Hill Country AfforestationWe propose:• To work with landowners to promote afforestation of

steepest and least productive erodible land in return for a share of carbon credit revenue

Cost: $47M over ten years

Paid from: • HBRC’s investment portfolio for a commercial return

Regional Landcare SchemeWe propose:• To align the scheme on HBRC’s environmental

protection priorities and areas where greatest land use intensification is likely to occur

• To target subsidy rates to reflect priorities

Cost: $880,000 per annum

Paid from: General rates and investment dividends

Biodiversity StrategyWe propose:• To jointly develop a Regional Biodiversity Strategy

with relevant agencies and stakeholders

• To identify priority areas for action and/or any funding commitment required

Cost: $27k in each of Years 1 and 2; $37.5k in Yr 3

Paid from: General Funding

Ruataniwha Water StorageWe propose:• Subject to the feasibility investigations, to construct a

dam on the Makororo River storing 90 million cubic meters of water to irrigate 17,000-30,000 ha of land

Cost: current estimates for the dam and reticulation network are $170 million

Paid from: part-funded from HBRC investment portfolio, in partnership with private investors

Ngaruroro Water StorageWe propose:• To investigate the cost and feasibility for water

storage for irrigation, power generation and augmenting of environmental flows in the Upper Ngaruroro catchment

Cost: to be determined

Paid from: if feasibility study is justified proposed to be part funded from HBRC investment portfolio and application made to Irrigation Acceleration Fund

Flood ControlWe propose:• Three options being considered to manage standard of flood

protection on the Heretaunga Plains:

1. Maintain current level of protection (no additional cost)2. Increase protection to 500-year event standard with work to take

10-15 yrs starting in 2016 ($15 million with little or no borrowing)3. As for option 2 but with work starting in 2014 ($15 mill plus cost of

borrowing)

Cost: Dependent upon option chosen

Paid from: Option 1 could result in small rates decrease; Option 2 targeted scheme rates managed in line with inflation: Option 3 funded primarily though borrowing but requires increase in targeted rates above rate of inflation

Regional Economic Development Strategy

We propose:• To expand economic activities in following areas:

– Primary sector growth (an additional $50k)– Business Hawke’s Bay (an additional $50k)– Economic reporting ($10k)– China sister city initiatives ($10k)

Cost: $120,000 per annum

Paid from: an increase in the 2012/13 economic development targeted rate

Port of NapierWe propose:• To maintain majority shareholding in the Port of

Napier as a strategic asset.

• The Port Company is now part of the HB Regional Investment Company, which is 100% owned by HBRC

Cost: Nil

Paid from: Not applicable

Heat SmartWe propose:• To continue the Heat Smart programme offering

financial assistance for home insulations (region-wide) or clean heat upgrades (Napier and Hastings airsheds)

Cost:$8.75 million over 20 years, of which there are 17 years remaining

Paid from: a targeted rate in the Napier and Hastings airsheds ( no changes proposed to rate)

Public TransportWe propose:• To continue to fund current services

• To investigate planned improvements identified in the Regional Public Transport Plan

Cost: $1,460,000 from targeted rates

Paid from: passenger fare revenues, the New Zealand Transport Agency and HBRC targeted rate – no change is proposed to the targeted rate total

Civil DefenceWe propose:• To increase coordination and response capacity

across the region

• establish a targeted rate for civil defence and emergency management

Cost: Total budget $768,762 in year 1; equating to $13.01 per $100k land value per property

Paid from: a uniform annual charge on all properties except the small no. in Taupo and Rangitikei districts

Genetic ModificationWe propose:• To consider a formal response to a request to prohibit

the establishment of genetically modified crops in Hawke’s Bay

• A range of options have been identified and public feedback is sought

Cost: To be determined, depending on option selected

Paid from: Likely source is general funding

Webcasting of MeetingsWe propose:• To enable on-line access to Council and Committee

meetings

Cost:

Video option – capital $25,900, operational $38,400 p.a.

Audio option – capita $19,400, operational $38,400 p.a.

Paid from: General funding

Solar Hot Water SchemeWe propose:• To administer and fund a voluntary targeted rate to

assist people install domestic solar hot water heating

Cost: $6.0 million, but long-term effect is cost neutral

Paid from:• Council will borrow money to be paid back by

borrowers plus interest.

Catchment-based Plan ChangesWe propose:• To accelerate the plan change programme required

for the Tukituki, Taharua/Mohaka and Heretaunga zone catchments where there are significant water management issues.

Cost: $1.0 million for each of the next three years, due in part to requirement for external technical expertise

Paid from: General funding

Regional Natural Hazards PlanWe propose:• To publicly notify a change to the RPS by July 2013 to

improve policy direction on managing the effects of natural hazards on land use, particularly placing greater emphasis on avoiding hazards

Cost: 2012/13 - $50k; 2013/14 - $25k; 2014/15 - $30k.

Paid from: General funding

Investment StrategyWe propose to:• Establish subsidiaries to invest in water• Continue investing in the Port of Napier• Increase investment in water harvesting and land use• Sell leasehold properties in Napier and Wellington

Cost: Estimated $143 million

Paid from: range of options including existing and future cash reserves, realising leasehold property values, additional borrowing, govt. contributions

Leasehold value realisationWe propose:• To realise the value in low return properties to

finance investment in regional infrastructure assets:– Offer attractive discounts to leaseholders to freehold by 30 June’12– Sell cash flows from remaining Napier rents to investors– Sell properties in Wellington over next three years

Cost: Only additional costs are discounts granted to buyers of freehold up to 30 June 2012.

Paid from: This activity will generate funds and reduce need for Council borrowing

Strategic AlliancesWe propose:• To establish a Lower North Island regional councils-

Department of Conservation alliance called “Nature Central”

• To focus Nature Central on science and technical info, biodiversity, biosecurity, regional park management and community engagement

Cost: Funded from within existing budgets

Paid from: N/A

Research AlliancesWe propose:• To continue to grow the relationship established with

Massey University, aiming to increase the level of research and development undertaken to underpin sustainable growth in Hawke's Bay

Cost: $50,000

Paid from: An increase in the economic development budget (previously identified in the R.E.D.S. section)

Property at TutiraWe propose:• To transfer approx 20ha of Tutira Country Park to the Crown for

use in Treaty settlement with hapu of the area, in exchange for, ownership of the Tangoio Soil Conservation Reserve being transferred to HBRC.

• The TSCR would give HBRC chance to develop recreational and biodiversity opportunities close to Napier and Hastings

Cost: Not expected to be any other than valuation and ownership transfer costs.

Paid from: To be determined; but not expected to have impact on general rate

Regional Community FacilitiesWe propose:• To allocate $2.5 million to Hastings District Council

for an international hockey turf at the RSP

• To allocate $500,000 to Wairoa District Council to upgrade the Wairoa Community Centre

Cost: $3 million

Paid from: $2.1 million to be funded through loans and $0.9 million from Council reserves

Organisational EfficiencyWe propose:• To develop shared services opportunities and are

considering options for joining a possible Hawke’s Bay Shared Service company or an existing one based in Palmerston North

• To implement efficiency programmes currently being applied to central government

Cost: Uncertain at this point

Paid from: Awaiting further information