(54%) averages•• 70% of residents are aware of their community board.Communications measures were included in our mostrecent residents’ satisfaction survey for the first time:•• In terms of how much you feel you know about thecouncil, 57% of you said you knew a great deal or a fairamount. Western Ward residents feel best informed•• 66% of you said you were satisfied with the ease ofaccess to council information and other services. Thehighest satisfaction (76%) is in the West•• 43% of you feel very well or well informed about whatthe Council is doing. The Western Ward feels bestinformed and ratepayers feel better informed thannon-ratepayers•• You feel markedly less well informed about moneymatters than any other issues•• You would like to know more about resource / buildingconsent processes / fees, how the council operates,the rating system, money matters and roads.What we plan to doObjective 1: Maintain and develop quality standards by:o Supporting sound decision-making in accordancewith legislative procedureso Improving the openness of decision making.Objective 2: Enhance community involvement in localgovernment by:o Supporting Community Boards in engaging with lo-cal communitieso Administering a stream-lined community fundingprogramme on behalf of Community Boards andproviding greater support to local applicants tosecure funding from non-Council sourceso Facilitating community-based self-help initiatives.Objective 3: Lobby central government for changes tolegislation, including:o Changes to the Resource Management Act 1991,aimed particularly at reducing bureaucracy and costso Exploring the case for a Far North Unitary authority.Objective 4: Keep residents and ratepayers better informedabout what the council is doing by:o Encouraging community boards to engage with theircommunitieso Strengthening the advocacy / leadership role ofcouncillorso Employing communications tools in a targeted waye.g. website, stakeholder meetings, competitions,direct mail, hotline, ambassadors, roadshows, mediareleases, advertising campaigns, surveys, posters,DVDs, focus groups, community displays.Objective 5: Increase community engagement by:o Encouraging participation in the representationreviewo Welcoming the community into the council or tak-ing the council out into the communityo Engaging effectively with Maori and other stake-holder groups.232FAR NORTH FUTURE PLAN 2009-2019

Governancelevels of service provisionten year plan measures and levels of serviceKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetMaintain and developquality standardsEnsure provision ofexcellent services toCouncil andCouncillorsServices thatSupportCommunities% positive feedbackin annual councillorsatisfaction survey100% 80% 90% 100% 80% 90% 100% 80% 90% 100% 80%Enhance communityinvolvement in localgovernmentAs aboveServices thatSupportCommunities% of residents awareof their CommunityBoard70% 71.5% 73.0% 74.5% 76.0% 77.5% 79.0% 80.5% 82.0% 83.5% 85.0%Enhance communityknowledge about thecouncilCouncil’s place in thecommunity is understoodServices thatSupportCommunities% of residents whofeel they know agreat deal / a fairamount aboutCouncil57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67%Keep people betterinformed about whatthe council doesCouncil’s activities areknown and understoodServices thatSupportCommunities% of residents whofeel well informedabout what Councilis doing43% 45% 46% 47% 48% 49% 50% 51% 52% 53% 54%Maintain and developquality standardsEnsure provision ofexcellent services toCouncil and CouncillorsServices thatSupportCommunities% of agendas sentout in 5 days beforemeetings90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%Maintain and developquality standardsEnsure provision ofexcellent services toCouncil and CouncillorsServices thatSupportCommunities% of minutes sentout in 5 days beforemeetingsNewMeasure100% 100% 100% 100% 100% 100% 100% 100% 100% 100%FAR NORTH FUTURE PLAN 2009-2019 233

Governancelevels of service provisionten year plan measures and levels of service (continued)Key Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetKeep people betterinformed about whatCouncil doesEncourage interest inCouncil businessServices thatSupportCommunitiesWebsite hits foragendas & minutesNewMeasure100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Improve publicaccess to councilinformation andservicesCouncil information isreadily availableAn informedpublic thatknows howto get councilinformation% of residentssatisfied with easeof access tocouncilinformation66% 67% 68% 69% 70% 71% 72% 73% 74% 75% 76%KEY ASSUMPTIONSASSUMPTION what may happen instead likelihood impactfinancialimplicationsMITIGATIONElected members will serve fulltrienniumBy-election may be required to fillvacanciesMediumCosts of by-election mustbe met from ratesLowAllow budget of $25,000 for the possibilityof a by-electionCouncil’s decision-making will belegally compliantFaulty decisions could be overturnedvia judicial reviewLowCouncil may need to defenddecision in CourtLow/MediumEnsure sound information is provided tosupport decision making, maintain a highstandard of record-keeping234FAR NORTH FUTURE PLAN 2009-2019

GovernanceKEY risksRISK current rating MITIGATION rating after mitigationNegative public feedback on Council’s decision makingMediumEffective planning and consultation processes, including clarity andopenness about what is and is not achievable. Encourage publicsubmissions and involvement in respective processesMediumLegal challenge to Council’s decision makingMediumEnsure high quality staff input and advice, seek external legal advicewhere necessary, and continue with ISO certification and relatedproceduresMediumHeightened public controversy as a result of perceptionsof Council actionsMedium Use planned, strategic approach to all communications MediumSignificant negative effectspotential negative effecthow we are addressing thisAdverse impacts of challengeable Council decision makingCommunity dissatisfaction resulting from inadequate consultation on key issuesEnsuring provision of sound advice and proper decision making processes in line with requirementsof the Local Government Act 2002Complying with statutory consultation requirements and supplementing this with additionalconsultation on key issues (e.g. changes in the rating system) prior to decision makingFAR NORTH FUTURE PLAN 2009-2019 235

Human ResourcesIntroductionKey facts•• As at October 2008 Council employed some 250 staff•• Staff turnover is around 18% a year•• Staff diversity reflects the diversity of the area – 40%Maori, 40% Pakeha, 12% British and the remainderfrom 11 different countries•• 46% of the workforce is unionised.Why we do itCouncil’s aim is to recruit and develop high quality staffcapable of providing excellent services to the people ofthe Far North.Contribution to Community OutcomesKey functions undertaken include:•• Recruitment and selection•• Development and management of HR policies andprocesses•• Staff training and development•• Management and administration of performancesystems•• Monitoring and reporting of staff numbers and costs.Recent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Shifted from outsourced HR management to a fullyfunctional in-house operation, and achieved costsavings as a result.services that support communitiesProvide employment opportunities for the communityProvide skills and knowledge development to membersof the community who work for Council236FAR NORTH FUTURE PLAN 2009-2019

human resourcesWhat you have told usCouncil undertakes regular staff surveys to gauge staffviews. The most recent survey in 2008 showed a dropin overall staff satisfaction and sense of belonging to theorganisation. This is seen as reflecting major organisationalupheaval during the course of the year, including changesat senior management level, as well as the impact of ongoingcriticism of staff performance. These issues will havehad an adverse impact on motivation and productivity.It is anticipated that changes now underway to addressissues around organisational culture and performance willlead to an improvement in future surveys.What we plan to do••Objective 1: Develop a high performing culture by:o Managing the process of culture change throughoutthe organisationo Encouraging new ways of working to improve pro-ductivityo Reducing sickness absenceo Promoting a culture of responsibility and account-abilityo Empowering staff to make decisions and / or act inways that cut through unnecessary bureaucracy andfocus on helping the customero Ensuring that council recruits and retains highcalibre staffo Implementing effective training and developmento Ensuring that Council has the right HR policiesproperly implemented.Objective 2: Deliver value for ratepayers by:o Identifying efficiencies in the HR Department andreducing costso Reducing dependency on the use of external con-sultantso Using internal training provision where it representsbetter value than external courseso Reducing the costs of recruitment advertising.Where are we now? - Key issues and challenges facing this ServiceIssues / challengesImplicationsDeveloping a performance cultureA new performance management and evaluation process will go live in July 2009 enablingstaff recognition and reward based on agreed performance targetsRestructuring the organisation following the appointment of the new Chief ExecutiveHR input will be required to help manage change and assist with the definition of newroles, responsibilities and reporting linesImproving HR management informationCouncil is implementing a new HR Management Information System, which will improveefficiency around monitoring and reporting of costs, leave, sickness absence and other keyHR dataFAR NORTH FUTURE PLAN 2009-2019 237

human resourceslevels of service provisionten year plan measures and levels of serviceKey Project(s)/ Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof serviceCommunityOutcomesMeasureBaseline2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetStaff satisfaction 62% 65% 67% 69% 71% 73% 75% 75% 75% 75% 75%Culture change, stafftraining and developmentImproved staff performanceServices thatSupportCommunitiesPercentage variationfrom benchmark forstaff engagement-16.4% -10% -5% nil +5% +5% +5% +5% +5% +5% +5%Staff sense of belonging61.6% 63% 65% 67% 70% 70% 70% 70% 70% 70% 70%Staff recruitment andretentionCost reduction andreduction in staffturnoverServices thatSupportCommunitiesCumulative reductionin contract andcasual staffNewmeasure5% 10% 15% 20% 25% 25% 25% 25% 25% 25%Staff turnover % 17.18% 18% 17% 16% 15% 14% 13% 13% 13% 13% 13%Reduce sicknessabsenceCost savings and improvedproductivityServices thatSupportCommunitiesAbsenteeism % 4.5% 4% 3.5% 3% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%238FAR NORTH FUTURE PLAN 2009-2019

human resourceskey assumptionsASSUMPTION what may happen instead likelihood impactfinancialimplicationMITIGATIONCouncil will be able to recruit sufficientstaff with the right skills tomeet service demandsProblems in recruitment in key occupations,such as planners, where there arenational shortagesHigh / MediumDiminished levels of service orneed to employ more expensiveconsultant supportMedium / HighPromote the Far North asa desirable place to live andCouncil as an employer ofchoiceCouncil will be able to retain keystaffCouncil may lose key staff to better paidor more attractive positionsMedium As above MediumImprove staff morale andperceptions of Council asa desirable place to work.Investigate options for flexibilityin employee contractskey risksRISK current rating MITIGATION rating after mitigationLoss of institutional knowledge throughloss of key staffHigh Focus on retention of key staff MediumPandemic leading to loss of key staff High Business continuity planning HighBullying or threats to a staff member High Staff training to deal with problem situations HighFAR NORTH FUTURE PLAN 2009-2019 239

human resourcesSignificant negative effectspotential negative effecthow we are addressing thisStaff reductions at Council to achieve cost savings reduce employment opportunities in thelocal communityLoss of institutional knowledge as a result of restructuringUsing local media as the main avenue for staff recruitment advertising to encourage localcandidatesEnsuring key processes and systems are properly documented and focusing on successionplanning240FAR NORTH FUTURE PLAN 2009-2019

human resourcesFAR NORTH FUTURE PLAN 2009-2019 241

Maori Development (formerly Iwi Services)Key facts•• Nearly half the population (45%) of the Far NorthDistrict population identify themselves as Maori•• Approximately 18% of land in the Far North District isin Maori title•• Approximately 34% of Maori in Tai Tokerau (Northland)are able to understand or converse in Te ReoMaori•• Council has approximately 144 marae, 12 Iwi Runanga,and 150 Iwi Contacts within the Far North District•• Ngapuhi and Ngatihine Runanga have published theirstrategic development documents online. OtherRunanga and Maori organisations have completed orare in the process of completing their respectivedocuments•• Council has so far received four Iwi and HapuManagement planning documents.Why we do itThe Local Government Act 2002 includes recognitionof the Crown’s Treaty responsibilities and requires localauthorities to:•• Establish processes to give Maori an opportunity tocontribute to decision-making and to consider ways tofoster Maori capacity to do so•• Consult Maori where their interests may be affectedby a decision of a local authority•• Take into account the relationship tangata whenua havewith their ancestral lands and waterways.Contribution to Community Outcomesservices that supportcommunitieseducation, training andbusiness opportunitiesculture and heritageContribute to Maori economic, social, cultural andenvironmental wellbeingAlign Maori initiatives in education, training and business withrelevant Council strategies when called upon by MaoricommunitiesContribute to Maori Community programmes thatpromote cultural and heritage experiences242FAR NORTH FUTURE PLAN 2009-2019

Maori developmentRecent progress – what we haveachieved since the last planSince 2006 Council has achieved the following:•• Hosted the 2006 Te Waka Awhina Conference (Maoriworking in local government) held at Waitangi 23/26November 2006, which was very successful and highlyrated by participants•• Hosted (via Council’s waiata and kaumatua roopu)many successful events including diplomatic visits tothe Far North, swearing in of the new council (2007)and revamped citizenship ceremonies•• Held a number of Maori / Council Mayoral and ChiefExecutive Forums•• Launched Council’s Iwi Contacts Intranet Databasewhich received national recognition•• Assisted Ahu Whenua Trusts in the launch of their businessDevelopment Plan and in the reticulation of waterand wastewater services to papakainga.Recent Progress – What we haven’tachieved since the last planSince 2006 Council has not achieved the following:•• Council’s engagement programmes with Maoripractitioners are being held in abeyance until allrelevant engagement strategies and protocols havebeen developed.Where are we now? – Key issues and challenges facing this ServiceIssues / challengesIncreasing Council’s knowledge and understanding of Maori issues as a means of raisingawareness and acknowledgement of the culturally diverse nature of our communities inparticularPutting processes in place that invite Maori contribution and participation. Choosing tocontribute or participate is a show of ‘moving forward’ for MaoriDeveloping good consultation as a basis for building trust and community developmentImplicationsRequires internal capacity building focusing on:•• Treaty-based relationship mechanisms between Council and Maori•• Maori governance structures•• Maori operational structures•• Iwi and Hapu Tribal Authorities•• Maori interests and aspirations in respect of environmental management, social andeconomic development.Requires external capacity building with a focus on:•• Both electoral and non-electoral representation processes•• Educational workshops with Maori communities.Requires the development of effective consultation processes with a focus on:•• Maori initiated protocols of consultation•• Entrenching Maori protocols into consultation processes as required.FAR NORTH FUTURE PLAN 2009-2019 243

Maori developmentWhat you have told usFeedback received in recent years has underlined theimportance of Council:•• Acknowledging tribal authority over ancestral landsand waterways•• Being aware of the types and extent of activities onwhich Maori need to be consulted on•• Knowing how and when Maori need to be consulted•• Showing how Maori outcomes are incorporated intothe LTCCP.What we plan to doObjective 1: Develop effective Maori Engagement by:o Reflecting a commitment to the principles of theTreaty of Waitangio Developing and implementing Maori engagementstrategies and programmes to provide direction forCouncil in addressing Maori issueso Providing appropriate resourcing of communityengagement strategies that align with relevant Maorioutcomes.Objective 2: Promote Maori Development by:o Contributing to iwi/hapu development projectswhether by active involvement or endorsement asappropriateo Reviewing Council processes or policies forservices including planning, building, and roadingto mitigate restrictions or disincentives to Maoridevelopmento Developing new policies or processes that promoteMaori developmento Providing support for the preservation of taongaand matauranga Maori, where appropriateo Providing assistance to Treaty Claimant groups byparticipating, where required, within their Agreementsin Principle and Deed of Settlements with theOffice of Treaty Settlementso Contributing to iwi/hapu cultural, social, environ-mental and/or economic development projectswhether by active involvement or endorsement asappropriate.Objective 3: Develop effective policies in respect ofMaori land by:o Promoting the protection of Maori ancestral landsset aside for cultural, historic, spiritual and conservationpurposeso Mitigating burdens such as rate arrears and costlyconservation reports that are a disincentive to theprotection or development of Maori freehold lando Contributing to Maori land development whetherby active involvement or endorsement asappropriate.Objective 4: Promote Maori Representation by:o Establishing and maintaining electoral or non-elec-toral processes so that a Maori world view is incorporatedinto Council decision making as appropriateo Exploring a unitary authority for the Far North.This will also provide an opportunity for Maorirepresentation on Council.244FAR NORTH FUTURE PLAN 2009-2019

Maori developmentLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICEKey Project(s) /Initiative(s)How theproject(s) /initiative(s) willimpact on levelsof servicebaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetWorkshopping withMaori land owners onmatters of ownership,rates, road access,consents, funding accessMaori are able towork proficiently withcouncil processesEducationTraining andBusinessOpportunitiesIncrease in % ofowners wishingto occupyor develop theirblocks of landNew(2008/2009will bebaseline2% 2% 3% 3% 4% 4% 4% 4% 4% 4%Facilitating one on onehousing workshops onPapakainga land betweenAgencies and MaoriMaori will receivegreater benefits asservice levels increaseCulture andHeritageServicesthat SupportCommunitiesIncrease inPapakainga and/or individualhousing contractsNew(2008/2009baseline2 2 3 3 4 4 4 4 4 4Contributing to Maoriworkshops regardingbusiness and educationalopportunitiesMaori will receivegreater benefits asbusiness and educationalopportunitiesincreaseEducationTraining andBusinessOpportunitiesIncrease innumber of MaoridevelopmentprojectsNew(2008/2009baseline)2 2 3 3 4 4 4 4 4 4Maintaining te reo andtikanga Maoriprogrammes in CouncilA bi-cultural focuswithin council isrespected andappreciated bymembers of thepublicCulture andHeritageServicesthat SupportCommunitiesIncrease innumber ofbi-culturalprogrammesNew(2008/2009baseline3 3 3 3 3 3 3 3 3 3FAR NORTH FUTURE PLAN 2009-2019 245

Maori developmentLEVELS OF SERVICE PROVISIONTEN YEAR PLAN MEASURES AND LEVELS OF SERVICE (continued)Key Project(s) /Initiative(s)How the project(s)/ initiative(s) willimpact on levels ofservicebaselineCommUnityOutcomes Measure 2007/200809/10Target10/11Target11/12Target12/13Target13/14Target14/15Target15/16Target16/17Target17/18Target18/19TargetTo enhance Maoriengagement strategiesand programmesTo enhance relationshipswith Iwi Maori byfacilitating achievableeconomic developmentprojectsEducationTraining andBusinessOpportunitiesCulture andHeritageIncrease in thenumber of neweconomic developmentprojectswith Iwi MaoriNew(2008/2009baseline3 3 4 4 5 5 6 6 7 7Maori will have increasedsatisfaction withtheir participation intoCouncil’s decision-makingprocessesEducationTraining andBusinessOpportunitiesCulture andHeritageIncrease inthe number ofcapacity buildingworkshopsto enable Maoriparticipation tooccurNew(2008/2009baseline2 2 3 3 4 4 4 4 4 4246FAR NORTH FUTURE PLAN 2009-2019

Maori developmentKEY ASSUMPTIONSASSUMPTION what may happen next likelihood impactFINANCIALIMPlicationsMITIGATIONThe LTCCP achieves the appropriate balancebetween the aspirations and priorities of bothMaori and non-Maori in the Far NorthcommunityMaori do not feel that theiroutcomes are sufficientlyreflected in the LTCCPMediumLack of support amongstMaori for the ten-year PlanLow / MediumUndertake effective engagementwith Maori in developing theLTCCP and ensure that outcomesare effectively representedThe development of a unitary authority for theFar North would provide the basis for Maorirepresentation on CouncilA unitary Council may notbe achievableMediumLack of representation ofMaori on CouncilLowDevelop alternative meansof achieving effective Maorirepresentation in Council’sdecision-making processesCouncil will have sufficient resources to pursuethe key objectives set out above in respect ofMaori land development and supporting Maorisocial and economic developmentFinancial constraints maylimit the resources availableMedium /HighInability to progress objectivesas quickly as desiredMedium/HighCouncil will review the timing ofinitiatives to match its financialresourcesFAR NORTH FUTURE PLAN 2009-2019 247

Maori developmentKEY RISKSrisk current rating mitigation rating after mitigationIneffective Maori engagement by Council leadsto disenfranchised Maori CommunityHighContinue to improve mechanisms for Council Engagement withMaoriMediumIneffective administration of Maori Land RatingPoliciesHighKeep Council’s Maori Land rating policies under review to ensureeffective administrationMediumLocal Government Act obligations to establishand maintain processes for Maori to contributeto Council decision making are not metHighContinue to develop processes to enable Maori to contributemore effectively to council decision makingMediumStaff are not equipped adequately to engagewith MaoriHighProvide appropriate training and resources as required to ensurethat staff are adequately equipped to engage with MaoriMediumLack of knowledge, understanding, or confidenceamongst Maori communities may lead todiscontent and anti-establishment behaviourHighDevelop effective engagement with communities and interestgroupsMediumSIGNIFICANT NEGATIVE EFFECTSPOTENTIAL NEGATIVE EFFECTHOW WE ARE ADDRESSING THISLimitation of Council resources may inhibit Council’s ability to promote Maori wellbeingTaking account of Maori engagement priorities in determining the overall allocation ofCouncil’s resourcesStatutory timescales for consultation on the LTCCP provide insufficient time for Maori toconsider the full details of the draft plan and formulate an effective responseSeeking ongoing engagement with Maori across a range of Council issues so that key issuesincluded in the LTCCP have been the subject of prior discussion and consultation248FAR NORTH FUTURE PLAN 2009-2019

Financials – Governance and CorporateFINANCIAL FORECASTSThe tables that follow show:•• Ten year projections of operating income and expenditure•• Forecast capital expenditure and funding followed bya breakdown of capital projects by ward the latterreflecting Council’s plans to increase asset capacityin response to cater for additional demand and / orimproved levels of service.Overall positionSavings have been achieved through staff restructuringand other economy measures in the Finance and Business,Governance and Human Resources departments. Thesesavings have helped to offset cost pressures in other partsof Council’s budget.Asset ManagementIn line with the requirements of Schedule 10 of the LocalGovernment Act 2002 Council has undertaken detailedanalysis of the costs of costs of asset maintenance,renewal and replacement. In the case of Governancethe principal assets employed are IT assets and this planincludes appropriate provision for the maintenance andrenewal of these assets.FAR NORTH FUTURE PLAN 2009-2019 249

udget and capital projectsCONSOLIDATED GOVERNANCE AND CORPORATEPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIncome13,682 Rates - General 13,733 13,134 13,877 14,481 15,226 15,967 16,600 17,424 18,221 18,95592 Rates - Penalties 106 109 111 114 116 119 121 124 127 130465 Fees & Charges 464 476 485 495 504 514 524 534 545 557171 Development Contributions 0 0 0 0 0 0 0 0 0 051 Other Income 32 33 34 35 36 37 38 38 39 4014,461 Total Operating Income 14,334 13,753 14,508 15,125 15,882 16,636 17,283 18,120 18,932 19,681Direct Costs1,140 Administration 980 1,014 1,038 1,063 1,088 1,114 1,141 1,169 1,199 1,229682 Animal Control Dogs 760 786 808 830 851 874 896 922 949 9777 Animal Control Stock 21 22 22 23 24 24 25 25 26 270 Call Centre 604 624 642 659 676 694 712 733 755 778534 Community Board District Wide521 539 552 565 578 592 606 621 637 665Operations501 Community Development 607 627 643 660 676 693 710 730 751 77213 Council Development 0 0 0 0 0 0 0 0 0 0107 Council Support 240 249 256 262 269 276 283 290 298 30775 Development Contributions District Wide0 0 0 0 0 0 0 0 0 0Operations8 District Development 0 0 0 0 0 0 0 0 0 025 Elections 26 86 28 28 92 30 30 99 32 331,037 Forward Planning LTCCP 150 155 241 163 167 259 175 179 278 18812 Investments 9 9 10 10 10 10 11 11 11 11158 Liaison Services 143 147 152 156 160 164 169 174 179 18410 Mayoral Discretionary Fund 0 0 0 0 0 0 0 0 0 043 Mayoral Support 58 60 61 63 65 67 68 70 73 75931 Monitoring 926 957 984 1,011 1,037 1,064 1,092 1,124 1,158 1,193250FAR NORTH FUTURE PLAN 2009-2019

udget and Maori capital developmentprojectsCONSOLIDATED GOVERNANCE AND CORPORATEPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s1,698 Policy 2 2 2 2 2 2 2 2 3 30 Policy Planning 1,786 2,013 2,104 2,160 2,210 2,263 2,317 2,373 2,432 2,493182 Record Remediation 194 201 207 213 219 225 231 238 245 2530 Recruitment 62 64 66 67 69 70 72 74 76 78(10) Septic Tanks Monitoring (11) (11) (11) (12) (12) (12) (13) (13) (13) (13)1,867 Service Centres 1,105 1,144 1,178 1,211 1,242 1,276 1,309 1,348 1,388 1,42630 Sister Cities 31 32 33 34 34 35 36 37 38 39898 Interest 741 737 729 730 725 723 722 719 721 72072 Depreciation 138 142 146 149 153 157 161 165 169 17310,020 Total Direct Operating Expenditure 9,094 9,598 9,891 10,051 10,335 10,600 10,755 11,092 11,404 11,611Indirect Costs824 Corporate Costs 1,240 1,282 1,318 1,339 1,365 1,395 1,423 1,460 1,496 1,535101 Provisions 104 108 110 113 115 118 121 124 127 13053 Rating Costs 153 158 163 167 171 175 180 185 190 196978 Total Indirect Costs 1,497 1,548 1,591 1,619 1,651 1,688 1,724 1,768 1,813 1,86110,997 Total Operating Expenditure 10,592 11,146 11,482 11,669 11,985 12,288 12,479 12,861 13,217 13,4723,464 NET SURPLUS / (DEFICIT) 3,743 2,607 3,027 3,455 3,897 4,348 4,804 5,260 5,716 6,209FAR NORTH FUTURE PLAN 2009-2019 251

udget and capital projectsCONSOLIDATED GOVERNANCE AND CORPORATESTATEMENT OF SOURCE AND APPLICATION OF FUNDSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sCAPITAL STATEMENT3,464 Net Surplus/(Deficit) 3,743 2,607 3,027 3,455 3,897 4,348 4,804 5,260 5,716 6,209857 Loan 630 510 170 60 170 60 170 60 170 60243 Contribution Funding 0 0 0 0 0 0 0 0 0 0712 Depreciation Funding 1,649 1,708 1,472 1,937 1,276 1,377 2,106 1,199 1,295 1,5150 Reserve Funding 0 0 0 0 0 0 0 0 0 0(2,810) Appropriation to Reserves (3,743) (2,607) (3,027) (3,455) (3,897) (4,348) (4,804) (5,260) (5,716) (6,209)2,465 Total Funding 2,279 2,218 1,642 1,997 1,446 1,437 2,276 1,259 1,465 1,575Capital Expenditure1,738 Capital Projects 1,458 1,407 846 1,232 717 735 1,606 614 849 98276 Debt Repayment 821 811 796 765 729 702 669 644 615 5931,814 Total Capital Expenditure 2,279 2,218 1,642 1,997 1,446 1,437 2,276 1,259 1,465 1,575651 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0252FAR NORTH FUTURE PLAN 2009-2019

udget and Maori capital developmentprojectsCAPITAL PROJECTS BY WARDGOVERNANCE AND CORPORATEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19CORPORATE SERVICESNEW WORKSDistrictCorporate ServicesDistrict Wide Promapp 20,000 0 0 0 0 0 0 0 0 0District Wide Electronic Document Management 300,000 100,000 0 0 0 0 0 0 0 0ProjectDistrict Wide Financial Systems Upgrade 60,000 0 119,998 0 120,004 0 119,996 0 119,997 0District Wide Data Storage and Backup 250,000 249,999 0 0 0 0 0 0 0 0District Wide Video Conferencing Upgrade 0 100,000 0 0 0 0 0 0 0 0District Wide Property / Regulatory System Upgrade 0 60,000 0 59,999 0 60,001 0 60,003 0 59,998District Wide Payroll / HR System Upgrade 0 0 50,000 0 50,002 0 49,999 0 49,999 0District Total 630,000 509,999 169,998 59,999 170,006 60,001 169,995 60,003 169,996 59,998NEW WORKS Total 630,000 509,999 169,998 59,999 170,006 60,001 169,995 60,003 169,996 59,998RENEWAL WORKSDistrictCorporate ServicesDistrict Wide Building Services Renewals 0 137,538 0 0 0 0 233,577 0 0 10,150District Wide Pool Vehicles Renewals 728,246 561,174 576,252 811,724 446,988 575,479 924,512 449,180 574,757 811,713District Wide Information Management100,000 100,000 99,998 99,998 100,003 100,002 99,996 100,004 99,997 99,996Administration RenewalsDistrict Wide Telephone Infrastructure DW Renewals 0 88,426 0 260,188 0 0 156,904 0 0 0District Total 828,246 887,138 676,250 1,171,910 546,991 675,481 1,414,989 549,184 674,754 921,859RENEWAL WORKS Total 828,246 887,138 676,250 1,171,910 546,991 675,481 1,414,989 549,184 674,754 921,859CORPORATE SERVICES TOTAL 1,458,246 1,397,137 846,248 1,231,909 716,997 735,482 1,584,984 609,187 844,750 981,857FAR NORTH FUTURE PLAN 2009-2019 253

udget and capital projectsCAPITAL PROJECTS BY WARDGOVERNANCE AND CORPORATEProject Name 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19REGULATORY SERVICESRENEWAL WORKSDistrictAnimal ControlDistrict WideAnimal Control Dogs VehicleRenewals0 10,250 0 0 0 0 21,203 5,249 4,516 0District Total 0 10,250 0 0 0 0 21,203 5,249 4,516 0RENEWAL WORKS Total 0 10,250 0 0 0 0 21,203 5,249 4,516 0REGULATORY SERVICES TOTAL 0 10,250 0 0 0 0 21,203 5,249 4,516 0GRAND TOTAL 1,458,246 1,407,387 846,248 1,231,909 716,997 735,482 1,606,187 614,436 849,266 981,857254FAR NORTH FUTURE PLAN 2009-2019

Council Controlled Organisations9FAR NORTH FUTURE PLAN 2009-2019 255

Council Controlled Organisations and Council OrganisationsFar North Holdings LimitedCouncil established Far North Holdings Limited (FNHL)to act as a vehicle for delivery of Council’s commercialactivities. The reason for establishing a holding companyis to create a structure that delivers services in the mostefficient and cost effective manner. The establishmentof a separate commercial entity provides advantages toCouncil in:•• Providing efficient corporate governance and commercialdirection•• Rationalising operating activities and cost structures•• Maximising commercial skills•• Providing the right tax structures for operations•• Providing better communications between shareholdersand operating subsidiaries.FNHL ObjectivesThe main purpose of FNHL is to invest in, develop, operateand where appropriate divest “strategic businesses”,being businesses/assets that create high priority infrastructureneeded by the Far North district, which arenot being created in any substantial way by the privatesector, and which deliver value to FNHL’s shareholder(and therefore ratepayers) in the form of either new orimproved facilities.Within the context of its main purpose as outlined above,FNHL’s objectives are to operate within the constraintsof its existing capital base and to produce financial returnsthat exceed the weighted average cost of its capital,balanced against its community and environmentalresponsibilities.Since Council holds 100% of Far North Holdings shares,ownership of the assets is effectively retained by Council,but these are managed in a commercial model.GovernanceThe Board of FNHL will adopt the following approach toits fiduciary responsibilities to ensure good governance: itwill prepare a statement of intent setting out its strategicgoals, and obtain the shareholder’s agreement to thisstatement. It will define its organisation structure andindividual accountabilities by preparing clear job descriptionswhich are a dissection of its corporate objectives. Itwill set corporate budgets for earnings and cash flow andindividual performance targets, delegate both responsibilityand authority to its employees, hold regular meetingsto monitor progress towards these goals and preparereports to its shareholder and to ratepayers as required.Scope of ActivitiesFNHL forms the focus of Council’s interface with its commercialinvestments and ensures uniformity in approachand reporting. FNHL’s activities include:•• The provision of maritime, airport, property and carparking facilities, services, investment, management anddevelopment•• The management of maritime and aviation assets undercontract to Council•• Investment in and operation of boatyard and boatmaintenance services. FNHL currently has a portfolioof businesses/assets some of which are strategic in thesense they create necessary infrastructure and othersof which are not. Over time, FNHL plans to sell itsnon-strategic assets and become solely an investor instrategic businesses/assets.FNHL will consult with its shareholder to identify genericareas of new high priority infrastructure, and then investin those sectors as opportunities arise. Because of itscapital constraints, investing in new sectors will requireFNHL to recycle its existing capital by divesting, eitherpartially via joint ventures or via a full divestment, someor all of its existing investments in strategic assets, mostlikely to a private sector operator, after it has begun tooperate the business and before the completion of thedevelopment, with appropriate covenants to ensure longtermpublic access/benefit and project completion by thepurchaser within a sensible time-frame.In normal circumstances, divestment of existing strategicassets may occur when the business viability is proven,when around 75% of the development profit can be realised,leaving some upside for the incoming joint-ventureror purchaser. FNHL is effectively trading off any remainingdevelopment profit against the benefits to FNHL of beingable to recycle its capital and expand the total infrastructuralfacilities within the Far North. FNHL will try to alignthe lead-time of divestment with timing of the reinvestmentopportunities that arise. (Note: this LTCCP doesnot include provision for the sale of particular FNHLassets).The cash proceeds from divestment can be eitherreinvested in the next highest priority infrastructural256FAR NORTH FUTURE PLAN 2009-2019

council controlled organisations &council organisationssector needed by the Far North district, or applied toreduce rate collections/ improve or expand council’score services, although it should be understood that thelatter application of funds will permanently reduce FNHL’sfinancial capacity to reinvest.The company plans to:•• Develop and improve Bay of Islands airport so that theairport's facilities pre-empt increases in traffic demand•• Expand the Opua marina•• Develop the Paihia waterfront precinct•• Sell non-core property assets, while maintaining itsother community assets such as Kaitaia airport (ownedby the Crown and managed by the company), Kaikoheairfield and its wharves, boat ramps and jetties.While the company's main focus is expected to continueto be in the aviation and maritime sectors, it plans to pursueopportunities to develop other infrastructure neededby the Far North district that arise or are created, possibilitiesbeing quarries, communications and commercialproperty development, which may involve joint ventureswith private sector partners.Performance TargetsThe primary performance objective for Far North HoldingsLimited is to operate profitably and achieve financial returnsthat exceed its weighted average cost of capital. The performancemeasurement for this objective will be the rate of returnon investment as manifested by positive operating cashflow (net of financing costs) and an increment over prioryear in the value of net tangible assets. Subsidiary objectivesand performance criteria are set out in the table below:Principal Objectivesof the GroupOperate as a successfulbusinessManage FNHL’s fixed and noncommercialassets as efficientlyas possiblePromote the use of soundbusiness processes within FNHLInitiatives Measures TargetEngage in successfulcommercial transactionsMaximise availability ofassetsEffective financialmanagementDistributions to shareholdersFNHL will distribute 50% of its operating profit by way ofdividend. The remaining operating profit and all the nonoperatingprofits will be reinvested by FNHL.Growth in value of FNHL tothe shareholderNumber of days closedattributable to FNHLClean audit sign off each yearAnnual increase0Achieve clean sign offFNHL has an associate company:Paihia Maritime PropertiesA company investing in buildings and development on thePaihia Waterfront in which FNHL has a 50% share.Operate the business in anenvironmentally sensitive mannerImprove water qualityadjacent to maritimefacilities (note: no agreedwater quality measurecurrently available)No NRC abatement noticesfor water quality0Promote sound staff employmentpracticesMaintain a safe workplaceReportable staff OSH incidents0Airport provisionDevelop and improve Bayof Islands AirportCAA CertificationMaintain CertificationFAR NORTH FUTURE PLAN 2009-2019 257

council controlled organisations &council organisationsTe Ahu TrustCouncil reconfirmed the establishment of the Te AhuTrust as a CCO following consultation during its2008/2009 annual plan process. The main objective ofestablishing the Trust as a CCO was to enable it to accessfunding streams that would not normally be available to it.The Te Ahu Trust exists to provide a multi-functionalfacility to offer modern purpose-built spaces for a newlibrary, museum, service centre, i-Site, technology centre,café, and public toilets, as well as retail and public meetingspaces and ancillary areas with the flexibility to grow asthe community grows. The existing Far North CommunityCentre and Little Theatre will be refurbished and integratedinto the new building. Active and passive outdoorspaces, including a piazza for outdoor events and achildren’s playground, will be enhanced by comprehensivelandscaping around the perimeter.This will be a transformational project and a catalyst forthe revitalisation of the very Far North. It is a complexventure involving many stakeholder groups. Over the lastyear good progress has been made in laying the foundationsfor the project. This has included setting up theTrust, appointing Trustees, selecting an appropriate site,working with the organisations that will be based in thecentre and the wider community, holding hui, developing abusiness case, working-up design options, estimating costs,and seeking funding.The total cost of the project, including landscaping, is estimatedto be around $15m. Current funders include theASB Community Trust, Kaitaia Community Forest Trust,Juken NZ Ltd and Far North District Council. Councilestimates its contribution as up to $9.5m. Other potentialfunders have yet to be approached because of the needto have a definite concept plan in place first. If necessary,the development can be staged, which will more evenlyspread the cost.In its deliberations on the final content of this LTCCPCouncil confirmed its support for the Te Ahu project,including the planned site and:•• Reconfirmed funding of $4.764m contained in the2006/2016 LTCCP•• Resolved that $1.9m of accumulated depreciationfunds from the Kaitaia Community Centre be usedfor the Community Centre component of the Te Ahudevelopment•• Confirmed that funding up to an estimated $1.7mshould be provided from property sales within theNorthern ward and up to $1.1m should be fundedfrom development contributions, subject to availability•• Resolved that any further advances of funding to the TeAhu Charitable Trust will only be made once Councilhas signed off a completed business plan.CCO performance targets and FNDC funding contributionwill be confirmed as the development proceeds.Far North Regional MuseumThe Far North Regional Museum Trust is technicallyclassified as a Council Organisation because of Councilinvolvement in it. However the activities of this Trust areperipheral to the core activities of Council and it hasno material effect on Council’s finances. However theactivities of this Trust are not part of the core activities ofCouncil and have no material effect on Council’s finances.Roland’s Wood TrustThe Roland’s Wood Trust relates to four hectares ofwoodland in Kerikeri and was set up to ensure the provisionand maintenance of a wooded park for the recreationaluse, enjoyment and benefit of the public. As theTrust Administration Committee consists of Council staffthe Trust is classified as a CCO. However its activities areperipheral to the core activities of Council and it has nomaterial effect on Council’s finances. Council has thereforeconcluded that there is no requirement to provideany further detail of the Trust in the LTCCP.258FAR NORTH FUTURE PLAN 2009-2019

Money MattersFAR NORTH FUTURE PLAN 2009-2019 259

Forecasting AssumptionsCOUNCIL-WIDE ASSUMPTIONSASSUMPTIONRISKLEVEL OFRISKPOTENTIAL IMPACT OF RISKPOTENTIALFINANCIAL IMPACTMITIGATIONCOUNCIL-WIDECosts will increase in line withBERL inflation projections (in arange between 3.5% and 2.1% overthe ten years)Inflation may be higher orlower than forecastMedium years1-3. Lowyears 4-10Higher or lower than forecast costsMedium to LowCouncil will maintain tight budgetarycontrol and will seek offsettingsavings if inflation is higher thanforecastDepreciation costs will be in linewith the financial forecasts set outin this planAsset revaluations maylead to higher depreciationcostsMedium Higher than forecast costs Low to MediumThis issue has been a problem forCouncil in recent years and workis continuing to better understandthe dynamics behind depreciationcosts and strengthen futureforecastsAsset lives will be in line with theassumptions set out in the depreciationnote in the accounting policieselsewhere in this LTCCPAsset lives may be shorterthan assumedLow Earliler renewal/replacement needs MediumCouncil undertakes detailedanalysis of asset lives supported byexpert professional assessmentswhere appropriateInterests rates will be in line withthe financial forecasts contained inthis plan (assumed at 7.0%)Interest rates may behigher than assumedLow Higher than forecast borrowing costs LowCouncil will maintain tight budgetarycontrol and will seek offsettingsavings if interest costs are higherthan forecastSources of funds for future replacementof significant assets will be asset out in the Revenue and FinancingPolicy elsewhere in this LTCCPFunding sources may notbe available as requiredLow Difficulty in funding asset replacement LowCouncil will either substitute alterativefunding sources e.g. borrowingor reduce capital expenditureto match funding availability260FAR NORTH FUTURE PLAN 2009-2019

forecasting assumptionsCOUNCIL-WIDE ASSUMPTIONS (continued)ASSUMPTIONRISKLEVEL OFRISKPOTENTIAL IMPACT OF RISKPOTENTIALFINANCIALIMPACTMITIGATIONCOUNCIL-WIDEFees and charges will be as includedin the financial estimates in this planFees and charges may notyield the anticipated levelof revenueLowImpact on Council’s overall financialposition placing a greater burden onrates fundingLowSubstantial work has been undertakenin the last year on consentsfees and charges and these arenow considered to be on a soundfooting for the futurePopulation growth will be in accordancewith projections in Council’s“Planning for Growth” documentThe actual level of growthmay be higher thanassumedThe actual level of growthmay be lower thanassumedMediumMediumInsufficient capacity availableSpare infrastructure capacity. FewerratepayersMediumMediumGrowth trends are kept underregular review. New infrastructurewill include spare capacityGrowth is expected to occurover time. There is flexibility inthe capital programme to reduceexpenditure if growth is lowerthan expectedDemographics of the district willnot change significantly over thenext ten yearsSignificant changes may occure.g. an increase in agingpopulation may give rise todifferent service demandsLowNeed to reformulate Council serviceprioritiesLowCouncil monitors demographictrends as part of its ongoingwork on growth in the district. Atregional level council works withpartner agencies towards improvingkey demographics e.g. skills andeducation levels that will benefitthe district over the long termCurrent Council policies as set outin the LTCCP will continueLocal body elections mayresult in significant changesto Council policiesMediumPotential for significant shifts in policydirectionLow to MediumThe impact would be addressedthrough adjustment of future planswith accompanying communityconsultationFAR NORTH FUTURE PLAN 2009-2019 261

forecasting assumptionsCOUNCIL-WIDE ASSUMPTIONS (continued)ASSUMPTION RISK LEVEL OF RISK POTENTIAL IMPACT OF RISKPOTENTIALFINANCIALIMPACTMITIGATIONCOUNCIL-WIDEClimate change will mean thatthere are one or more severeweather events in the life of thisplanThe impact of climatechange will be moresignificant than assumedLow to MediumMajor disruption to business as usualand longer term implications dealingwith after-effects and repairsMediumRecent severe events have leftthe Far North better preparedthan in the past. Council will addressany unplanned additionalfunding needs through redirectionof resources and levying ofadditional rates if required. Centralgovernment and insuranceassistance would also be soughtApart from the possibility offurther major weather eventsCouncil’s operating environmentwill remain broadly stableUnforeseen events such asa health pandemic couldoccurLowSignificant disruption to business asusualMediumCouncil has risk managementand business continuity plans inplace and these are kept underreview. Civil Defence standardoperating procedures areregularly reviewed and updated.A major event such as a pandemicwould require a nationalresponseLegislative changes will not fundamentallyalter Council’s operatingenvironmentThere may be majorunanticipated changes inlegislationLow to MediumSignificant disruption to business asusualLow to MediumCouncil pays close attention tonational and international politicaltrends and emerging issuesin order to anticipate potentialchanges at an early stage. Currentlyanticipated changes aretaken into account in this plan262FAR NORTH FUTURE PLAN 2009-2019

forecasting assumptionsCOUNCIL-WIDE ASSUMPTIONS(continued)ASSUMPTION RISK LEVEL OF RISK POTENTIAL IMPACT OF RISKPOTENTIALFINANCIALIMPACTMITIGATIONCOUNCIL-WIDEThe rates base will grow at 1% ayear during the life of the planThe rates base may notgrow as assumedLowLack of funding for costs within theten-year planLowThis is unlikely to have a materialimpact in any one year. Any significantover-estimation will be thesubject of adjustments, includingexpenditure reductions if needed,in future plansGovernment subsidy will make asignificant contribution toinfrastructure development in thedistrictSubsidy may not be availableto the extent assumedLow to MediumInability to pursue schemes required toprovide for growthMediumSchemes will not go ahead untilsubsidy is confirmedNOTESNote that actual results achieved over the ten year periodof the Plan are likely to vary from the information presentedhere and in some cases variations may be material.Council will therefore be revising and updating its forecastsannually and updated projections will be publishedeach year’s Annual Plan, or in future LTCCPs. Councilreports on actual performance against projections in itsAnnual Report, which is published in November each year.Council wishes to take the opportunity in presenting thefinancial statements below to deal with some commonmisconceptions relating to the way in which the figuresare presented (the form of presentation is closely prescribedand subject to audit). In summary terms the financialprojections show Council making operating surpluses,which are then applied to the funding of capital expenditure,resulting in zero bottom line results. Whilst correctin accounting and presentational terms the identificationof significant operating surpluses can be misleading andcause readers to believe that Council is making profits atthe ratepayers’ expense. This is not the case.The net surpluses shown include subsidies from Government,which are required to be included in operatingrevenue even though they are then applied to fund capitalexpenditure. Were such subsidies to be “netted off” theywould result in operating deficits, which can be principallyexplained by unfunded depreciation (Council does notfund depreciation on projects expected to receiveGovernment subsidy) and water and sewerage deficitfunding from retained surpluses.FAR NORTH FUTURE PLAN 2009-2019 263

money mattersWHOLE OF COUNCIL FINANCIAL STATEMENTSThe following is the 2009-2019 financial strategy, covering the whole of Council and activity groupsPROSPECTIVE STATEMENT OF FINANCIAL PERFORMANCEAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sIncome39,390 Rates - General 41,975 43,679 45,592 47,972 49,640 51,310 53,203 54,554 57,399 59,16120,818 Rates - Targeted 23,378 25,043 27,011 27,572 28,622 29,904 31,289 32,754 33,210 34,087627 Rates - Penalties 647 668 683 699 714 731 747 765 783 8029,777 Fees & Charges 9,977 9,559 9,406 10,072 10,509 10,740 10,976 11,217 11,476 11,7416,494 Subsidies Operational 9,859 6,973 7,251 7,063 7,062 7,342 7,479 7,697 8,493 8,66513,041 Subsidies Capital 17,999 15,185 15,394 13,399 11,384 13,512 11,780 11,948 13,143 13,53711,790 Development Contributions 6,842 6,993 7,003 6,830 6,701 6,531 6,321 5,694 5,466 5,2731,304 Other Income 1,528 1,559 1,595 1,632 1,669 1,708 1,747 1,788 1,832 1,876103,242 Total Operating Income 112,205 109,658 113,937 115,239 116,301 121,777 123,543 126,417 131,801 135,142Expenditure11,432 District Facilities 9,572 10,188 10,266 10,522 10,746 11,037 11,268 11,587 11,868 12,18710,027 Governance and Corporate 9,713 10,267 10,607 10,789 11,107 11,409 11,596 11,976 12,326 12,57914,793 Roads and Stormwater 18,309 15,409 15,778 16,018 16,643 17,259 17,953 18,132 19,707 20,1307,852 Sustainable Environment and Consents 8,937 9,234 9,489 9,727 9,960 10,213 10,464 10,760 11,064 11,38413,833 Water, Wastewater and Refuse 14,096 14,665 14,893 15,420 15,782 16,012 16,912 17,367 17,847 18,5535,824 Interest 7,784 8,958 10,045 10,155 10,258 10,532 10,394 9,947 9,549 9,21220,406 Depreciation 23,231 24,990 26,615 28,998 30,230 31,456 32,698 33,808 36,349 37,55684,168 Total Operating Expenditure 91,642 93,711 97,693 101,629 104,726 107,918 111,286 113,577 118,710 121,60119,075 Net Operating Surplus/(Deficit) 20,563 15,948 16,244 13,609 11,575 13,859 12,257 12,840 13,091 13,541264FAR NORTH FUTURE PLAN 2009-2019

money mattersWHOLE OF COUNCILSTATEMENT OF SOURCE AND APPLICATION OF FUNDSAnnual Plan2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sCAPITAL STATEMENT19,075 Net Surplus/(Deficit) 20,563 15,948 16,244 13,609 11,575 13,859 12,257 12,840 13,091 13,54110,728 Loan 18,286 18,863 9,423 8,322 9,037 4,632 2,210 3,142 3,119 4,41316,436 Contribution Funding 7,263 4,862 2,177 3,814 3,259 2,810 1,966 1,391 1,851 2,50417,905 Depreciation Funding 23,726 25,630 25,231 27,627 33,875 30,300 31,844 28,711 30,755 35,615398 Reserve Funding 1,307 853 950 867 722 753 767 1,072 753 712(1,426) Appropriation to Reserves (10,419) (8,829) (9,346) (9,692) (9,988) (10,470) (10,940) (11,701) (11,838) (12,290)63,116 Total Funding 60,727 57,326 44,679 44,547 48,480 41,884 38,104 35,455 37,731 44,494Capital Expenditure51,352 Capital Projects 56,073 51,991 38,668 38,365 42,191 35,458 31,767 29,324 31,750 38,6562,287 Debt Repayment 4,654 5,335 6,012 6,182 6,289 6,427 6,337 6,130 5,981 5,83853,639 Total Capital Expenditure 60,727 57,326 44,679 44,547 48,480 41,884 38,104 35,455 37,731 44,4949,477 NET SURPLUS/(DEFICIT) 0 0 0 0 0 0 0 0 0 0Commentary -STATEMENT OF COMPREHENSIVE INCOMEFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s19,075 Surplus/deficit for the year 20,563 15,948 16,244 13,609 11,575 13,859 12,257 12,840 13,091 13,541Other Comprehensive Income54,901 Gains on asset revaluation 45,231 49,687 61,849 51,291 51,510 64,563 69,753 58,741 58,457 58,05073,976 Total Comprehensive Income for theyear65,794 65,635 78,093 64,900 63,085 78,422 82,010 71,581 71,548 71,591FAR NORTH FUTURE PLAN 2009-2019 265

money mattersSTATEMENT OF FINANCIAL POSITIONFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Rev Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sPUBLIC EQUITY291,182 Other Reserves 336,413 386,100 447,949 499,240 550,750 615,313 685,066 743,807 802,264 860,3141,187 Restricted Reserves 1,187 1,187 1,187 1,187 1,187 1,187 1,187 1,187 1,187 1,1871,323,204 Retained Earnings (Note 1) 1,364,291 1,401,274 1,435,084 1,469,868 1,507,886 1,543,773 1,578,284 1,609,237 1,642,504 1,681,3271,615,573 Public Equity 1,701,891 1,788,561 1,884,220 1,970,295 2,059,823 2,160,273 2,264,537 2,354,231 2,445,955 2,542,828Represented by;CURRENT ASSETS6,245 Cash & Cash equivalents 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,24531,514 Trade & Other Receivables 32,617 33,758 34,940 36,163 37,428 38,738 40,094 41,497 42,950 44,4532 Other Financial Assets 1 0 0 0 0 0 0 0 0 0Properties Intended for Sale67 Inventories 67 67 67 67 67 67 67 67 67 6737,828 Current Assets 38,930 40,070 41,252 42,475 43,740 45,050 46,406 47,809 49,262 50,765Less;CURRENT LIABILITIES17,073 Trade & Other Payables 17,671 18,289 18,929 19,592 20,277 20,987 21,722 22,482 23,269 24,08312,005 Borrowings 12,258 6,015 18,207 15,380 6,721 528 1,661 8,104 0 0159 Provisions 13 27 12 11 45 9 9 5 60 41,345 Employee Benefits 1,345 1,345 1,345 1,345 1,345 1,345 1,345 1,345 1,345 1,34530,582 Current Liabilities 31,287 25,676 38,493 36,327 28,388 22,869 24,736 31,936 24,674 25,4327,246 Working Capital 7,643 14,394 2,759 6,147 15,352 22,181 21,670 15,874 24,588 25,333266FAR NORTH FUTURE PLAN 2009-2019

money mattersSTATEMENT OF FINANCIAL POSITIONFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Rev Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sNON CURRENT ASSETS161 Other Financial Assets 161 161 161 161 161 161 161 161 161 161174 Forestry 157 141 127 114 98 88 76 64 49 412,066 Intangible Assets 2,066 2,066 2,066 2,066 2,066 2,066 2,066 2,066 2,066 2,066Investment Properties12,000 Investments in Subsidiaries 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,0001,675,234 Property, Plant & Equipment 1,774,539 1,874,217 1,972,734 2,060,390 2,152,090 2,250,111 2,349,631 2,435,696 2,523,903 2,618,6081,689,636 Non Current Assets 1,788,923 1,888,585 1,987,088 2,074,731 2,166,415 2,264,426 2,363,934 2,449,987 2,538,179 2,632,876NON CURRENT LIABILITIES80,980 Borrowings 94,360 114,131 105,350 110,318 121,725 126,123 120,863 111,432 116,674 115,249Trade & Other Payables0 Employee Benefits 0 0 0 0 0 0 0 0 0 0328 Provisions 314 286 275 264 219 210 202 197 136 13281,308 Non Current Liabilities 94,673 114,417 105,625 110,582 121,944 126,333 121,065 111,629 116,811 115,3821,615,573 Net Assets 1,701,891 1,788,562 1,844,221 1,970,295 2,059,825 2,160,275 2,264,539 2,354,232 2,445,956 2,542,828NOTE 1Retained EarningsRev Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s6,332 - Depreciation Reserves 7,318 8,336 11,520 14,766 13,049 16,210 19,128 26,371 34,173 38,410(17,451) - Development Contribution (17,330) (17,529) (15,592) (13,450) (11,903) (9,762) (7,217) (4,437) (2,118) (691)Reserves(956) - Open Spaces reserves (2,973) (2,506) (1,561) (2,147) (1,858) (1,749) (1,200) (311) 577 1,7061,335,279 - Retained Earnings 1,377,276 1,412,973 1,440,717 1,470,699 1,508,598 1,539,074 1,567,573 1,587,614 1,609,872 1,641,9021,323,204 Total Retained Earnings 1,364,291 1,401,274 1,435,084 1,469,868 1,507,886 1,543,773 1,578,284 1,609,237 1,642,504 1,681,327FAR NORTH FUTURE PLAN 2009-2019 267

money mattersSTATEMENT OF CHANGES IN EQUITYFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s1,506,448 Opening Balance 1,615,573 1,701,891 1,788,561 1,884,220 1,970,295 2,059,824 2,160,274 2,264,538 2,354,231 2,445,95654,901 Revaluation of Assets 45,231 49,687 61,849 51,291 51,510 64,563 69,753 58,741 58,457 58,05035,149 Movement in Reserves 20,524 21,035 17,567 21,175 26,443 22,028 22,253 18,112 20,177 25,28190,050 Total Revenue andExpenses recognised inEquity65,755 70,722 79,416 72,466 77,953 86,591 92,006 76,853 78,634 83,33119,075 Net Operating Surplus 20,563 15,948 16,244 13,609 11,575 13,859 12,257 12,840 13,091 13,5411,615,573 Closing Balance 1,701,891 1,788,561 1,884,221 1,970,295 2,059,823 2,160,274 2,264,537 2,354,231 2,445,956 2,542,828268FAR NORTH FUTURE PLAN 2009-2019

money mattersSTATEMENT OF CASHFLOWSFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sOPERATING ACTIVITIESCash was provided from:58,830 Rates 64,898 68,250 72,105 75,020 77,710 80,635 83,884 86,669 89,940 92,54641,738 Other Income 46,034 40,113 40,491 38,834 37,162 39,667 38,134 38,172 40,234 40,913669 Interest and Dividends 170 155 158 161 163 166 169 172 175 179101,237 111,102 108,518 112,754 114,015 115,035 120,468 122,187 125,013 130,349 133,638Cash was applied to:53,782 Supply of Goods, Services & Employees 60,742 60,924 67,296 67,469 65,160 72,479 75,708 82,555 85,983 84,0975,823 Interest Paid 7,784 8,958 10,045 10,155 10,258 10,532 10,394 9,947 9,549 9,21273 GST (Net)100 Fringe Benefit Tax Paid 135 140 143 146 149 153 156 160 164 16859,778 68,661 70,022 77,484 77,770 75,567 83,164 86,258 92,662 95,696 93,47741,459Net Cash Inflows / (Outflows) from OperatingActivities 42,441 38,496 35,270 36,245 39,468 37,304 35,929 32,351 34,653 40,161FINANCING ACTIVITIESCash was provided from:16,674 Borrowing 18,286 18,863 9,423 8,322 9,037 4,632 2,210 3,142 3,119 4,41316,674 18,286 18,863 9,423 8,322 9,037 4,632 2,210 3,142 3,119 4,413Cash was applied to;2,367 Borrowing 4,654 5,335 6,012 6,182 6,289 6,427 6,337 6,130 5,981 5,8382,367 4,654 5,335 6,012 6,182 6,289 6,427 6,337 6,130 5,981 5,83814,307 Net Cash Inflows / (Outflows) from FinancingActivities13,632 13,528 3,411 2,140 2,748 (1,795) (4,127) (2,988) (2,862) (1,425)FAR NORTH FUTURE PLAN 2009-2019 269

money mattersSTATEMENT OF CASHFLOWSFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sINVESTING ACTIVITIESCash was provided from:Sale of Property Plant & Equipment,Investment Properties and Properties0 Intended for Sale 0 0 0 0 0 0 0 0 0 00 Sale of Investments 0 0 0 0 0 0 0 0 0 00 Advances Repaid 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0Cash was applied to:51,274 Purchase & Development of Property,Plant & Equipment56,073 51,991 38,668 38,365 42,191 35,458 31,767 29,324 31,750 38,65651,274 56,073 51,991 38,668 38,365 42,191 35,458 31,767 29,324 31,750 38,656(51,274) Net Cash Inflows / (Outflows) from InvestingActivities(56,073) (51,991) (38,668) (38,365) (42,191) (35,458) (31,767) (29,324) (31,750) (38,656)4,492 Net Increase / (Decrease) in Cash Flows 0 0 0 0 0 0 0 0 0 0NET CASH POSITIONOpening Balances 1 July1,753 Cash & cash Equivalents 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,2451,753 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245Less Balances 30 June6,245 Cash & cash Equivalents 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,2456,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,245 6,2454,492 Cash Movements for the Year 0 0 0 0 0 0 0 0 0 0270FAR NORTH FUTURE PLAN 2009-2019

money mattersRECONCILIATION BETWEEN PROSPECTIVE COST OF SERVICE STATEMENTS AND THEPROSPECTIVE STATEMENT OF COMPREHENSIVE INCOMEFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Annual PlanProspective Financial Statements 2009-192008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sTOTAL OPERATING SURPLUS/(DEFICIT)(Activity Cost of Service Statements)4,161 District Facilities 1,771 1,760 1,747 1,736 1,726 1,713 1,699 1,688 1,676 1,6653,464 Governance and Corporate 3,743 2,607 3,027 3,455 3,897 4,348 4,804 5,260 5,716 6,2099,621 Roads and Stormwater 10,225 7,427 5,609 3,593 3,507 3,471 3,583 3,496 3,622 3,630295 Sustainable Environment and Consents 0 0 0 0 0 0 0 0 0 01,534 Water, Wastewater and Refuse 4,825 4,154 5,861 4,825 2,447 4,328 2,172 2,397 2,078 2,03719,075 Total Operating Surplus/(Deficit) 20,563 15,948 16,244 13,609 11,576 13,859 12,258 12,840 13,091 13,541SURPLUS/(DEFICIT) FOR THE YEAR73,873 (Statement of Comprehensive Income) 65,794 65,635 78,093 64,900 63,085 78,422 82,010 71,581 71,548 71,59154,798 Variance 45,231 49,687 61,849 51,291 51,509 64,563 69,752 58,741 58,457 58,050Reconciling items54,798 - Gains on Asset Revaluation 45,231 49,687 61,849 51,291 51,510 64,563 69,753 58,741 58,457 58,050FAR NORTH FUTURE PLAN 2009-2019 271

money mattersBORROWING MOVEMENTSFOR THE 10 YEAR PERIOD TO JUNE 20192009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sExternal Borrowing as per plan (106,618) (120,146) (123,557) (125,698) (128,445) (126,651) (122,524) (119,536) (116,674) (115,249)Borrowing for contribution shortfall (20,303) (20,036) (17,153) (15,597) (13,761) (11,512) (8,418) (4,749) (1,540) 0Total Borrowing requirements (126,921) (140,182) (140,710) (141,295) (142,206) (138,163) (130,942) (124,285) (118,214) (115,249)Loan ceiling 2:1 debt to revenue (224,410) (219,316) (227,874) (230,478) (232,602) (243,554) (247,086) (252,834) (263,602) (270,284)INTEREST ANALYSISFOR THE 10 YEAR PERIOD ENDED 30 JUNE 2019Prospective Financial Statements 2009-192009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000sExternal Interest 6,401 7,425 8,502 8,785 9,017 9,461 9,533 9,313 9,143 8,998Interest on Development ContributionShortfalls 1,383 1,533 1,544 1,371 1,241 1,071 861 634 406 214Total Interest Costs 7,784 8,958 10,046 10,156 10,258 10,532 10,394 9,947 9,549 9,212272FAR NORTH FUTURE PLAN 2009-2019

EXECUTIVE MANAGEMENT AND CONTACTSexecutive managementCHIEF EXECUTIVEDAVID EDMUNDSGENERAL MANAGER – FINANCE AND BUSINESS PERFORMANCEIan SivyerGENERAL MANAGER – STRATEGIC DEVELOPMENT ANDGOVERNANCETREVOR NORTONGENERAL MANAGER – ENVIRONMENTAL MANAGEMENTFRAN MIKULICICMANAGER – ROADS AND STORMWATERRICHARD GREENMANAGER – WATER AND WASTE MANAGEMENTSTEPHEN COOPERGROUP MANAGER – COMMUNITY AND CUSTOMER SERVICESPATRICK SCHOFIELDcustomer enquiriesCustomers can access a full range of services at any of our Service Centres, orby contacting our Call Centre:Our footprint on the futureTa matou tapuwae o nga ra whakaekeTelephone: 0800 920 029 or (09) 405 2750.Facsimile: 09 401 2137Website: www.fndc.govt.nzThese lines operate a 24-hour service for reporting emergency faults.All correspondence should be directed to:Private Bag 752, Kaikohe 0440FAR NORTH FUTURE PLAN 2009-2019 273

GLOSSARYActivityA good or service provided by or on behalf ofa local authority.Asset Management Plans (AMPs)AMPs cover all aspects of managing an asset.They include policy, financial forecasting andengineering requirements for all major activities.They ensure that the required level ofservice is maintained over the long term byhelping Council anticipate and plan for futureneeds and renewals.Allocated CostsAllocation of costs by support departmentsto other Council departments for servicesprovided. They reflect the true cost of theprovision of goods and services.Annual PlanA plan produced by Council every year thatsets out what it plans to do for the followingyear (and into the future), how much it willcost and how Council plans to fund it. Everythird year it is part of the LTCCP.Annual ReportA document that Council prepares each year,which provides the public with information onthe performance of the local authority duringthe past year (both in financial and non-financialterms).AppropriationMoney that has been set aside from orbrought into an operating revenue account.Assets are things that the organisation owns.Non Current, assets are assets that havea useful life of more than one year such asroads, parks, footpaths and buildings.AWPTAbbreviation for Area Wide Pavement Treatmentprogramme. AWPT is a Transfund-subsidisedprogramme of renewal for pavementsincluding overlays and chemical stabilisation. Itshould not be confused with Council’s roadsealing programme.CapacityCouncil’s ability to deliver a service. Forsome services, Council may not have legal orbudgetary control and may only be able to actas an advocate or facilitator.Capital ValueThe value of land plus any additions like buildings,driveways and fences.Capital Expenditure (CAPEX)Capital expenditure is additions, improvementsor renewals to fixed assets that havebeen, or will be built or purchased by theCouncil, where the benefit will be reflectedover more than one financial year.Code of ConductA document that defines councillors’ rolesand conduct while in office.CommunityA network of people and organisations linkedtogether by common factors. This might referto a network of people linked by place (thatis, a geographic community), common interestor identity (for example, a hapu, voluntaryorganisations or society), or an administrativecommunity (such as a district).Community BoardA local elected body within a community toadvise a district council on issues affectingthe community and to carry out functionsdelegated to it by the Council.Community OutcomesThe future that a community wants to achieve.These outcomes set the direction for Councilplans and help in the coordination of activities.ConstituencyAn electoral area within district boundaries.Council Controlled Organisation (CCO)An organisation where the Council has 50%or more of the voting rights.CouncilA territorial authority, being an elected groupof people that by democratic process have themandate of the community they represent tomake decisions and provide local governance.DelegateTo give responsibility to someone else.Development ContributionsA mechanism provided under the Local GovernmentAct 2002 to fund capital expenditureneeded to meet extra demand resulting fromdevelopment. Development Contributionsensure the developer or sub-divider pays towardsthe cost of providing/upgrading services.274FAR NORTH FUTURE PLAN

glossaryDepreciationA means of spreading the cost of capital assetsover the period in which they are used. Depreciationis charged in the Council’s accountsto provide for future replacement of assets.FNDCAbbreviation for Far North District Council.Far North Holdings Ltd (FNHL)A Council Controlled Organisation in whichthe Far North District Council is the majorshareholder. FNHL manages fixed and noncommercialassets including maritime facilitiesand airports.Fees and ChargesFees and charges are levied by Council forservices for which costs must be met, inwhole or in part, by the user of the service(e.g. entrance fees to swimming pools, fees fordumping waste at tips, building and resourceconsents etc).GrantMoney given to a group for a particularpurpose.HearingMeeting to enable members of the public tospeak about a particular issue.InfrastructureThe systems that help a district function suchas roads, public water supply, refuse and effluentdisposal.Internal RecoveriesRecovery of costs by support departmentsfrom other Council departments.Land ValueThe probable price that would be paid for thebare land as at the date of valuation. The valueincludes development work such as drainage,excavation, filing, leveling, retaining walls, clearing,fertility build-up, flood protection.Levels of ServiceA measure of the service that the Council deliversi.e. number of sports fields available foruse, library opening hours, water quality etc.LiabilitiesAmounts that the organisation owes. NonCurrent Liabilities are amounts that are notdue to be repaid within the next year.Loan FundsThis is money used by Council that it hasobtained by raising a loan.Local Governance StatementA collection of information prepared undersection 40 of the Local Government Act 2002that includes information about the ways inwhich a local authority engages with its community,how it makes decisions and the ways inwhich citizens can influence those processes.Long Term Council Community Plan(LTCCP)A plan covering at least ten years adoptedunder section 93 of the Local GovernmentAct 2002. The LTCCP describes the activitiesthe Council will engage in over the life ofthe plan, why the Council plans to engage inthose activities and how those activities willbe funded.New Zealand Transport StrategyGovernment’s vision for transport. By 2010New Zealand will have an affordable, integrated,safe, responsive and sustainable transportsystem.Operating ExpenditureSpending for the normal day-to-day services ofCouncil. This also includes depreciation, intereston loans and allocated costs.Performance IndicatorsPerformance indicators are used by Councilto measure how well services are performing.They enable targets to be set for service improvementand comparisons of performanceover time and with other organisations.Private BenefitThis occurs when individuals who benefitfrom a service can be clearly identified andtherefore charged for that service. It applies touser charges, application fees, purchase priceand water by meter, though there are exceptionsto the rule.Public BenefitThis relates to spending which benefits thecommunity in general and for which no individualbeneficiaries can be clearly identified.RatesMoney that property owners pay to Districtand Regional Council for the provision of assetsand services.Regional CouncilA Council that represents a regional community,manages natural resources and dealswith issues that affect the environment. Ourregional council is the Northland RegionalCouncil, which covers the Far North, Whangareiand Kaipara Districts.Renewal ExpenditureThis is spending that replaces deterioratingassets with new assets that have the sameservice potential as the originals.Reserve ContributionA contribution made either in money orland (at Council’s discretion) to the district’sreserves, payable for any subdivision in whichthe number of lots is increased, or for anysignificant development of land.Resource ConsentSpecial permission from Council for an activityrelated to land.Restricted AssetsAssets that cannot be disposed of because oflegal or other restrictions and that providebenefit or service to the community. Theyinclude reserves vested under the ReservesAct 1977, endowments and property held intrust for specific purposes.FAR NORTH FUTURE PLAN 275

glossaryReticulationWhen water is supplied from a main sourceand distributed within a defined area, for acost. Also a means of wastewater disposalwhere sewage is discharged to a main sourcewhere it is treated for disposal.RevenueMoney received by Council.Revenue and Financing PolicyThis is a statement about who should pay forthe services provided by Council. The policyoutlines who will benefit for each Activity andwho should pay for it, taking into account fairnessand what is practical.Service LevelsThe defined service parameters or requirementsagainst which service performance maybe measured. Service levels usually relateto quality, quantity, reliability, responsiveness,environmental acceptability and cost.SignificanceThe degree of importance of an issue, proposal,decision or matter, as assessed by theauthority, in terms of its likely impact on andlikely consequences for:•• The current and future well-being of thedistrict or region•• Any persons who are likely to be particularlyaffected by, or interested in, the issue,proposal, decision or matter•• The capacity of the Council to perform itsrole and the financial and other costs ofdoing so.Special Consultative ProcedureA formal consultation process defined inlegislation, setting out a series of steps thatmust be followed when councils consult onparticular types of decisions.Special Funds/Reserve FundsMoney set aside for a specific purpose. Someuses are legally restricted and others are createdby Council.Stormwater CatchmentManagement PlansThe sustainable management of stormwaterrun-off within a defined catchment utilisingpiped networks and overland flows giving considerationto current and future development,climate change, system capacity and condition,water quality, financial affordability and theenvironment.SubmissionIndividuals or organisations giving Councilformal feedback when Council has initiated aconsultation process.SubsidiesMoney to help pay for some particular service,activity or infrastructure; usually paid by centralgovernment.SustainabilitySustainability focuses on improving the qualityof life for all people without increasing the useof natural resources beyond the capacity ofthe environment to supply them indefinitely.Sustainable activities utilise resources andbuild capacity in a way that ensures the activitycan be safely maintained over time.Sustainable DevelopmentMost interpretations share the fundamentalidea that it is development that maintains orenhances economic opportunity and communitywell-being while protecting and restoringthe natural environment upon which peopleand economies depend. Sustainable developmentmeets the needs of the present withoutcompromising the ability of future generationsto meet their own needs.Territorial AuthorityA city or district council.Triennial AgreementAn agreement entered into by all of the localauthorities within a region that sets out thebasis for communication and coordinationbetween the authorities.TrustMoney or property looked after by an organisation.Uniform Annual General Charge (UAGC)The contribution to the costs of the activities,works or services, whose costs are nototherwise recovered from separate andspecial rates and charges and shall be levied inrespect of every separately rateable property.This amount does not vary with the value ofthe property.User Fees and ChargesFees charged to users of specific services andfacilities provided by the Council.Utilities (Utility Assets)Utilities are network infrastructures that providemechanisms for the delivery of services.In a local government context, utilities commonlyrelate to public water supply, wastewater,sewerage and solid waste (refuse).WardArea administered by Council.276FAR NORTH FUTURE PLAN

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Our footprint on the futureTo matou tapuwae o nga ra whakaekeFar North District Council: Memorial Ave, KaikohePrivate Bag 752, Kaikohe 0440Telephone: 0800 920 029 or 09 405 2750 Facsimile: 09 401 2137Website: www.fndc.govt.nzA special thank you to members of the Far North communities for allowing usto photograph them or for providing us with images. Thank you also to AperturePhotography, Far North Holdings Ltd and Chris McBride/atelier41° for their images.Remaining images courtesy of the FNDC digital photo library.