For the year ending 30 June 2017 - Hauraki District · This Annual Report document presents our key achievements for the 2016/17 year (1 July 2016 to 30 June 2017). What you’ll

H A U R A K ID I S T R I C T C O U N C I L

For the year ending 30 June 2017

Hauraki District Council 2016/17 Annual Report Contents

Introduction and Document Overview ...................................................................................................... 1

A message from the Mayor and Chief Executive .................................................................................... 2 Hauraki District Council Statement of compliance and responsibility as at 30 June 2017 ....................... 4

Some background ....................................................................................................................................... 5

What do we do? ......................................................................................................................................... 10

Council Controlled Organisations ........................................................................................................... 11 Waikato Local Authority Shared Services (WLASS) ............................................................................... 12 New Zealand Local Government Funding Agency (LGFA) .................................................................... 17

Progress against our Financial Strategy ................................................................................................ 19 Annual report disclosure statement for the year ending 30 June 2017 ................................................. 20

Groups of Activities and Activities ......................................................................................................... 32

Our year in detail ....................................................................................................................................... 34 Governance and Leadership ................................................................................................................... 34 Land Transport ........................................................................................................................................ 46 Water Supply ........................................................................................................................................... 55 Wastewater ............................................................................................................................................. 65 Stormwater .............................................................................................................................................. 72 Land Drainage ......................................................................................................................................... 78 Solid Waste ............................................................................................................................................. 83 Community Services ............................................................................................................................... 88 Community Development ...................................................................................................................... 100 Regulatory Services .............................................................................................................................. 109

Financial Statements .............................................................................................................................. 125 Hauraki District Council Statement of Financial Position as at 30 June 2017 ...................................... 126 Hauraki District Council Statement of Changes in Equity for the year ended 30 June 2017 .............. 127 Hauraki District Council Statement of Comprehensive Revenue and Expense for the year ended 30 June 2017 ........................................................................................................................................ 128 Hauraki District Council Statement of Cashflows for the year ended 30 June 2017 ........................... 129 Hauraki District Council Whole of Council Funding Impact Statement for the year ended 30 June 2017 ...................................................................................................................................................... 130 Hauraki District Council Notes to the Financial Statements for the year ended 30 June 2017 ............ 131

Related Documents ................................................................................................................................. 184 Liability Management Policy and Investment Policy ............................................................................. 184

Appendix 1: Report of the Audit Office ................................................................................................. 185

Appendix 2: Council Committees .......................................................................................................... 189 Committees as at June 2017: ............................................................................................................... 189 Sub-committees .................................................................................................................................... 190 Working Parties ..................................................................................................................................... 190 Forums .................................................................................................................................................. 191

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Introduction and Document Overview

Your Elected Members 2016/17

Mayor

District Mayor Mr John P Tregidga, MNZM, JP (07) 862 8956 [email protected] Portfolio: Policy and Iwi

Waihi Ward Plains Ward Paeroa Ward

Councillor & Chairperson of Waihi Ward Mr Max P McLean (07) 863 5151 [email protected] Portfolio: Community Recreation (Sport)

Councillor & Chairperson of Plains Ward Mrs Gill Leonard, J.P. (07) 867 7535 [email protected] Portfolio: Community Facilities

Councillor & Deputy Mayor Mr Toby Adams (07) 862 6993 [email protected] Portfolios: Roading & Community Growth

Councillor Mr Duncan Smeaton (07) 863 7821 [email protected] Portfolio: Solid Waste

Councillor Mr Phillip Buckthought (07) 867 6708 [email protected] Portfolio: Civil Defence

Councillor & Chairperson of Paeroa Ward Mr Paul A Milner (07) 862 7759 [email protected] Portfolios: Policy, RMA & Regulatory

Councillor Mrs Anne Marie Spicer (07) 863 9366 [email protected] Portfolio: Community Initiatives

Councillor Mr Ross Harris (07) 867 8899 [email protected] Portfolio: Water/ Wastewater/ Stormwater

Councillor Mr James Thorp (07) 862 7782 [email protected] Portfolio: Drainage

Councillor Mr Austin Rattray 021 060 1742 [email protected]

Councillor Mr Donald H Swales, J.P. 027 667 7021 [email protected]

Councillor Mrs Carole Daley (07) 862 7253 [email protected] Portfolio: Property

Note: For a full list of all Council committees, chairpersons and members visit the Council’s website www.hauraki-dc.govt.nz.

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A message from the Mayor and Chief Executive

On behalf of the Hauraki District Council we would like to thank you for taking the time to read our 2016/17 Annual Report. This report details our performance for the year 1 July 2016 to 30 June 2017; the second year of the 2015-25 Hauraki Long Term Plan. It is our pleasure to welcome six new Councillors on board for the triennium following the 2016 elections. We would like to thank the previous Councillors for their service to the communities of Hauraki District, and wish them well for the future. Financially we have ended the year in a very positive position. In the 2016/17 Annual Plan we forecast our debt to be $41.7 million, with the debt cap being $55 million. Our debt at the end of June 2017 was $41.0 million, which was $0.7 million lower than forecast. We reviewed our Economic Development Strategy: Towards 2025 in 2015/16 and this continued our focus on providing a favourable economic climate to the District. We are proud to say that our strategy became a finalist in the Local Government New Zealand Excellence Awards for best practice contribution to local economic development. We believe there has been a shift in the liveability of the District, and the District location, being in the middle of the ‘golden triangle’ is well positioned for further population and economic growth. We have seen a number of development opportunities progress over the year: The industrial park at Kerepehi has taken off, with all sections currently either sold or under contract

and the official opening of the Allied Faxi ice-cream factory occurring in the year. The official opening of the Hauraki Rail Trail Thames to Kaiaua leg is expected towards the end of

2017, with many using the trail since its completion. The next step that the Hauraki Rail Trail Trust has in its sights is working to secure funds to complete the 11 km section from Kaiaua to Pukorokoro-Miranda. The Hauraki Rail Trail has been of huge social and economic benefit to our District and it’s great to see so many using it as I travel around the District.

We have also completed stage one of the Ngatea Northern Estate subdivision, with all sections sold and construction well underway on the homes there.

We were excited to open the new Paeroa library in May 2017 after a busy construction period, coinciding with the Mackay Street streetscape. Mackay Street was redesigned and redeveloped to become a pedestrian friendly, shared space, with clear linkages between the main street shopping area, library and the Paeroa domain. The opening of the library combined these two great projects with street party, and we had all ages attending, dressed as their favourite book characters.

Over the year it has become clear that local government is facing a significant amount of change to environmental standards that we need to comply with, give effect to or take into account. As well as other things, changes are being made to the way our wastewater and stormwater may be discharged. We have been doing some considerable planning over the year to determine how best to allow for these changes in our ten-year plan (2018-28 Long Term Plan). The expected result is that we will need to put plans into place to improve the quality of treated wastewater discharge to freshwater bodies, which will likely result in significant costs to improve the quality of our wastewater discharge.

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In addition to the environmental standards, a hot topic over the year has been climate change, which we have seen in extreme events such as storm intensity and drought. While storm frequency isn’t projected to increase; those storms are likely to be stronger and cause more damage as a result of heavy rain and strong winds. This, along with drought, has clear effects on our roading, stormwater and water infrastructure and services, and we have been considering these effects and allowing for how we should plan for this in the future. John Tregidga Mayor

Langley Cavers Chief Executive

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Hauraki District Council Statement of compliance and responsibility as at 30 June 2017

Statement of Compliance

The Council and Management of Hauraki District Council confirm that all statutory requirements in relation to the Annual Report as outlined in the Local Government Act 2002, have been complied with.

Statement of Responsibility

The Council and Management of Hauraki District Council accept responsibility for the preparation of the Annual Report and the judgements used in it. The Council and Management of Hauraki District Council accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting and non-financial reporting. In the opinion of the Council and Management of Hauraki District Council, the Annual Report for the year ended 30 June 2017 fairly reflects the financial position and operations of Hauraki District Council. John Tregidga Mayor

Langley Cavers Chief Executive

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Some background

About this Annual Report and our planning cycle In our key strategic planning document, the 2015-25 Hauraki Long Term Plan (LTP), we set out what we aim to achieve each year for the next ten year period, and use measures and targets as a way of monitoring whether we are meeting our goals. The LTP also details the projects we plan to undertake and when we expect those projects to be completed. We produce an Annual Report like this one every year, which we use to report back to the community the progress we’ve made towards achieving those targets. Our annual reports also outline many of the projects that we have completed during the year. Additionally, an Annual Plan is produced in years two and three of the LTP to update the projects and budgets for those years. This Annual Report document presents our key achievements for the 2016/17 year (1 July 2016 to 30 June 2017).

What you’ll find in this document An introduction and overview of this document, including a message from the Mayor, the wider context,

your 2016/17 elected members, our Community Outcomes and more. An overview of the achievements of our Council Controlled Organisations in the 2016/17 year. Our progress against the goals we set in our Financial Strategy.

o For each of our activities, this Annual Report outlines: What the activity cost and how it was funded Our progress in 2016/17 against our intended level of service targets (including the results for

the mandatory performance measures where applicable) An outline of the projects that were completed in 2016/17 The projects that we planned to complete in 2016/17 but didn’t

Our financial statements for the 2016/17 year A report from Audit New Zealand regarding this Annual Report A list of all Council Committees and their members.

A lot more information can be found in our Long Term Plan (LTP). This handy stamp placed throughout this Annual Report will let you know where you can find out more in our LTP. Our LTP is available at each service centre, or you can download an electronic copy from our website.

Page # 2015-25

Hauraki Long Term Plan Volume 1

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About us – the purpose and role of local government

Legislative framework

All local authorities are required to work within many statutory frameworks. The key empowering act for local authorities is the Local Government Act 2002.

Purpose of local government

Section 10 of the Local Government Act 2002 defines the purpose of local authorities as being: to enable democratic local decision-making and action by, and on behalf of, communities to meet the current and future needs of communities for good-quality local infrastructure, local public

services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

Section 10 also defines good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions. It means infrastructure, services, and performance that are: efficient effective appropriate to current and anticipated future circumstances.

Role of local government

Section 11 of the Local Government Act 2002 defines the role of local authorities as being to: give effect, in relation to its district or region, to the purpose of local government stated in section 10 perform the duties, and exercise the rights, conferred on it by or under this Act and any other enactment. These legislative requirements set the broad framework within which every local authority must work.

Key principles

There is further direction for local authorities in relation to their status and powers, in particular the principles relating to local authorities, contained in sections 12-14 of the Local Government Act 2002. These can be viewed in full on the website www.legislation.govt.nz. All of our policy and strategic frameworks are developed to be in compliance with these requirements.

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Hauraki District Council’s Executive Leadership Team

Chief ExecutiveLangley Cavers

Group Manager -Engineering

ServicesAdrian de Laborde

Group Manager –Planning &

Environmental Services

Peter Thom

Group Manager -Corporate Services

Duncan Peddie

Group Manager -Community Services &

DevelopmentSteve Fabish

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Mission Statement It is the Council’s mission to:

actively provide leadership to and advocate for the community provide good quality infrastructure, services and regulatory functions foster open-minded and two-way communication with the community ensure the sustainable use and management of resources …for the benefit of all who live in, work in and visit the Hauraki District.

Customer Charter Your rights as a customer are:

to be treated with respect to receive a timely and accurate response to have access to relevant information. Our commitment to you:

We will respond to you promptly. Our staff will identify themselves. We will provide knowledgeable staff at first contact. We will fairly interpret and apply the laws, by-laws and regulations. Our services standards will be freely available. We will review feedback from our customers. Customer feedback:

We welcome feedback about our service. The Council has formal feedback procedures. Ask for an information brochure, or check out the

“Suggestions” section on the website - www.hauraki-dc.govt.nz - to submit your feedback. The Council’s Mission Statement was adopted in January 2015 to give effect to the purpose of Local Government as prescribed by the Local Government Act 2002.

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Community Outcomes Community Outcomes are our expression of our goals and aspirations for now, and the future. We aim to achieve these goals in all aspects of our leadership, policy development and service delivery.

Pre

pare

d H

aura

ki • We provide a range of services and facilities to meet our District's needs and expectations for a safe environment.• We provide ongoing safe, well-managed and maintained core infrastructure.

• Our waste is collected, reduced, reused and recycled responsibly.

• We are organised and prepared to deal with natural hazards.

Inte

ract

ive

Hau

raki • We are a proactive Council that provides

leadership and communicates effectively with all sectors of our District.• We advocate for the benefit of our District.• We keep our District well-informed and ensure information is available.

• We consider our District's views when making decisions.

Pro

gres

s H

aura

ki • We have a positive climate that encourages balanced and sustained economic growth throughout our District.• Our infrastructural services and facilities are planned and developed to meet future demand.

• We actively encourage new opportunities while continuing to support existing ventures and service providers.

• We encourage further development of tourism opportunities and facilities focusing on our heritage and eco-tourism.

Life

styl

e H

aura

ki

• We provide an environment that encourages vibrant communities and an enhanced quality of life.• Our unique communities are protected while balancing the needs of alternative lifestyles.

• We are advocates for the provision of quality social, educational, health and training services.

• We encourage partnerships within the District for the delivery of services.

Kot

ahita

nga

Hau

raki

• We take a collaborative approach with both Mana Whenua and Tangata Whenua in our District.• We advocate for forums which ensure involvement and consultation in decision-making processes.

• We ensure appropriate regard is made to taonga and culturally signficant matters.

• We encourage the development of partnerships for the delivery of services and programmes.

Sus

tain

able

Hau

raki

• We plan for the wise use and management of all land and resources for the continued benefit of our District.• Our natural and physical environments are sustainably managed.

• We have a shared respect for both economic growth and environmental protection.

• We support the protection of the District's significant natural habitats and ecosystems.

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What do we do?

We are involved in delivering many activities across the District. You can expect us to deliver the following:

For more detail on each activity that we provide, please refer to the 2015-25 Long Term Plan document.

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Council Controlled Organisations

We are required under the Local Government Act 2002 to include information in our Annual Report on Council-Controlled Organisations (CCOs) in which we are a shareholder. In accordance with Schedule 10, clause 28 of the Local Government Act 2002, the following section includes: identification of the CCOs relevant to the Hauraki District Council a report on the extent to which our significant policies and objectives in regard to ownership and control

of the organisation (as set out in the relevant long-term plan or annual plan) have been implemented or attained in the year to which the report relates

a comparison between the nature and scope of the activities intended to be provided by the organisation in 2016/17 and the nature and scope of the activities actually provided by the organisation in that year

a comparison between actual performance and the key performance targets as detailed in the 2015-25 Long Term Plan, by which performance is to be assessed.

We are a shareholder in two CCOs; Waikato Local Authority Shared Services Limited (WLASS) and New Zealand Local Government Funding Agency Limited (LGFA). We are also a shareholder in four council organisations that are currently exempt from the full reporting requirements of a CCO. These are therefore not included in this Annual Report. These organisations are Destination Coromandel Trust, Hauraki Rail Trail Charitable Trust, Thames Valley Rural Fire and Martha Trust. We are also a shareholder of a fifth organisation, Civic Assurance, which is not a CCO being governed by the Local Government Act.

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Waikato Local Authority Shared Services (WLASS)

In December 2005 the local authorities in the Waikato Region established Local Authority Shared Services Limited (WLASS) as a company and a Council-Controlled Organisation (CCO), for the purpose of working closely together on mutually beneficial joint projects to achieve better outcomes and cost savings for shareholders.

Shareholders

WLASS is jointly owned by the 12 local authorities of the Waikato Region. Each local authority owns an equal number of shares in WLASS and as such has an equal say in its development. The local authorities are: Hamilton City Council, Hauraki District Council, Matamata-Piako District Council, Otorohanga District Council, Rotorua District Council, South Waikato District Council, Taupō District Council, Thames-Coromandel District Council, Waikato District Council, Waikato Regional Council, Waipa District Council and Waitomo District Council. WLASS has twelve directors, each representing a shareholder Council. Unless otherwise agreed by the appointing Councils, each director is a chief executive of a local authority. In addition the board may appoint up to three professional directors to supplement the director’s expertise.

Council Policies and Objectives relating to WLASS

The Council does not have any significant policies or objectives about ownership and control of WLASS. Council has an Appointment and Remuneration of Directors for Council Organisations Policy in place.

Objectives of Company

The objective of the company is to provide local authorities of the Waikato Region with a vehicle to procure and develop shared services that demonstrate a benefit to ratepayers. It also has the objective to provide a company structure under which local authorities can develop and promote services to other local authorities. The objectives of WLASS are:

To enable the Waikato councils to collectively be more effective as a region on the national stage To contribute to building central government’s confidence in the Waikato region, to encourage

central government investment To achieve effectiveness and efficiency gains To reduce duplication of effort and eliminate waste through repetition To make it easier for customers to engage with councils in the Waikato region To promote and contribute to the development of best practice To promote business transformation to improve customers’ experiences.

Much of the work of WLASS is undertaken by Working Parties or Advisory Groups made up of staff representatives from the shareholding councils, with expertise and interest in particular services. The WLASS CEO provides facilitation and co-ordination of the Working Parties, and is an ex officio member of the Advisory Groups.

Nature and scope of activities

There are currently three mature operations under the WLASS umbrella, plus a support role for collaborative initiatives with the Waikato Mayoral Forum. The major operations are: the Shared Valuation Data Service (SVDS), the Waikato Regional Transport Model (WRTM), and the Insurance Advisory Group. The SVDS is an operational system which provides both timely and accurate valuation data to member councils and shareholders. The SVDS has become the accepted valuation service provider in the region.

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The WRTM provides accurate information to councils for their transport modelling requirements. The model became fully operational in February 2010. This model is the only recognised strategic transport modelling resource in the Waikato Region. WLASS is a party to a number of joint procurement contracts between WLASS, its shareholding councils and suppliers. Some contracts (such as insurance brokerage, various collective insurance policies, courier and postal services, and historic aerial photography) involve all of the shareholding councils, while other joint procurement contracts have been negotiated and involve only some councils. Further procurement opportunities are continually being identified. Waikato Regional Aerial Photography Service (WRAPS) was set up in the 1990s for the supply of colour, digital, ortho-rectified aerial photography. Since then, there have been three WRAPS contracts in 2002, 2007 and 2012. The WRAPS members were the councils of the Waikato region, plus the Department of Conservation and Waikato University. The next contract is due in 2016/17. WRAPS became a WLASS-managed project in December 2014. Additionally the following initiatives transferred to WLASS effective from 1 July 2016:

Waikato Building Consent Group Road Asset Technical Accord (RATA) Future Proof

Performance of WLASS in 2016/17

To ensure that WLASS continues to operate effectively and efficiently, the performance targets as outlined in the 2016/17 Statement of Intent are as follows:

Target: Measure: Actual result for 2016/17:

Procurement

Joint procurement initiatives for goods and services for WLASS councils will be investigated and implemented.

A minimum of three new procurement initiatives investigated per annum and business cases developed if considered appropriate.

Initiatives which are implemented shall provide financial savings and/or improved service levels to the participating councils.

New suppliers are awarded contracts through a competitive tender process.

Achieved: A joint RFP with BOPLASS for the supply of multi-function devices was completed and Konica Minolta were accepted as the preferred supplier.

Shared procurement of Thomson Reuters services, EMA membership, and participation in the BOPLASS EFTPOS contract have been investigated, but no financial benefits were identified.

A WLASS master agreement with Vertical Horizonz for the provision of Health and Safety training was completed in February 2017 and 11 councils have signed joining agreements.

Achieved: A syndicated clause in three tendered Hamilton City Council contracts enables all shareholders to access:

1. A library book buying contract at 37% discount on the RRP;

2. A contract for the supply of pipes and fittings for water, wastewater and stormwater pipes, which provides discounts of between 30% and 80% off the list price;

3. An HR panel of eight suppliers for the recruitment of permanent and temporary staff.

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Information on how to participate in syndicated contracts for Office Furniture, media monitoring and employee assistance programmes was circulated to all shareholding councils.

Following an RFP process, a WLASS master agreement for fleet management has been entered into with FleetPartners/FleetSmart for a term of 1+2.

Collaborative Projects

Priorities for collaboration are identified, business cases are developed for the highest priority projects, and the projects are implemented.

A minimum of three priority projects for collaboration are identified per annum.

If considered of value, business cases are developed for approval by the Board, and the projects are implemented.

Achieved: Six projects (GIS, procurement, aligned planning, digital strategy, learning and development, and building services) have been investigated.

Business cases for all six projects were approved by the Board. A GIS team is working on identifying why spatial data should be used to support the Waikato region within the framework of the Waikato Digital Strategy, including identifying the benefits and measures of success.

A procurement review is in progress, and is scheduled for completion in August 2017. An RFP to select a Project Manager to lead the Aligned Planning project is in progress. A Digital Strategy is under development. A Learning and Development Working Party has been established, and projects are in progress. A strategic review of Building has been completed and a number of new initiatives have been identified, which will commence in 2017/18.

Existing WLASS Contracts

Existing contracts are managed and renegotiated as required.

The WLASS Contracts Register is maintained and managed.

Contracts which are due for renewal are tested for competitiveness and either renegotiated or tendered through a competitive process.

Achieved: Contracts register is up to date.

Four current contract have been extended, following a performance review:

1. Dataprint (computer-generated print, mailhouse and e-services)

2. Professional Services Panel (building services, planning 3-waters, urban design, flood hazards consultancy services)

3. Aon (insurance brokerage) 4. Infometrics (economic data)

Cashflow

The company shall maintain a positive cashflow position.

Monthly financial statements show a positive cashflow position.

Achieved: Cash flow for the year shows a positive total cash balance of $352,274.

Reports on the financial position were considered at WLASS Board meetings on 5 August, 14 October and 2 December 2016, and on 3 February, 24 March and 26 May 2017.

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Cost Control

Administration expenditure shall be managed and monitored.

Administration expenditure shall not exceed budget by more than 5%, unless prior approval is obtained from the Board.

Achieved: Actual expenditure was 19 per cent favourable compared to budget.

Reporting

Six monthly reports provided to Shareholders.

The Board shall provide a written report on the business operations and financial position of WLASS to the Shareholders every six months.

Every second report shall be the Annual Report, which includes a report that all of the statutory requirements of the WLASS are being adhered to.

Achieved: The 6-monthly report was distributed to shareholders on 9 February 2017.

An Annual Report has been produced.

Waikato Mayoral Forum

The company shall provide administrative support and updates on Mayoral Forum work streams to the Mayoral Forum.

The Mayoral Forum is regularly updated on the progress of each approved work stream.

Approved invoices for Mayoral Forum projects are paid by the 20th of the month following their receipt.

Not Applicable: The WLASS CEO is no longer responsible for updating the Mayoral Forum on progress with projects. Project sponsors are responsible for updates.

Partly achieved: All invoices, apart from one, were paid on the 20th of the month following their receipt.

Shared Valuation Data Services (SVDS)

The SVDS is reliable, well maintained and available to all users.

The SVDS is available to users at least 99% of normal working hours.

All capital enhancement work is supported by a business case and approved by the SVDS Advisory Group.

The SVDS Advisory Group meets at least 6-monthly.

Achieved: SVDS was available to users for 99.16 per cent of normal working hours.

Not applicable: There has been no capital enhancement work over the last 12 months.

Achieved: The Group met on 1 September and 17 November 2016, and on 9 March and 1 June 2017.

Insurance

Achieve the relevant KPIs in Appendix 4 of the Insurance Brokerage contract with Aon.

Strategic advice provided by Aon on the insurance programme structure is assessed as satisfactory in the annual WLASS Shareholders’ survey by the participating councils.

The day-to-day service provided by Aon is assessed as satisfactory in the annual WLASS Shareholders’ survey by the participating councils.

Not applicable: Shareholders' survey is scheduled to be reported to the Board on 26 August 2017.

Not applicable: Shareholders' survey is scheduled to be reported to the Board on 26 August 2017.

RATA

All stakeholders are kept informed about RATA’s projects and achievements.

Sub-regional data collection contracts deliver good quality data on roading assets.

Reports presented to WLASS Board as at 30 December and 30 June, and circulated to stakeholders.

Reports include a summary of savings achieved. All RATA councils participate in the tour.

Report on tour outcomes prepared by 31 December each year, and circulated to stakeholders.

Contracts which are due for renewal are tested for competitiveness and either renegotiated or tendered through a competitive process.

Any data issues are identified and resolved, with any incidents reported to stakeholders.

Achieved: 6-monthly reports presented to Board meetings on 2 December 2016 (circulated to stakeholders on 19 December 2016) and on 7 July 2017.

Achieved: A summary of savings was included in the July report to the Board.

All councils participated in the tour in October 2016.

Report delayed until February 2017 (individual councils

received their reports in January).

No contracts due for renewal.

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Data collection contracts were extended for one year on 14 October 2016.

Asset Information Engineer identifies and resolves all issues.

Waikato Regional Transport Model (WRTM)

The WRTM is reliable, well maintained and available to all users.

All modelling reports requested from the model supplier are actioned within the agreed timeframe, scope and budget.

A report from RATA on any new developments and on the status of the model is provided to the LASS Board at least every six months.

The quality of the base model complies with NZTA guidelines (as set out in the NZTA’s Economic Evaluation Manual), and is independently peer reviewed each time the model is updated.

Achieved: Reports were provided on 15 August and 18 November 2016. No quarterly reports were requested in 2017 as the model was unused during this period.

Achieved: Reports presented to the Board in December 2016 and July 2017.

Achieved: Peer review of base model was completed in April 2017. Consultant has been engaged to complete future years’ model in 2017/18.

Waikato Building Consent Group

Provide strategic direction and actively pursue improvements in Building Control across the Waikato region.

Internal audits completed annually for each Group member.

Provide Group members with a joint quality assurance system that meets statutory compliance.

Report at least six monthly to the LASS Board on the Group’s activities.

Partially achieved: Only seven of the eight audits scheduled for the year were completed due to a lack of staff resources to assist.

Not achieved: The quality assurance system consists of over 466 separate documents. Regulation 17 requires that all BCAs on an annual or more frequent basis; audit and review all of their quality assurance systems to ensure that the systems meet the requirements of the BCA regulations and the Building Act 2004, and remain appropriate for purpose. Even though the audit and review of the QA systems was achieved within the calendar year, it was not achieved within 12 months from the last completion date.

Achieved: Reports presented to the 3 February and 7 July 2017 Board meetings.

Future Proof

All stakeholders are kept informed about Future Proof’s projects and achievements.

Reports presented to WLASS Board as at 30 December and 30 June, and circulated to stakeholders.

Achieved: Six monthly reports presented to the Board on 2 December 2016 and 7 July 2017.

Shareholder Survey

Shareholders are satisfied with the performance of WLASS.

A survey of shareholders is undertaken each year, and the results are reported to all shareholders.

In progress: Shareholders’ survey has been completed and is scheduled to be reported to the Board on 26 August 2017.

Review of Benefits

Shareholders are informed of the benefits being provided to shareholding councils by WLASS.

Information on the financial and non-financial benefits being achieved by WLASS are included in the 6-monthly and Annual Report to shareholders.

Achieved: Information is included in this report.

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New Zealand Local Government Funding Agency (LGFA)

New Zealand Local Government Funding Agency Limited (LGFA) was enabled under the Local Government Borrowing Act 2011 and was incorporated on 1 December 2011. LGFA is a Council-Controlled Organisation (CCO) operating under the Local Government Act 2002. LGFA’s primary purpose is to provide more efficient and flexible debt funding and diversified funding sources (including foreign currency) for New Zealand local authorities.

Shareholders

The LGFA Board is responsible for the strategic direction and control of LGFA’s activities. The LGFA Board of Directors comprises between four and seven directors, the majority of which are required to be independent. Additionally, the Shareholder’s Council is made up of between five and ten appointees, including an appointee from the Crown.

Council Policies and Objectives relating to LGFA

The Council does not have any significant policies or objectives about ownership and control of LGFA. Council has an Appointment and Remuneration of Directors for Council Organisations Policy in place.

Objectives of Company

The primary objective of LGFA is to optimise the debt funding terms and conditions for participating local authorities, including: providing savings in annual interest costs making longer term borrowings available enhancing the certainty of access to debt markets offering more flexible lending terms.

Nature and scope of activities

LGFA raises debt funding either domestically and/or offshore in either New Zealand dollars or foreign currency, and provides debt funding to New Zealand local authorities that enter into all the relevant arrangements with it and comply with the LGFA lending policies. LGFA may undertake other activities considered by the Board of LGFA to be reasonably related or incidentally to, or in connection with, their business.

Achievement in 2016/17

The Directors of the Local Government Funding Agency report another period of strong financial and non-financial performance for the year ending 30 June 2017. LGFA total interest income for the financial year of $320.7 million was a 15.3% increase over the 2015/16 financial year result of $278.2 million while net operating profit of $11.05 million for the financial year was a 15.7% increase on the 2015/16 financial year result of $9.55 million. Net interest income and operating profit exceeded both the previous year’s result and the Statement of Intent (SOI) forecast due to the refinancing behaviour of councils relating to their loans from LGFA maturing in December 2017. Rather than repay their loans early, a significant number of councils have placed the proceeds from refinancing on term deposit with banks. This has resulted in LGFA having a larger loan book than expected and hence net interest income is higher. Expenses have been managed under budget over the past year. While the introduction of the LGFA bond facility (and related issuance of $350 million of treasury stock) has added to some costs, this initiative has helped improve secondary market liquidity in LGFA bonds, making them more attractive to investors. The financial strength of LGFA was reaffirmed in late 2016 by credit rating agencies Standard & Poor’s and Fitch who both maintained LGFA’s credit rating at AA+, which very importantly is the same as the New Zealand Government.

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Lending to the sector

LGFA was established in December 2011 to provide long-dated borrowing, certainty of access to markets and to reduce the borrowing costs for the local government sector. The original 31 shareholders including the Crown remain as shareholders. Over the past year, LGFA added three new members with Central Hawkes Bay District Council, Northland Regional Council and Waitomo District Council joining. Total membership is now 53 councils. Bespoke long-dated lending continues to be popular for councils in that it provides flexibility as to maturity dates of borrowing and the date of drawdown. LGFA lent $707 million on a bespoke basis over the financial year. This was approximately 49% of LGFA’s total long-dated lending over that period. Short-dated lending for terms less than 12 months has been well received by councils and as at 30 June 2017, LGFA had $222 million of short-term loans outstanding to 18 councils. The tenor of lending by LGFA to the sector continued to lengthen with the average term of borrowing by councils over the 12-month period of 8.0 years.

Performance Targets of LGFA

The following gives a summary of actual performance against key performance targets, as outlined in the 2016/17 Statement of Intent. For detailed information on the LGFA performance results, see its Annual Report, published on the LGFA website: www.lgfa.co.nz

Current performance target: Result: Achieved:

LGFA’s average cost of funds on debt issued relative to the average cost of funds for New Zealand Government Securities for the 12 month period to: 30 June 2017 will be less than 0.50%.

0.709% Not achieved

The average margin above LGFA’s cost of funds charged to the highest rated Participating Local Authorities for the period: 30 June 2017 will be no more than 0.10%.

0.104% Not achieved

LGFA’s annual issuance and operating expenses (excluding AIL). Target: less than $4.8 million.

$4.67m Achieved

Total lending to Participating Local Authorities – more than $7,341m

$7,736m Achieved

Savings on borrowing costs for council borrowers relative to other sources of financing and compared to previous years – demonstrate savings to council borrowers on a relative basis to other sources of financing

LGFA issuance spreads improved relative to standalone council issuers and NZ registered banks

Achieved

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Progress against our Financial Strategy

Our Financial Strategy presented in our 2015-25 Long Term Plan consists of carefully reducing debt levels, minimising and smoothing rates increases and ensuring our business is well-managed. We have three caps set out in our Financial Strategy, one which limits the amount of debt we hold, and two that limit the rates we set. If we go over our limits (or cap), we need to give you some good reasons as to why it happened.

Debt Cap

The Council set a variety of debt parameters around total debt limits and interest cost limits which indirectly determines debt limits. The debt cap that the Council set is that its total debt should not exceed $5,000 per property in any year. In the 2016/17 Annual Plan the debt forecast was $41.7 million, with the debt cap being $55 million, meaning that the Council’s Annual Plan sat comfortably within its debt cap. Council’s debt at the end of June 2017 was $41 million, which was $0.7 million lower than forecast because of some delays in the capital work programme.

Rates Cap

The Council decided to use two rates caps. All rates other than water are covered by one rates cap and due to the extensive water capital programme, the Council considered it appropriate to have a separate rates cap specifically for the water activity. The Council uses the forecast Local Government Cost Index (LGCI) as a factor in its rates caps. The LGCI is a cost index specifically for Local Government regarding the costs of its good and services. The Council’s rates cap for all rates excluding water is the LGCI plus 2.5%. In 2016/17 this cap equated to 4.4%. Council’s 2016/17 actual rates increased by 2%, which was 2.4% lower than the Cap. The Council’s rates cap for its water activity is the LGCI plus 4%. In 2016/17 this cap equated to 5.9%. Council’s actual water rates decreased by 21.6% for 2016/17 due to a decrease in water usage.

Financial Prudence Benchmarks

In early 2014 the Government introduced the Financial Reporting and Prudence Regulations. These regulations have been developed to provide councils and the Government with indicators regarding each council’s financial sustainability and predictability, and overall affordability, and they are prescriptive about the way the information is presented so that it’s easily comparable from council to council. The regulations take the form of a set of seven benchmarks.

B – 8

2015-25 Hauraki Long Term Plan, Volume 1

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Annual report disclosure statement for the year ending 30 June 2017

What is the purpose of this statement?

The purpose of this statement is to disclose the Council's financial performance in relation to various benchmarks to enable the assessment of whether the Council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings. The Council is required to include this statement in its annual report in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

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Rates affordability benchmark The Council meets the rates affordability benchmark if: its actual rates income equals or is less than each quantified limit on rates; and its actual rates increases equal or are less than each quantified limit on rates increases.

Rates (income) affordability

HDC's quantified limits on rates as stated in the financial strategy included in the Council's long-term plan are quantified limits on rates increases, not rates income. HDC has not therefore reported on actual rates income.

Rates (increases) affordability

HDC has two quantified limits for rates increases: the first quantified limit is for all rates excluding water, and is expressed as the LGCI plus 2.5% the second quantified limit is for water rates, and is expressed as the LGCI plus 4% The following graph compares the Council's actual rates increases with a quantified limit on rates increases included in financial strategy included in the council's long-term plan. The quantified limit is increases in all rates excluding water should not exceed the LGCI plus 2.5%.

Quantified limit on increases in all rates excluding water

Increases on all rates excluding water (at or within limit)

Increases on all rates excluding water (exceeds limit)

The quantified limits are based on the LGCI are as set in the 2015/25 LTP. Prior to 2015/16 the Rates Cap was LGCI plus 1.5%. The limit bars for each year reflect the cap that was in place during that year. The 2015/16 percentage rates increase exceeded the rates cap. The 2014/15 rates were lower than forecast due to remissions, meaning the percentage increase from the 2014/15 to the 2015/16 rates was higher than the cap.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2012-13 2013-14 2014-15 2015-16 2016-17

Incr

ease

s o

n a

ll ra

tes

excl

ud

ing

wat

er

Year

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Rates (increases) affordability The following graph compares the Council's actual rates increases with a quantified limit on rates increases included in financial strategy included in the council's long-term plan. The quantified limit is increases water rates should not exceed the LGCI plus 4%.

Quantified limit on increases in water rates

Increases on water rates (at or within limit)

Increases on water rates (exceeds limit)

The quantified limits are based on the LGCI are as set in the 2015/25 LTP. Significantly more water was consumed than was forecast in 2012/13 due to unusually dry conditions. As a consequence, the water rates increase for that year was higher than the limit. The return to more usual consumption in 2013/14 resulted in the decrease showing in that year. This year a decrease in water usage has resulted in a decrease in water rates.

‐25.0%

‐20.0%

‐15.0%

‐10.0%

‐5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

2012‐13 2013‐14 2014‐15 2015‐16 2016‐17

Increases on water rates

Year

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Debt affordability benchmark The Council meets the debt affordability benchmark if its actual borrowing is within each quantified limit on borrowing. HDC has four quantified limits on borrowing: external net debt per assessment is equal to or less than $5,000 net interest expense is equal to or less than 10% of total revenue net interest expense is equal to or less than 15% of rates revenue net external debt is equal to or less than 175% of total revenue

Debt (external public debt per assessment) affordability

The following graph displays the Council's actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Council's long-term plan. The quantified limit is that external net debt per assessment is equal to or less than $5,000.

Quantified limit on external public debt per assessment

Actual external public debt per assessment (at or within the limit)

Actual external public debt per assessment (exceeds limit)

In the 2015-25 LTP this measure changed from Total External Debt to Net External Debt (Total External Debt less Cash). The 2015/16 values reflect the Net External Debt values. Prior years show the Total External Debt values. The Council is comfortably within this borrowing limit.

0

1,000

2,000

3,000

4,000

5,000

6,000

2012‐13 2013‐14 2014‐15 2015‐16 2016‐17

External Public Debt per Assessment

Year

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Debt (net interest expense to total revenue) affordability

The following graph displays the Council's actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the council's long-term plan. The quantified limit is that net interest expense is equal to or less than 10% of total revenue.

Quantified limit on net interest expense to total revenue

Actual net interest expense to total revenue (at or within limit)

Actual net interest expense to total revenue (exceeds limit)

The Council is comfortably within this limit.

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2012-13 2013-14 2014-15 2015-16 2016-17

Bo

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even

ue

Year

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Debt (net interest expense to rates revenue) affordability

The following graph displays the Council's actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Council's long-term plan. The quantified limit is that net interest expense is equal to or less than 15% of rates revenue.

Quantified limit on net interest expense to rates revenue

Actual net interest expense to rates revenue (at or within limit)

Actual net interest expense to rates revenue (exceeds limit)

The Council is comfortably within this limit.

0%

3%

6%

9%

12%

15%

2012-13 2013-14 2014-15 2015-16 2016-17

Bo

rro

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s / R

ate

s R

eve

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e

Year

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Debt (debt to total revenue) affordability

The following graph displays the Council's actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Council's long-term plan. The quantified limit is that debt is equal to or less than 175% of total revenue.

Quantified limit on debt to total revenue

Actual debt to total revenue (at or within limit)

Actual debt to total revenue (exceeds limit)

In the 2015-25 LTP this measure changed from Total External Debt to Net External Debt (Total External Debt less Cash). The 2015/16 values reflect the Net External Debt values. Prior years show the Total External Debt values. The Council is comfortably within this limit.

0%

25%

50%

75%

100%

125%

150%

175%

2012-13 2013-14 2014-15 2015-16 2016-17

De

bt

/ R

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nu

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Year

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Balanced budget benchmark The following graph displays the Council’s revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment) as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment). The council meets this benchmark if its revenue equals or is greater than its operating expenses.

Benchmark met Benchmark not met

The Council aims to maximise the services it provides to the District, while minimising rates revenue increases. This is reflected in the 98% average proportion of revenue to operating expenditure over the five year period from 2012/13 to 2016/17. Over time, the Council expects that revenue and expenditure will average out to 100%.

89% 90%

96%

113%

100%

0%

20%

40%

60%

80%

100%

120%

2012-13 2013-14 2014-15 2015-16 2016-17

Re

ven

ue

/ e

xp

en

dit

ure

Year

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Essential services benchmark The following graph displays the Council’s capital expenditure on network services as a proportion of depreciation on network services. The council meets this benchmark if its capital expenditure on network services equals or is greater than depreciation on network services.


The Council's capital expenditure on network services is consistent with depreciation on network services. The average proportion of capital expenditure to depreciation expense is 121% over the five year period from 2012/13 to 2016/17. Capital expenditure in 2014/15 was exceptional, due mainly to $5.5m spent in 2014/15 on the Paeroa and Waihi water treatment plants, and the Waihi alternate water source. Capital expenditure was less than depreciation in 2016/17 as a number of capital projects were deferred.

104% 100%

209%

112%89%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

220%

2012-13 2013-14 2014-15 2015-16 2016-17

Ca

pit

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xp

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/ d

ep

reci

ati

on

Year

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Debt servicing benchmark The following graph displays the Council's borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment). Because Statistics New Zealand projects the Council's population will grow more slowly than the national population growth rate, it meets the debt servicing benchmark if its borrowing costs equal or are less than 10% of its revenue.


The Council maintains a significantly lower borrowing cost to revenue ratio than that required to meet the benchmark. The average proportion of borrowing costs to revenue over the five year period from 2012/13 to 2016/17 was 5%.

4.5% 4.9%

6.1%

4.6% 5.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

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9.0%

10.0%

2012-13 2013-14 2014-15 2015-16 2016-17

Bo

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Year

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Debt control benchmark The following graph displays the Council’s actual net debt as a proportion of planned net debt. In this statement, net debt means financial liabilities less financial assets (excluding trade and other receivables). The Council meets the debt control benchmark if its actual net debt equals or is less than its planned net debt.


The Council has consistently maintained lower actual than planned net debt. The average proportion of actual to planned net debt was 80% over the five year period from 2013/14 to 2016/17.

75%70%

89%

82% 82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012-13 2013-14 2014-15 2015-16 2016-17

Act

ua

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et d

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Year

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Operations control benchmark This graph displays the Council’s actual net cash flow from operations as a proportion of its planned net cash flow from operations. The Council meets the operations control benchmark if its actual net cash flow from operations equals or is greater than its planned net cash flow from operations.


The average proportion of actual to planned net cash flow from operations was 75% over the five year period from 2012/13 to 2016/17. Variances from year to year are mainly driven by events largely beyond the Council's control relating to project timing. For instance in 2013/14 and in 2014/15 the Council budgeted to receive significant subsidies for water projects, that it did not receive until 2015/16. The 2016/17 year shows a decrease. Key movements relate to rates revenue and other revenue both $0.5m down on budget, and payments to suppliers and employees $3.7m higher than budgeted.

78%

59%67%

133%

48%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2012-13 2013-14 2014-15 2015-16 2016-17

Act

ua

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bu

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t ca

sh f

low

fro

m

op

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Year

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Groups of Activities and Activities

Groups of Activities - what are they? As detailed in our 2015-25 Hauraki Long Term Plan, we undertake a wide range of services that are arranged into ten Groups of Activities. Each of these groups is reported on in this Annual Report. Each group contains one or more activities that are presented together within that group due to likeness, legislation or logic. In accordance with Schedule 10, part 1, section 2 of the Local Government Act 2002 (LGA) the following Groups of Activities were considered mandatory at the time of the writing the 2015-25 Hauraki Long Term Plan: water supply sewerage and the treatment and disposal of sewage stormwater drainage flood protection and control works land transport (the provision of roads and footpaths) The Council also has other activities that we believe we should be involved in. In addition to the mandatory Groups of Activities noted above, we have five additional Groups of Activities. We also altered the names of the legislatively required groups for simplicity and to reflect the public’s understanding of these groups, while still meeting the legislative requirements in accordance with Schedule 10 of the LGA. The following lists our Groups of Activities in the order they are presented in this document: Governance and Leadership

o Democracy o Iwi Liaison o Policy Development

Land Transport Water Supply Wastewater (sewerage and the treatment and disposal of sewage) Stormwater (stormwater drainage) Land Drainage (flood protection and control works) Solid Waste Community Services

o Community Recreation o Community Facilities

Community Development o Community Growth o Community Initiatives

Regulatory Services o Resource Management Implementation o Building Control o Community Protection o Animal Control

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What is contained in each Group of Activities within this Report? For each ‘Group of Activities’ within this Annual Report document you will find: A brief overview of the group (where applicable). An explanation of the identified effects that the provision of the group of activities has on the community. A doughnut chart showing the percentage of performance targets that were achieved overall for that

Group of Activities. An overview of what the group of activities cost and how it was paid for. The Community Outcomes that the group primarily contributes to. For every activity the following further information is provided:

<Activity name>

This section provides an overview of the activity where there is more than one activity within a group. It includes the purpose of the activity, the rationale for our involvement and what is involved in us delivering that activity.

Meeting our service targets

The levels of service, measures and targets for groups of activities or activities, as detailed in the 2015-25 Long Term Plan for the 2016/17 year or the 2016/17 Annual Plan, are detailed in the ‘meeting our service targets’ table. The table for each group of activities or activity also includes progress indicator icons to show the achievement of each measure. The icons are as follows:

Achieved Not Achieved Not Applicable Within this table, the previous years’ progress indicator will also be shown to provide a comparison between the financial years. Additionally, the mandatory performance target results are also included for roads and footpaths, water supply, sewerage and the treatment and disposal of sewage (wastewater), stormwater, and flood protection and control works (land drainage) activities. Note that the results of some measures are based an annual satisfaction survey. This was undertaken in July-August 2017, to record customers’ satisfaction with our services and facilities in the 2016/17 year.

What else happened in 2016/17?

This section details the projects that were completed in the 2016/17 year; this includes projects scheduled for 2016/17 in the Long Term Plan or 2016/17 Annual Plan, or other projects that had been rescheduled to occur in 2016/17 from other years.

What didn’t happen and why

This section details the projects that were scheduled for 2016/17 that didn’t occur, and the reasons why.

What these activities cost and how they were paid for

This section shows the cost of service statement which shows how much it costs to operate an activity, and the funding impact statement for the activity. The funding impact statement includes the budgeted capital expenditure for the activity and the actual amount spent, split into: what was spent on meeting additional demand, improved levels of service, or replacement of existing assets.

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Our year in detail

Governance and Leadership The governance and leadership group includes the democracy, iwi liaison and policy development activities. Our governance and leadership activities involve making good decisions with and on behalf of our district and its communities. This includes: setting our own strategic direction to contribute to meeting our

district’s needs engaging with our communities and specifically with Iwi on all

significant issues determining local policy, plans and strategies, while

implementing legislation in the best interests of the Hauraki community

administering various statutes and regulations ensuring the integrity of management control systems safeguarding public interest reporting on our progress to ratepayers and residents council elections.

Effects on the community Our governance and leadership group of activities work towards achieving a consistent policy approach for the community through leadership, governance and advocacy. The promotion of the district and advocacy roles that the Mayor and Councillors do is often not evident as far as reporting goes, but it is fair to say that it is instrumental to their roles as elected members. This work ensures that the qualities the public agree are important for a person’s happiness, quality of life and welfare, are addressed. The advocacy and decision-making undertaken by elected members helps to promote the District, and to provide the infrastructure and services that support its service delivery and economic growth.

The Governance and Leadership Group primarily contributes to the following

Community Outcomes:

Interactive Hauraki

Kotahitanga Hauraki

Sustainable Hauraki

E – 5 2015-25

Hauraki Long Term Plan, Volume 1

67%

Achieving our service targets

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Operating Statement for the Governance and Leadership Group

Actual Annual Plan Actual

2017 2017 2016

$000 $000 $000

EXPENDITURE

Democracy 1,654 1,764 1,842

Iwi Liaison 29 72 24

Policy Development 561 717 574

2,244 2,553 2,440

REVENUE

Fees, Charges and Other Income 1 0 2

External Subsidies 0 0 0

Targeted Rates 0 0 0

General Rates 2,374 2,272 2,341

2,375 2,272 2,343

OPERATING SURPLUS/(DEFICIT) 131 (281) (97)

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Funding impact statement for governance and leadership for the year ended 30 June 2017

Long-Term Long-Term

Plan Plan Actual

2016 2017 2017

($000) ($000) ($000)

Sources of Operating Funding

General rates, uniform annual general charge, rate penalties 2,103 2,325 2,374

Targeted rates 0 0 0

Subsidies and grants for operating purposes 0 0 0

Fees and charges 0 0 1

Internal charges and overheads recovered 0 0 0

Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0

Total Operating Funding (A) 2,103 2,325 2,375

Applications of Operating Funding

Payments to staff and suppliers 1,009 1,113 791

Finance Costs (491) (454) (234)

Internal charges and overheads applied 1,960 1,988 1,683

Other operating funding applications 0 0 0

Total Applications of Operating Funding (B) 2,478 2,647 2,240

Surplus / (Deficit) of Operating Funding (A - B) (375) (322) 135

Sources of Capital Funding

Subsidies and grants for capital expenditure 0 0 0

Development and financial contributions 0 0 0

Increase (decrease) in debt 531 (423) 0

Gross proceeds from sale of assets 0 0 0

Lump sum contributions 0 0 0

Other dedicated capital funding 0 0 0

Total Sources of Capital Funding (C) 531 (423) 0

Applications of Capital Funding

Capital Expenditure

- to meet additional demand 0 0 0

- to improve the level of service 0 0 0

- to replace existing assets 0 0 0

Increase (decrease) in reserves 156 (745) 135

Increase (decrease) of investments 0 0 0

Total Applications of Capital Funding (D) 156 (745) 135

Surplus / (Deficit) of Capital Funding (C - D) 375 322 (135)

Funding Balance ((A - B) + (C - D)) 0 0 0

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Democracy Local government in New Zealand is empowered by Central Government through the Local Government Act (LGA) and other legislation, and is operated through a local democratic system. Democracy for the Hauraki District is defined as the governance of the Hauraki District by the District’s residents through their elected representatives. Democratic representation is currently considered to be the most appropriate way for the community’s voice to be heard. The LGA and the Local Electoral Act 2001 determine the processes that ensure each community is fairly represented. The Hauraki District has 12 Councillors and a Mayor from across the Paeroa, Hauraki Plains and Waihi Wards.


Result 2016/17

Key: Achieved Not Achieved Not Applicable

Level of Service: The Council will conduct all its business in an open and transparent manner.

Measure: Council and Committee meetings are conducted in accordance with legislative requirements. Method of measurement: Complaints received (upheld by the ombudsman) Target 2015-25: No complaints are upheld by the ombudsman relating to Council and Committees meeting statutory processes.

2016/17:

Achieved: No complaints to the Ombudsman have been upheld.

2015/16:

No complaints upheld.

2014/15:

No complaints upheld.

Measure: Agendas for meetings (other than extraordinary meetings) of Council and its Committees are publicly available at least two clear working days prior to the meeting date. Method of measurement: Council secretary’s checklist Target 2015-25: 100% of agendas are available on the internet and in the Council offices and libraries two clear working days before each meeting.

2016/17:

Achieved: 100% of agendas were available two working days prior to each meeting.

2015/16:

100% target met.

2014/15:

100% target met

Level of Service: Elected members will provide governance and leadership for the Hauraki District Council community.

Measure: Customers are satisfied that Council makes decisions in their best interests. Method of measurement: * Customer satisfaction survey Target 2015-25: 75% of customers are satisfied

2016/17:

Not Achieved: The 2017 satisfaction survey showed that 74%* of residents were satisfied that the Council makes decisions in their best interests.

2015/16:

2016 survey: 69% satisfied.

2014/15:

Cannot compare – new measure in 2015/16

E – 10 2015-25


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Level of Service: When making decisions the Council will consider community views.

Measure: In the event that any threshold is triggered in the Council’s Significance and Engagement Policy, an engagement programme is adopted by Council. Method of measurement: Council minutes Target 2015-25: Engagement programme adopted for 100% of decisions that trigger a threshold.

2016/17:

Achieved: An engagement programme was adopted for the Eastern Waikato Waste Management and Minimisation Plan consultation.

2015/16

An engagement plan for the Kerepehi wastewater project was adopted.

2014/15

Cannot compare – new measure in 2015/16.

* The 2017 customer satisfaction survey results have been adjusted to exclude ‘don’t know’ responses. This was also undertaken for the previous 2015/16 Annual Report satisfaction measures.


Our progress towards each project or initiative this year Communication improvements

As signalled in the 2016/17 Annual Plan the Council employed a communications officer in July 2016 to assist with the Council’s external communication needs. The Council’s Communication Strategy was also updated, and reviews have taken place of Council’s use of newspaper pages and radio.

The Waikato Plan

The Waikato Plan was adopted by the partner Waikato councils, including the Hauraki District Council, in July 2017. The Plan was launched in August 2017, with the implementation phase commencing thereafter. The Waikato Plan supports the integrated future development of the Waikato Region and aims to build economic, social, cultural and environmental wellbeing. The Plan is built on the following principles: o Together we are stronger. o To succeed as a region, all parts of the Waikato must be as successful as they can be.

The Waikato Plan has five priority areas and 10 key actions and the implementation will be overseen by the Waikato Plan leadership group. A copy of the Waikato Plan is available at http://www.waikatoplan.co.nz/

‘Better local services’

In June 2016 the government introduced the Local Government Amendment Act Bill as part of its Better Local Services approach. The provisions in the Bill are focussed on improving shared services between councils and more clearly defining the role of the Local Government Commission in promoting shared services and working through local government reorganisation proposals. However the signalled changes to the Local Government Act were not enacted during the 2016/17 year, although the Local Government Amendment Act Bill progressed through to public submission and reporting back phases.

2017 Annual Satisfaction Survey

In 2017 we conducted our annual survey to find out user’s satisfaction with Council’s services and facilities. For the first time in 2016, and again in 2017, the Council used a mixed method approach to surveying, and conducted the survey both online and by phone. The satisfaction survey results are included in this Annual Report within the ‘Meeting our service targets’ tables (where applicable).

Audit and Risk Committee

Our Audit and Risk Committee has had a focus in 2016/17 on organisational risk management, internal audits, and improved financial reporting. During the 2016/17 year independent internal audits were undertaken on: o Fixed assets review o Accounts payable review o Payroll review

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The findings of these internal audits were reported to the Audit and Risk Committee and have resulted in ongoing improvements to Council’s internal control systems.

Waikato Region Triennial Agreement

Following each triennial election all local authorities in a region are required to enter into a Triennial Agreement that states how local authorities will communicate and work together to achieve the purposes of local government. The Triennial Agreement for the Waikato Region was agreed to by all local authorities in the region and signed in February 2017. The agreement provides an opportunity for improved communication, collaboration, coordination and shared services at all levels of local government in the region while recognising the significant level of formal and informal cooperation that already exists between local authorities in the region. The Hauraki District Mayor is also part of the Waikato Mayoral Forum, which works collaboratively to develop tangible benefits for the Waikato region through greater local government co-operation. The forum continues to work on a number of work streams aimed at improving joint planning, economic development and local government efficiency generally.

Triennial elections

The October 2016 triennial elections for Mayor and Council saw six new councillors elected to the Council: Councillors Anne Marie Spicer, Austin Rattray, Carole Daley, Duncan Smeaton, Phillip Buckthought, and Ross Harris. The Council farewelled previous councillors and acknowledged the valuable service they had given to Council and their communities. Following the election, the Council reviewed its committee structure which resulted in the formation of a Community Services and Development Committee (Mayor and all councillors) to replace the previous Ward Committees.

2018-28 Long Term Plan

A number of workshops were held with the newly elected Council as part of the development of the 2018-28 Long Term Plan. These workshops included consideration of key issues, financial policies, key assumptions and future growth. This work will continue during 2017 and early 2018, with the consultation document expected to be released for consideration and submissions in March 2018.

What didn’t happen in 2016/17?

There were no projects planned that didn’t happen in 2016/17.

Operating Statement for Democracy


2017 2017 2016

$000 $000 $000

Expenditure

Democracy 1,654 1,764 1,842

Interest 0 0 0

1,654 1,764 1,842

Revenue




General Rates 1,561 1,459 1,602

1,561 1,459 1,602

Operating Surplus / (Deficit) (93) (305) (240)

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Iwi Liaison The Council, through the implementation of the LGA, recognises Māori as an important group within the community and places a specific emphasis on: providing opportunities for Māori to be involved in decision making processes developing policies for consulting with Māori fostering capacity building for Māori to take part in local government processes acknowledging the relationship of Tangata Whenua with the natural environment recognising the special status of Tangata Whenua (as opposed to Māori in general)

and taking into account the Treaty of Waitangi in resource management decision making processes.


Result 2016/17


Level of Service: Mana Whenua Forum meets regularly to provide for ongoing dialogue between the Council and Iwi groups who hold Mana Whenua status in the District.

Measure: The Forum will meet four times per year. Method of measurement: Council minutes Target 2015-25: four meetings of Forum held per year

2016/17

Not Achieved: By mutual agreement between the parties the Mana Whenua Forum meetings continued to be suspended in 2016/17 while the Hauraki Treaty claims were being negotiated.

2015/16

Meetings suspended due to Treaty claims being negotiated.

2014/15

No meetings held.

Level of Service: The Council will continue to develop its relationships with Tangata Whenua.

Measure: Additional Memoranda of Partnership agreements are developed. Method of measurement: Number of Agreements Target 2015-25: Develop Memoranda of Partnerships with Ngaati Whanaunga and Ngati Tara Tokanui

2016/17

Not Achieved: Negotiations continued to be suspended in 2016/17 while the Hauraki Treaty claims were being negotiated.

2015/16

Negotiations suspended due to Treaty claims being negotiated.

2014/15

No further agreements development.

Level of Service: Provide opportunities for Māori to be involved in Council decision making processes.

Measure: The Council will consult with Tangata Whenua on all Council applications for wastewater and water consents. Method of measurement: Reports to the Consultative Committee for Water and Waste. Target 2015-25: Tangata Whenua will be consulted on all relevant applications for consents.

2016/17

Achieved: Discussions have been held with relevant Iwi in 2016/17 regarding the Paeroa racecourse development and the NZTA Karangahake Gorge project.

2015/16

Ongoing consultation occurred during the year.

2014/15

Ongoing consultation occurred during the year.

E – 25 2015-25


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Our progress towards each project or initiative this year The Treaty of Waitangi negotiations

During the 2016/17 year the main focus for Hauraki Iwi was the negotiation of their individual Treaty of Waitangi Settlements and the negotiations for the Hauraki Collective Settlement. By mutual agreement the Mana Whenua Forum did not meet during the 2016/17 year as a result of the focus of Iwi on their Settlement negotiations with the Crown. It is expected that the individual and collective Treaty Settlements for Hauraki Iwi will be signed within the 2017/18 year.

Consultative Committee for Water and Waste

The Committee met once during 2016/17 to discuss the Paeroa racecourse development and the NZTA Karangahake Gorge project. The Committee will have a significant role in the next few years as we develop policies, plans and responses that will be required as a result of the: o National Policy Statement for Freshwater Management; and o The new regulatory regime that will be developed by the Waikato Regional Council for water takes

and discharges; and o The need to renew existing resource consents for wastewater and stormwater discharges.


Mana Whenua Forum By agreement between the Council and Iwi members of the Forum no meetings of the Mana Whenua Forum were held in 2016/17 as a result of the priority Iwi had on progressing their Treaty settlement negotiations.

Memoranda of understanding

No new memoranda of understanding were developed during 2016/17 with the Iwi focus being on the Treaty negotiations.

Operating Statement for Iwi Liaison


2017 2017 2016

$000 $000 $000

Expenditure

Iwi Liaison 29 72 24

29 72 24

Revenue




General Rates 70 70 67

70 70 67

Operating Surplus / (Deficit) 41 (2) 43

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Policy Development Policy development essentially helps to formalise our strategic direction and plans through the preparation of strategies, plans and policy documents and the analysis and implementation of strategies and policies from Central Government and other organisations. Whilst many policies are developed by the Council to address local issues or to achieve desired outcomes, we also have a responsibility to develop and review some policies, strategies and plans and to report on these under the LGA, the Resource Management Act 1991 and other relevant legislation.


Result 2016/17


Level of Service: To plan the Council’s Policy Development in accordance with relevant legislative requirements

Measure: All legislatively required policies, plans and strategies are adopted within statutory timeframes. Method of measurement: Council checklist on each issue. Target 2015-25: 100% of all legislatively required documents are adopted within statutory timeframes

2016/17

Achieved: The Council adopted the2015/16 Annual Report on 26 October 2016, Easter Sunday Shop Trading Policy on 22 February 2017, 2017/18 Annual Plan on 29 March 2017, and updated the Governance Statement on 29 March 2017, all within the statutory timeframes.

2015/16

All documents were adopted within legislative timeframes.

2014/15

All documents were adopted within legislative timeframes.

Level of Service: Significant decisions are made in a democratically accountable way.

Measure: All decisions that are subject to the special consultative procedure meet the requirements of the Local Government Act 2002 (LGA 2002). Method of measurement: Council checklist on each issue. Target 2015-25: 100% successful completion of internal Special Consultative Procedure checklist.

2016/17

Achieved: The special consultative procedure checklist was completed for all (100%) decisions in 2016/17. Those decisions were the review and adoption of the Dog Control Policy 2016 and Dog Control Bylaw, the Local Alcohol Policy 2016, the Easter Sunday Shop Trading Policy, and the Eastern Waikato Waste Management and Minimisation Plan.

2015/16

All decisions met the requirements of the LGA 2002.

2014/15

All decisions met the requirements of the LGA 2002.

Level of Service: Policy development is visible and accountable

Measure: Key draft or proposed policy documents subject to consultation are available on the Council’s website by the notified date of availability. Method of measurement: Website electronic records Target 2015-25: 100% of all draft policy documents are available on the Council’s website on time.

2016/17

Achieved: 100% of proposed policy documents subject to consultation were available on the Council website on time.

2015/16

All draft documents were available on the Council website on time

2014/15

All draft documents were available on the Council website on time

E – 20 2015-25


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Result 2016/17


Measure: Percentage of customers satisfied with the consultation and engagement of Council’s major policies and strategies. Method of measurement: * Customer satisfaction survey. Target 2015-25: 70% of customers satisfied.

2016/17

Not Achieved: The 2017 satisfaction survey showed that 66%* of residents were satisfied with the consultation and engagement of Council’s major policies and strategies.

2015/16

2016 survey: 69%* satisfied.

2014/15 Cannot compare – new measure in 2015/16.

Level of Service: The Council will develop local legislation.

Measure: Bylaws are reviewed as required, with all bylaws to be reviewed by 2017/18. Method of measurement: Council minutes Target 2015-25: 2016/17: Commence review of all bylaws.

2016/17

Not Applicable: No parts of the Consolidated Bylaw underwent review in 2016/17. The bylaw review timetable was placed on hold until 2017/18.

2015/16:

Bylaws were reviewed as required.

2014/15:

Bylaws were reviewed as required.

Level of Service: The Council meets its statutory requirements under the Resource Management Act, 1991.

Measure: All Changes and Variations to the District Plan are processed within statutory requirements. Method of measurement: Council records Target 2015-25: There are no successful appeals or judicial reviews on any Change or Variation to the Plan as a result of administrative or process matters

2016/17

Achieved: There were no successful appeals or judicial reviews on any Plan Change or Variation to the Plan as a result of administrative or process matters.

2015/16

No appeals or judicial reviews as a result of administrative or process matters.

2014/15

No appeals or judicial reviews as a result of administrative or process matters.



Our progress towards each project or initiative this year Policy and bylaw reviews

During 2016/17 we consulted on the following: o Easter Sunday Shop Trading Policy: consulted on December/January 2017, adopted 22 February

2017 o Dog Control Policy (2016): consulted on April/May 2016, adopted 20 July 2016 o Local Alcohol Policy (2016): consulted on July/August 2013, appeals 2014/2015, adopted 1 July

2016 o Eastern Waikato Waste Management and Minimisation Plan: consulted on April/May 2017, adopted

28 June 2017

We also reviewed the: o Economic Development Strategy – adopted September 2016

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2017/18 Annual Plan In 2016/17 we prepared our 2017/18 Annual Plan. Due to amendments to the Local Government Act, we were not necessarily required to consult on our Annual Plan if there are no significant or material differences between the proposed Plan and what is detailed in the Long Term Plan for the 2017/18 year. As only minor changes were proposed for year three of the Long Term Plan we decided not to publicly consult on the 2017/18 Annual Plan. Additionally, the proposed non-water rates for that year were less than signalled in the Long Term Plan for 2017/18. The water rates increase remained the same as signalled in the Long Term Plan. The 2017/18 Annual Plan came into effect 1 July 2017.

Significant Natural Areas (SNAs) and Heritage Features Incentives Policy

Under the Resource Management Act 1991, it is a matter of national importance to protect areas of significant indigenous vegetation and significant habitats of indigenous fauna and historic heritage. The District Plan provides for the protection and enhancement of Significant Natural Areas (SNA) and Heritage Features by mapping and scheduling of SNAs and Heritage features, and through the provision of rules for their retention and protection. We have an SNA and Heritage Features Incentives Policy, to provide financial incentives for property owners with SNAs or Heritage Features on their land who may require some financial assistance in order to enhance their protection. The policy will set aside a sum of money each year (up to $35,000) which can be applied for by SNA and Heritage Feature owners, to assist them with active maintenance/enhancement of those features.

District Plan review

The District Plan Committee held three workshops to discuss and consider possible residential and industrial areas for future development in the three main towns of Ngatea, Paeroa and Waihi. Additionally Council held a workshop with developers in June 2017 to discuss the need for future areas for development. The Council will review the recommendations from that meeting to consider items for potential future Plan Change to each town if required.

Long Term Plan

Initial research and background work to inform the 2018-28 Long Term Plan was commenced in December 2016. This work will continue until the Long Term Plan is available for consultation; this is expected to be March 2018.


The proposed District Plan Change to include the Kaiaua area into the Hauraki District Plan has not yet occurred. The Council is currently proceeding with consultation to inform the development of a Kaiaua community plan. This will then inform changes to the District Plan to include the Kaiaua area.

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Operating Statement for Policy Development


2017 2017 2016

$000 $000 $000

Expenditure

Strategic Planning 391 451 397

RMA Policy 170 266 177

561 717 574

Revenue





744 743 674

Operating Surplus / (Deficit) 183 26 100

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Land Transport We provide a network of local roads and footpaths throughout the District to ensure that people can get around. These connect to the national roading network. This activity involves developing and maintaining a lot of physical assets including sealed and unsealed roads, road markings, and assets outside the trafficable road surfaces such as footpaths, kerb and channel, culverts, street and road signs, traffic islands, retaining walls, stormwater disposal, safety railings, bridges, street lighting and stock underpasses.

Effects on the community The land transport group focuses primarily on the provision of safe and reliable local roading networks for District communities, ensuring people are able to move freely around the District in an efficient manner and have appropriate links with national state highways. This in turn contributes to economic viability and social wellbeing for all people.

Land Transport primarily contributes to the following

Community Outcome:

Prepared Hauraki

31%


E – 34 2015-25


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Result 2016/17


Level of Service: Access is provided to the network of local roads

Measure: Time for road access to be restored to communities following a 1 in 10 year climatic event (10% probability). Method of measurement: Measured by network consultant Target 2015-25: 100% of arterial and collector roads providing access to communities open within 24 hours, all other roads within 72 hours

2016/17

Not Achieved: All arterial and collector roads were open within the target timeframes in 2016/17: Torehape West Road (local road) was

closed for several weeks due to a large and complex slip, but was serviced with a bypass during slip remediation works.

Waharua Bridge (East Coast Road) was closed from 5-11 April due to abutment washout.

2015/16

Access restored within 24 hours.

2014/15

Access restored within 24 hours.

Level of Service: The pavement life of sealed roads is preserved.

Measure: That the road pavement is in good condition. Method of measurement: The Sealed Pavement Condition Index (This index is a national formula for the New Zealand Transport Agency). Target 2015-25: Maintain a level of less than or equal to 7 (fair condition)

2016/17

Achieved: The Sealed Pavement Condition Index is 5.2

2015/16 Sealed Pavement Condition Index of 2.8

2014/15 Sealed Pavement Condition Index of 4.4

Level of Service: The Council delivers a roading network that addresses safety and amenity issues.

Measure: Percentage of customers satisfied with the quality of roads in the District (excluding state highways). Method of measurement: * Customer satisfaction survey. Target 2015-25: ≥ 70% of customers satisfied

2016/17

Not Achieved: The 2017 satisfaction survey showed that 64%* of residents were satisfied with the quality of roads in the District. The Council is reviewing its service performance, and is considering investing more in renewals of sealed roads. This will require significant new spend to enable us to meet our intended level of service.

2015/16


2014/15


Measure: Traffic safety barriers are installed and maintained in a fully operative condition in accordance with NZ Standards. Method of measurement: Measured by network consultant. Target 2015-25: 100% of all traffic safety barriers meet NZ standards.

2016/17

Achieved: 100% of barriers meet NZ standards. There were no new traffic safety barriers installed and no maintenance required.

2015/16

100% of barriers meet NZ standards. There were no new traffic safety barriers installed and no maintenance was required.

2014/15

Barriers were installed in effective condition in accordance with NZ standards

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Result 2016/17


Measure: Damaged, missing or leaning signs are remedied on District roads within specified timeframes. Method of measurement: Measured by network consultant. Target 2015-25: 100% regulatory/ permanent/ warning signs

within 7 days safety connected signs within 2 days all other signs within 6 weeks

2016/17

Not Achieved: Information was unavailable from 1 July to 30 September 2016 due to professional services contract moving in house and the necessary reporting processes were not in place in time to record necessary data. From 1 October 2016 to 30 June 2017 a total of 103 sign issues were reported: 68/71 of regulatory sign issues were

resolved within 7 days 3/4 of safety sign issues were resolved

within 2 days 27/28 of other signs were resolved within 6

weeks.

2015/16

100% target met

2014/15

100% target met

Measure: All reported potholes on District roads are repaired within specified timeframes. Method of measurement: Measured by network consultant. Target 2015-25: 85% within 5 days for >100 vehicle per day (vpd) roads and within 14 days for <100 vpd roads.

2016/17

Not Achieved: Information was unavailable from 1 July to 30 September 2016 due to professional services contract moving in house and the necessary reporting processes were not in place in time to record necessary data. From 1 October 2016 to 30 June 2017: 94% (32/34) potholes on >100 vpd roads were

repaired within five days. 92% (35/38) potholes on <100 vpd roads were

repaired within 14 days.

2015/16

100% target met

2014/15

100% target met

Measure: All programmed new footpaths are installed. Method of measurement: Measured by network consultant. Target 2015-25: 100% of annually programmed footpaths installed in accordance with the agreed programme

2016/17

Not Achieved: 73% of programmed new footpaths were completed in 2016/17. The remainder of the programme was not completed due to unsuitable weather conditions.

2015/16

100% target met

2014/15

100% target met

Measure: Issues reported to the Council regarding state highways are forwarded to the New Zealand Transport Agency. Method of measurement: Measured by network consultant. Target 2015-25: >95% of all reported issues are forwarded within one working day.

2016/17

Not Achieved: 85% state highway issues were forwarded to the New Zealand Transport Agency within one working day. The reporting process has been reviewed and changes implemented which should improve the timeliness of state highway issues reporting.

2015/16

100% target met

2014/15

100% target met

* The 2017 customer satisfaction survey results have been adjusted to exclude ‘don’t know’ responses. This was also undertaken for the previous 2015/16 Annual Report satisfaction measures

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Mandatory service targets

Results


Measure: The change from the previous financial year in the number of fatalities and serious injury crashes on the local road network, expressed as a number. Method of measurement: NZTA and police reports. Target: A reduction over three years of one fatality and one serious injury crash.

2016/17

Not Achieved: 2014/15: 4 fatal / 5 serious 2015/16: 0 fatal / 6 serious 2016/17: 1 fatal / 5 serious Three year average: 2014/15 to 2016/17: 1.7 fatal /

5.3 serious. 2013/14 to 2015/16: 1.3 fatal /

5.7 serious The information reported in the Annual Report for fatal and serious injury crashes from the Crash Analysis System (CAS) database is showing an inconsistency to the results reported in 2015/16. The CAS data is showing an agreement with the fatal crash numbers but differs by 3 additional serious injury crashes. This may be attributable to crashes on the state highways being accounted for in the HDC roading network. Additionally, there is a time lag within which the CAS database is updated.

2015/16

Not Achieved:

2013/14: 0 fatal/6 serious

2014/15: 4 fatal/4 serious

2015/16: 0 fatal/ 4 serious

Measure: The average quality of ride on a sealed local road network, measured by smooth travel exposure. Method of measurement: Measured by the network consultant/ Target: Smooth Travel Exposure is higher than 96%

2016/17

Achieved: The annual smooth travel exposure is 97%.

2015/16

Not Achieved: The annual smooth travel exposure is 96%.

Measure: The percentage of the sealed local road network that is resurfaced. Method of measurement: Measured by the network consultant. Target: Between 5% and 10% of the sealed District road network is resurfaced annually

2016/17

Achieved: A programmed total of 36kms (7%) was resurfaced in 2016/17.

2015/16

Achieved: A programmed total of 33.8kms (5.3%) was resurfaced in 2015/16.

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Results


Measure: The percentage of footpaths within a territorial authority district that fall within the level of service or service standard for the condition of footpaths that is set out in the territorial authority’s relevant document (such as its annual plan, activity management plan, asset management plan, annual works programme or long term plan). Method of measurement: An annual survey sample of 2.5%, randomly selected across all ages of footpath within the network, of number of tripping hazards per km defined by cracks, irregularities, broken areas, etc, by the network consultant. Target: 100% of footpaths with a defect rating greater than 5 are isolated for safety and remedied within 7 days.

2016/17

Unable to measure: A result for this measure is currently unavailable. The footpath survey is undertaken on a three yearly basis.

2015/16

Unable to measure: Reporting against this measure unavailable at present. The most recent footpath rating is dated 2014. Under the Road Asset Technical Accord (RATA), the next full network rating will be 2017. An annual survey sample has not been completed.

Measure: The percentage of customer service requests relating to roads and footpaths to which the territorial authority responds within the time frame specified in the long term plan. Method of measurement: Measured by the network consultant/ Target: 100% of requests are responded to within 10 working days*.

2016/17

Not Achieved: 98% of service requests were responded to within 10 working days.

2015/16

Achieved: 100% (807/807) of service requests were responded to within 10 working days.

*Replies will define the remedial work required and the expected completion time.

What else happened in 2016/17? Our progress towards subsidised projects this year

Sealed road resurfacing 36 km of resurfacing was completed in 2016/17 at a cost of $1,139,000. The resurfacing completed included 22 sites in the Paeroa Ward (9 km in total), 20 sites in the Plains Ward (21 km in total), and 17 sites in the Waihi Ward (6 km in total).

Drainage renewals

To address deteriorating sections of drainage that may reduce the pavement life, $30,000 was spent in 2016/17 and approximately $140,000 will be carried forward to 2017/18. The drainage work completed included the upgrade to Scotts floodgate, and various smaller works around the District.

Traffic services renewals

$630,000 was spent in 2016/17 on traffic services renewals across the District; this included work such as replacing signage, road markings, and street light maintenance.

Minor improvements

$880,000 was spent in the 2016/17 year on minor improvements, including the following projects: o Bradford Street, Waihi widening (work in progress) o Rahu Road, Paeroa, embankment stabilisation (work in progress) o Ngatitangata Road, Waihi erosion protection o LED streetlight upgrade (work in progress) o King Street, Paeroa parking (Paeroa domain) o Ngatea pram crossings o Kaihere Road, Kaihere underslip

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o Netherton School parking (work in progress) o Pedestrian crossings improvements (pram crossings) Paeroa and Waihi o Gerrand Road embankment stabilisation

LED street lighting conversion

In 2015/16 we started a five year street light renewal programme. With additional funding from NZTA we are replacing our current lighting with LED lighting which will result in significant cost savings, reduced maintenance frequency and increased life expectancy. $75,000 was spent on LED conversions in 2016/17. The LED street light conversion project will be completed by the end of 2017/18.

Emergency works

During 2016/17 we experienced three storm events that resulted in damage to our roading network (Tasman Tempest, Cyclone Cook, and Cyclone Debbie); extensive emergency works were required across the District as a result. $840,000 was spent in total.

Our progress towards non-subsidised projects this year Silverton Road, Waihi car park development

The Silverton Road car park development was identified as a priority by the Waihi Ward Committee; the project commenced in late 2015. The project included a complete reorganisation of carpark arrangements including additional parking capacity, improved functionality of movements within the carpark and improved footpaths for pedestrian safety. While most of the construction work was completed in 2016/17 ($2,000 was spent) the project is not yet completed as we work with NZTA to meet consent requirements for the exit/entry onto state highway 2.

Kerb and channel $103,000 was spent on new kerb and channel in Waitete Road and Albert Street, Waihi in 2016/17.

Footpaths (non-sub)

In 2016/17 the following footpath projects were progressed: o Waitete Road, Toomey Street, Albert Street, and Smith Street, Waihi ($90,000 was spent in total in

2016/17). o While not completed, the Turua Walkway was designed in 2015/16 and with the Turua Hall

Committee the programme was further refined in 2016/17. Bradford Street, Waihi

The project to widen Bradford Street in Waihi was initiated by safety concerns on this road. The road has sharp vertical alignment changes, is narrow, and sight line deficiencies. $367,000 was spent from the minor improvements budget in 2016/17.

Land Transport Professional Services

As of 1 July 2016 the previously outsourced professional services for land transport was brought back in-house; all core professional services requirements are now undertaken by the Council. The move was partly motivated by a review of our Section 17A review requirements under the local government act, but was mainly due to the Council as an organisation needing to increase its understanding and knowledge of the land transport network. We anticipate there are many benefits to be had by increasing our level of understanding of our assets. The long standing consultants, Opus, had provided us with an excellent service over the years and we thank them for their dedication.

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What didn’t happen in 2016/17? Pavement rehabilitation

The rehabilitation planned for the Turua township main road shopping area was not completed in 2016/17. Additionally, the substantial weather events prevented the project commencing within the year. While the design work was completed in 2016/17, the construction work is deferred to the 2017/18 year.

Structures component replacements

No structures component replacements were completed within 2016/17. The remaining funds ($114,000) will be carried over to 2017/18.

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Operating statement for Land Transport


2017 2017 2016

$000 $000 $000

Expenditure

Pavement Maintenance 959 1,248 1,191

Amenity Maintenance 399 436 514

Professional Services 408 550 604

Other Subsidised 2,061 1,275 1,150

Administration 430 430 421

Non-Subsidised Works 334 409 415

Public Transport 12 20 14

Depreciation/Assets written off 3,085 2,973 2,941

Interest 903 903 939

8,591 8,244 8,189

Revenue


External Subsidies 3,583 3,423 2,556

Targeted Rates 4,113 4,220 4,064

General Rates 0 0 0

7,696 7,643 6,633

Operating Surplus / (Deficit) (895) (601) (1,556)

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Funding impact statement for Land Transport for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 0 0 0 Targeted rates 3,945 4,263 4,113 Subsidies and grants for operating purposes 1,913 1,961 1,988 Fees and charges 0 0 0 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 5,858 6,224 6,101 Applications of Operating Funding Payments to staff and suppliers 3,904 3,937 4,111 Finance Costs 1,003 1,030 903 Internal charges and overheads applied 307 345 493 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 5,214 5,312 5,507 Surplus / (Deficit) of Operating Funding (A - B) 644 912 594 Sources of Capital Funding Subsidies and grants for capital expenditure 1,363 1,352 1,595 Development and financial contributions 0 0 0 Increase (decrease) in debt 816 529 (237) Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 2,179 1,881 1,358 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 211 - to improve the level of service 871 893 211 - to replace existing assets 1,805 1,763 1,530 Increase (decrease) in reserves 147 137 0 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 2,823 2,793 1,952 Surplus / (Deficit) of Capital Funding (C - D) (644) (912) (594) Funding Balance ((A - B) + (C - D)) 0 0 0

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Water Supply The water supply activity involves providing domestic, commercial, industrial and agricultural water to Hauraki communities. We own and operate eight water supply networks that serve the main urban communities, the smaller communities and some rural areas. Investment in the improvement of drinking water quality and increased water storage is a major focus for us. We have already completed a number of infrastructure upgrades and are due to finish the remaining upgrades by 2018.

Effects on the community The Water Supply Group provides for the sustainable supply of safe, clean water as needed by the community to support a good quality of life and physical and mental wellbeing. The provision of a reliable water supply also supports local businesses to enable them to continue their operation - knowing water is available to them as they require it.

The Water Supply Group primarily contributes to the

following Community Outcomes:

Interactive Hauraki

Lifestyle Hauraki

Prepared Hauraki

42%


E – 45 2015-25


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Result 2016/17


Level of Service: The Council provides water supply services at agreed levels of service.

Measure: Customers are satisfied with the cost of water supplied by the Council. Method of measurement: Annual customer satisfaction survey. Target 2015-25: Equal to or greater than 60% of customers satisfied.

2016/17

Achieved: The 2017 satisfaction survey showed that 67%* of residents were satisfied with the cost of water supplied by Council.

2015/16



Level of Service: Water services meet regulatory requirements.

Measure: The water supply service is operated in compliance with regulatory requirements. Method of measurement: Number of abatement notices and enforcement notices received. Target 2015-25: No abatement or enforcement notices received.

2016/17

Achieved: No abatement or enforcement notices were received in 2016/17.

2015/16

No abatement or enforcement notices received.


Level of Service: Good quality water is supplied to consumers.

Measure: Customers are satisfied with the water quality from Hauraki District Council networks. Method of measurement: * Customer satisfaction survey. Target 2015-25: Equal to or greater than 80% of customers satisfied.

2016/17

Not Achieved: The 2017 satisfaction survey showed that 74%* of residents were satisfied with the water quality from Council networks.

2015/16


2014/15


Level of Service: Water is safe to drink.

Measure: Water treatment plants will comply with the New Zealand Drinking Water Standards (NZDWS) 2008. Method of measurement: The NZ Drinking Water Standards 2008. Target 2015-25: Kerepehi 2014/15 Waitakaruru 2015/16 Waihi 2015/16 Paeroa 2015/16

2016/17:

Not Achieved: Kerepehi: Complied with the

Standards in first, third and fourth quarters in the 2016/17 year. Did not comply in second quarter as data was not supplied to the District Health Board (DHB), however the water was safe to drink.

Waitakaruru: Complied with Standards in the first and fourth quarters in the 2016/17 year. Did not comply in second and third quarters as data was not supplied to the DHB, and a chlorine meter being faulty (subsequently replaced), however the water was safe to drink.

Waihi: Complied with the Standards in first, third and fourth quarters in the 2016/17 year. Did not comply in second quarter due

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Result 2016/17


no safety plan being in place, however the water was safe to drink.

Paeroa: Complied with the Standards in the 2016/17 year.

2015/16

While water was safe to drink, 3 of the 4 treatments plants did not comply.


Level of Service: Protection is provided to the community and the environment.

Measure: Fire hydrants are provided to urban fire districts within a 135 metre radius of the closest property boundary. Method of measurement: Mapping done via GIS software. Target 2015-25: Equal to or greater than 95% compliance

2016/17

Achieved: GIS analysis carried out in September 2015 shows 96.4% of residential properties within a gazetted urban fire district have a fire hydrant within 135 metre radius.

2015/16

96.4% of properties have a fire hydrant within recommended distance.

2014/15

96.4% of properties have a fire hydrant within recommended distance.

Level of Service: A reliable water supply is provided.

Measure: Number of customers whose water supply is interrupted more than twice in a 12 month period due to unplanned loss of supply incidents. Method of measurement: Service request database. Target 2015-25: <5 customers per 1000 connections .

2016/17

Achieved: 0.4 customers per 1000 connections (3 customers) had interrupted water supply more than twice in a 12 month period.

2015/16

0.14 customers per 1000 connections


Level of Service: Timely response to customer requests.

Measure: Customer requests are responded to within target timeframes: Emergency call outs: resolved <1 hour Urgent customer requests: response <1 hour Priority customer requests: assess <4 hours Routine customer requests: call back <3 working

days Method of measurement: Service request database Target 2015-25: Emergency call-outs: 100% Urgent customer requests: 80% Priority customer requests: 80% Routine customer requests: 85%

2016/17

Not Achieved for 2016/17: No emergency callouts were

received. 54 of 74 (73%) urgent requests

were responded to within target timeframes.

474 of 580 (82%) of priority requests were responded to within target timeframes.

141/188 (75%) routine requests were responded to within target timeframes.

The response times were impacted due to increased staff workload during storm events.

2015/16

No emergency call outs, 92% urgent requests, 83% priority requests and 81% routine requests.


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Result 2016/17




Result 2016/17


Measure: The extent to which the local authority’s drinking water supply complies with: a) part 4 of the drinking water standards (bacteria

compliance criteria), and b) part 5 of the drinking water standards (protozoal

compliance criteria). Method of measurement: Extract from National Water Information New Zealand (WINZ) database Target: Kerepehi – full compliance Waitakaruru – full compliance from July 2016, prior to

that, full compliance with DWS 2000 Paeroa – full compliance from July 2015, prior to that,

full compliance with DWS 2000 Waihi – full compliance from July 2015, prior to that,

full compliance with DWS 2000 Kaimanawa – Rural Agricultural Standard applies and

has not yet been produced by the Ministry of Health. As an interim measure, target is compliance with DWS 2000

All other supplies – compliance with DWS 2000 until decommissioned.

2016/17

Not Achieved overall:

Supply Bacteria Protozoa Kerepehi Waitakaruru Paeroa Waihi Kaimanawa Mackaytown Karangahake Waikino Not in use* Ohinemuri Not in use* Huirau Not in use*

While the treatment plants most likely met the drinking water standards for protozoa, unfortunately we had a failure that corrupted data and meant we were unable to provide the necessary technical information to the drinking water assessors. Extensive work in underway to ensure that this failure doesn’t occur in the future. We have also added UV and peroxide treatment to the Paeroa and Waihi treatment plants and these will add a further barrier to protozoa and also remove taste and odour issues. Notes: Mackaytown and Karangahake have subsequently switched over to the Paeroa supply and the issues will not reoccur. *The Ohinemuri, Huirau and Waikino treatment plants have been decommissioned and the supply networks have connected to other plants. These results are provisional, pending the assessment of compliance by the independent Drinking Water Assessor.

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Result 2016/17


2015/16

Not Achieved overall: Supply Bacteria Protozoa Kerepehi Waitakaruru Paeroa Waihi Kaimanawa Mackaytown Karangahake Waikino

Ohinemuri Not in use*

Huirau Not in use*

Notes: - These results are provisional, pending the assessment of compliance by the independent Drinking Water Assessor. - Waihi protozoa compliance – the plant achieved compliance from November 2015 onwards. *The Ohinemuri and Huirau treatment plants have been decommissioned and the supply networks have connected to other plants. The results reported in 2015/16 were provisional. The final result (based on assessment of compliance by the independent Drinking Water Assessor) confirms those provisionally reported results.

Measure: The percentage of real water loss from the local authority’s networked reticulation system (including a description of the methodology used to calculate this). Method of measurement: Calculation methodology = Volume of water sold (sourced from water meter invoicing system, from rates department) versus volume of treated water produced by the water treatment plants (sourced from water treatment plant treated water supply meter(s)). Target: The percentage of unbilled water versus the volume of treated water produced is less than 30%.

2016/17

Not Achieved: The District wide percentage of real water lost is 33%. Note that the percentage of water lost cannot be calculated by the schemes as it was for the 2015/16 results (see below). As some areas are now connected to alternative schemes, the percentage of water lost could only be calculated by treatment plant distribution area, and would carry a number of errors in that data.

2015/16

Not Achieved: The District wide percentage of real water lost is 35%. By scheme, the results are: Hauraki Plains – 35% Paeroa – 37% Waihi – 27% Kaimanawa – 45% Karangahake – 34% Mackaytown – 19% Waikino – 39%

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Result 2016/17


Measure: Where the local authority attends a call out in response to a fault or unplanned interruption to its networked reticulation system, the following median response times measured: a) attendance for urgent call-outs: from the time that the

local authority receives notification to the time that service personnel reach the site, and

b) resolution of urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption.

c) attendance for non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site, and

d) resolution of non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption.

Method of measurement: The Customer Service Request Database will be used to determine the time that the customer service request / complaint was logged. The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out. The level of service reporting spreadsheet is used to collate the incoming data, and calculate and report on performance. Target: Urgent call out Median time for staff to arrive on site = Less than 1 hour, anywhere within the district Median time for staff to restore water supply = 99% or more of all water supply faults are resolved within 8 hours Non-urgent call out Median time for staff to arrive on site = Less than 4 hours, anywhere within the district. Median time for staff to resolve fault = 99% or more of all water supply faults are resolved within 8 hours

2016/17

Not Achieved: For urgent call outs: Median attendance response

time: 23 minutes Median resolution response

time: 3 hours 48 minutes. 62% of faults were resolved within 8 hours

Non-urgent call outs: Median attendance response

time: 1 hour 3 minutes Median resolution response

time: 4 hours 21 minutes. 59% of faults were resolved within 8 hours

2015/16

Achieved: For urgent call outs:

Median attendance response time: 30 minutes

Median resolution time response time: 2 hours 18 minutes

Non-urgent call outs:

Median attendance response time: 1 hour 22 minutes

Median resolution response time: 5 hours 28 minutes

Measure: The total number of complaints received by the local authority about any of the following: a) drinking water clarity b) drinking water taste c) drinking water odour d) drinking water pressure or flow e) continuity of supply, and f) the local authority’s response to any of these issues

expressed per 1000 connections to the local authority’s networked reticulation system.

2016/17

Not Achieved: Water quality issues: 11 per

1000 connections Service quality issues: 0.6

complaints per 1000 connections.

Water pressure / flow issues: 6.6 complaints per 1000.

Total for the year: 18.2 complaints per 1000.

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Result 2016/17


Method of measurement: The Customer Service Request Database will be used to determine the number of complaints received about the listed issues. Target: Water quality issues: (clarity; taste; odour) Service quality issues: (poor response to a service request) No more than 5 complaints per 1000 connections Water pressure / flow issues: (pressure; flow; continuity of supply) No more than 5 complaints per 1000 connections Total: No more than 10 complaints per 1000 connections

2015/16

Water and service quality issues: 29.4 per 1000 connections

Water pressure / flow issues: 3.5 complaints per 1000.

Total for the year: 32.9 complaints per 1000.

Measure: The average consumption of drinking water per day per resident within the territorial authority district. Method of measurement: Census meshblocks have been used to calculate the population within the urban boundaries. Water billing records for customers’ water meters are used to calculate the volume of water sold to each property in the District. GIS analysis is used to identify which properties are located in an urban area, and thereby calculate the total volume of water sold to urban customers, and the urban population. The final calculation is: the volume of water sold divided by the population. Target: Urban water use Less than 300 litres / person / day Agricultural water use Less than 300 litres / hectare / day

2016/17

Urban: 184 L/person/day Rural: 191 L/Ha/day

2015/16

Urban: 293 L/person/day Rural: 230 L/Ha/day

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What else happened in 2016/17? Our progress towards each project or initiative this year

Waihi and Paeroa taste and odour treatment Following public feedback over the 2015/16 summer period, unbudgeted funding was approved in June 2016 to resolve the taste and odour issues occurring in the Paeroa and Waihi supplies. While $1.6 million was allocated to this urgent project, $880,000 was spent in total. The work was completed in February 2017.

Plains reticulation (Waitakaruru and Kerepehi) treated water storage project The design phase of this project was progressed within the 2016/17 year, and the work will be tendered early in 2017/18. When completed, the additional storage capacity will provide resilience for the Plains water supply. It is intended that construction will be completed by Christmas 2017. $9,500 has been spent in the 2016/17 year, with the remaining funds being carried over to 2017/18.

Plains resource consents Waitakaruru discharge In 2016/17 the detailed design work and the resource consent application process were progressed for the Waitakaruru treated water discharge. At the time of writing this report, the Council was awaiting the outcome of its application from Waikato Regional Council. The work will be then be completed during a shut down in June/July 2018. $13,000 was spent on this project in 2016/17.

Connection of Karangahake and Mackaytown supplies to Paeroa supply The project connecting Karangahake and Mackaytown to the Paeroa supply commenced in early 2016, with construction completed in March and April 2016/17 for Mackaytown and Karangahake respectively. The new supply will achieve NZ drinking water standards, provide new water storage, and solve the issue of dirty water following rain fall events. $442,000 was spent in 2016/17. We also received subsidy of $750,000 from the Ministry of Health for this project.

Kaimanawa connection with Plains or Paeroa The design work for the connection of Kaimanawa to either the Paeroa or Plains water supply was progressed in 2016/17 and construction will commence in 2017/18. The consent for the current supply expires in June 2018. $20,000 was spent in 2016/17.

District wide water treatment asset renewals These asset renewals involve the replacement of equipment to ensure our continued compliance with drinking water standards. $36,000 was spent on renewals in 2016/17.

What didn’t happen in 2016/17? The Paeroa and Plains reticulation zone metering project

The project was deferred due to resources being allocated to other projects. This project involves metering smaller zones of the Paeroa and Plains water networks to allow us to monitor for excessive consumption or water loss. $66,000 has been carried forward to 2017/18.

Plains reticulation booster and transfer pump The installation of a reticulation booster and transfer pump will resolve low water pressure issues for the Turua and Orongo areas. This project has been deferred to 2017/18 until the approach for the Kaimanawa supply is finalised as this could influence what happens with the transfer pump installation. $145,000 has been carried forward to 2017/18.

Waitakaruru treatment plant upgrade to NZDW standards This project is deferred until resource consent has been obtained; additionally, the shut down required for the upgrade will need to occur in the winter months of 2018 prior the busy calving period. $1,000,000 has been carried forward to 2017/18.

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Operating statement for water supply

Actual Annual Plan Actual 2017 2017 2016 $000 $000 $000 Expenditure

Treatment 1,808 1,335 1,556 Reticulation 705 540 526 Intakes and Headworks 337 351 322 Fixed Costs 173 201 248 Overheads 828 828 811 Pumpstations 8 24 7 Major Maintenance 5 149 211 Other 274 360 279 Depreciation/Assets written off 1,776 1,330 1,852 Interest 796 796 983

6,710 5,914 6,795 Revenue

Fees, Charges and Other Income 5 107 19 External Subsidies 749 1,459 4,177 Targeted Rates 4,855 6,129 6,193 General Rates 0 0 0

5,609 7,695 10,389 Operating Surplus / (Deficit) (1,101) 1,781 3,594

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Funding impact statement for water supply for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 0 0 0 Targeted rates 6,134 6,256 4,855 Subsidies and grants for operating purposes 0 0 0 Fees and charges 0 0 5 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 6,134 6,256 4,860 Applications of Operating Funding Payments to staff and suppliers 3,007 3,137 3,310 Finance Costs 1,117 1,213 754 Internal charges and overheads applied 811 828 870 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 4,935 5,178 4,934 Surplus / (Deficit) of Operating Funding (A - B) 1,199 1,078 (74) Sources of Capital Funding Subsidies and grants for capital expenditure 1,753 3,173 749 Development and financial contributions 0 0 0 Increase (decrease) in debt 1,526 (1,792) 3,042 Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 3,279 1,381 3,791 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 - to improve the level of service 4,249 282 1,692 - to replace existing assets 229 2,177 186 Increase (decrease) in reserves 0 0 1,839 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 4,478 2,459 3,717 Surplus / (Deficit) of Capital Funding (C - D) (1,199) (1,078) 74 Funding Balance ((A - B) + (C - D)) 0 0 0

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Wastewater The wastewater activity is one of our core services and involves the collection, treatment and safe disposal of wastewater. We provide and operate piped sewer networks and treatment plants for seven urban townships in the Hauraki District.

Effects on the community The Wastewater Group ensures the sanitary collection and safe treatment and disposal of wastewater to cater for basic human needs for a safe standard of living across the District. The provision of services within the Wastewater Group assists in enabling communities to function in a healthy environment, with appropriate mechanisms in place to dispose of wastewater in an environmentally appropriate way.

The Wastewater Group primarily contributes to the following

Community Outcome:

Interactive Hauraki

Sustainable Hauraki

Prepared Hauraki

86%


E – 57 2015-25


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Result 2016/17


Level of Service: Council provides Wastewater services at agreed levels of service.

Measure: Percentage of users satisfied with the quality of wastewater services provided. Method of measurement: * Customer satisfaction survey Target 2015-25: Equal to or greater than 95% of customers satisfied

2016/17

Achieved: The 2017 satisfaction survey showed that 97% of residents were satisfied with the quality of wastewater services provided.

2015/16


2014/15


Level of Service: Protection is provided to the community and the environment.

Measure: Number of dry weather overflows from pump stations and/or the wastewater network. Method of measurement: Service request database Target 2015-25: <1 pump-station overflow per 20 pump stations per

year. <15 overflows from the pipe network per 100km of

wastewater pipe length per annum.

2016/17

Achieved: 0.85 pump-station overflows per

20 pump stations. 3.79 overflows from the pipe

network per 100km of wastewater pipe.

2015/16

1.28 pump-station overflows and 9.50 pipe network overflows.




days Method of measurement: Service request database Target 2015-25: Emergency call-outs: 100% Urgent customer requests: 80% Priority customer requests: 80% Routine customer requests: 85%

2016/17

Not Achieved: 1 of 2 (50%) of emergency callouts

were responded to within 1 hour. 3 of 4 (75%) of urgent requests

were responded to within one hour.

57 of 77 (74%) of priority requests were responded to in less than four hours.

6 of 15 (40%) of routine customer requests were responded to within three working days.

The response times were impacted due to increased staff workload during storm events.

2015/16

100% emergency callouts, 73% urgent requests, 95% priority requests and 60% routine requests.



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Result 2016/17


Measure: The number of dry weather sewerage overflows from the territorial authority’s sewerage system, expressed per 1000 sewerage connections to that sewerage system. Method of measurement: The Customer Service Request Database will be used to determine the number of customer service requests/complaints that have been logged in respect of overflows. The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out. The level of service reporting spreadsheet is used to collate the incoming data, to calculate and report on performance. Target: Less than 25 per 1000 connections per annum

2016/17

Achieved: 10 complaints equalling 1.7 per 1000 connections.

2015/16

17 complaints equalling 2.8 per 1000 connections.

Measure: Compliance with the territorial authority’s resource consents for discharge from its sewerage system measured by the number of: a) abatement notices b) infringement notices c) enforcement orders, and d) convictions received by the territorial authority in relation to those resource consents. Method of measurement: Notices will be received via the Council’s document management system and reported to the Council Operations Committee. Target: a) 0 abatement notices b) 0 infringement notices c) 0 enforcement orders, and d) 0 convictions

2016/17

Achieved: No abatement, infringement or enforcement notices, and no convictions received or are expected.

2015/16

No abatement, infringement or enforcement notices received or are expected.

Measure: Where the territorial authority attends to sewerage overflows resulting from a blockage or other fault in the territorial authority’s sewerage system, the following median response times measured: a) attendance time: from the time that the territorial

authority receives notification to the time that service personnel reach the site, and

b) resolution time: from the time that the territorial authority receives notification to the time that service personnel confirm resolution of the blockage or other fault.

Method of measurement: The Customer Service Request Database will be used to determine the time that the customer service request/complaint was logged. The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out.

2016/17

Achieved: Median attendance time: 42 minutes Median completion time: 3 hours and 29 minutes

2015/16

Achieved: Median attendance time: 27 minutes Median completion time: 2 hours and 46 minutes

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Result 2016/17


The level of service reporting spreadsheet is used to collate the incoming data, calculate and report on performance. Target: Attendance time Less than 4 hours after notification Time to resolve problem Less than 4 hours after notification

Measure: The total number of complaints received by the territorial authority about any of the following: a) sewage odour b) sewerage system faults c) sewerage system blockages, and d) the territorial authority’s response to issues with its

sewerage system, expressed per 1000 connections to the territorial authority’s sewerage system. Method of measurement: The number of connections has been determined by the number of properties paying for wastewater services in their rates. The Customer Service Request Database will be used to determine the number of complaints received about the listed issues. Target: No more than 30 complaints per 1000 connections

2016/17

Achieved: Odour complaints: 0.66 per 1000

connections Fault complaints: 1.66 per 1000

connections Blockage complaints: 7.13 per

1000 connections Complaints about response: 0.0

per 1000 connections Total 9.45 complaints per 1000 connections.

2015/16

Odour complaints: 0.66 per 1000 connections

Fault complaints: 1.66 per 1000 connections

Blockage complaints: 7.46 per 1000 connections

Complaints about response: 0.0 per 1000 connections

Total 9.78 complaints per 1000 connections.

What else happened in 2016/17? Our progress towards each project or initiative this year Pump station cabinet renewals

This project involves the upgrade of all pump station controllers to an automated linked system and the replacement of roadside cabinets that have reached end of their useful life. In 2015/16 the tender process for the project commenced, with construction expected to be undertaken in 2016/17. $3,500 has been spent to date.

Karangahake to Paeroa wastewater line Design work for the construction of a wastewater line from Karangahake to Paeroa was well advanced in 2016/17, and construction should be completed within 2017/18. The wastewater line will be laid to coincide with the installation of a water main in a similar location. $65,000 was spent in 2016/17.

District wide SCADA upgrade

Some of our SCADA (Systems Control and Data Acquisition) upgrade was completed in 2016/17 ($15,000 was spent), with the remaining work to be completed in 2017/18. SCADA helps us to manage our wastewater pump stations and informs us when there are issues.

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District wide pond desludging

The ‘desludging’ of wastewater ponds across the District was undertaken in 2016/17; $21,000 was spent.

Kerepehi wastewater treatment plant upgrade The Kerepehi wastewater treatment plant was upgraded to accommodate waste from the Allied Faxi ice cream factory. The upgrade was completed in December 2016 and became operational in April 2017. $3.4 million was spent in total; however, $2.4 million will be funded by the primary user of the upgrade. The funds spent by Hauraki District Council included planned maintenance and capital works required at the treatment plant.

District wide replacement pump station equipment $22,000 was spent on the replacement of pump stations at Miro (Kerepehi), Mako (Whiritoa) and Kaikahu Road North (Kerepehi) pump stations.

What didn’t happen in 2016/17? The Waihi east manhole sealing project

A four year project that has been carried forward to 2017/18. The prioritisation of other projects meant that there were not enough resources available to progress this project in 2016/17.

District wide pipe renewals (Paeroa) The pipe renewals project to address stormwater infiltration into the wastewater network was not progressed in 2016/17 due to competing priorities and resource shortages. The funding has been carried forward to 2017/18.

Waihi dissolved air flow sludge process A project to divert ‘sludge’ from the wastewater ponds at Waihi was deferred from 2015/16 to 2016/17 as the project was dependent on the result of investigation and enabling works, which are still ongoing. The project has been further deferred to 2017/18 and $350,000 has been carried forward.

Kerepehi waveband renewals – no repairs were completed within 2016/17. Paeroa replacement screen – this project was not completed in 2016/17; funding has been carried

forward to 2017/18. Turua resource consents – the consent renewal is not required until 2017/18 so was not undertaken

in 2016/17; funding has been carried forward. Turua and Whiritoa inflow metering – these projects have been deferred due to resources being

allocated to other projects; funding has been carried forward to 2017/18.

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Operating statement for wastewater


Treatment 592 666 549 Reticulation 227 96 100 Fixed Costs 113 176 168 Overheads 365 365 354 Pumpstations 272 236 237 Major Maintenance 0 118 1 Other 206 246 346 Depreciation/Assets written off 747 847 692 Interest 458 458 365

2,980 3,208 2,812 Revenue

Fees, Charges and Other Income 76 504 71 External Subsidies 0 0 0 Targeted Rates 3,352 3,245 3,351 General Rates 0 0 0

3,428 3,749 3,422 Operating Surplus / (Deficit) 448 541 610

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Funding impact statement for wastewater for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 0 0 0 Targeted rates 3,247 3,271 3,352 Subsidies and grants for operating purposes 0 0 0 Fees and charges 40 41 76 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 3,287 3,312 3,428 Applications of Operating Funding Payments to staff and suppliers 1,506 1,503 1,411 Finance Costs 413 486 458 Internal charges and overheads applied 354 365 365 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 2,273 2,354 2,234 Surplus / (Deficit) of Operating Funding (A - B) 1,014 958 1,194 Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 Development and financial contributions 0 0 0 Increase (decrease) in debt 1,240 518 105 Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 1,240 518 105 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 2 - to improve the level of service 670 114 1,234 - to replace existing assets 1,584 1,362 63 Increase (decrease) in reserves 0 0 0 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 2,254 1,476 1,299 Surplus / (Deficit) of Capital Funding (C - D) (1,014) (958) (1,194) Funding Balance ((A - B) + (C - D)) 0 0 0

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Stormwater Our stormwater activity involves the removal of rainfall runoff from urban areas using a range of drainage systems to accept stormwater runoff (including natural watercourses, human-made drains, open channels, reticulated pipe networks and other structures).

Effects on the community The Stormwater Group helps ensure the safety of people’s lives and property in times of rainfall, by ensuring runoff is efficiently and effectively dealt with, to assist in achieving social and commercial certainty and avoiding the risk of flooding.

The Stormwater Group primarily contributes to the following

Community Outcome:

Prepared Hauraki

71%


E – 76 2015-25


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Result 2016/17


Level of Service: Stormwater systems protect houses from flooding in urban areas.

Measure: Percentage of customers satisfied with the stormwater services. Method of measurement: * Customer satisfaction survey. Target 2015-25: Equal to or greater than 70% of customers satisfied.

2016/17

Achieved: The 2017 satisfaction survey showed that 80%* of residents were satisfied with stormwater services.

2015/16


2014/15

2015 survey: 72% satisfied; target was 80%

Level of Service: A reliable stormwater service is provided.

Measure: The stormwater network is maintained to minimise the risk of blockages causing flooding. Method of measurement: Service Request database. Target 2015-25: <5 service requests relating to blockages per 1000 customers.

2016/17

Achieved: 3.8 service requests per 1000 properties relating to blockages were received.

2015/16

3.79 requests per 1000 properties.

2014/15 Cannot compare – new measure in 2015/16



days Method of measurement: Service Request database Target 2015-25: Emergency call-outs: 100% Urgent customer requests: 80% Priority customer requests: 80% Routine customer requests: 85%

2016/17

Not Achieved: 3 of 3 (100%) emergency call outs

were resolved within the target timeframe.

No urgent requests were received. 22 of 25 (88%) of priority requests

assessed to within the target timeframe.

49 of 63 (78%) of routine requests have been called back within the target timeframe.

2015/16

100% emergency callouts, 100% urgent requests, 84% priority requests, 87% routine requests.



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Result 2016/17


Measure: a) The number of flooding events that occur in a

territorial authority district. b) For each flooding event, the number of habitable

floors affected (expressed per 1000 properties connected to the territorial authority’s stormwater system).

Method of measurement: Location of at risk properties is known, inspect during event. The number of connections has been determined by the number of properties paying for the storm water services in their rates. Target: a) 0 flooding events b) 0 habitable floors affected

2016/17

Achieved: a) 0 flooding events. b) 0 habitable floors affected. The Department of Internal Affairs definition of a flooding event is ‘an overflow of stormwater from a council’s stormwater system that enters a habitable floor’. The definition of a habitable floor is ‘a floor of a building (including a basement) but does not include ancillary structures such as stand lone garden sheds or garages’. Based on these definitions there have been no flooding events that affected habitable floors.

2015/16

Not Achieved: One incident was reported where the basement of an uninhabited dwelling was flooded.

Measure: Compliance with the territorial authority’s resource consents for discharge from its stormwater system, measured by the number of: a) abatement notices b) infringement notices c) enforcement orders, and d) convictions, received by the territorial authority in relation to those resource consents. Method of measurement: Number of abatement/ infringement notices are counted. Target: a) 0 abatement notices b) 0 infringement notices c) 0 enforcement orders d) 0 convictions

2016/17

Achieved: No abatement or infringement notices, no enforcement orders and no convictions were received.

2015/16

Achieved: No abatement or infringement notices, no enforcement orders and no convictions were received.

Measure: The median response time to attend a flooding event, measured from the time that the territorial authority receives notification to the time that service personnel reach the site. Method of measurement: The Customer Service Request database will be used to determine the time that the customer service request/ complaint was logged. The field-staff job-sheets will be used to determine the time to site, and time to resolve (if the problem could be resolved during the event). The job-sheets are also used to record the details about the repair work carried out. The level of service reporting spreadsheet is used to collate the incoming data, calculate and report on performance. Target: Less than 60 minutes after notification.

2016/17

Not Applicable: No flooding eventsoccurred within 2016/17 as a result of an overflow from the Council’s stormwater system. The Department of Internal Affairs definition of a flooding event is ‘an overflow of stormwater from a council’s stormwater system that enters a habitable floor’.

2015/16

Not Achieved: One incident was reported in July 2015 where the basement of an uninhabited dwelling was flooded. The notification was reported on a Saturday by a neighbour and the response was attended to on the following Monday.

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Result 2016/17


Measure: The number of complaints received by a territorial authority about the performance of its stormwater system, expressed per 1000 properties connected to the territorial authority’s stormwater system. Method of measurement: The Customer Service Request database will be used to determine the number of complaints received about the issue. Target: No more than 5 complaints per 1000 properties

2016/17

Achieved: 25 complaints were received relating to blockages, which equates to 3.8 per 1000 properties.

2015/16

Achieved: 3.79 service requests per 1000 properties relating to blockages were received.

What else happened in 2016/17? Our progress towards each project or initiative this year

Waihi upgrades Open stormwater drains were piped in Roberts Street and Station Road in Waihi in 2016/17; $31,000 was spent.

Paeroa upgrades $32,000 was spent on Paeroa stormwater upgrades including piping in Normandy Road, Junction Road, and Coronation Street, investigating piping in Brenan Street, and contributing towards the Aorangi stream care project.

Kerepehi upgrades $21,000 was spent piping open drains in Kerepehi including upgrades in the following locations: Kerepehi Town Road, Kerepehi Marae, Rimu Street and corner of Rata and Kerepehi Town Road.

Turua upgrades $32,000 was spent to pipe the open drain in Waihou Street, Turua in 2016/17.

Whiritoa upgrades $7,500 was spent to upgrade the soak system in Moray Place, Whiritoa in 2016/17.

Kaiaua Hauarahi Stream upgrades

Discussions commenced between Waikato Regional Council, the Plains Ward Councillors, and the local community regarding the ongoing issues within the area. This dialogue will continue with the community, in particular to discuss what level of service the community is willing to pay for in order to address the flooding issues.

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What didn’t happen in 2016/17? Kaiaua Floodgates upgrades Work to upgrade the Kaiaua floodgates did not occur in 2016/17 due to the significant weather events that affected the Kaiaua coastline and caused numerous delays. The project will be completed in the 2017/18 year.


Operating statement for stormwater


Vegetation Control 10 13 12 Reticulation 39 34 39 Maintenance/Fencing/Culverts 3 14 11 Mechanical Cleaning 15 13 7 Floodgates 0 5 0 Pumps 9 10 6 Overheads 172 172 169 Other 115 166 166 Depreciation/Assets written off 336 414 328 Interest (31) (31) (7)

668 810 731 Revenue

Fees, Charges and Other Income 0 213 0 External Subsidies 0 0 0 Targeted Rates 688 730 707 General Rates 126 126 125

814 1,069 832 Operating Surplus / (Deficit) 146 259 101

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Funding impact statement for stormwater for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 125 129 126 Targeted rates 709 733 688 Subsidies and grants for operating purposes 0 0 0 Fees and charges 0 0 0 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 834 862 814 Applications of Operating Funding Payments to staff and suppliers 254 261 191 Finance Costs 0 0 (31) Internal charges and overheads applied 150 136 172 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 404 397 332 Surplus / (Deficit) of Operating Funding (A - B) 430 465 482 Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 Development and financial contributions 0 0 0 Increase (decrease) in debt (307) (333) (351) Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) (307) (333) (351) Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 - to improve the level of service 108 111 131 - to replace existing assets 15 21 0 Increase (decrease) in reserves 0 0 0 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 123 132 131 Surplus / (Deficit) of Capital Funding (C - D) (430) (465) (482) Funding Balance ((A - B) + (C - D)) 0 0 0

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Land Drainage Our land drainage activity involves: draining excess surface water and managing ground water

levels in five drainage districts, direct protection from river and tidal flooding in the area of

Waitakaruru to Miranda.

Effects on the community The impact of the provision of services within the Land Drainage Group is positive for those communities where the preservation and protection of the land’s farming capacity is required. Both assets and stock require protection in times of flood, and this Group helps to create a reliable environment for those affected.

The Land Drainage Group primarily contributes to the

following Community Outcome:

Prepared Hauraki

40%


E – 67 2015-25


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Result 2016/17


Level of Service: The Council provides Land Drainage services at agreed levels of service.

Measure: Percentage of affected customers satisfied with the land drainage services. Method of measurement: * Customer satisfaction survey. Target 2015-25: Equal to or greater than 75% of customers satisfied.

2016/17

Not Achieved: The 2017 satisfaction survey showed that 61%* of residents were satisfied with land drainage services.

2015/16


2014/15


Level of Service: Drainage services meet regulatory requirements.

Measure: The land drainage service is operated in compliance with regulatory requirements. Method of measurement: Number of abatement notices and enforcement notices received. Target 2015-25: No abatement notices or enforcement notices received.

2016/17

Achieved: No abatement or enforcement notices have been received in 2016/17.

2015/16 No notices received.


Level of Service: Pasture protection is provided.

Measure: Drainage schemes reliably maintain pasture production on land that would otherwise flood after 38mm or less of rainfall over a three day period. Method of measurement: Service Request database. Target 2015-25: No verified customer complaints about flood duration of >3 days are received.

2016/17

Achieved: No verified complaints. While there was large scale flooding in March/April 2017 and some low lying pasture flooded, this measure is based on 38mm or less of rainfall over three days. The flooding in 2016/17 was caused by events greater than 38mm of rain over a three day period.

2015/16

No verified customer complaints about flood duration of >3 days received.




days Method of measurement: Service Request database Target 2015-25: Emergency call outs: 100% Urgent customer requests: 80% Priority customer requests: 80% Routine customer requests: 85%

2016/17

Not Achieved: No emergency callouts have been

received. No urgent callouts have been

received. 6/7 (86%) of priority callouts have

been responded to within target timeframes.

13 of 18 (72%) of routine requests have been responded to within target timeframes.

2015/16

No emergency callouts, 100% urgent requests, 100% priority requests and 93% routine requests responded to within target timeframes.


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Result 2016/17



Mandatory service target

Result 2016/17


Measure: The major flood protection and control works that are maintained, repaired and renewed to the key standards defined in the local authority’s relevant planning documents (such as its activity management plan, asset management plan, annual works programme or long term plan). Method of measurement: GPS Survey of stopbank level. Design flood level from statistical analysis of tidal records, and hydraulic design of flood profiles. Target: 100% or more of the stopbank length, on inspection, is greater than the design flood level.

2016/17

Not Achieved: 93% of stopbank length exceeds the design flood level. In 2016/17 Council considered and approved a proposed work programme for 100% of stopbanks to achieve the design flood level. However, work could not be undertaken in 2016/17 due to adverse weather conditions.

2015/16

Not Achieved: 93% of stopbank length exceeds the design flood level. A proposed work programme and costs for 100% of stopbanks to achieve the design flood level will be considered by Council in the next year.

What else happened in 2016/17? Our progress towards each project or initiative this year The land drainage activity was business as usual in 2016/17.

What didn’t happen in 2016/17? Due to a number of weather events the following projects did not occur in 2016/17: Eastern Plains Drainage District terrace stopbank renewals Western Plains Drainage District Poaurua Maukoro structure Hot Springs Canal tributary stopbank reconstruction Karito Canal stopbank renewals (Western Plains Drainage District) - flood protection Maukoro Canal Left Bank stopbank renewals (Western Plains Drainage District) - flood protection

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Operating statement for land drainage


Vegetation Control 130 184 143 Maintenance/Fencing/Culverts 14 12 11 Mechanical Cleaning 157 180 134 Floodgates 15 29 19 Pumps 321 257 163 Overheads 217 215 211 Other 60 59 45 Depreciation/Assets written off 168 232 162 Interest (126) (126) (110)

956 1,042 778 Revenue


1,124 1,108 1,107 Operating Surplus / (Deficit) 168 66 329

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Funding impact statement for land drainage for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 164 169 167 Targeted rates 934 966 957 Subsidies and grants for operating purposes 0 0 0 Fees and charges 0 0 0 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 1,098 1,135 1,124 Applications of Operating Funding Payments to staff and suppliers 712 748 697 Finance Costs 0 0 0 Internal charges and overheads applied 92 96 91 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 804 844 788 Surplus / (Deficit) of Operating Funding (A - B) 294 291 336 Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 Development and financial contributions 0 0 0 Increase (decrease) in debt 14 (61) (336) Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 14 (61) (336) Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 - to improve the level of service 0 0 0 - to replace existing assets 308 230 0 Increase (decrease) in reserves 0 0 0 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 308 230 0 Surplus / (Deficit) of Capital Funding (C - D) (294) (291) (336) Funding Balance ((A - B) + (C - D)) 0 0 0

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Solid Waste The solid waste activity consists of providing rubbish and recycling collection, waste minimisation, recycling, education and landfill aftercare.

Effects on the community The aim of the Solid Waste Group is to ensure the sanitary and safe collection and disposal of recycling and solid waste, to help protect the social and environmental wellbeing of the Hauraki community, and to implement recycling initiatives to ensure environmental sustainability. The provision of services within the Solid Waste Activity assists in enabling communities to function in a healthy, comfortable and safe environment, with appropriate mechanisms for solid waste disposal in an environmentally appropriate manner.

The Solid Waste Group primarily contributes to the following

Community Outcomes:

Interactive Hauraki

Sustainable Hauraki

Prepared Hauraki

67%


E – 84 2015-25


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Result 2016/17


Level of Service: Collection systems and waste processing facilities are convenient and accessible.

Measure: Percentage of users satisfied with the kerbside collection service. Method of Measurement: * Customer satisfaction survey. Target 2015-25: Equal to or greater than 85% of users satisfied.

2016/17

Achieved: The 2017 satisfaction survey showed that 91%* of residents were satisfied with the kerbside collection services.

2015/16


2014/15


Measure: A transfer station will be open in the District every day except for public holidays. Method of Measurement: Transfer station daily record summary. Target 2015-25: 100% open every day (except public holidays).

2016/17

Achieved: A transfer station was open in the District every day except for public holidays.

2015/16

Open every day except public holidays

2014/15

Open every day except public holidays

Level of Service: Solid Waste services meet regulatory requirements.

Measure: The Solid Waste service is operated in compliance with legal requirements. Method of Measurement: Number of abatement notices and enforcement notices received. Target 2015-25: No abatement notices or enforcement notices received.

2016/17

Achieved: No abatement or enforcement notices have been received.

2015/16

No notices received.


Level of Service: Adverse effects of waste on the environment are minimised.

Measure: Percentage of waste diverted from landfill by recycling or composting within Council provided waste services. Method of Measurement: Quarterly reports from contractor. Target 2015-25: >55% of waste diverted from landfill.

2016/17

Not Achieved: 47% of kerbside refuse was diverted from landfill and 25% of refuse transfer station waste was diverted from landfill.

2015/16

46% of waste diverted from landfill.


Level of Service: Reliable solid waste collection is provided.

Measure: Number of days that collection is not completed on the scheduled day for each collection area that resulted in complaints. Method of Measurement: Service request database. Target 2015-25: <30 complaints (that collection not completed) per 1000 customers per annum.

2016/17

Achieved: There were <1 complaint received per 1000 customers regarding missed collections.

2015/16

22 complaints / 3 per 1000 customers

2014/15

One collection was not completed on the scheduled day; target was 2 or less days

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Result 2016/17



Measure: Customer requests, where the customer requests to be contacted, are responded to within target timeframes: Complaints about missed collections

(responding phone call by end of day following complaint)

Littering (fly tipping) is cleaned up (within 3 working days)

Recycle bins provided (delivered in time to miss no more than 1 collection day)

Routine customer requests (call back <3 working days)

Method of Measurement: Service request database Target 2015-25: Missed collections: 100% Littering (fly tipping): 100% Recycle bins: 100% Routine request: 85%

2016/17

Not Achieved: 33 of 83 (40%) of missed

collection requests were responded to within target timeframes.

16 of 39 (41%) littering (fly tipping) requests were responded to within target timeframes.

84 of 108 (78%) recycle bin requests have been responded to within target timeframes.

14 of 27 (52%) routine requests were responded to within target timeframes.

Processes have been reviewed with the aim of improving response times to service requests.

2015/16

Customer requests: 67% missed collections, 62.5% littering (fly tipping), 90% recycle bin, 63% routine.



What else happened in 2016/17? Our progress towards each project or initiative this year Paper for Trees programme

In 2016/17 we contributed funding to 26 schools and preschools in the Paper4trees programme in the Hauraki District. By recycling 41 tonnes of paper and cardboard, the schools and preschools in the District earned a total of 165 native trees to plant at school or in the community. This has saved 325 cubic metres of landfill space and prevented 220 tonnes of carbon emissions. This programme aims to develop positive lifelong attitudes to waste minimisation in children, which will have a positive spin-off of reducing waste volumes in future years.

Enviroschools

In 2016/17 we provided funding for the Enviroschools and Zero Waste programmes for schools in our District. Enviroschools aims to develop life-long waste awareness and responsibility in children, which will result in reduced waste volumes in future years. The Zero Waste education programme is carried out using external teachers to educate the children about sustainability. Their lessons cover different topics as they progress through the next classes which give the children the whole curriculum before they leave primary school to college. Each participating school in the District has the choice of either the Enviroschools or Zero Waste Education programmes. 10 schools are participating in the Enviroschools programme and 22 schools are participating in the Zero Waste programme.

Landfill remediation – Kaiaua and Kaihere In 2016/17 we gained consent from Waikato Regional Council to remove the waste that had emerged on the Kaiaua shoreline from a historic landfill. The site is now fully remediated and planting will occur

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in Spring 2017. The Council continues to monitor the Kaihere landfill for negative effects and will take appropriate action if necessary.

What didn’t happen in 2016/17? There were no planned projects that didn’t happen in 2016/17.


Operating statement for solid waste


2017 2017 2016

$000 $000 $000

Expenditure

Refuse Collection 211 188 219

Closed Tip Sites 564 75 (235)

Transfer Stations 242 214 237

Other 70 69 60

1,087 546 281

Revenue





500 498 753

Operating Surplus / (Deficit) (587) (48) 472

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Funding impact statement for solid waste for the year ended 30 June 2017

Long-Term Long-Term

Plan Plan Actual

2016 2017 2017

($000) ($000) ($000)

Sources of Operating Funding

General rates, uniform annual general charge, rate penalties 473 242 235

Targeted rates 174 180 191

Subsidies and grants for operating purposes 56 57 72

Fees and charges 72 73 2

Internal charges and overheads recovered 0 0 0

Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0

Total Operating Funding (A) 775 552 500

Applications of Operating Funding

Payments to staff and suppliers 640 392 886

Finance Costs 0 0 (2)

Internal charges and overheads applied 159 159 161

Other operating funding applications 0 0 0

Total Applications of Operating Funding (B) 799 551 1,045

Surplus / (Deficit) of Operating Funding (A - B) (24) 1 (545)

Sources of Capital Funding

Subsidies and grants for capital expenditure 0 0 0

Development and financial contributions 0 0 0

Increase (decrease) in debt 1 (4) 549

Gross proceeds from sale of assets 0 0 0

Lump sum contributions 0 0 0

Other dedicated capital funding 0 0 0

Total Sources of Capital Funding (C) 1 (4) 549

Applications of Capital Funding

Capital Expenditure

- to meet additional demand 0 0 0

- to improve the level of service 0 0 3

- to replace existing assets 0 0 0

Increase (decrease) in reserves (23) (3) 1

Increase (decrease) of investments 0 0 0

Total Applications of Capital Funding (D) (23) (3) 4

Surplus / (Deficit) of Capital Funding (C - D) 24 (1) 545

Funding Balance ((A - B) + (C - D)) 0 0 0

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Community Services Community Services involves the provision of community recreation services and community facilities to help make our district a great place to live.

Effects on the community The provision of services within the community services group of activities primarily focuses on improving the social and cultural wellbeing of the community. Recreational facilities, such as parks and reserves, have a positive impact in the community and relate to aspects of life that are important for a person’s happiness, quality of life and welfare. Libraries also service the educational and cultural needs of the community, at a low cost to the user, making historical, cultural, educational and electronic resources accessible for all. Other facilities such as pensioner housing give people in the community the opportunity to have access to basic housing needs in an affordable way, creating a positive impact in the lives of those who utilise these facilities.

The Community Services Group primarily contributes to the

following Community Outcomes:

Lifestyle Hauraki

Progress Hauraki

Prepared Hauraki

50%


E – 91 2015-25


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Operating statement for community services


Recreation 4,335 3,917 3,877 Community Facilities 1,803 1,736 1,801

6,138 5,653 5,678 Revenue

Fees, Charges and Other Income 579 579 574 External Subsidies 10 3 5 Targeted Rates 1,868 1,838 1,880 General Rates 3,075 3,075 2,917

5,532 5,495 5,376 Operating Surplus / (Deficit) (606) (158) (302)

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Funding impact statement for community services for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 2,917 3,075 3,075 Targeted rates 1,829 1,866 1,868 Subsidies and grants for operating purposes 3 3 10 Fees and charges 561 574 579 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 5,310 5,518 5,532 Applications of Operating Funding Payments to staff and suppliers 3,307 3,432 3,702 Finance Costs 287 282 0 Internal charges and overheads applied 1,216 1,253 1,539 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 4,810 4,967 5,241 Surplus / (Deficit) of Operating Funding (A - B) 500 551 291 Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 Development and financial contributions 0 0 0 Increase (decrease) in debt (156) 338 220 Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) (156) 338 220 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 - to improve the level of service 534 1,122 885 - to replace existing assets 151 141 334 Increase (decrease) in reserves (341) (374) (714) Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 344 889 505 Surplus / (Deficit) of Capital Funding (C - D) (500) (551) (285) Funding Balance ((A - B) + (C - D)) 0 0 6

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Community Recreation The community recreation activity helps to meet our district’s recreational, sporting and educational expectations. It includes providing: libraries swimming pools the Waihi events centre sports fields and recreational reserves a district sports coordinator.


Result 2016/17


Level of Service: Library services are provided in a customer focused and effective way to support the recreational and educational needs of the community.

Measure: Percentage of library users satisfied with library services. Method of measurement: * Customer satisfaction survey. Target 2015-25: >95% of customers satisfied.

2016/17

Not Achieved: The 2017 satisfaction survey showed that 95%* of residents were satisfied with the library services provided.

2015/16


2014/15

2015 survey: 91% satisfied; target was >90%

Level of Service: Libraries attract a wide audience.

Measure: The number of library members is increasing. Method of measurement: Library Management System. Target 2015-25: >49% of District population are members.

2016/17

Achieved: Library membership totalled 9441 as at 30 June 2017, this is 55% of the District population.

2015/16

55% of District population

2014/15

51.6% of District population

Measure: The number of electronic and hard-copy books issued. Method of measurement: Library Management System and Electronic Database. Target 2015-25: >140,000 electronic and hard-copy books issued per annum.

2016/17

Not Achieved: Total number of issues for 2016/17 was 126,473 items.

2015/16

Total items issued 127,795


E – 94 2015-25


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Result 2016/17


Level of Service: Council operated swimming pool facilities are safe for users and staff.

Measure: Number of accidents each year at Council operated swimming pools as a result of poor design or maintenance. Method of measurement: Monthly reports prepared by Pool Supervisor and Service Request Database. Target 2015-25: No accidents per operating season per pool.

2016/17

Not Achieved: There were some minor incidents (cuts and abrasions) caused by loose tiles at the Ngatea pool in the second quarter and one accident recorded at the Ngatea pool in the third quarter due to poor design or maintenance of the changing room floors.

2015/16

No accidents due to poor design or maintenance.

2014/15

No accidents due to poor design or maintenance.

Measure: Percentage of pool users satisfied with the operation of Council swimming pools. Method of measurement: * Customer satisfaction survey. Target 2015-25: >90% of customers satisfied.

2016/17

Not Achieved: The 2017 satisfaction survey showed that 90%* of residents were satisfied with the operation of Council swimming pools.

2015/16


2014/15


Level of Service: The Council will provide sports fields that meet the requirements of its users.

Measure: Number of justified complaints regarding sports fields playing surface condition. Method of measurement: Service Request Database. Target 2015-25: <6 recorded complaints per year.

2016/17

Achieved: One justified complaint received in 2016/17 regarding the condition of sports fields playing surfaces.

2015/16

4 complaints received.


Level of Service: Safe playground facilities are provided.

Measure: Playground facilities are regularly inspected to ensure they are safe and compliant with playground safety standards. Method of measurement: Playground audit reports completed by Construction & Maintenance (C&M) staff. Target 2015-25: Playground inspections are: weekly in primary school holiday periods fortnightly in high use sites monthly in low use sites.

2016/17

Not Achieved: 205 of 238 (86%) playground inspections were completed in 2016/17. Some audits in the new inspection schedule were missed over the Christmas break (second quarter); processes have since been improved. 112/142 (79%) weekly

inspections in primary school holiday periods

49/52 (94%) fortnightly inspections in high use sites

44/44 (100%) monthly inspections in low use sites

2015/16

90% of inspections and audits were completed.

2014/15

Monthly inspections and audits were completed.

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Result 2016/17


Level of Service: Park facilities that are provided meet community expectation.

Measure: Percentage of users satisfied with services and facilities provided at the Districts parks and reserves. Method of measurement: * Customer satisfaction survey. Target 2015-25: >90% of customers satisfied.

2016/17

Achieved: The 2017 satisfaction survey showed that 92%* of residents were satisfied with the services and facilities provided at the District Parks and Reserves.

2015/16


2014/15


Level of Service: Foster the participation of residents in sports, recreation and leisure.

Measure: Extent of Sport Waikato involvement in the coordination of training/ advisory sessions for sporting clubs within the District. Method of measurement: Sports Coordinator’s 6 monthly report. Target 2015-25: At least 15 sporting club training/advisory sessions per annum.

2016/17

Achieved: 26 sporting club training/advisory sessions were held.

2015/16

23 sports/active living related training sessions completed.

2014/15

22 sports/active living related training sessions completed.



Our progress towards each project or initiative this year New library books and e-books

$140,000 was spent on new books and resources during 2016/17, bringing the total lending stock available to 38,316 as at July 2017.

Paeroa Wharf Street and Mackay Street Development – Paeroa

In 2016/17 Mackay Street in Paeroa was redesigned and redeveloped to become a pedestrian friendly, shared space, with clear linkages between the main street shopping area, the new Paeroa library and the Paeroa domain. The new space was officially opened with the Paeroa Library in May 2017. $700,000 was spent on the redevelopment in 2016/17. The development of Wharf Street will also be progressed in 2017/18, which will link the Hauraki Rail Trail with the main street. In 2016/17 the design of the Ohinemuri jetty development was commissioned, however this work is ongoing. $3,000 has been spent so far on the project.

Paeroa Library construction Paeroa library which had a current floor area of 200m² had been operating beyond its capacity for quite some time. As a result the Council identified the need for a new library facility with a floor area of 425m² to be constructed in Paeroa to cater for current and potential future trends within the libraries activity. Planning for the new Paeroa library project started in 2015 with the resulting new facility opening in May 2017. The final cost of this project was $1.7 million. The facility includes a meeting room and public toilets.

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Primrose Hill walkway Construction commenced on a pedestrian walkway around Primrose hill in Paeroa. The walkway will provide a safe route for children walking to schools in the area. Due to rain, the project is still in progress and will be completed later in 2017. $4,000 was spent in 2016/17.

Hutchinson Reserve in Paeroa

The Hutchinson Reserve in Paeroa was gifted to us for the purpose of outdoor recreation and education. We have developed a concept plan for the reserve and will undertake the improvement works between 2015 and 2017. In 2016/17 fencing was completed, and a gated entranceway was constructed ($7,000 spent). As the project is a Significant Natural Area (SNA) a grant of $40,000 was received for this work from Waikato Regional Council. In 2017/18 plans will be developed for a carpark area, and wet land area with natives with any remaining funding.

Paeroa swimming pools renewals

The necessary preparatory work for the repainting of the Paeroa swimming pool was completed in 2016/17; however, the repainting will be completed later in 2017 once the weather is suitable but before the swimming season opens. The funding will be carried forward for this project.

Karangahake area redevelopment Planning is underway to rectify the parking and public toilet issues currently being experienced in the Karangahake area, as a result of the popularity of the area with tourists and Hauraki Rail Trail users. The project should commence in the 2017/18 year. As an interim measure, additional portaloo toilets have been made available.

Plains Ngatea pool heating conversion

The heating of the Ngatea swimming pool was converted from LPG to electric to achieve cost savings. The conversion was completed in time for the 2016/17 swimming season. $72,000 was spent.

Hugh Hayward domain watering system In 2016/17 a travelling irrigator was purchased to irrigate Hugh Hayward domain. A health and safety risk assessment is being prepared before the irrigator is connected to water supply. $15,000 was spent in 2016/17.

Turua jetty and ramp area development including signage The development of the Turua jetty and boat ramp area was part completed in 2016/17. The carpark size was increased during 2016/17; however, the remaining maintenance work on the jetty and ramp area will be carried over to 2017/18.

Dudding Reserve developments A new community notice board, landscaping, replacement of park furniture, signage and a shelter are planned for the Dudding Reserve area. This is an ongoing community project to be completed in conjunction with the Hauraki Plains College. In 2016/17 new soil, grass seed and trees were planted around the perimeter of the reserve, and the design for a new structure at the reserve was completed. $2,000 was spent in 2016/17.

Waihi Gilmour parking on George Street

An overflow car park in George Street for the Gilmour Lake reserve in Waihi is almost complete, and will be finished in 2017/18. $65,000 was spent in 2016/17.

Waihi pool repaint The Waihi swimming pool was repainted in October 2016 in time for the swimming season. $43,000 was spent in 2016/17.

Gilmour Lake BBQ In 2016/17 a community BBQ facility was installed at Gilmour Lake in Waihi and a wet weather canopy for the BBQ was built by the Lions. $23,000 was spent.

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Whiritoa playground

The playground at Whiritoa was renewed to resolve safety issues, and the new playground is now designed to withstand the coastal elements. $45,000 was spent in 2016/17.

Waikino swing bridge car park A stakeholder working party consisting of NZTA, DoC, HDC and Iwi has been established to consider the road corridor between Waihi and Paeroa. The Waikino swing bridge car park and other developments will be addressed once the working party finalises its road corridor strategy.

Events Centre For the first time since the events centre was built in 1998, the floors have been stripped, resealed and all lines repainted to reflect the current sports that are played in the centre. $23,000 was spent in 2016/17.

Upper Seddon Street streetscape Concept drawings for the upper Seddon Street streetscape were prepared in 2016/17 with input from the key stakeholder working party. $22,000 was spent. Consultation on the concept will be undertaken in 2018 as part of the 2018-28 Long Term Plan process.


Turua domain carpark area development

$15,000 was allocated for the development of the Turua domain car park area in 2016/17. The project has been carried over to 2017/18.

Waitakaruru domain reseal

$25,000 was allocated to reseal the Waitakaruru domain car park in 2016/17. This project has been carried over the 2017/18.

Install Christmas lights in main streets – Ngatea and Paeroa

Due to the cost of traffic management for the safe installation of lighting on the state highways, a permanent solar lighting display will be installed instead in the main streets of Paeroa and Waihi. These projects will be completed in 2017/18.

Pohutukawa Reserve changing rooms conversion

$15,000 was allocated to convert the Pohutukawa Reserve change rooms. The project will no longer convert the changing rooms, but will repaint and refresh the existing mens and womens changing rooms in the 2017/18 year.

Ngatea main street entrances

$41,000 was allocated to upgrade the Ngatea main street entrances; however, this work has been deferred to be incorporated into a town plan for Ngatea as a whole. Once the plan is developed the timing of projects such as this will be considered.

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Operating statement for community recreation


Libraries 1,116 1,044 940 Sportsfields 581 517 566 Recreation Reserves 1,777 1,499 1,621 Events Centre 153 147 120 Swimming Pools 608 607 536 Sports Co-ordinator 100 102 94

4,335 3,916 3,877 Revenue

Fees, Charges and Other Income 132 128 132 External Subsidies 1 0 0 Targeted Rates 1,554 1,554 1,564 General Rates 2,137 2,138 2,018


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Community Facilities Our community facilities activity provides a range of facilities to meet public health needs (public toilets, cemeteries), social and cultural needs (public halls, pensioner housing) and amenity needs (non-recreation reserves).


Result 2016/17


Level of Service: Council managed halls are clean and well maintained and meet the needs of the community.

Measure: Satisfaction of hall users with the cleanliness and maintenance standard of the halls. Method of measurement: Service Request Database, direct contact and written correspondence. Target 2015-25: <36 complaints per year.

2016/17

Not Achieved: 37 complaints have been received regarding the cleanliness and maintenance of halls.

2015/16


2014/15

In three of 12 months, three or more complaints were received; 26 received in total in 2014/15 – target was less than 3 complaints per month

Level of Service: Pensioner housing units are affordable.

Measure: Elderly tenants can afford to continue occupying the Council pensioner units. Method of measurement: Ministry of Business, Innovation and Employment website as at 1 February of previous year. Target 2015-25: Rental fees are no more than 85% of local current market rates.

2016/17

Achieved: Rental fees are less than 85% of local current market rent of $180 per week: Rental for one bedroom unit is

$110 a week Rental for bedsitter is $116 a

week.

2015/16

73% of current local market rate.

2014/15

69.3% of current local market rate.

Level of Service: The Council’s pensioner units are maintained to a comfortable and safe standard.

Measure: Percentage of tenants satisfied with the comfort and safety of the units. Method of measurement: Annual tenant satisfaction survey. Target 2015-25: >85% of tenants satisfied with the comfort and safety of the units.

2016/17

Achieved: Survey results shows that 94% of tenants are satisfied with the comfort and safety of the units.

2015/16

The survey was not completed in the 2015/16 year.

2014/15

93% of tenants satisfied.

E – 105 2015-25


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Result 2016/17


Level of Service: Public toilets are clean and maintained, meeting the needs of the community and the travelling public.

Measure: Number of justified complaints regarding whether public toilets are clean, maintained and sufficiently stocked with consumables. Method of measurement: Service Request Database and written correspondence. Target 2015-25: <50 complaints per annum.

2016/17

Not Achieved: 70 justified complaints were received related to public toilets. The increased number of complaints for public toilets reflects increased usage of the toilet facilities. The appropriateness of this measure will be considered as part of the development of the 2018-28 Long Term Plan.

2015/16


2014/15


Level of Service: The Council provides efficiently serviced and well maintained cemeteries.

Measure: Number of requests for general maintenance at cemeteries per year. Method of measurement: Service Request Database. Target 2015-25: <10 requests collectively for general maintenance across all Council cemeteries per year.

2016/17

Achieved: Five requests for maintenance at cemeteries have been received.

2015/16

17 requests for maintenance received.

2014/15

Six requests for maintenance received.


Our progress towards each project or initiative this year Pensioner housing renewals

Ongoing maintenance occurred during 2016/17 with $100,000 spent in total across the District. New showers were installed in some Ngatea units, the units in Junction Road, Paeroa were insulated and reroofed, and the ongoing programme of refurbishment continued as tenants moved out.

Pukerimu cemetery development The planning and design of the Pukerimu cemetery, Paeroa, extension and ashes wall development commenced in 2016/17. Construction will occur in 2017/18.

Campervan dump station, Railway Reserve The design work commenced in 2016/17 for the relocation of the campervan dump station at Railway Reserve toilets, Paeroa. Remaining funding will be carried forward to 2017/18.

Paeroa domain toilets The public toilets at the Paeroa domain were scheduled for replacement in 2014/15, however this was deferred until the Paeroa library (and public toilet) was completed to see whether new toilet facilities were required at the domain. The decision to upgrade has not yet been made, however $30,000 was spent in 2016/17 on minor refurbishments to these toilets.

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Paeroa war memorial hall A new portable, concertina stage was purchased for Paeroa hall which offers variable stage heights for different users’ needs. $4,000 was spent in 2016/17.


New Kaiaua toilets The upgrade or relocation of the Kaiaua public toilets has been deferred to 2018/19 while options for this project are explored.

Operating statement for community facilities


Cemeteries 374 333 391 Community Halls 253 257 250 Pensioner Housing 370 355 322 Public Toilets 519 505 512 Interest 286 286 326

1,802 1,736 1,801 Revenue



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Community Development We work with communities and agencies to promote a better quality of life. We have a strong focus on ‘helping our communities to help themselves’ and an emphasis on community initiatives and community growth through economic development programmes. The Community Development Group includes the Community Growth and Community Initiatives activities.

Effects on the community The Community Development Group is primarily focused on encouraging economic and social growth for the District communities. This group of activities celebrates and promotes the Hauraki District as a great environment to live, work and experience life, with opportunities for all. Besides strongly supporting economic development initiatives, the Community Development Group provides an avenue for Council to support community initiatives focused on social well-being. The Community Development

Group primarily contributes to the following Community

Outcomes:

Lifestyle Hauraki

Progress Hauraki

Interactive Hauraki

100%

Achieving ourservice targets

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The successful Hauraki Rail Trail

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Operating statement for community development


Community Growth 964 935 960 Community Initiatives 1,614 1,031 1,016

2,578 1,966 1,976 Revenue

Fees, Charges and Other Income 884 0 2 External Subsidies 0 0 0 Targeted Rates 493 492 489 General Rates 1,451 1,451 1,265

2,828 1,943 1,756 Operating Surplus / (Deficit) 250 (23) (220)

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Funding impact statement for community development for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 1,271 1,344 1,451 Targeted rates 483 497 493 Subsidies and grants for operating purposes 0 0 0 Fees and charges 0 0 0 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 1,754 1,841 1,944 Applications of Operating Funding Payments to staff and suppliers 1,193 1,222 1,910 Finance Costs 0 0 0 Internal charges and overheads applied 362 378 378 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 1,555 1,600 2,288 Surplus / (Deficit) of Operating Funding (A - B) 199 241 (344) Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 884 Development and financial contributions 0 0 0 Increase (decrease) in debt 0 0 3,767 Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 0 0 4,651 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 - to improve the level of service 0 0 599 - to replace existing assets 0 0 0 Increase (decrease) in reserves 199 241 3,708 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 199 241 4,307 Surplus / (Deficit) of Capital Funding (C - D) (199) (241) 344 Funding Balance ((A - B) + (C - D)) 0 0 0

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Community Growth The community growth activity involves: progressing economic development strategically across the District

including strategic initiatives, plans or actions maximising opportunities for new industry, commercial development

and existing businesses supporting visitor information services and tourism promotion supporting township promotion.


Result 2016/17


Level of Service: The Council will work alongside others to recognise and develop opportunities for growth within the local business communities.

Measure: The Council is aware of business issues and encourages growth opportunities and events. Method of measurement: Business After 5 (BA5) meeting attendance. Target 2015-25: A Council representative will attend Business After 5 meetings 11 months of the year in Waihi and Paeroa, and quarterly in Ngatea. The Economic Development Manager will report on Council’s economic development activities at two Business After 5 meetings each year in Waihi and Paeroa, and one in Ngatea.

2016/17

Achieved: At least one Council representative has attended all 18 BA5 meetings held in Ngatea, Waihi and Paeroa.

2015/16

At least one Council representative has attended all BA5 meetings in Waihi, Ngatea and Paeroa and the Positively Promoting the Plains meetings.

2014/15

19 BA5 meetings attended.

Level of Service: The community is aware of Economic Development initiatives.

Measure: The community is updated on economic development matters. Method of measurement: HDC news page, website electronic records. Target 2015-25: Quarterly articles published in the HDC news page and website.

2016/17

Achieved: Four articles were published in the HDC news page, two articles in the Waihi Leader, one article in the Hauraki Herald, one article in Sunlive and one article in the Waikato Times.

2015/16

Seven articles published in the HDC news page and three articles in Waihi Ward Reflections page.

2014/15

Articles published more often than quarterly.

Level of Service: The Council is working to implement its Economic Development Strategy.

Measure: Percentage of customers satisfied with the Council’s approach to Economic Development. Method of measurement: * Customer satisfaction survey. Target 2015-25: >70% of customers satisfied with approach.

2016/17

Achieved: The 2017 satisfaction survey showed that 74%* of residents were satisfied with Council’s approach to economic development.

2015/16




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Result 2016/17


** NOTE: This result reports on a Council representative attending BA5 meetings (the method of measurement). While the target specifies the number of meetings, the number of meetings held is beyond the Council's control. A Council representative will attend 100% of meetings held.


Our progress towards each project or initiative this year Hauraki Rail Trail – Thames to Kaiaua leg

As part of the 2015-25 Long Term Plan process both Hauraki and Thames-Coromandel District Councils allocated $1 million funding (each) to build the Kopu to Kaiaua leg of the Hauraki Rail Trail. Construction of 37km of trail from Findlay Wildlife Reserve in Pukorokoro-Miranda to the Kopu bridge was largely completed within 2016/17. The official opening was held in September 2017. To date the project has received funding of $1m for the Piako Bridge clip on from the New Zealand Transport Agency, and $50,000 from Fonterra and the Department of Conservation for interpretive and information signage. The Hauraki Rail Trail Trust is working to secure external funding to complete the final 11km section from Kaiaua to Pukorokoro-Miranda and this will complete the HRT as originally proposed to Government. It is hoped that this section will be constructed in 2017/18.

Aged care and retirement We continue to facilitate opportunities for growth within the Hauraki District. In 2016/17 the construction of Hauraki Village in Taylor Avenue in Paeroa continued and a resource consent for a village in Waimarie Avenue in Paeroa was granted; however, Council understands this development is now for sale. Additionally, there is the potential for a lifestyle development on what was the Paeroa racecourse. The Council’s economic development team has been working closely with the new owner on the future use of this property.

Hauraki Park industrial subdivision

In December 2016 the Allied Faxi ice cream factory officially opened. The factory is now producing and exporting ice cream to China, and employs around 30 staff. All sections at the Park are now either sold, or under contract. Additionally, ultrafast broadband is available to all sections. We understand that private land surrounding the Park has also been sold to private developers for further industrial subdivision.

Ngatea Northern Estate subdivision

The construction of stage one (22 sections) of the Ngatea Northern Estate subdivision was completed in 2016/17, with all sections now sold and construction of residential houses now underway. We also started planning for stage two of the estate (18 sections) and plan to complete construction of this stage within 2017/18.

Economic Development Strategy review We commenced our review of the Economic Development Strategy in 2015/16 and the finalised strategy was adopted in September 2016. The strategy became a finalist in the Local Government New Zealand Excellence Awards for best practice contribution to local economic development. The economic development team prepared a supporting document and video highlighting the District’s economic development successes.

Sister cities Jiading The sister cities exchange saw 18 students and three teachers travel to Jiading, China in October 2016. Students and teachers from Jiading also visited Hauraki within 2016/17.

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Operating statement for community growth


2017 2017 2016

$000 $000 $000

Expenditure

Economic Development 377 372 380

District Promotions 20 21 26

Information Centres 191 157 158

Positive Paeroa Co-ordinator 133 125 130

Positively Promoting the Plains 17 18 30

Go Waihi 110 111 107

Destination Coromandel 116 132 129

964 936 960

Revenue





925 924 882


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Community Initiatives Through this activity we undertake a number of projects to help ensure that we have a positive climate that encourages balanced and sustained economic growth throughout our District. We deliver this activity through working with a number of agencies.


Results 2016/17


Level of Service: To provide motivation in our District, the Council will recognise and acknowledge achievements of the community.

Measure: The Council, with the community, will celebrate community achievements towards social well-being at the Citizens and Young Achievers Awards ceremony held annually. Method of measurement: Report to Council. Target 2015-25: Award ceremonies are held prior to November annually.

2016/17

Achieved: The Citizen and Young Achiever Award ceremony was held on 31 August 2016 in the Waihi Memorial Hall.

2015/16

Award ceremony held 14 October 2015

2014/15

Award ceremony held 24 September 2014

Level of Service: The Council will work towards achieving improved community social well-being through its Social Initiatives Strategy.

Measure: The Council will work with others towards achieving the goals of the Hauraki Social Initiatives Strategy. Method of measurement: Report to Council. Target 2015-25: The Council supports three initiatives from the Social Initiatives Strategy each year.

2016/17

Achieved: Waihi Ward launched “Senior Connect” during October 2015 – and has continued to support this initiative in 2016/17. A new initiative is yet to be identified. Paeroa Ward’s Youth Not in Employment, Education or Further Training project is supporting an initiative from the Paeroa and Waihi Colleges that involves industry training opportunities. Plains Ward’s “Elephant in the Paddock” project is waiting on the completion of an evaluation report that will be compiled. The project is drawing to a close, with a new initiative to be identified. A Social Strategy briefing paper was presented to Council in April 2017. The strategy was adopted in September 2017.

2015/16

The three Ward Committees supported three different initiatives from the Social Initiatives Strategy during the year. The Waihi Ward Committee launched “Senior Connect”, the Paeroa Ward Committee is working to progress youth initiatives, and the Plains Ward Committee is working with stakeholders on the “Elephant in the Paddock” project.


E – 121 2015-25


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Our progress towards each project or initiative this year Award ceremonies

Award ceremonies were held for the citizens and young achievers of our community on 31 August 2016 at the Waihi Memorial Hall. The citizens and young achievers awards recognise those who contribute a considerable amount of time and effort towards improving the wellbeing of our community. 11 youth and 9 citizens received awards; two citizens were considered outstanding in 2016 for their extraordinary efforts for the local community.

Discretionary social fund This fund was set aside to address some of the social issues within our communities, with specific initiatives identified for each Ward. The identified Ward initiatives are: o Waihi - senior citizens/elderly o Paeroa - youth not in education, employment or further training o Plains - farming community wellbeing In 2016/17 the Waihi Ward Committee continued to focus on the older persons, and contributed $4,200 towards Waihi community resource centre to assist them to continue the service. An expo was also held on international older persons day to highlight the services available for elderly in Waihi. The Plains Ward Committee continued to help raise awareness of the signs of suicide and mental health issues within rural communities, and in late 2016 concluded their involvement in the Elephant in the Paddock campaign as the relevant agencies are now taking the lead with the project. A full report is being prepared that will evaluate the success of the campaign. The Paeroa Ward Committee continued to support youth initiatives in 2016/17, with a focus on a pilot project with a private training establishment. The pilot, in conjunction with Paeroa and Waihi colleges, will set up a business marketing course for students to learn about product development, from initiation through to end result. The District wide discretionary social fund contributed funding towards the pilot education training programme, Te Mana Rangatira youth leadership project, the Keep Hauraki Beautiful project, Age Concern Thames and Hauraki Citizens Advice in Waihi ($28,000 in total).

Creative NZ Creative Community Scheme We continued to administer the Creative Community Scheme on behalf of Creative NZ in two rounds – in September 2016 and March 2017. In 2016/17, we received 17 applications for funding in total.

Life Education Trust We provided a grant of $15,000 in 2016/17 to Life Education Trust, a health based education initiative providing health services to schools.

Public transport between Hamilton City and Thames, via Paeroa We continued our annual funding contribution towards public transport in 2015/16 of $20,000.

Hauraki Rail Trail Trust General Manager In 2016/17 we increased our funding contribution to the Hauraki Rail Trail for the appointment of a new Hauraki Rail Trail Trust General Manager, who will assist the Trust in fulfilling its Rail Trail responsibilities. This is a shared cost between Matamata-Piako and Thames-Coromandel District Councils.

Social Initiatives Strategy During 2017 we commenced development of a Social Initiatives Strategy. This strategy once adopted will supersede a number of historic social policies and provide a new strategic direction moving forward. The strategy will focus on what we can do to achieve the vision statement, alongside other agencies and organisations. The current draft has a strong driver of community empowerment

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focusing Council in on achievable plans to achieve a set of identified goals. The strategy was adopted in September 2017.



Operating statement for community initiatives


Social Initiatives 101 123 104 Discretionary Social fund 35 70 80 Grants and Donations 884 218 193 Rail Trail 482 450 498 Conservation Initiatives 0 37 0 Whiritoa Beachcare 3 7 5 Whiritoa Lifesaving Grant 0 25 24 Other 109 101 112

1,614 1,031 1,016 Revenue


1,903 1,019 874 Operating Surplus / (Deficit) 289 (12) (142)

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Regulatory Services We are involved in a number of regulatory services from preparing regulations to promoting compliance. Our focus areas include supporting: appropriate land use management healthy and safe building development (including building

consents) community health and safety (including food and alcohol

safety, civil defence, animal control) and animal welfare.

Effects on the community The Regulatory Services Group of Activities assists the Council in the improvement of local communities through the regulation of building work, the control of social issues via bylaws, and the protection of lifestyles and the environment enjoyed by residents, making a safer District for all. Many mechanisms of the Regulatory Services Group are mandatory or legislatively required, but the underlying theme is the protection and safety of our communities and an increase in social wellbeing.

The Regulatory Group primarily

contributes to the following Community Outcomes:

Interactive Hauraki

Sustainable Hauraki

Prepared Hauraki

Lifestyle Hauraki

67%


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Operating statement for regulatory services


RMA Implementation 902 797 916 Building Services 1,090 1,031 1,027 Community Protection 811 860 801 Animal Control 472 478 471

3,275 3,166 3,215 Revenue

Fees, Charges and Other Income 1,596 1,183 1,472 External Subsidies 0 0 0 Targeted Rates 0 0 0 General Rates 1,954 1,954 1,949

3,550 3,137 3,421 Operating Surplus / (Deficit) 275 (29) 206

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Funding impact statement for regulatory services for the year ended 30 June 2017

Long-Term

Plan Long-Term

Plan Actual 2016 2017 2017 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charge, rate penalties 1,949 2,076 1,954 Targeted rates 0 0 0 Subsidies and grants for operating purposes 0 0 0 Fees and charges 1,030 1,056 1,596 Internal charges and overheads recovered 0 0 0 Local Authorities fuel tax, fines, infringement fees, and other receipts 0 0 0 Total Operating Funding (A) 2,979 3,132 3,550 Applications of Operating Funding Payments to staff and suppliers 759 778 870 Finance Costs 0 0 0 Internal charges and overheads applied 2,334 2,402 2,402 Other operating funding applications 0 0 0 Total Applications of Operating Funding (B) 3,093 3,180 3,272 Surplus / (Deficit) of Operating Funding (A - B) (114) (48) 278 Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 Development and financial contributions 0 0 0 Increase (decrease) in debt 0 0 0 Gross proceeds from sale of assets 0 0 0 Lump sum contributions 0 0 0 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 0 0 0 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 - to improve the level of service 0 0 0 - to replace existing assets 0 0 0 Increase (decrease) in reserves (114) (48) 278 Increase (decrease) of investments 0 0 0 Total Applications of Capital Funding (D) (114) (48) 278 Surplus / (Deficit) of Capital Funding (C - D) 114 48 (278) Funding Balance ((A - B) + (C - D)) 0 0 0

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Resource Management Implementation We have legislative responsibilities for ensuring land use activities are undertaken in a way which promotes the sustainable management of our district’s natural and physical resources. In particular: reviewing and administering the Hauraki District Plan processing and monitoring of resource consents processing ‘notices of requirements’ for designations for public

works (e.g. roads, sewerage plants, schools) monitoring and enforcement provisions, including noise, and reporting information to the RMA National Monitoring System for

MBIE evaluation and review.


Results 2016/17


Level of Service: Resource consent applications will be decided and issued within Resource Management Act 1991 timeframes.

Measure: Notified resource consent decisions issued within statutory timeframes. Method of measurement: Resource consents database Target 2015-25: 100% of decisions issued within statutory timeframes

2016/17

Achieved: Two notified resource consents were applied for. One consent was given a decision within the timeframe. The other consent’s decision was delayed due to the applicant's request to postpone the Hearing.

2015/16

100% processed within timeframes.

2014/15


Measure: Non-notified resource consent decisions are issued within statutory timeframes. Method of measurement: Resource consents database Target 2015-25: 100% of decisions issued within statutory timeframes

2016/17

Not Achieved: 95% (39/41) of non-notified subdivision and 99% (98/99) of non-notified landuse applications and 100% (1/1) combined subdivision and landuse consent were issued within statutory timeframes in 2016/17.

2015/16

96% (73 of 76) of non-notified landuse consents and 100% (53 of 53) of non-notified subdivision consents have been issued within statutory timeframes.

2014/15


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Results 2016/17


Level of Service: Provide a monitoring service which ensures compliance with consent conditions.

Measure: All new land use consents are monitored within 12 months of being granted. Method of measurement: Resource consents database. Target 2015-25: 100% of new consents are monitored within 12 months.

2016/17

Not Achieved: 78% (45/57) of new landuse consents were monitored (monitored within 12 months of being granted). The importance of monitoring will be raised with staff, and an increased monitoring programme will be scheduled.

2015/16

56 landuse inspections were completed in 2015/16; 76 landuse consents were issued in 2015/16. Due to an increase in consent numbers and staff shortages, the required monitoring was not able to be achieved in 2015/16.


Level of Service: All LIMs are issued within agreed timeframes.

Measure: Non-urgent LIMs issued within 10 working days and urgent LIMs issued within three working days. Method of measurement: Applications database Target 2015-25: 100% issued on time

2016/17

Not Achieved: 99% (502/503) of LIMs have been processed within timeframes.

2015/16

100% of LIMs were issued within timeframes.


Level of Service: The public is satisfied with the Council’s provision of Resource Consent administrative services.

Measure: Percentage of customers satisfied with the service they receive during the resource consent process. Method of measurement: * Customer satisfaction survey Target 2015-25: 80% of customers satisfied

2016/17

Not Achieved: The 2017 satisfaction survey showed that 74%* of residents were satisfied with the resource consent services provided.

2015/16:


2014/15:

2015 survey: 76% satisfied (target was 70% satisfied).



Our progress towards each project or initiative this year Resource Legislation Amendment Bill (2015)

The Resource Legislation Amendment Bill was enacted 18 April 2017. The Bill includes a suite of amendments to the Resource Management Act 1991 (RMA), which aim to achieve the sustainable management of natural and physical resources in a more efficient and equitable way. The Bill in particular makes changes to the plan making processes within the RMA for 2019. It is foreseen that changes to consent processing will begin in October 2017.

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Private Plan Change, Paeroa Racecourse

At the time of writing, no application had been received for a private Plan Change regarding the former Paeroa Racecourse. If the area was to be made into a retirement/lifestyle village, which has been signalled, a Plan Change would be needed to change the zone from reserve active to residential. Plan changes under the Resource Management Act allow for the public to express their views through a public consultation process.

Mining in Waihi Following the collapse of part of the Martha Pit north wall in April 2016 the mine company prepared a draft rehabilitation plan that included interim rehabilitation works to stabilise the wall. These works commenced in January 2017 and the work continues. The bond held by the councils was increased to cover the full cost of remediation works for the wall. The Correnso underground mine continued in 2016/17 and a consent was granted for the Slevin underground mine (essentially an extension to Correnso) and work commenced in this mine in 2017.


There were no planned projects that didn’t happen in 2016/17.

Operating statement for resource management implementation


2017 2017 2016

$000 $000 $000

Expenditure RMA Implementation 902 797 916

902 797 916

Revenue





773 707 894


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Building Control We implement building regulations to ensure our buildings are healthy and safe. This includes assessing building consent applications and monitoring compliance.


Results 2016/17


Level of Service: Commercial and public buildings are audited for compliance with the building Warrant of Fitness (WOF) requirements under the Building Act, 2004.

Measure: Commercial and public buildings that require a warrant of fitness (WOF) are audited for compliance with WOF systems. Method of measurement: Annual audit of records Target 2015-25: 10% of building WOFs are audited for compliance per year.

2016/17

Achieved: 23 commercial buildings (10%) have been audited for compliance with the building Warrant of Fitness (WOF) requirements under the Building Act, 2004.

2015/16

10% audited.

2014/15

10% audited.

Level of Service: Building consent applications will be processed within the statutory timeframes of the Building Act, 2004.

Measure: Building consent applications are processed within 20 working days. Method of measurement: Building Consent Tracking Database Target 2015-25: 100% are issued within 20 working days of receiving the application, providing the application is complete.

2016/17

Not Achieved: 99% (151 of 152) ofbuilding consents not requiring further information were issued within 20 working days. A further 283 building consents requiring further information were issued.

2015/16

97% processed within 20 working days.

2014/15

100% processed within 20 working days.

Level of Service: The Council consistently delivers an effective and efficient building control service.

Measure: The Council maintains Building Consent Authority (BCA) accreditation standards. Method of measurement: Two yearly International Accreditation New Zealand (IANZ) audit Target 2015-25: Maintain BCA accreditation with IANZ.

2016/17

Achieved: The Council had its biennial audit of the BCA by IANZ in July 2017 and maintained its accreditation.

2015/16

The Council maintained its accreditation.

2014/15

The Council maintained its accreditation.

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Results 2016/17


Level of Service: Privately owned swimming pools comply with the Fencing of Swimming Pools Act, 1987.

Measure: All properties with swimming pools on the Council’s register with a potential for non-compliance are inspected annually for compliance with the Fencing of Swimming Pools Act, 1987. Method of measurement: Quarterly audit of swimming pool register Target 2015-25: 100% of pools with potential for non-compliance are inspected.

2016/17

Achieved: 100% (24/24) pools with the potential for non-compliance have been inspected for compliance.

2015/16

100% of high risk pools were inspected.

2014/15

100% of high risk pools were inspected.

Measure: Properties with compliant swimming pools on the Council’s register are inspected for compliance with the Fencing of Swimming Pools Act 1987. Method of measurement: Quarterly audit of swimming pool register Target 2015-25:10% of compliant pools are inspected yearly, determined by random selection.

2016/17

Achieved: 10% (40/400) of compliant pools were inspected

2015/16

10% of low risk pools were inspected.

2014/15

10% of low risk pools were inspected.

Level of Service: The Council’s building consent administrative processes are satisfactory.

Measure: Percentage of customers satisfied with the service they receive during the building consent process. Method of measurement: * Customer satisfaction survey Target 2015-25: >80% of customers satisfied

2016/17

Not Achieved: The 2017 satisfaction survey showed that 68%* of residents were satisfied with the building consent services provided.

2015/16:


2014/15:

2015 survey: 72% satisfied (target was 70% satisfied).



Our progress towards each project or initiative this year Building Consent Authority accreditation

We underwent an accreditation audit in July 2017 and retained our Building Consent Authority accreditation.

The Waikato Building Group We continue to work collaboratively as part of the Waikato Building Group to provide consistency across Waikato councils for the processing of building consent applications and moving towards online consenting in the future.

Increased number of consents for dwellings

Our building and resource consent teams faced a significantly increased workload during the 2016/17 year, with a 30% increase in the number of consents for new dwellings received (169) compared to the previous year. This has created the need for increased staff numbers as a result to cope with the increased demand for consenting services.

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Earthquake prone buildings legislation

The earthquake prone buildings legislation commenced from 1 July 2017; we will start the process of identifying both private and non-private earthquake prone buildings within the District in the coming years.



Operating statement for building control


2017 2017 2016

$000 $000 $000

Expenditure

Building Services 1,090 1,031 1,027

1,090 1,031 1,027

Revenue





1,402 1,076 1,217


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Community Protection We provide services to protect our communities from health and safety issues including preparing for civil defence emergencies, prevention and control measures for rural fires. Additionally, we ensure adequate liquor licensing controls are in place, control the density of gambling venues and legal high retailers, and ensure the safety of public places (including eating areas and pools).


Results 2016/17


Level of Service: The Council will enforce the Food Act 2014.

Measure: All known food premises are monitored for compliance with relevant legislation. Method of measurement: Food premises database Target 2015-25: 100% of all food premises are assessed annually

2016/17

Achieved: 172/172 (100%) of food premises were monitored

2015/16

100% of food premises were monitored.

2014/15

100% of food premises were monitored.

Level of Service: The Council will enforce the NZ Standards for Public Pools.

Measure: Public and school pool monitoring records are audited for compliance with the New Zealand Standard 5826 for Public Pools. Method of measurement: Audit of inspection records for compliance Target 2015-25: 100% of public and school pools are audited during the swimming season.

2016/17

Achieved: 100% (4/4) public pools were audited and 100% (8/8) school pools were audited

2015/16

100% of public and school pools were audited.

2014/15

Public and school pools were not monitored for compliance due to resourcing.

Level of Service: The Council will implement the Sale and Supply of Alcohol Act, 2012

Measure: New and renewed Liquor Licence Managers’ Certificates are issued within one month of receiving the application, providing there are no objections and the application is complete. Method of measurement: Audit of application records Target 2015-25: 100% are issued within a month

2016/17

Achieved: 100% (69/69) of licenses were issued within a month

2015/16

100% of certificates were issued within timeframes.

2014/15

100% of certificates were issued within timeframes.

Measure: New and renewed On/Off and Club Liquor Licences are issued within three months of receiving the application, providing there are no objections and the application is complete. Method of measurement: Audit of application records Target 2015-25: 100% are issued within three months

2016/17

Achieved: 100% (64/64) of licences were issued within three months

2015/16

100% issued within timeframe.

2014/15

100% issued within timeframe.

E – 140 2015-25


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Results 2016/17


Level of Service: Excessive noise complaints will be responded to by the Council.

Measure: All complaints regarding excessive noise are investigated within two hours of the complaint being received. Method of measurement: Contractor’s monthly report (taken from Service Request Database) Target 2015-25: 100% investigated within two hours

2016/17

Achieved: 268 excessive noise complaints received in 2016/17 were investigated within two hours.

2015/16

100% of complaints investigated within timeframe.


Level of Service: The Council will issue fire permits for open air fires during a restricted fire season.

Measure: Applications for fire permits are issued within two working days, prior to the date of the fire Method of measurement: Application records Target 2015-25: 100% of applications issued within two working days, prior to the date of the fire

2016/17

Achieved: 100% (109/109) of fire permits were issued within two working days.

2015/16

100% of permits were issued within timeframes.

2014/15

100% of permits were issued within timeframes.

Level of Service: The community is aware of fire bans and restrictions in place.

Measure: The Council, on behalf of the Rural Fire Committee, will provide information to the community on fire bans and restrictions within the District. Method of measurement: Information is available on website, and published in local community newspapers Target 2015-25: >3 newspaper articles per annum >3 articles updated on website per annum

2016/17

Not Achieved: The website was up to date with current fire season and restrictions. An article was published in the HDC News and two public notices were published in the Hauraki Herald in December 2016.

2015/16

The website was up to date with current fire season and restrictions. Two articles published in HDC News and one in Waihi Ward Reflections announcing the start of the Fire Ban season and one article was published in the HDC News in February 2016.


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Results 2016/17


Level of Service: The Council and the Community are ready for a Civil Defence emergency.

Measure: Information is provided to the community on being prepared for and what to do during an emergency. Method of measurement: Information is available on website, and published in the HDC news page Target 2015-25: Relevant information is reviewed and updated on the website quarterly. Relevant information is published in the HDC news page quarterly.

2016/17

Not Achieved: Website information regarding civil defence preparedness was updated each quarter. Three articles have been published in the HDC News page on 12 August, 14 October and 11 November 2016. No articles were published in the third or fourth quarters.

2015/16

Information was available on the Council website and the combined District website thamesvalleycivildefence.co.nz. Booklets are available at each service centre. Articles were published in the HDC news page in July, August and December 2015 and January 2016.


Measure: Members of the community are prepared for a Civil Defence emergency (i.e. have an emergency plan, emergency kit and can survive for three days). Method of measurement: * Customer satisfaction survey Target 2015/16: 45% are prepared

2016/17

Achieved: The 2017 satisfaction survey results show that 45%* of residents are prepared for a civil defence emergency.

2015/16

2016 survey: 44%* prepared for a civil defence emergency.

2014/15

2015 survey: 44% had an emergency kit in their household.


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Our progress towards each project or initiative this year Fire services review

A review of fire and emergency services structure was undertaken by the Department of Internal Affairs in 2015/16. The outcome of the review is that the New Zealand Fire Service, the National Rural Fire Authority and 52 Rural Fire Authorities, will be merged into a new organisation named Fire and Emergency New Zealand (FENZ). As a result, we will no longer be involved in the funding or management of the delivery of rural fire services. The new organisation took effect on 1 July 2017.

Hazard zone monitoring As a result of the GNS Science report into hazard zones prepared in 2008, we have a programme for monitoring ground settlement in the east of Waihi. There are ground settlement markers as recommended by GNS Science, which are surveyed annually to measure vertical ground movement. Any unexpected movement will be identified by these surveys and more frequent monitoring may be implemented as a result.

Food safety We have continued to transition premises from Food Hygiene Licences to Food Control Plans under the new Food Act. We received our accreditation to be able to audit national programmes such as food hawkers.

Civil defence recovery – Plains Following the civil defence response phase after cyclones Cook and Debbie, we moved into the recovery phase for our rural sector in particular, who were affected by flooding and who lost the use of land essential for the continuation of their dairy operations. We have been working with the rural support trust who have become the lead agency and will continue to ensure the ongoing welfare of the effected farmers. The ongoing wet weather is still having considerable impact on our rural communities.

Local recovery plan The Hauraki District local recovery plan was adopted by Council in July 2016. The recovery plan outlines the framework and processes to manage the recovery phase after a civil defence event within the Hauraki District.

Thames Valley Emergency Operating Area The Thames Valley Emergency Operating Area (TVEOA), which is made up of Hauraki, Thames-Coromandel and Matamata-Piako District Councils, conducted a review of the delivery of its services. The purpose of the review was to ensure that the TVEOA can provide civil defence services that meet the needs of our communities today and into the future. The review will be completed and implemented in 2017/18.



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Operating statement for community protection


Rural Fires 140 155 153 Emergency Management 282 272 250 Health 300 301 284 Abandoned Mine Workings Monitoring 16 45 8 Liquor Licensing 68 85 88 Ground Settlement 5 2 18

811 860 801 Revenue


892 873 827 Operating Surplus / (Deficit) 81 13 26

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Animal Control We play a role in protecting public safety from nuisance animal behaviours as well as promoting animal welfare. We register dogs, provide education about safety around dogs and control dangerous, nuisance and wandering dogs and stock.


Results 2016/17


Level of Service: The Council will ensure compliance with the Dog Control Act, 1996 and bylaw, and the Stock Impounding Act, 1955, to provide for public safety.

Measure: Known dogs in the District are registered annually. Method of measurement: Registration records Target 2015-25: >97% of known dogs are registered

2016/17

Achieved: 4364 of 4364 (100%) of known dogs were registered.

2015/16

100% registered

2014/15

99% registered

Measure: Complaints about wandering stock on public roads are responded to within three hours. Method of measurement: Contractor’s monthly report Target 2015-25: 100% of complaints responded to within three hours

2016/17

Achieved: 100% (52/52) of complaints were responded to within three hours.

2015/16

100% of complaints were responded to within timeframe.

2014/15

100% of complaints were responded to within timeframe.

Measure: Dog attack complaints are responded to within two hours. Method of measurement: Contractor’s monthly report Target 2015-25: 100% of complaints responded to within two hours

2016/17

Achieved: 100% (61/61) of complaints were responded to within two hours.

2015/16

100% responded to within two hours.

2014/15

100% responded to within two hours.

Level of Service: Dog and stock owners are aware of their rights and responsibilities.

Measure: Education articles regarding dog and stock ownership are published in public news media. Method of measurement: HDC news database Target 2015-25: Four articles published per year.

2016/17

Achieved: Four articles have been published in the HDC News page

2015/16

Four articles published.

2014/15

Eight articles published.

E – 147 2015-25


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Our progress towards each project or initiative this year

Dog Control Policy The dog control policy and bylaw was reviewed in 2015/16. Public consultation was held in April/May 2016. We adopted the finalised policy and bylaw in July 2016. The policy and bylaw can be viewed online at www.hauraki-dc.govt.nz

Menacing dogs subsidised neutering campaign

Since January 2017 we have been taking part in the nationwide menacing dog neutering campaign. The Government funded campaign offers local councils grants to subsidise the neutering of dogs classified as menacing as part of a national action plan to reduce the risk and harm of dog attacks. As at 30 June 2017, 15 menacing dogs had been neutered. The programme will continue into 2017/18.


The project to reroof the Paeroa dog pound did not occur in 2016/17.

Operating statement for animal control


2017 2017 2016

$000 $000 $000

Expenditure

Dog Registration 261 267 260

Animal Control 211 211 211

472 478 471

Revenue





483 481 483


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Financial Statements

Statement of Financial Position as at 30 June 2017

Statement of Changes in Equity for the year ended 30 June 2017

Statement of Comprehensive Revenue and Expense for the year ended 30 June 2017

Statement of Cashflows for the year ended 30 June 2017

Whole of Council Funding Impact Statement for the year ended 30 June 2017

Notes to the Financial Statements for the year ended 30 June 2017

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Hauraki District Council Statement of Financial Position as at 30 June 2017

Actual Annual Plan Actual Note 2017 2017 2016 $000 $000 $000ASSETS Current Assets Cash and cash equivalents 9 7,463 813 2,236 Exchange transaction receivables 10 4,956 5,613 5,397 Non-Exchange transaction receivables 10 3,624 2,072 2,901 Non-current assets held for sale 13 448 946 411 Inventories 11 192 233 174 Other Financial Assets 12 127 78 155 Total Current Assets 16,810 9,755 11,274 Current Liabilities Trade and other payables 21 5,389 6,964 6,776 Landfill Aftercare Provision 22 393 251 76 Borrowings 24 3,002 0 7 Derivative Financial Instruments 18 69 0 0 Employee Entitlements 23 1,825 1,624 1,698 Total Current Liabilities 10,678 8,839 8,557 Working Capital 6,132 916 2,717 Non-Current Assets Property, Plant & Equipment 14 545,152 549,192 532,949 Biological Assets (Forestry) 16 1,559 866 1,286 Intangible Assets 15 839 975 900 Investment Properties 17 0 535 660 Investments in CCO's and similar entities - Investments in Associates 20 11 7 11 - Investments in Joint Ventures 19 83 61 77 - Investments in Other Entities 12 164 198 164 Total Investments in CCO's and similar entities 258 266 252 Other Financial Assets 12 792 570 564 Total Non-Current Assets 548,600 552,404 536,611 Non-Current Liabilities Employee Entitlements 23 367 466 394 Landfill Aftercare Provision 22 392 720 706 Derivative Financial Instruments 18 1,764 1,191 2,663 Borrowings 24 38,001 41,690 34,003 Total Non-Current Liabilities 40,524 44,067 37,766 NET ASSETS 514,208 509,253 501,562 Represented by: EQUITY Accumulated Funds 411,628 410,818 410,060 Other reserves 26 2,894 2,564 3,402 Asset revaluation reserve 26 99,686 95,871 88,100 TOTAL EQUITY 514,208 509,253 501,562

The notes to the financial statements form part of these financial statements. Explanations of major variances against budget are provided in Note 2.

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Hauraki District Council Statement of Changes in Equity for the year ended 30 June 2017


2017 2017 2016 Note $000 $000 $000 TOTAL EQUITY As at 1 July 501,562 500,393 497,169

Comprehensive Revenue & Expense for the year 12,646 8,860 4,393

As at 30 June 514,208 509,253 501,562

TOTAL EQUITY CONSISTS OF: Accumulated Funds As at 1 July 410,060 409,111 407,051 Transfers from/(to): Restricted Reserves 508 (143) (24) Surplus/(Deficit) for the year 1,060 1,850 3,033 As at 30 June 411,628 410,818 410,060

Other Reserves As at 1 July 26 3,402 2,421 3,378 Transfers to Accumulated Funds (707) 0 (221) Transfers from Accumulated Funds 199 143 245 As at 30 June 2,894 2,564 3,402

Other Reserves consists of: Financial Contributions 1,448 1,322 1,830 Council Created Reserves 1,446 1,242 1,572 As at 30 June 2,894 2,564 3,402

Asset Revaluation Reserves As at 1 July 26 88,100 88,861 86,740 Revaluation gains/(losses) 11,586 7,010 1,360 As at 30 June 99,686 95,871 88,100

Asset Revaluation Reserves consist of: Operational Assets Land 26 23,410 22,566 23,410 Buildings 11,152 11,152 11,152 Infrastructural Assets Wastewater System 7,996 7,996 7,996 Water System 6,940 6,940 6,940 Drainage Network 2,459 2,459 2,459 Roading Network 47,729 44,758 36,143 Total 99,686 95,871 88,100

As at 30 June 514,208 509,253 501,562


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Hauraki District Council Statement of Comprehensive Revenue and Expense for the year ended 30 June 2017

Actual Annual Plan Actual 2017 2017 2016 Note $000 $000 $000 Revenue General Rates 4 9,180 9,099 8,853 Targeted Rates 4 16,233 17,460 17,505

25,413 26,559 26,358

Subsidies and Grants 4 4,414 4,941 6,825 Development/Financial Contributions (8) 0 (10) Other Revenue 4 3,774 2,996 3,137

8,180 7,937 9,952

Other Gains/(Losses) 5 3,931 0 0

Total Revenue 37,524 34,496 36,310 Expenditure Employee Benefit Expenses 5 11,430 10,283 10,279 Depreciation and Amortisation 5 8,070 7,555 7,677 Finance Costs 6 1,925 2,327 1,748 (Gains)/Losses 5 552 (65) 1,088 Other Expenses 5 14,493 12,546 12,505 Total Expenditure 36,470 32,646 33,297 Share of Joint Venture Surplus/(Deficit) 19 6 0 16 Share of Associates Surplus/(Deficit) 20 0 0 4 Surplus / (Deficit) Before Tax 1,060 1,850 3,033 Income Tax Expense 0 0 0 Surplus / (Deficit) After Tax 1,060 1,850 3,033 Other Comprehensive Revenue and Expense Gain/Loss on Revaluation 11,586 7,010 1,360 Movement in fair value of available for sale financial instruments 0 0 0 Total Comprehensive Revenue and Expense 12,646 8,860 4,393


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Hauraki District Council Statement of Cashflows for the year ended 30 June 2017

Actual Annual Plan Actual 2017 2017 2016 Note $000 $000 $000 Cash Flows from operating activities

Receipts from rates revenue 26,262 26,559 25,890 Interest received 7 94 14 Dividends received 6 7 6 Receipts from other revenue 7,407 7,937 9,164 Payments to suppliers and employees (27,450) (23,564) (22,837) Interest paid (1,719) (2,327) (1,783) Goods and services tax (net) (429) (197) 453 Net cash from operating activities 27 4,084 8,509 10,907

Cash Flows from investing activities Proceeds from sale of property, plant & equipment 5,163 800 1,678 Community Loan payments received 0 6 46 Proceeds from sale of investment properties 1,027 0 0 Proceeds from sale of forestry assets 0 119 0 Purchase of intangible assets (139) (100) (185) Purchase of property, plant & equipment (11,556) (13,830) (10,688) Purchase of other financial assets (112) 0 0 Landfill Liability reduction (3) 0 (43) Community Loans advanced (116) 0 0 Forestry asset development (113) 0 (95) Net cash from investing activities (5,849) (13,005) (9,287)

Cash Flows from financing activities

Proceeds from borrowings 15,170 4,690 7,170 Receipts from Finance Lease Liabilities 0 0 7 Repayment of borrowings (8,170) 0 (7,170) Repayment of Finance Lease Liabilities (7) 0 (8) Net cash from financing activities 6,993 4,690 (1)

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

5,228 194 1,619

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

2,235 619 616

Cash, cash equivalents and bank overdrafts at the end of the year 7,463 813 2,235

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes. The notes to the financial statements form part of these financial statements. Explanations of major variances against budget are provided in Note 2.

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Hauraki District Council Whole of Council Funding Impact Statement for the year ended 30 June 2017

Annual

Plan Actual Annual

Plan Actual 2016 2016 2017 2017 $000 $000 $000 $000Sources of Operating Funding General rates, uniform annual general charges, rate penalties 8,820 8,853 9,099 9,180 Targeted rates 17,137 17,505 17,459 16,233 Subsidies and grants for operating purposes 1,971 1,901 2,085 2,070 Fees and charges 1,703 2,094 2,080 2,259 Interest and dividends from investments 0 20 0 13 Local Authorities fuel tax, fines, infringement fees, and other receipts 448 520 448 516 Total Operating Funding (A) 30,079 30,893 31,171 30,271 Applications of Operating Funding Payments to staff and suppliers 22,588 23,717 22,871 26,002 Finance Costs 2,330 1,654 2,284 1,847 Other operating funding applications 0 0 0 0 Total Applications of Operating Funding (B) 24,918 25,371 25,155 27,849 Surplus / (Deficit) of Operating Funding (A - B) 5,161 5,522 6,016 2,422 Sources of Capital Funding Subsidies and grants for capital expenditure 3,115 4,930 2,855 3,228 Development and financial contributions 0 (9) 0 (8) Increase (decrease) in debt 3,664 0 4,500 6,759 Gross proceeds from sale of assets 0 0 0 0 Lump sum contributions 0 0 0 0 Other dedicated capital funding 0 0 0 0 Total Sources of Capital Funding (C) 6,779 4,921 7,355 9,979 Applications of Capital Funding Capital Expenditure - to meet additional demand 0 0 0 1,444 - to improve the level of service 6,873 6,649 6,771 6,422 - to replace existing assets 5,058 4,707 7,053 3,014 Increase (decrease) in reserves 9 (913) (453) 1,521 Increase (decrease) of investments 0 0 0 0 Total Applications of Capital Funding (D) 11,940 10,443 13,371 12,401 Surplus / (Deficit) of Capital Funding (C - D) (5,161) (5,522) (6,016) (2,422) Funding Balance ((A - B) + (C - D)) 0 0 0 0

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Hauraki District Council Notes to the Financial Statements for the year ended 30 June 2017

1. Accounting policies for the year ended 30 June 2017

Reporting Entity

Hauraki District Council (HDC) is a territorial local authority governed by the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. The relevant legislation governing the Council’s operations includes the LGA and the Local Government (Rating) Act 2002. The Council provides local infrastructure, local public services, and performs regulatory functions to the community. The Council does not operate to make a financial return. The Council has designated itself as a public benefit entity (PBE) for financial reporting purposes. The financial statements of the Council are for the year ended 30 June 2017 and were authorised for issue by Council on 25 October 2017.

Basis of preparation

The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.

Statement of Compliance

The financial statements of the Council have been prepared in accordance with the requirements of the LGA and the Local Government (Financial Reporting and Prudence) Regulations 2014, which include the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). The financial statements have been prepared in accordance with, and comply with, Tier 1 PBE standards.

Presentation currency and rounding

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000), other than the remuneration and the severance payment disclosures in note 31 and 32. These disclosures are rounded to the nearest dollar.

Standards issued and not yet effective that have been early adopted

Standards and amendments issued but not yet effective that have been early adopted are:

Impairment of Revalued Assets

In April 2017, the XRB issued Impairment of Revalued Assets, which now scopes in revalued property, plant and equipment into the impairment accounting standards. Previously, only property, plant and equipment assets measured at cost were scoped into the impairment accounting standards. The Council has early adopted this amendment in preparing its 30 June 2017 financial statements. From the 30 June 2017 year onwards, Council is required to assess at each reporting date whether there is any indication that an asset may be impaired. If any indication exists, the Council is required to assess the recoverable amount of that asset and recognise an impairment loss if the recoverable amount is less than the carrying amount. The Council can therefore impair a revalued asset without having to revalue the entire class-of-asset to which the asset belongs.

Other changes in accounting policies

There have been no other changes in accounting policies.

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Standards issued and not yet effective and not early adopted

Standards and amendments, issued but not yet effective that have not been early adopted, and which are relevant to the Council are:

Interests in other entities

In January 2017, the XRB issued new standards for interests in other entities (PBE IPSAS 34 – 38). These new standards replace the existing standards for interests in other entities (PBE IPSAS 6 – 8). The new standards are effective for annual periods beginning on or after 1 January 2019, with early application permitted. The Council plans to apply the new standards in preparing the 30 June 2020 financial statements. The Council has not yet assessed the effects of these new standards.

Financial instruments

In January 2017, the XRB issued PBE IFRS 9 Financial Instruments. PBE IFRS 9 replaces PBE IPSAS 29 Financial Instruments: Recognition and Measurement. PBE IPSAS 9 is effective for annual periods beginning on or after 1 January 2021, with early application permitted. The main changes under PBE IFRS 9 are: New financial asset classification requirements for determining whether an asset is measured at fair

value or amortised cost. A new impairment model for financial assets based on expected losses, which may result in the earlier

recognition of impairment losses. Revised hedge accounting requirements to better reflect the management of risks. The Council plans to apply this standard in preparing its 30 June 2022 financial statements. The Council has not yet assessed the effects of the new standard.

Subsidiaries

HDC has no subsidiaries.

Associates

An associate is an entity over which the Council has significant influence and that is neither a subsidiary nor an interest in a joint venture. The Council’s associate investment is accounted for in the financial statements using the equity method. The investment in an associate is initially recognised at cost and the carrying amount in the financial statements is increased or decreased to recognise Council’s share of the surplus or deficit of the associate after the date of acquisition. Distributions received from an associate reduce the carrying amount of the investment. If the share of deficits of an associate equals or exceeds its interest in the associate, Council discontinues recognising its share of further deficits. After Council’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that Council has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, Council will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where Council transacts with an associate, surpluses or deficits are eliminated to the extent of Council’s interest in the associate. The investment in the associate is carried at cost in the Council’s financial statements.

Joint ventures

A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint control is the agreed sharing of control over an activity. HDC accounts for its interest in a jointly controlled operation using the equity method. HDC’s share of Joint Venture net revenue is included in the surplus or deficit.

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Revenue

Revenue is measured at fair value. The specific accounting policies for significant revenue items are explained below:

Rates revenue

Rates are set annually by a resolution from Council and relate to a financial year. All ratepayers are invoiced within the financial year to which the rates have been set. Rates revenue is recognised when invoiced. Rates remissions are recognised as a reduction in rates revenue when the Council has received an application that satisfies its rates remission policy. Rates arising from late payment penalties are recognised as revenue when rates become overdue.

Metered Water Rates Revenue

Water billing revenue is recognised on an accrual basis based on usage. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis.

Roading subsidies

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

Other grants

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

Provision of Services

Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at balance date, based on the actual service provided as a percentage of the total services to be provided.

Sales of Goods

Sales of goods are recognised when a product is sold to the customer.

Vested Assets

Where an asset is acquired for nil or nominal consideration, the asset is recognised at its fair value when the Council obtains control of the asset. The fair value of the asset is recognised as revenue, unless there is a use or return condition attached to the asset. A liability is recognised only if Council expects that it will need to return or pass the asset to another party. The fair value of vested or donated assets is usually determined by reference to the cost of constructing the asset. For assets received from property developers, the fair value is based on construction price information provided by the property developer.

Commissions and Fees

Where revenue is derived by acting as an agent for another party, the revenue that is recognised is the commission or fee on the transaction.

Interest and Dividends

Interest revenue is recognised using the effective interest method. Interest revenue on an impaired financial asset is recognised using the original effective interest rate. Dividends are recognised when the right to receive payment has been established.

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Development contributions

Development contributions are recognised as revenue when Council provides, or is able to provide, the service for which the contribution was charged. In cases where contributions are collected in advance to fund a service that is not currently provided in an area, the contribution is initially recognised as revenue in advance, until such time as the service is provided.

Construction contracts

HDC did not enter into Construction Contracts as a Contractor, apart from minor public works.

Borrowing costs

Borrowing costs are recognised as an expense in the year in which they are incurred.

Grant expenditure

Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received. Discretionary grants are those grants where HDC has no obligation to award on receipt of the grant application and are recognised as expenditure when a successful applicant has been notified of HDC’s decision.

Taxation

Goods and Services Tax

The financial statements have been prepared on a GST exclusive basis with the exception of Accounts Receivable and Accounts Payable, which are presented on a GST-inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.

Leases

Finance leases

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

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Operating leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Cash and cash equivalents

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

Trade and other receivables

Short-term debtors and other receivables are recorded at the amount due, less any provision for uncollectability. A receivable is considered to be uncollectable when there is evidence that the amount due will not be fully collected. The amount that is uncollectable is the difference between the amount due and the present value of the amount expected to be collected.

Inventories

Inventory held for use in the production of goods and services on a commercial basis is valued at the lower of cost and net realisable value. The cost of purchased inventory is determined using the first-in first-out (FIFO) method. Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential. Where inventory is acquired at no cost or for nominal consideration, the cost is the fair value at the date of acquisition. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.

Financial assets

HDC classifies its financial assets into four categories. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date. Financial assets and liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit. Purchases and sales of investments are recognised on trade-date, the date on which HDC commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and HDC has transferred substantially all the risks and rewards of ownership. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used is the current bid price. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. HDC uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. The four categories of financial assets are:

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Financial assets at fair value through surplus or deficit Financial assets at fair value through surplus or deficit includes financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of short-term profit-taking. Derivatives are also categorised as held for trading unless they are designated into a hedge accounting relationship for which hedge accounting is applied. Financial assets acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held for trading are classified as a current asset. Derivatives are classified as current if they mature within 12 months of balance date, and are classified as non-current if they mature greater than 12 months after balance date. After initial recognition, financial assets in this category are measured at their fair values with gains or losses on re-measurement recognised in the surplus or deficit.

Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. After initial recognition, they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit. Loans to community organisations made at nil or below-market interest rates are initially recognised at the present value of their expected future cash flows, discounted at the current market rate of return for a similar financial instrument. The loans are subsequently measured at amortised cost using the effective interest method. The difference between the face value and present value of the expected future cash flows of the loan is recognised in the surplus or deficit as a grant. At each balance sheet date Council assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the surplus or deficit.

Held to maturity investments Held to maturity investments are assets with fixed or determinable payments and fixed maturities that Council has the positive intention and ability to hold to maturity. After initial recognition they are measured at amortised cost using the effective interest method less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit. They are included in current assets, except for those with maturities greater than 12 months after balance date, which are included in non-current assets. Council does not hold any assets in this category at present.

Financial assets at fair value through other comprehensive revenue and expense Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non-current assets unless management intends to dispose of, or realise, the investment within 12 months of balance date. Council includes in this category: o investments that it intends to hold long-term but which may be realised before maturity; and o shareholdings that it holds for strategic purposes. These investments are measured at their fair value, with gains and losses recognised in other comprehensive revenue and expense, except for impairment losses, which are recognised in the surplus or deficit. On derecognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit. For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment.

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For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default in payments are considered objective indicators that the asset is impaired. If impairment evidence exists for investments at fair value through other comprehensive revenue and expense, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit. Equity instrument impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit. If in a subsequent period the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit.

Accounting for derivative financial instruments

Council uses derivative financial instruments to manage exposure to foreign exchange and interest rate risks arising from financing activities. In accordance with its Investment and Liability Management policy, Council does not hold or issue derivative financial instruments for trading purposes. Council’s interest rate swap portfolio was valued as at 30 June 2017 by Council staff using software provided by Hedgebook Ltd. The movement in fair value has been included in surplus/ (deficit) in the Statement of Comprehensive Revenue and Expense. Council did not hold any forward Foreign Exchange Contracts at balance date.

Non-current assets held for sale

The only asset currently included in this category is land held for sale. The majority of property intended for sale relates to subdivisions that Council has developed in Kerepehi and Ngatea. Council was marketing these sections at balance date and expects all remaining sections to be sold by in the next financial year. Council has capitalised the cost of the land, design/survey fees, power and telephone reticulation, and other expenses directly associated with the project. Council considers the amounts capitalised to be less than net realisable value. Expenditure incurred on the development of roading, including footpaths and kerb and channelling, wastewater and water reticulation and stormwater have not been included. The cost of these assets has been added to the appropriate infrastructural classification. Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction, not through continuing use. Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment losses for write-downs of non-current assets held for sale are recognised in the surplus or deficit. Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Property, plant and equipment

This category of assets includes: Operational assets, being tangible assets such as land, buildings, library books, plant and equipment,

and motor vehicles.

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Restricted assets, being property, owned by Council which provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions, such as parks and reserves, landfill post closure.

Infrastructure Assets, being the fixed utility systems owned by Council. Each infrastructural asset class includes all items that are required for the network to function, for example, wastewater reticulation includes reticulation piping and wastewater pump stations. These are generally not regarded as tradable.

Land (operational and restricted) measured at fair value, buildings (operational and restricted) and infrastructural assets (except land under roads) are measured at fair value less accumulated depreciation. All other asset classes are measured at cost less accumulated depreciation and impairment losses. Council owns a number of properties, which are maintained primarily to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding these properties. These properties are held for service delivery objectives as part of the Council’s social housing policy. These properties are accounted for as property, plant and equipment.

Revaluation

Land and buildings (operational and restricted), and infrastructural assets (except land under roads) are revalued with sufficient regularity to ensure that their carrying amount does not differ materiality from the assets’ fair value and at least every three years. The carrying values of revalued assets are assessed annually to ensure that they do not differ materially from the assets’ fair values. If there is a material difference, then the off-cycle asset classes are revalued. Revaluations of property, plant and equipment are accounted for on a class of asset basis. The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class of asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue and expense.

Additions

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

Subsequent costs

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

All land was valued as at 30 June 2016 plus additions/development at cost, less disposals. Land valuations were completed by Quotable Value NZ, qualified independent valuers, and confirmed as being suitable for financial reporting. Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the ‘unencumbered’ land value

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where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Buildings

All buildings were valued at 1 July 2014 plus additions/development at cost, less disposals. Building valuations were completed by independent valuers, and confirmed as being suitable for financial reporting. Specialised buildings were valued by SPM Assets Ltd at fair value using depreciated replacement cost because no reliable market data is available for such buildings. Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include: The replacement asset is based on the replacement with modern equivalent assets with adjustments

where appropriate for obsolescence due to over-design or surplus capacity. The replacement cost is derived from recent construction contracts of similar assets and Property

Institute of New Zealand cost information. The remaining useful life of assets is estimated. Straight-line deprecation has been applied in determining the depreciated replacement cost value of the

asset. Non-specialised buildings (for example, residential buildings) were valued by Curnow Tizard Ltd at fair value using market-based evidence. Market rents and capitalisation rates were applied to reflect market value. The valuation of earthquake prone buildings does not include any adjustment for estimated building strengthening and costs or any association lost rental during the time to undertake the strengthening work. Infrastructural assets

Roading assets were valued by the independent valuers, Beca Limited as at 30 June 2017. Water, Wastewater, Stormwater and Drainage Assets were valued by the independent valuers, Opus International Ltd as at 1 July 2014. Land under roads was valued by the independent valuers, Opus International Consultants Ltd as at 30 June 2002 using the average market value of land by ward and land use category. Since the introduction of International Financial Reporting Standards, on 30 June 2007, land under roads has been recognised at deemed cost. Infrastructural assets are also carried at fair value, which is deemed to be depreciated replacement cost because the assets are of a specialised nature. The depreciated replacement costs are determined on the basis of valuations prepared every three years. The revaluation process involves assessing the current optimised replacement cost on a brownfields basis, using highest and best use basis and remaining useful lives. Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include: The replacement asset is based on the replacement with modern equivalent assets with adjustments

where appropriate for obsolescence due to over-design or surplus capacity. The replacement cost is derived from recent construction contracts of similar assets and Property

Institute of New Zealand cost information. The remaining useful life of assets is estimated. Straight-line deprecation has been applied in determining the depreciated replacement cost value of the

asset. Library books

These are valued at depreciated replacement cost as at 30 June 2017 by Council staff. Estimates of the remaining useful life over which the asset will be depreciated have been determined based on Council’s policy on book replacement, as well as historical book replacement data.

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Vehicles, equipment and technology

These are carried at Cost less accumulated depreciation.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the surplus or deficit. When re-valued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings.

Depreciation

Land and Assets under Construction are not depreciated. All other assets are depreciated on a straight line basis that will spread the cost of the asset, less any residual value, over the expected useful life of the asset. The useful lives of assets have been identified on a component–by–component basis. A summary of the range of expected useful lives of assets follows: Roading:

Seal (6-60 years) Base course (20-130 years) Surface Water Channels (10-75 years) Culverts (75 years) Footpaths (15-75 years) Bridges (30-100 years) Streetlighting (25 years) Retaining walls (85 years) Railings (20-50 years) Signs (12.5-20 years) Buildings:

Structure (80 years) Roof cladding (30 years) Electrical/Mechanical (25 years) Plumbing (30 years) Internal wall linings (25 years) Lifts (25 years) Air Conditioners (15 years) Site Improvements (25 years) Other Assets:

Water Reticulation (70-120 years) Water Treatment (10-100 years) Wastewater (10-125 years) Computer Hardware (3-5 years) Stormwater/Drainage (20-120 years) Fixtures and Fitting (5-10 years) Communications Equipment (5 years) Heavy Plant and Machinery (8-15 years) Light Plant (2-5 years) Motor Vehicles–Cars and Utilities (3-7 years) Library Books (10 years) Assets purchased during the financial year are depreciated on a remaining month’s basis.

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Intangible Assets

Software acquisition and development

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by Council, are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised in the surplus or deficit when incurred.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives of major classes of intangible assets have been estimated as follows: Computer software 3-10 years (10%-33%)

Carbon credits

Purchased carbon credits are recognised at cost on acquisition. Free carbon credits received from the Crown are recognised at fair value on receipt. They are not amortised, but are instead tested for impairment annually. They are derecognised when they are used to satisfy carbon emission obligations.

Forestry assets

Forestry assets are independently re-valued by PF Olsen & Company, a registered forest valuer annually at fair value less estimated point of sale costs, with the last valuation dated 30 June 2017. Fair value is determined based on the present value of expected net cash flows discounted at a current market determined pre-tax rate. Gains or losses arising on initial recognition of biological assets at fair value less estimated point of sale costs and from a change in fair value less estimated point of sale costs are recognised in the surplus or deficit. The costs to maintain the forestry assets are included in the surplus or deficit.

Investment property

Properties leased to third parties under operating leases are classified as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation. Investment property is measured initially at its cost, including transaction costs. After initial recognition, Council measures all investment property at fair value as determined annually by an independent valuer. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit. During the year ended 30 June 2017, HDC sold all remaining investment properties.

Impairment of property, plant and equipment, and intangible assets

Intangible assets subsequently measured at cost that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Property, plant and equipment and intangible assets that have a finite useful life are reviewed for impairment at each balance date and whenever events of changes in circumstances indicate that the

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carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. If an asset’s carrying amount exceeds its recoverable amount the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss on a revalued asset is credited to other comprehensive revenue and expense and increases the asset revaluation reserve for that class of asset. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit. For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.

Value in use for non-cash generating assets

Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash-generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

Value in use for cash-generating assets

Cash generating assets are those assets that are held with the primary objective of generating a commercial return. The value in use for cash-generating assets is the present value of expected future cash flows.

Trade and other payables

Trade and other payables are recognised at face value.

Employee benefits

Short-term benefits

Employee benefits that Council expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave. Council recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that Council anticipates it will be used by staff to cover those future absences. The liability and an expense are recognised for bonuses where Council has a contractual obligation or where there is a past practice that has created a constructive obligation.

Long-term benefits

Long service leave and retirement leave entitlements that are payable beyond 12 months have been calculated on an actuarial basis. The calculations are based on:

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Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and

The present value of the estimated future cash flows. A discount rate of 6% and an inflation factor of 4% were used. The discount rate is based on expected interest rates for terms to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long-term increase in remuneration for employees.

Presentation of employee entitlements

Sick leave, annual leave, and vested long service leave are classified as a current liability. Non-vested long service leave and retirement gratuities expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability.

Superannuation schemes

Council has not entered into a defined benefit scheme. Payments to defined contributions schemes are expensed in the surplus or deficit when incurred.

Provisions

Council recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in finance costs.

Financial guarantee contracts

A financial guarantee contract is a contract that requires Council to make specified payments to reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make payment when due. Financial guarantee contracts are initially recognised at fair value. If a financial guarantee contract was issued in a stand-alone arm's length transaction to an unrelated party, its fair value at inception is equal to the consideration received. When no consideration is received a provision is recognised based on the probability that Council will be required to reimburse a holder for a loss incurred discounted to present value. The portion of the guarantee that remains unrecognised, prior to discounting to fair value, is disclosed as a contingent liability. Financial guarantees are subsequently measured at the initial recognition amount less any amortisation, however if Council assesses that it is probable that expenditure will be required to settle a guarantee, then the provision for the guarantee is measured at the present value of the future expenditure.

Borrowings

Borrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months after balance date or if the borrowings are expected to be settled within 12 months of balance date.

Equity

Equity is the community’s interest in Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of components.

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The components of equity are: Accumulated funds Other reserves Asset revaluation reserves

Other Reserves

Other reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Other reserves are those subject to specific conditions accepted as binding by Council and which may not be revised by Council without approval by Council. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met. Council’s objectives, policies and processes for managing capital are described in note 8.

Asset revaluation reserves

This relates to the revaluation of property, plant and equipment to fair value.

Budget figures

The budget figures are those approved by the Council in its 2016/17 annual plan. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted by Council in preparing these financial statements.

Cost allocation

The cost of service for each significant activity of the Council has been derived using the cost allocation system outlined below. Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity. Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as actual usage, staff numbers, and floor area.

Critical accounting estimates and assumptions

In preparing these financial statements Council has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Landfill aftercare provision

Note 22 discloses an analysis of the exposure of Council in relation to the estimates and uncertainties surrounding the landfill aftercare provision.

Infrastructural assets

There are a number of assumptions and estimates used when performing depreciated replacement cost valuations over infrastructural assets. These include: The physical deterioration and condition of an asset, for example the Council could be carrying an asset

at an amount that does not reflect its actual condition. This is particularly so for those assets, which are not visible, for example storm water, wastewater and water supply pipes that are underground. This risk is minimised by Council performing a combination of physical inspections and condition modelling assessments of underground assets;

Estimating any obsolescence or surplus capacity of an asset; and Estimates are made when determining the remaining useful lives over which the asset will be

depreciated. These estimates can be impacted by the local conditions, for example weather patterns, ground condition and traffic growth. If useful lives do not reflect the actual consumption of the benefits

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of the asset, then Council could be over or under estimating the annual depreciation charge recognised as an expense in the statement of comprehensive revenue and expense. To minimise this risk Council’s infrastructural asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group and have been adjusted for local conditions based on past experience. Asset inspections, deterioration and condition modelling are also carried out regularly as part of the Council’s asset management planning activities, which gives Council further assurance over its useful life estimates.

Experienced independent valuers perform/review the Council’s infrastructural asset revaluations.

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Critical judgements in applying Council’s accounting policies

Management has exercised the following critical judgements in applying Council’s accounting policies for the year ended 30 June 2017:

Classification of property

Council owns a number of properties, which are maintained primarily to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding these properties. These properties are held for service delivery objectives as part of Council’s social housing policy. These properties are accounted for as property, plant and equipment.

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2. Explanation of major variances to budget

Statement of Comprehensive Revenue and Expense

Operating

The operating surplus was $0.8 million lower than forecast. The main factors in this variance to budget were increases in personnel costs due to increased staff levels and higher other expenses not budgeted for, such as emergency works due to weather events. These increases were partially offset by an increase in total revenue to budget arising from better than expected gains on disposal of investment properties and assets held for sale. The total surplus was $12.6 million. This was $3.8 million higher than budgeted. This was mainly a result of the increase in value of our roading assets on revaluation being higher than budgeted.

Statement of Financial Position

Net borrowings (borrowings less cash) are $7.3 million lower than budget due to the deferral of capital projects. Property, plant and equipment is $4 million lower, also due to the deferral of capital projects. The movement in derivative financial instruments was due to unrealised gains on swap contracts of $0.6 million.

Statement of Cashflows

Compared to budget, Council paid less for purchases / construction of Property, Plant and Equipment ($2.3 million) due to project deferrals as outlined above. Adding to this, were higher than budgeted Council proceeds from sales of Property, Plant & Equipment and Investment Properties ($5.4 million).

Offsetting this, were lower than budgeted receipts from rates revenue ($0.3 million), and receipts from other revenue ($0.5 million). Payments to suppliers and employees were also higher than budgeted, ($3.9 million) as a result of the increase in personnel costs and other expenses.

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3. Summary of Income and Expenditure for Groups of Activities Actual Actual #REF! 30 June 2017 30 June 2016 $000 $000 $000 Revenue

Roading 7,392 7,696 6,633 Water 5,609 5,609 10,389 Wastewater 3,428 3,428 3,421 Land Drainage & Flooding 1,124 1,124 1,108 Stormwater 814 814 832 Solid Waste 500 500 752 Leadership 2,374 2,375 2,344 Community Services 5,531 5,531 5,376 Community Development 2,827 2,828 1,755 Regulatory 3,551 3,550 3,420

33,150 33,455 36,030 Non-Activity Income

Quarry Revenue - 0 3 Gains/(Losses) 3,160 3,937 (683) Miscellaneous Income 1,020 854 964 Less Rates on Council Properties (484) (484) (689)

3,696 4,307 (405) Total Income 36,846 37,762 35,625 Expenditure

Roading 8,591 8,592 8,189 Water 6,709 6,709 6,795 Wastewater 2,981 2,981 2,811 Land Drainage & Flooding 956 956 778 Stormwater 669 668 731 Solid Waste 1,088 1,088 282 Leadership 2,244 2,244 2,439 Community Services 6,138 6,138 5,678 Community Development 2,578 2,578 1,975 Regulatory 3,275 3,275 3,216

35,229 35,229 32,894 Non-Activity Expenditure

Quarry Expenditure 143 143 213 Business Unit (Surplus)/Deficits 29 7 165 Net Overheads 874 874 57 Internal Interest (146) (146) (765) Losses/(Gains) - 552 0 Miscellaneous Expenditure 12 43 27

912 1,473 (303) Total Expenditure 36,141 36,702 32,591 Total Surplus / (Deficit) 705 1,060 3,034

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4. Income

30 June 2017 30 June 2016

$000 $000

RATES General rates 9,180 8,853 Targeted rates attributable to activities

Water 4,855 6,193 Wastewater 3,351 3,350 Roading 4,113 4,064 Drainage 957 942 Stormwater 687 706 Solid Waste 191 189 Community Recreation 1,554 1,564 Community Facilities 314 316 Community Growth 334 331 Community Initiatives 160 158

16,516 17,813 Less Internal Rates (283) (308)

Total Targeted Rates 16,233 17,505 Total Annual Rates Income 25,413 26,358

The rates shown above are net of the following rates that were remitted under HDC's remissions policies: Rates Remissions

Penalties 113 87 UAC's on contiguous properties 19 18 Excess water rates 113 83 Rates assessed in error 74 29 Multiple owned maori freehold land 31 30 Wastewater rates assessed on educational establishments 37 37 Voluntarily protected land 8 7 Water rates on particular rating units 3 4 Multiple dwellings on one title 56 55 Community, sporting and other organisations 34 36 488 386

SUBSIDIES AND GRANTS NZ Transport Agency roading subsidies 3,583 2,556 Ministry of Health drinking water related subsidies 749 4,177 Other 82 92

4,414 6,825 There are no unfulfilled conditions or other contingencies attached to subsidies and grants recognised (2016 $0)

OTHER REVENUE Interest income from financial assets not at fair value through P&L 7 14 Dividends 6 6 Petrol Tax 195 198 Rental Income from Investment Properties (6) 36 Vested assets 102 496 Other 3,470 2,387

3,774 3,137 Rates (except for water by meter rates), government grants, interest, dividends, petrol tax and vested assets are classified as non-exchange revenue. All other revenue has been classified as exchange revenue.

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5. Expenditure Note 30 June 2017 30 June 2016 $000 $000 Other Expenditure

Audit fees for financial statement audit 119 109 Audit fees for LTP audit 0 0 Fees to Audit NZ for other services 0 0 Donations 111 179 Operating lease payments 219 175 Write-down of inventories (1) 24 Write-Offs of receivables 92 59 Impairment of receivables 10 (11) (33) Expenditure on Investment Properties 8 1 Other Professional Fees 825 744 Chemicals 763 707 Electricity 1,189 1,091 External Contractors 7,150 7,215 General Materials 749 152 Other Expenditure 3,280 2,082

14,493 12,505

Employee Benefit Expenses

Salaries and Wages 11,053 9,923 Defined Contribution Scheme Superannuation Contributions 276 248 Increase/(Decrease) in employee benefit liability 101 108

11,430 10,279

Depreciation and Amortisation by Group of Activities

Roading 2,999 2,941 Water 1,642 1,453 Wastewater 740 692 Land Drainage & Flooding 168 162 Stormwater 332 328 Solid Waste 42 63 Leadership 4 4 Community Services 897 809 Community Development 290 292 Regulatory 4 4 7,118 6,748 Depreciation not directly related to Groups of Activities 952 929

8,070 7,677

Gains/Losses

Loss/(Gain) on changes in fair value of investment property 17 0 (85) Loss/(Gain) on disposal of investment property (367) 0 Loss/(Gain) on changes in fair value of forestry 16 (160) (436) Loss/(Gain) on changes in fair value of derivative instruments 18 (830) 1,473 Loss/(Gain) on changes in fair value of other financial instruments 12 0 34 Loss/(Gain) on disposal of assets held for sale (2,574) (333) Loss/(Gain) on disposal of property, plant and equipment 552 435

(3,379) 1,088

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6. Finance Cost

Note 30 June 2017 30 June 2016

$000 $000

Interest Expense

Interest on external borrowings 1,847 1,654 Provisions: discount unwinding 22 78 94

Total Finance Costs 1,925 1,748

7. Financial Instruments

Financial Instrument Categories

Note 30 June 2017 30 June 2016 $000 $000 Financial Assets

Loans and receivables Cash and Cash Equivalents 9 7,463 2,236 Trade and other receivables 10 8,129 8,275 Other Financial Assets - Community Loans 12 136 20 Other Financial Assets - Borrower Notes 12 656 544 Total Loans and receivables 16,384 11,075

Fair value through other comprehensive revenue Shares in other organisations 12 164 164

Financial Liabilities

Financial Liabilities at amortised cost Trade and other payables 21 4,467 5,978 Borrowings 24

Debentures 41,000 34,000 Leases 3 10

Total Financial liabilities at amortised cost 45,470 39,988 Fair Value through surplus or deficit Interest Rate Swaps 18 1,833 2,663

Fair Value Hierarchy Disclosures

For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy: Quoted market price (level 1) - Financial instruments with quoted prices for identical instruments in active

markets. Valuation technique using observable inputs (level 2) - Financial instruments with quoted prices for similar

instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

Valuation techniques with significant non - observable inputs (level 3) - Financial instruments valued using models where one or more significant inputs are not observable.

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The following table analyses the basis of valuation of classes of financial instruments measured at fair value in the statement of financial position:

Note Quoted Market Value

Observable Inputs

Significant Non-

Observable Inputs

Total

$000 $000 $000 $000

Financial Assets - 30 June 2017

Other Financial Assets - Borrower Notes 12 0 656 0 656

Shares in other organisations 12 0 0 164 164

Financial Liabilities - 30 June 2017

Interest Rate Swaps 18 0 1,833 0 1,833


Other Financial Assets - Borrower Notes 12 0 544 0 544

Shares in other organisations 12 0 0 164 164


Interest Rate Swaps 18 0 2,663 0 2,663

There were no transfers between the various levels of the hierarchy.

Financial Instrument Risk

Market Risk Price risk Price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate as a result of changes in market prices. Equity securities price risk arises on listed share investments, which are classified as financial assets held at fair value through other comprehensive revenue and expense. This price risk arises due to market movements in listed shares. Equity securities price risk is not managed as Council does not have any listed shares. Currency risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Council is not exposed to currency risk, as it does not enter into foreign currency transactions. Fair Value Interest Rate Risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings issued at fixed rates, and interest rate borrower swaps, expose the Council to fair value interest rate risk. Council's Liability Management Policy outlines the level of borrowing that is to be secured using fixed rate instruments. Fixed-to-floating interest rate swaps can be entered into to hedge the fair value intrerest rate risk arising where Council has borrowed at fixed rates. In addition, investments at fixed interest rates expose the Council to fair value interest rate risk. Cash Flow Interest Rate Risk Cash flow interest rate risk is the risk that cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose Council to cash flow interest rate risk. Council manages its cash flow interest rate risk on borrowings by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings at floating rates into fixed rates that are generally lower than those available if Council borrowed at fixed rates directly. Under the interest rate swaps, Council

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agrees with other parties to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal amounts.

Sensitivity Analysis (Interest Rate Risk)

Effect on Surplus Note -50bps +50bps $000 $000


Cash and Cash Equivalents 9 0 0 0 0


Borrowings 24

Debentures 205 (205)

Leases 0 0

Interest Rate Swaps 18 625 (602) 830 (807)


Cash and Cash Equivalents 9 0 0 0 0


Borrowings 24

Debentures 170 (170)

Leases 0 0

Interest Rate Swaps 18 715 (692) 885 (862)

Explanation of interest rate sensitivity Interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis points (bps) movement. For example, a decrease of 50 bps is equivalent to a decrease in interest rates of 0.5%. The sensitivity for derivatives (interest rate swaps) has been calculated using a derivative valuation model based on a parallel shift in interest rates of -50 bps / +50 bps (2016 -50 bps / +50 bps). If interest rates on borrowings at 30 June 2017 had fluctuated by plus or minus 50 bps (i.e. 0.5%), the effect would have been to decrease or increase the surplus after tax by $205,000 (2016 $170,000) as a result of higher or lower interest expense on floating rate borrowing. If interest rates on swaps at 30 June 2017 had fluctuated by plus or minus 50 bps (i.e. 0.5%), the effect would have been to increase the surplus after tax by $602,000 (2016 $692,000) or decrease the surplus after tax by $625,000 (2016 $715,000) as a result of changes in the fair value of swaps. Credit Risk Credit risk is the risk that a third party will default on its obligation to Council, causing Council to incur a loss. Council invests funds only in deposits with registered banks and local authority stock, and its Investment Policy limits the amount of credit exposure to any one institution or organisation. Investments in other local authorities are secured by charges over rates. Other than local authorities, Council only invests funds with those entities which have a Standard and Poor's credit rating of at least A1 for short term and AA- for long term investments. Accordingly, Council does not require any collateral or security to support these financial instruments.

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The Council is exposed to credit risk as a guarantor of all of NZLGFA's borrowings. Information on this exposure is explained in note 29.

Maximum Credit Risk

HDC's maximum credit risk exposure for each class of financial assets is:

Note 30 June 2017 30 June 2016 $000 $000

Cash and Cash Equivalents 7,463 2,236 Trade and other receivables 8,129 8,275 Borrower Notes 656 544 Derivative financial instruments Financial guarantees 50 80

Total Credit Risk 16,298 11,135

Credit Quality of Financial Assets

Counterparties for cash and cash equivalents, and derivative financial instruments, are all AA-rated by Standard and Poors. None of the financial guarantee counterparties have had any defaults in the past. Debtors and other receivables arise mainly from the Council's statutory functions. Therefore, there are no procedures in place to monitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings. The Council has no significant concentrations of credit risk in relation to debtors and other receivables, as it has a large number of credit customers, mainly ratepayers, and the Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers.

Liquidity Risk

Liquidity risk is the risk that Council will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Council aims to maintain flexibility in funding by keeping committed credit lines available. Council manages its borrowings in accordance with its funding and financial policies, which includes a Liability Management Policy. These policies have been adopted as part of the Council's Long Term Plan (LTP). Council has a maximum amount that can be drawn down against its borrowing facilities of $41,000,000 (2016 $41,000,000). There are no restrictions on the use of these facilities. The maturity profiles of the Council's interest bearing investments and borrowings are disclosed above. The Council is exposed to liquidity risk as a guarantor of all of NZLGFA's borrowings. This guarantee becomes callable in the event of NZLGFA failing to pay its borrowings when they fall due. Information about this exposure is explained in note 29.

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Maturity Analysis

Carrying Amount

Contractual Cashflows

Less than 1

year

1 - 2 years

2 - 5 years

More than 5 years

$000 $000 $000 $000 $000 $000


Cash and Cash Equivalents 7,463 7,463 7,463 0 0 0

Trade and other receivables 8,129 8,129 8,129 0 0 0

Other Financial Assets - Community Loans 136 136 0 0 94 42

Other Financial Assets - Borrower Notes 656 656 48 176 240 192 16,384 16,384 15,640 176 334 234


Trade and other payables 4,467 4,467 4,467 0 0 0

Debentures 41,000 41,000 3,000 11,000 15,000 12,000

Interest Rate Swaps 1,833 1,833 69 (1) 788 977

Leases 3 3 2 1 0 0 47,303 47,303 7,538 11,000 15,788 12,977


Cash and Cash Equivalents 2,236 2,236 2,236 0 0 0

Trade and other receivables 8,275 8,275 8,275 0 0 0

Other Financial Assets - Community Loans 20 20 0 0 20 0

Other Financial Assets - Borrower Notes 544 544 0 48 336 160 11,075 11,075 10,511 48 356 160


Trade and other payables 5,978 5,978 5,978 0 0 0

Debentures 34,000 34,000 0 3,000 21,000 10,000

Interest Rate Swaps 2,663 2,663 125 152 546 1,840

Leases 10 9 5 3 1 0 42,651 42,650 6,108 3,155 21,547 11,840

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8. Capital management The Council's capital is its equity (or ratepayers' funds), which comprise retained earnings and reserves. Equity is represented by net assets. The Local Government Act, 2002 (the Act) requires the Council to manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayer's funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings. The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by the Council. Intergenerational equity requires today's ratepayers to meet the costs of utilising the Council's assets and not expecting them to meet the full cost of long term assets that will benefit ratepayers in future generations. Additionally, the Council has in place asset management plans for major classes of assets detailing renewal and maintenance programmes, to ensure ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance. The Act requires the Council to make adequate and effective provision in its Hauraki Long Term Plan (HLTP) and in its Annual Plan (where applicable) to meet the expenditure needs identified in those plans. The Act also sets out the factors that the Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in the HLTP. Council has two types of other reserves: Reserves for different areas of benefit and, trust and bequest reserves. Reserves for different areas of benefit are used where there is a discrete set of rate or levy payers as distinct from

the general rate. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves. Trust and bequest reserves are set up where Council has been donated funds that are restricted for particular purposes. Deductions are made where funds have been used for the purpose they were donated.

9. Cash and cash equivalents

30 June 2017 30 June 2016

$000 $000

Cash at Bank and in Hand 7,463 2,236 Total Cash or Cash Equivalents 7,463 2,236

The carrying value of cash at bank and in hand, and short-term deposits with maturity dates of three months or less approximates their fair value.

The items shown above together represent the value of cash, cash equivalents and bank overdrafts as shown on the Statement of Cashflows.

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10. Trade and other receivables 30 June 2017 30 June 2016 $000 $000 Rates receivables 2,129 2,117

Water receivables 3,698 4,716

Government grants 1,822 1,378

GST 452 23

Sundry receivables 1,459 1,054

9,560 9,288

Less provision for impairment (980) (990)

8,580 8,298

Total receivables comprise: Receivables from non-exchange transactions – this includes outstanding amounts for non-water rates, and grants.

3,624 2,901

Receivables from exchange transactions – this includes outstanding amounts for water rates, and fees and charges.

4,956 5,397

Trade and other receivables are non-interest bearing and receipt is normally on 30-day terms. Therefore the carrying value approximates their fair value.

There is no significant concentration of credit risk in receivables.

All overdue receivables have been individually assessed for impairment and provision has been made for that impairment. The impairment for sundry debtors decreased during the year due to the increased use of debt collection agencies and subsequent decrease in overdue sundry debtors.

Government Grants include Rates Rebates applied for, NZTA Subsidy claims and Petrol Tax.

2017 2016 $000 $000Movement in the impairment provision of receivables

At 1 July 990 1,022

Provision for Doubtful Debts - Rates 618 694 Provision for Doubtful Debts - Water 73 71 Provision for Doubtful Debts - Sundry Debtors 299 257

Additional provisions made during the year (10) (32)

Provision for Doubtful Debts - Rates 162 (76) Provision for Doubtful Debts - Water 99 2 Provision for Doubtful Debts - Sundry Debtors (271) 42

980 990

At 30 June Provision for Doubtful Debts - Rates 780 618 Provision for Doubtful Debts - Water 172 73 Provision for Doubtful Debts - Sundry Debtors 28 299

TOTAL 980 990

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Aging profile of receivables

30 June 2017 30 June 2016 Gross Impairment Net Gross Impairment Net $000 $000 $000 $000 $000 $000Rates Not past due 0 0 0 0 0 0 Past due 1 Month 307 81 226 315 71 244 Past due 2 Months 0 0 0 0 0 0 Past due 3 Months 0 0 0 0 0 0 Past due 4+ Months 1,823 699 1,124 1,803 547 1,256

2,130 780 1,350 2,118 618 1,500

Water Current 3,214 40 3,174 4,106 2 4,104 Arrears 484 132 352 610 70 540

3,698 172 3,526 4,716 72 4,644

Sundry Not past due 512 0 512 236 0 236 Past due 1 Month 193 0 193 56 0 56 Past due 2 Months 24 0 24 12 0 12 Past due 3 Months 32 0 32 21 0 21 Past due 4+ Months 698 28 670 729 300 429

1,459 28 1,431 1,054 300 754

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11. Inventories 30 June 2017 30 June 2016 $000 $000 Quarry Metal Stockpile 92 91 Other 100 83 Total Inventories 192 174

The carrying amount of inventories held for distribution is measured at cost, adjusted for any loss of service potential, and as at 30 June was $192,344 (2016: $174,000). The carrying amount of inventories held for resale is measured at the lower of cost and net realisable value and as at 30 June was $0 (2016: $0). No inventories are pledged as security for liabilities (2016: $0). There were no writedowns of inventory (2016: $24,000). Quarry stock writedowns were reversed by $1,251 (2016: $0).

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12. Other financial assets 30 June 2017 30 June 2016 $000 $000 Prepayments 127 155

Community Loans 136 20

Borrower Notes 656 544

Shares in other organisations 164 164

1,083 883

Current Portion Prepayments 127 155 Community Loans 0 0 127 155 Non-Current Portion Community Loans 136 20

Borrower Notes 656 544

Unlisted shares in: NZ Local Government Insurance Company Limited 58 58 Local Authority Shared Services Limited (SVDS shares) 6 6 NZ Local Government Funding Agency Limited (Shares) 100 100 Local Authority Shared Services Limited (Initial Shares) 0 0 956 728 1,083 883

Investments are subject to Council's Investment Policy which became operative 1 July 2015. Borrower Notes Borrower Notes from NZ Local Government Funding Agency are valued at cost. This approximates fair value. Shares in other organisations The fair value of shares in NZ Local Government Insurance Company Ltd and Local Authority Shared Services Ltd have been determined at fair value through other comprehensive revenue & expense. This encompasses investments that HDC intends to hold long-term but which may be realised before maturity, and shareholdings that HDC holds for strategic purposes. Gains and losses are recognised in other comprehensive revenue & expense. Fair value has been determined by net asset backing. Impairment There were no impairment expenses or provisions for other financial assets. None of the financial assets are either past due or impaired.

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13. Non-current assets held for sale

30 June 2017 30 June 2016

$000 $000

Land 448 411 448 411

HDC owns property in various locations, which it holds for sale. The Council has approved the sale of the properties, as they will provide no further use for HDC. The majority of these properties are subdivision sections that Council has developed in Kerepehi and Ngatea, which are expected to be sold within the next financial year.

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14. Property, plant and equipment 2017

Cost / Acc Depr and Carrying Transfers Current Current Current Current Acc Depr Revaluation Cost/ Acc Depr/ Carrying

Revaluation Impairment Amount Year Year Year Year Rev'd on Surplus Revaluation Impairment Amount 1 July 2016 1 July 2016 1 July 2016 Additions Disposals Impairment Depreciation Disposal 30 June 2017 30 June 2017 30 June 2017

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Council Operational Assets

Land

14,315 0 14,315 10 31 468 0 0 0 0 13,888 0 13,888 Buildings & Structures 20,925 1,495 19,430 1,815 134 127 0 777 15 0 22,747 2,257 20,490 Library Books

724 74 650 0 154 0 0 173 0 0 878 247 631

Vehicles

3,342 2,189 1,153 0 557 110 0 153 81 0 3,789 2,261 1,528 Equipment

15,372 4,063 11,309 25 84 633 0 717 320 0 14,848 4,460 10,388

Technology

2,083 1,712 371 0 167 0 0 162 0 0 2,250 1,874 376 Furniture & Fittings

343 235 108 0 88 0 0 22 0 0 431 257 174

Technology - Finance Leases

10 0 10 0 0 7 0 0 0 0 3 0 3 Work in Progress

1,594 0 1,594 (1,850) 3,064 801 0 0 0 0 2,007 0 2,007

Total operational Assets 58,708 9,768 48,940 0 4,279 2,146 0 2,004 416 0 60,841 11,356 49,485

Council Infrastructural Assets

Land 3,703 0 3,703 0 0 0 0 0 0 0 3,703 0 3,703 Wastewater System 37,470 1,385 36,085 3,081 106 7 0 739 0 0 40,650 2,124 38,526 Water System 64,388 2,798 61,590 2,373 252 134 0 1,631 0 0 66,879 4,429 62,450 Drainage Network 40,555 1,007 39,548 609 152 4 0 500 0 0 41,312 1,507 39,805 Roading Network 232,988 5,844 227,144 1,717 1,940 86 0 2,995 0 11,586 239,306 0 239,306 Land under Roads 88,792 0 88,792 0 0 0 0 0 0 0 88,792 0 88,792 Work in Progress 8,297 0 8,297 (7,780) 3,954 297 0 0 0 0 4,174 0 4,174 Total Infrastructural Assets 476,193 11,034 465,159 0 6,404 528 0 5,865 0 11,586 484,816 8,060 476,756

Council Restricted Assets

Land 19,271 421 18,850 0 54 0 (6) 0 0 0 19,325 415 18,910 Total Restricted Assets 19,271 421 18,850 0 54 0 (6) 0 0 0 19,325 415 18,910

Total HDC Property, Plant & Equipment 554,172 21,223 532,949 0 10,737 2,674 (6) 7,869 416 11,586 564,982 19,831 545,152

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2016

Cost / Acc Depr and Carrying Transfers Current Current Current Current Acc Depr Revaluation Cost/ Acc Depr/ Carrying

Revaluation Impairment Amount Cost Year Year Year Year Rev'd on Surplus Revaluation Impairment Amount 1 July 2015 1 July 2015 1 July 2015 Additions Disposals Impairment Depreciation Disposal 30 June 2016 30 June 2016 30 June 2016

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Council Operational Assets

Land 13,136 0 13,136 0 0 230 0 0 0 1,410 14,315 0 14,315 Buildings & Structures 21,066 866 20,200 15 82 187 0 735 56 0 20,925 1,495 19,430 Library Books 582 0 582 0 142 0 0 74 0 0 724 74 650 Vehicles 3,349 2,200 1,149 0 240 247 0 194 205 0 3,342 2,189 1,153 Equipment 14,983 3,132 11,851 92 131 0 0 765 0 0 15,372 4,063 11,309 Technology 1,926 1,542 384 0 157 0 0 170 0 0 2,083 1,712 371 Furniture & Fittings 340 211 129 0 3 0 0 24 0 0 343 235 108 Technology - Finance Leases 12 0 12 0 7 9 0 0 0 0 10 0 10 Work in Progress 236 0 236 (107) 1,474 9 0 0 0 0 1,594 0 1,594 Total operational Assets 55,630 7,951 47,679 0 2,236 682 0 1,962 261 1,410 58,708 9,768 48,940

Council Infrastructural Assets

Land 3,344 0 3,344 0 0 0 0 0 0 359 3,703 0 3,703 Wastewater System 37,091 694 36,397 43 337 0 0 692 0 0 37,470 1,385 36,085 Water System 54,361 1,351 53,010 9,339 1,088 399 0 1,448 0 0 64,388 2,798 61,590 Drainage Network 40,283 517 39,766 0 272 0 0 490 0 0 40,555 1,007 39,548 Roading Network 233,389 2,947 230,442 0 1,247 42 0 2,897 0 -1,606 232,988 5,844 227,144 Land under Roads 88,792 0 88,792 0 0 0 0 0 0 0 88,792 0 88,792 Work in Progress 11,730 0 11,730 (9,382) 5,949 0 0 0 0 0 8,297 0 8,297 Total Infrastructural Assets 468,990 5,509 463,481 0 8,893 441 0 5,527 0 -1,247 476,193 11,034 465,159

Council Restricted Assets

Land 18,073 410 17,663 0 0 0 11 0 0 1,198 19,271 421 18,850 Total Restricted Assets 18,073 410 17,663 0 0 0 11 0 0 1,198 19,271 421 18,850

Total HDC Property, Plant & Equipment 542,693 13,870 528,823 0 11,129 1,123 11 7,489 261 1,361 554,172 21,223 532,949

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Significant Acquisitions and Disposals

Paeroa Library Construction of the new Paeroa Library at 5 Mackay Street began in 2015/16, and was completed in late 2016/17. Of a total cost of $1.8 million, $1.6 million was spent in 2016/17.

Kerepehi Wastewater Treatment Plant Upgrade A further $1.1 m was spent on the Kerepehi Wastewater Treatment Plant upgrade in 2016/17. This upgrade is to service the Allied Faxi ice cream factory and is funded by Allied Faxi.

Ngatea North Subdivision Roading $1.0 million was spent in 2016/17 on the construction of new roading in relation to the Ngatea North subdivision undertaken by Hauraki District Council.

Impairment

There was a $6,000 reversal of impairment losses during the year (2016 $11,000 impairment loss).

Core infrastructure asset disclosures

2017 Replacement Book Constructed Vested in Insured

Cost Value by Council Council Value

$000 $000 $000 $000 $000

Wastewater - Treatment 12,760 9,838 3,071 0 9,434 Wastewater - Other 46,352 28,688 79 39 47,961

Water - Treatment 30,199 23,525 1,175 0 31,307 Water - Other 68,767 38,924 1,423 28 69,360

Drainage Network 52,544 35,265 725 36 47,956

Flood Protection

6,235 4,539 0 0 10,091

Roading Network 307,329 239,279 3,657 0 0

2016 Replacement Book Constructed Vested in Insured

Cost Value by Council Council Value

$000 $000 $000 $000 $000

Wastewater - Treatment 9,694 6,931 91 0 9,592 Wastewater - Other 45,815 29,154 46 244 45,776

Water - Treatment 27,785 21,486 9,076 0 31,322 Water - Other 67,541 40,104 73 37 70,056

Drainage Network 51,755 34,965 87 166 47,425

Flood Protection 6,019 4,582 45 0 9,829

Roading Network 303,312 227,144 1,302 0 0

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Insurance

Roading Network infrastructure assets are self-insured. There is no separate fund maintained for self-insurance purposes. Insured Council operational assets (including infrastructure work in progress) are: Buildings and Structures (book value $20,492k, sum insured $72,973k) Vehicles (book value $1,528k, sum insured $2,207k) All other assets (book value $13,574k, sum insured $8,917k) Land (book value $125,292k) is not insured.

Restrictions on Titles

Any land that has a restriction on the title, is disclosed under the asset category “Council Restricted Assets”. No other assets have restriction on their title (2016: consistent). No assets have been pledged as security for liabilities (2016: nil).

Work in progress

The total amount of property, plant and equipment in the course of construction was $6,181,000 (2016 $9,891,000) Property, plant and equipment in the course of construction by class of asset is detailed below:

30 June 2017 30 June 2016

$000 $000

Land 1,232 2,736

Buildings - 247

Equipment 2,007 1,347

Roading 12 24

Water 2,628 3,412

Wastewater 285 2,124

Stormwater 15 -

Drainage 2 1

6,181 9,891

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15. Intangible assets

Carbon Credits Software Total

$000 $000 $000 2017 Cost 49 2,376 2,425

Accumulated amortisation and impairment 0 1,586 1,586

Closing carrying amount 49 790 839

Opening Balance 49 851 900

Additions 0 139 139

Amortisation charge 0 200 200


2016 Cost 49 2,237 2,286

Accumulated amortisation and impairment 0 1,386 1,386


Opening Balance 0 853 853

Additions 49 185 234

Amortisation charge 0 187 187


The software values above include $0 (2016 $0) of software still under development.

There are no restrictions over the title of intangible assets (2016: nil). No intangible assets have been pledged as security for liabilities (2016: nil).

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16. Forestry assets

Note 30 June 2017 30 June 2016

$000 $000

Balance at 1 July 1,286 755

Increases due to improvements 113 95

Gains/(losses) arising from changes in fair value (less estimated point of sale costs) attributable to physical changes

5 (22) 4

Gains/(losses) arising from changes in fair value (less estimated point of sale costs) attributable to price changes.

5 182 432

Decreases due to sales 0 0

Balance as at 30 June 1,559 1,286

HDC owns 115.2 ha of Radiata forest (2016 115.4 ha), which are at varying stages of maturity ranging from 2 to 35 years. During the year 0.2 ha of forest was harvested (2016: nil).

HDC had its forestry asset professionally valued as at 30 June 2017 by PF Olsen Ltd, a recognised forestry valuer. The basis used to value the forests was the expected yield at maturity. A pre-tax discount rate of 6.5% (2016: 6.5%) has been used in discounting the present value of expected cashflows.

There are no restrictions on title and no forestry assets pledged as security for liabilities (2016: nil). There are no commitments for development or acquisition of forestry assets (2016: nil).

Notional land rental costs have been included for freehold land. The forest has been valued on a going concern basis and only includes the value of the existing crops on a single rotation basis. No allowance for inflation has been provided. Cost are current average costs. No allowance has been made for cost improvements in future operations and log prices are based on a 3 year historical rolling average.

HDC is exposed to financial risks arising from changes in timber prices. HDC is a long-term investor and does not expect timber prices to decline significantly in the foreseeable future, therefore, has not taken any measures to manage the risks of a decline in timber prices. HDC reviews its outlook for timber prices regularly in considering the need for active financial risk management.

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17. Investment property Note 30 June 2017 30 June 2016 $000 $000 Balance at 1 July 660 575 Disposals (660) 0 Fair value gains/(losses) on valuation 5 0 85 Balance as at 30 June 0 660

HDC's investment properties were leasehold sections at Waihi Beach. HDC was restricted to only selling the properties to the lessees. All remaining investment properties held at 1 July 2016 were sold during the current year.

All investment properties were generating income prior to their sale. Income from investment properties is disclosed in note 4. Expenditure is disclosed in note 5.

18. Derivatives 30 June 2017 30 June 2016 $000 $000 Interest Rate Swaps (1,833) (2,663) (1,833) (2,663)

Current Portion Interest Rate Swaps (69) 0 Non-Current Portion Interest Rate Swaps (1,764) (2,663) (1,833) (2,663)

The notional principal amounts of outstanding interest rate swap contracts were $40,000,000 (2016: $44,000,000). Council uses interest rate swaps to manage the balance of fixed versus floating interest rates on its borrowings.

Fair value

Interest rate swaps The fair values of interest rate swaps have been determined by calculating the expected cash flows under the terms of the swaps and discounting these values to present value. The inputs into the valuation model are from independently sourced market parameters such as interest rate yield curves. Most market parameters are implied from instrument prices. The interest rates range from 2.47% to 4.96%. (2016: 3.43% - 4.96%).

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19. Joint ventures HDC has a 26% interest in the Thames Valley Combined Districts Emergency Planning Unit (TVCDEPU). This has been accounted for as a jointly controlled operation using the equity method.

2017 2016

$000 $000

Movements in carrying amount Balance at 1 July 77 61

Share of total revenues and expenses 6 16

Balance as at 30 June 83 77

TVCDEPU shares a common balance date with HDC. HDC's share of the Proprietors' Funds has been recognised as Investment in Joint Ventures in the Statement of Financial Position.

30 June 2017 30 June 2016

$000 $000

Hauraki's interest in TVCDEPU are as follows: Current assets 74 70 Non-current assets 21 26 Current liabilities 13 19 Non-current liabilities 0 0 Income 133 171 Expenditure 127 155

There were no contingent liabilities or commitments recognised by the joint venture (2016: nil).

Council did not have any contingent liabilities or capital commitments relating to the joint venture (2016: nil).

Council is not liable for any other venturer's contingent liabilities (2016: nil).

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20. Investments in Associates

30 June 2017 30 June 2016

$000 $000

Hauraki Rail Trail Charitable Trust 11 11

Destination Coromandel Trust 0 0

11 11

Movements in carrying amount Balance at 1 July 11 7

New investments during the year 0 0

Share of total revenues and expenses 0 4

Balance as at 30 June 11 11

HDC has a 25% interest in Destination Coromandel Trust. This has been accounted for using the equity method.

Summarised financial information of Destination Coromandel Trust Assets 143 84 Liabilities 172 105 Income 950 951 Expenditure 958 959 Surplus/(Deficit) (8) (8) HDC's share of Surplus/Deficit (2) (2) HDC has a 33.3% interest in Hauraki Rail Trail Charitable Trust. This has been accounted for using the equity method.

Summarised financial information of Hauraki Rail Trail Charitable Trust

Assets 167 99 Liabilities 135 67 Income 237 219 Expenditure 249 206 Surplus/(Deficit) (12) 13 HDC's share of Surplus/(Deficit) (4) 4 Prior year adjustment* 4 0 HDC's share of Surplus/(Deficit) 0 4 * The 2016 share of Surplus/(Deficit) was calculated using Hauraki Rail Trail Charitable Trust's 2016 unaudited accounts. The accounts were subsequently audited, and updated, and the resulting movement in HDC's share of Surplus/(Deficit) has been adjusted against the 2017 share of Surplus/(Deficit). The balance date of Destination Coromandel Trust and Hauraki Rail Trail Charitable Trust is 30 June.

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21. Trade and other payables

30 June 2017 30 June 2016

$000 $000

Trade Payables 1,349 3,720 Deposits and bonds 407 350 Other Payables 827 993 Accrued Expenses 1,829 889 Amounts due to associates and joint ventures 55 26 Income in advance 922 798 Total Trade and Other Payables 5,389 6,776

All Trade and Other Payables are Exchange Payables except for Deposits and bonds, and Income in advance that relates to rates of $501,079 (2016: $539,000)

22. Provisions

30 June 2017 30 June 2016

$000 $000

Landfill Aftercare Provision - current 393 76 Landfill Aftercare Provision - non current 392 706 Total provisions 785 782

HDC has responsibility under the resource consent of the landfill operation to provide ongoing maintenance and monitoring of the landfill after the site is closed. The cash outflows for landfill post closure are expected to occur over the next thirty years time. The long-term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated taking into account existing technology and using a discount rate of 6.5% (2016: 6.5%). 30 June 2017 30 June 2016 $000 $000 Balance as at 1 July 782 1,031 Amounts used (3) (43) Transferred to Land Impairment 6 (11) Restatement of future liability (78) (289) Discount unwinding 78 94 Balance as at 30 June 785 782

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23. Employee benefit entitlements 30 June 2017 30 June 2016 $000 $000 Accrued Pay 460 354 Annual Leave 1,260 1,223 Long Service Leave 54 62 Sick Leave 51 59 Current Employee Benefit Liabilities 1,825 1,698 Retirement Leave 367 394 Non-Current Employee Benefit Liabilities 367 394

The present value of retirement and long service leave obligations depend on a number of factors that are determined on an actuarial basis. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will affect the carrying amount of the liability.

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24. Borrowing 30 June 2017 30 June 2016 $000 $000Current Debentures 3,000 0 Lease Liabilities 2 7 Total Current Borrowings 3,002 7

Non Current Debentures 38,000 34,000 Lease Liabilities 1 3 Total Non Current Borrowings 38,001 34,003

Security HDC has cash advance facilities with the maximum amount that can be drawn against these of $7,000,000 (2016: $7,000,000). There are no restrictions on the use of these facilities. Borrowings at 30 June against these facilities were $0 (2016 $0) at interest rates which are fixed quarterly. HDC has term advance facilities with the maximum amount that can be drawn against of $41,000,000 (2016: $34,000,000). There are no restrictions on the use of these facilities. Borrowings at 30 June against these facilities were $41,000,000 (2016 $34,000,000). The facilities are secured by Debenture over rates revenue. Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

Debentures Debentures are at a floating interest rate. The interest rate is reset quarterly based on the 90 day bank bill rate plus a margin for credit risk. As interest rates are floating the carrying amount approximates the fair value. Financing HDC manages its borrowings in accordance with its funding and financial policies, which includes a Liability Management policy. These policies have been adopted as part of the HDC's Long Term Plan 2015-25. Lease Liabilities The majority of leases are for photocopiers and eftpos terminals. Further analysis of lease payments due is disclosed in Note 28.

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25. Internal lending

Opening Drawdowns Repayments Closing Internal Interest Loan Balance Loan Balance Expense/(Revenue) $000 $000 $000 $000 $000 2017

Roading 15,955 0 237 15,718 903 Water 13,745 1,203 0 14,948 796 Wastewater 6,775 105 0 6,880 458 Land Drainage & Flooding (2,634) 0 336 (2,970) (126) Stormwater (755) 0 351 (1,106) (31) Solid Waste 269 549 0 818 (2) Leadership 0 0 0 0 (234) Community Services 5,314 220 0 5,534 286 Community Development 2,956 3,767 0 6,723 0 Regulatory 0 0 0 0 0

41,625 5,844 924 46,545 2,050

2016 Roading 16,108 0 153 15,955 939 Water 16,096 0 2,351 13,745 983 Wastewater 5,875 900 0 6,775 365 Land Drainage & Flooding (2,188) 0 446 (2,634) (110) Stormwater (386) 0 369 (755) (7) Solid Waste 760 0 491 269 0 Leadership 0 0 0 0 0 Community Services 5,584 0 270 5,314 326 Community Development 1,712 1,244 0 2,956 0 Regulatory 0 0 0 0 0

43,561 2,144 4,080 41,625 2,496

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26. Reserves

Opening Deposited Withdrawn Closing Activity that the reserve relates to

Balance into Reserve from Reserve Balance

2017 $000 $000 $000 $000

Other Reserves District Community Recreation 15 0 (3) 12 Community Services

Plains Community Recreation 231 0 0 231 Community Services

Paeroa Community Recreation 390 0 (10) 380 Community Services

Waihi Community Recreation 1,194 0 (369) 825 Community Services

Dist. Community Projects Assistance 572 199 (325) 446 All Activities

Quarry Renewal 1,000 0 0 1,000 Corporate

3,402 199 (707) 2,894 Asset Revaluation Reserves

Land 23,410 0 0 23,410 All Activities

Buildings 11,152 0 0 11,152 All Activities

Wastewater System 7,996 0 0 7,996 Wastewater

Water System 6,940 0 0 6,940 Water

Drainage Network 2,459 0 0 2,459 Land Drainage

Roading Network 36,143 11,586 0 47,729 Roading

88,100 11,586 0 99,686

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Opening Deposited Withdrawn Closing Activity that the reserve

relates to Balance into Reserve from Reserve Balance

2016 $000 $000 $000 $000

Other Reserves

District Community Recreation 21 2 (8) 15 Community Services

Plains Community Recreation 231 0 0 231 Community Services

Paeroa Community Recreation 381 9 0 390 Community Services

Waihi Community Recreation 1,217 35 (58) 1,194 Community Services

Dist. Community Projects Assistance 528 199 (155) 572 All Activities

Quarry Renewal 1,000 0 0 1,000 Corporate

3,378 245 (221) 3,402

Asset Revaluation Reserves Land 20,445 2,965 0 23,410 All Activities

Buildings 11,152 0 0 11,152 All Activities

Wastewater System 7,996 0 0 7,996 Wastewater

Water System 6,940 0 0 6,940 Water

Drainage Network 2,459 0 0 2,459 Land Drainage

Roading Network 37,748 0 (1,605) 36,143 Roading

86,740 2,965 (1,605) 88,100

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District Community Projects Assistance Fund This Reserve Fund is to assist with the completion of community projects. District, Paeroa, Plains, and Waihi Community Recreational Funds These Reserve Funds are historic and were used to accumulate Financial Contributions prior to Council changing to a Development Contributions regime. The balances will be used to fund community recreational facilities capital works. Quarry Renewal Fund This Reserve Fund is to provide funding for the cost of rehabilitating Tetley’s Quarry post-closure. Asset revaluation reserves These reserve funds are to hold the net balances from gains/losses from asset revaluations.

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27. Reconciliation of net surplus/(deficit) after tax to net cash flow from operating activities

Actual Actual

Note 2017 2016 $000 $000 Surplus/(Deficit) After Tax 1,060 3,033

Add/(less) non-cash items:

Share of joint venture surplus/(deficit) 19 (6) (16) Depreciation & Amortisation 14, 15 8,070 7,677 Impairment Charges 0 (11) Vested Assets (102) (496) Restatement of Landfill Liability 22 (78) (289) (Gains)/Losses in fair value of Forestry 16 (160) (436) (Gains)/Losses in fair value of Investment Property 17 0 (85) (Gains)/Losses in fair value of derivatives (830) 1,473 (Gains)/Losses in fair value of Other Financial Assets 0 14 Add/(less) items classified as investing or financing activities: (Gains)/losses on disposal of property, plant and equipment 552 435 (Gains)/losses on disposal of assets held for resale (2,574) (333) (Gains)/losses on disposal of investment properties (367) 0 Add/(less) movements in working capital items: Accounts Receivable 10 147 (769) Inventories 11 (18) 19 Prepayments 12 28 (65) Accounts Payable 21 (1,387) 430 GST Receivable / (Payable) 10 (429) 453 Provisions 22 78 (235) Employee Benefits 23 101 108 Net cash inflow/(outflow) from operating activities 4,085 10,907

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28. Capital commitments and operating leases 30 June 2017 30 June 2016 $000 $000 Capital Commitments Capital expenditure contracted for at balance date but not yet incurred for property, plant and equipment:

Roading 597 2,235 Wastewater 36 1,005 Water 59 331 Equipment 44 209

Total Capital Commitments 736 3,780

Operating Leases as Lessee HDC leases property in the normal course of its business. The future aggregate minimum lease payments to be paid under non-cancellable operating leases are:

Not later than one year 185 185 Later than one year and not later than five years 483 635 Later than five years 799 831 Total Operating Commitments as Lessee 1,467 1,651

Operating Leases as Lessor HDC leases property under operating leases. The future aggregate minimum lease payments to be collected under non-cancellable operating leases are:

Not later than one year 132 264 Later than one year and not later than five years 141 226 Later than five years 86 149

Total Operating Commitments as Lessor 359 639

The total minimum future sublease payments expected to be received under non-cancellable subleases at balance date is nil (2016 nil).

Leases can be renewed at HDC's option, with rents set by reference to current market rates for items of equivalent age and condition.

There are no restrictions placed on HDC by any of the leasing arrangements (2016: nil).

No contingent rents have been recognised in the Statement of Comprehensive Revenue and Expense during the period (2016: nil).

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29. Contingent Assets and Liabilities 30 June 2017 30 June 2016 $000 $000 Weathertight Homes Claims 10 10 There was one known claim against HDC as at 30 June 2017 (2016: one). As this property did not have a code compliance certificate issued, Council believes it has no liability.

Spray Claim 0 10 There was an allegation that a Council contractor sprayed a drain adjacent to an organic farming property. The maximum liability Council is exposed to is the excess not covered by Riskpool.

Building Foundation Issues 20 20 There have been several properties in the district affected by foundation subsidence. The maximum liability Council is exposed to is the excess not covered by Riskpool.

Land Acquisition Compensation Claim 27 0 There is a request for compensation in relation to the historic acquisition of a small parcel of land under the Public Works Act. Council has approved $27k towards compensation, however no final settlement has been Reached.

Guarantees 50 80

70 120

Council had no contingent assets at balance date (2016: $0).

Weathertighness In April 2013, the Ministry of Education (MOE) initiated High Court proceedings against Carter Holt Harvey (CHH) and others alleging inherent defects in the cladding sheets and cladding systems manufactured and prepared by CHH. Subsequently, in December 2016, CHH commenced third party proceedings against 48 Councils, including Hauraki District Council, alleging a breach of duty in the processing of building consents, undertaking building inspections and issuing Code Compliance Certificates. The Councils have applied for orders setting aside and striking out CHH’s claims against them. The MOE’s claim against CHH is for 833 school buildings, 15 of which are located within the Hauraki District. At present there is insufficient information to conclude on potential liability and claim quantum, if any. Hauraki Rail Trail The Council, along with Thames-Coromandel District Council (TCDC) and Matamata-Piako District Council (MPDC) are party to a trust deed which has formed the Hauraki Rail Trail Charitable Trust (the Trust). The deed, signed on 2 March 2012, allows the Trust to own, operate, maintain, repair, develop and facilitate the use and enjoyment of a rail trail within the region. Upon formation of the Trust, it also entered into a "Management Agreement" to manage the rail trail. AS part of that agreement, the Trust is required to obtain income from the rail trail to provide funding for its 'management obligations'. If the Trust is unable to obtain sufficient income from the rail trail to meet its management obligations, the Counci, TCDC and MPDC have agreed to contribute additional funding to the Trust (as set out in the management agreement). If Council is notified that a shortfall exists, then Council is required to pay to the Trust the lesser of: One third of the shortfall specified in the relevant Trust's notice; or the following amount. $94,586 for the year ended 30 June 2017 (2016: $94,586). Local Authority Protection Programme (LAPP) Council is party to an agreement of the Local Authority Protection Programme Disaster Fund. This fund is being built up by local authorities to provide mutual self-assurance, and has limits on additional contributions required. There will be no contributions required from Council in 2017 (2016: $0) as there are sufficient funds to cover future events.

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New Zealand Local Government Funding Agency Council is a guarantor of the New Zealand Local Government Funding Agency Limited (NZLGFA). The NZLGFA was incorporated in December 2011 with the purpose of providing debt funding to local authorities in New Zealand. It has a current credit rating from Standard and Poor's of AA+ and a foreign currency rating of AA. Council is one of thirty local authority shareholders and eight local government guarantors of NZLGFA, and has uncalled capital of $100,000. When aggregated with the uncalled capital of other shareholders, $20 million is available in the event that an imminent default is identified. Also, together with the other shareholders and guarantors, Council is a guarantor of all of NZLGFA's borrowings. At 30 June 2017, NZLGFA had borrowings totalling $7.95 billion (2016: $6.22 billion). Financial reporting standards require Council to recognise the guarantee liability at fair value. However, Council has been unable to determine a sufficiently reliable fair value for the guarantee, and therefore has not recognised a liability. Council considers the risk of NZLGFA defaulting on repayments of interest or capital to be very low on the basis that: Council is not aware of any local authority debt default events in New Zealand; and Local government legislation would enable local authorities to levy a rate to recover sufficient funds to meet any debt

obligations if further funds were required.

30. Related party transactions

2017 2016

Key Management Personnel $000 $000 During the year Councillors, the chief executive, and senior managers, as part of a normal customer relationship, were involved in transactions with the Council at normal commercial rates (such as payment of rates, purchase of rubbish bags). Councillors

Remuneration 373 350

Full - time equivalent members 13 13

Senior Management Team, including the Chief Executive Remuneration 1,023 1,015

Full - time equivalent members 5 5

Total key management personnel remuneration 1,396 1,365

Total number of fulltime equivalent personnel 18 18

Due to the difficulty in determining the full - time equivalent for Councillors, the full - time equivalent figure is taken as the number of Councillors. An analysis of Councillor remuneration and further information on Chief Executive remuneration is provided in note 31.

Other Related Parties Related party disclosures have not been made for transactions with related parties that are: Within a normal supplier or client/recipient relationship; and On terms and conditions no more or less favourable than those that it is reasonable to expect the

Council would have adopted in dealing with the party at arm’s length in the same circumstance. Further transactions with the Council’s Associates and Joint Ventures (such as funding and financing flows), where the transactions are consistent with the normal operating relationship between the entities and are on normal terms and conditions for such transactions. No provision has been required, nor any expense recognised, for impairment of receivables for any loans or receivables to related parties.

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31. Remuneration 30 June 2017 30 June 2016 $ $Chief Executive The Chief Executive of the Hauraki District Council, appointed under Section 42(1) of the Local Government Act 2002 received a salary of: 270,989 258,672

In terms of his contract the Chief Executive also received the following benefits:

Subscriptions 750 750 Motor Vehicle 17,500 17,500

Total Chief Executive Remuneration 289,239 276,922

Elected members Elected members received salary and meeting allowances as follows:

Mr Toby Adams 33,635 23,931 Mrs Julie Bubb 7,882 23,931 Mr Bruce Gordon 9,448 27,771 Mr Greg Harris 7,099 22,011 Mrs Pam Keall 6,577 20,091 Mrs Gill Leonard 26,462 23,931 Mr Max McLean 26,228 23,225 Mr Paul Milner 26,462 22,401 Mr Harry Shepherd 8,038 25,179 Mr Don Swales 20,564 20,095 Mr James Thorp 20,564 20,091 Mr John Tregidga (Mayor) 88,085 83,470 Mr Ashley Tubman 6,629 20,239 Mr Phillip Buckthorp 14,104 0 Mrs Carole Daley 14,010 0 Mr Ross Harris 14,010 0 Mr Austin Rattray 14,188 0 Mr Duncan Smeaton 14,010 0 Mrs Anne Marie Spicer 14,380 0

372,375 356,367 For sitting on Hearings Committees elected members also received remuneration as follows:

Mrs Julie Bubb 0 440 Mr Greg Harris 0 260 Mrs Anne Marie Spicer 400 0 Mrs Gill Leonard 60 875 Mr Paul Milner 500 505 Mr Harry Shepherd 0 480

960 2,560 The annual value of vehicles provided to elected members is as follows:

Mr John Tregidga (Mayor) 5,299 4,750

5,299 4,750 Total Elected Member Remuneration 378,634 369,350

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30 June 2017 30 June 2016

Staff Total Annual Remuneration by band for Employees as at 30 June

<$60,000 85 86 $60,000 - $79,999 32 22 $80,000 - $99,999 18 13 $100,000 - $119,999 8 10 $120,000 - $179,000 7 6 $180,000 - $299,999 4 4

154 141

Number of fulltime employees as at 30 June 115 103

Fulltime equivalent number of part-time employees as at 30 June 22 21

A fulltime employee is determined on the basis of a 37.5 hour working week.

32. Severance payments 30 June 2017 30 June 2016 $ $ Council made the following payments to employees: Severance Payments:

Employee One 3,000 0 Employee Two 4,060 0

7,060 0

33. Rating Base Information Rating Base Information 30 June 2017 30 June 2016 The following rating base information is disclosed based on the rating base information at the end of the preceding financial year The number of rating units 12,009 11,839 The total capital value of rating units $5,604,026,050 $5,260,151,000 The total land value of rating units $3,638,795,950 $3,353,618,000

34. Events after balance date

There were no significant events after balance date.

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Related Documents

Liability Management Policy and Investment Policy

Background

The Liability Management Policy addresses a number of key objectives, including those required to address legislative requirements. The Liability Management Policy outlines the Council’s objectives for prudence, flexibility and risk in three principle areas; liquidity and funding risk, interest rate risk, and credit risk. The Policy details Council’s approach to minimising the total cost of borrowing over the medium to longer term. The Investment Policy sets the parameters which investment activity can occur with approved organisations for investments, and the type of approved investment vehicles. The mix of investments between current and non-current is determined according to Council’s working capital needs. The purpose of the policy is to ensure that Council’s investments are managed prudently, within prescribed risk levels and they are set to mature at the appropriate time to match cash flow requirements.

Overall Results

There have been no significant variations or material departures from the Council’s Investment Policy or Liability Management Policy.

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Appendix 1: Report of the Audit Office

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Appendix 2: Council Committees

Committees as at June 2017:

Audit and Risk Committee

Paul Bennett (Chair, Independent Member) Deputy Mayor Toby Adams (Deputy Chair) Mayor John Tregidga Cr Gill Leonard Cr Paul Milner Cr Duncan Smeaton

Western Plains Drainage District Committee

Brian Carter (Chair) Harry van Eyk Brian Keane Gavin Laurick Peter Johnstone Brian Pirie Don Challis Peter Paterson Ross Young Cr Don Swales (alternate – Cr James Thorp and Cr

Phillip Buckthought)

Eastern Plains Drainage District Committee

Roger Hunter (Chair) Richard Webster Andrew Green Ted Nicholson Kevin Caddy Peter Schouten Brent Conroy Kim Reid Cr Phillip Buckthought (Alternate Cr James Thorp

and Cr Don Swales)

Paeroa Rural Drainage District Committee

Mike Peters (Chair) Kyle Morrison Kevin Gillingham Peter Casey Cr James Thorp (Alternate – Cr Don Swales and Cr

Phillip Buckthought)

Community Services & Development Committee

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) All Councillors

Consultative Committee on Water and Waste

Cr Ross Harris (Chair) Cr James Thorp (Deputy Chair) Cr Duncan Smeaton Cr Phillip Buckthought

District Licensing Committee

Cr Paul Milner (Chairperson) Cr Gill Leonard (Deputy Chair) Cr Carole Daley Committee List Members:

o Mary Carmine

o Denis Taylor

o John Goodman

District Plan Review Committee

Mayor John Tregidga (Chairperson) Deputy Mayor Toby Adam (Deputy Chair) Cr Gill Leonard Cr Austin Rattray

Hearings & Judicial Committee

Cr Paul Milner (Chair Cr Gill Leonard (Deputy Chair) Cr Anne Marie Spicer

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Sub-committees

Economic Development Sub-Committee

(a sub-committee of the Community Services & Development Committee) Deputy Mayor Toby Adams (Chair) Cr Gill Leonard (Deputy Chair) Cr Paul Miner Cr Austin Rattray Cr Ross Harris

Councillor Conduct Review Sub-committee

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) Cr Gill Leonard Cr Paul Milner Cr Max Mclean

Working Parties

Paeroa Ward Working Party

Cr Paul Miner (Chair) Cr Deputy Mayor Toby Adams Cr Carole Daley Cr James Thorp Mayor John Tregidga

Councillor Remuneration Working Party

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) Paul Milner Gill Leonard

Plains Ward Working Party

Cr Gill Leonard (Chair) Cr Phillip Buckthought Cr Don Swales Cr Ross Harris Mayor John Tregidga

CEO Performance Assessment Working Party

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) Ward Chairs: Gill Leonard Paul Milner Max Mclean

Waihi Ward Working Party

Cr Max McLean (Chair) Cr Anne Marie Spicer Cr Austin Rattray Cr Duncan Smeaton Mayor John Tregidga

Councils Organisations Appointment Working Party

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) Ward Chairs:

o Gill Leonard

o Paul Milner

o Max Mclean

Community Housing Working Party

Carole Daley (Chair) Anne Marie Spicer (Deputy Chair) Paul Milner Gill Leonard

Property Sale and Purchase Working Party

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) Carole Daley Gill Leonard Max Mclean

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Forums

Te Mana Whenua Forum

Mayor John Tregidga (Chair) Deputy Mayor Toby Adams (Deputy Chair) Phillip Buckthought

Council Portfolios

Policy Mayor John Tregidga

Policy, RMA and Regulatory Cr Paul Milner

Property Cr Carole Daley

Water/Watewater/Stormwater Cr Ross Harris

Drainage Cr James Thorp

Roading Deputy Mayor Toby Adams

Community Facilities Cr Gill Leonard

Community Recreation (Sport) Cr Max McLean

Iwi Mayor John Tregidga

Solid Waste Cr Duncan Smeaton

Community Growth Deputy Mayor Toby Adams

Community Initiatives Cr Anne Marie Spicer

Civil Defence Cr Phillip Buckthought

H A U R A K ID I S T R I C T C O U N C I L

Hauraki District Council Offi cesFor all customer service enquiries 24 hours a day please telephone 07 862 8609 or 0800 734 834 (from within the District).

Council offi ces are open from 8:00am to 4:30pm Monday to Friday,excluding public holidays.

Principal Offi ce, PaeroaWilliam Street, Paeroa 3600PO Box 17, Paeroa 3640Phone: 07 862 8609 or 0800 734 834 (from within the District)

Email: [email protected]: www.hauraki-dc.govt.nz

Orchard West RoadNgatea

Waihi Service Centre40 Rosemont RoadWaihi

Plains Service Centre