ruapehu district council - annual report 2016/17... · the annual report is used to monitor the...

RUAPEHU DISTRICT COUNCIL - ANNUAL REPORT 2016/17 SECTION 1 – PAGE 1


CONTENTS

COUNCIL DIRECTORY .................................................................................................................................... 3

STATEMENT OF COMPLIANCE ..................................................................................................................... 4

WHAT IS AN ANNUAL REPORT? .................................................................................................................... 5

COUNCIL ORGANISATIONAL STRUCTURE.................................................................................................. 6

RUAPEHU DISTRICT MAP .............................................................................................................................. 7

MAYOR AND COUNCILLORS ......................................................................................................................... 8

COMMUNITY BOARDS .................................................................................................................................... 9

MESSAGE FROM THE MAYOR .................................................................................................................... 10

THE CEO’S YEAR AT A GLANCE .................................................................................................................. 12

AUDITOR’S REPORT ..................................................................................................................................... 16

COUNCIL ACTIVITIES ....................................................................................................................................... 21

RUAPEHU’S OUTCOMES ............................................................................................................................. 23

OUTCOMES ................................................................................................................................................... 24

RUAPEHU’S STRATEGIC ACTIVITY GROUPS ............................................................................................ 25

COMMUNITY SUPPORT ............................................................................................................................... 27

LEADERSHIP ................................................................................................................................................. 40

REGULATION ................................................................................................................................................ 45

COMMUNITY FACILITIES.............................................................................................................................. 54

LAND TRANSPORT ....................................................................................................................................... 67

STORMWATER AND FLOOD PROTECTION................................................................................................ 76

WASTEWATER .............................................................................................................................................. 83

WATER SUPPLY ............................................................................................................................................ 92

WASTE MANAGEMENT AND MINIMISATION ............................................................................................ 104

SECTION TWO: FINANCIAL INFORMATION

INDEXED SEPARATELY


COUNCIL DIRECTORY Postal Address: Private Bag 1001, Taumarunui 3946 Website: www.ruapehudc.govt.nz Email: [email protected] Locations: 59-63 Huia Street, Taumarunui Phone 07 895 8188 Fax 07 895 3256 37 Ayr Street, Ohakune Phone 06 385 8364 Fax 06 385 8628 Cr Duncan/Seddon Streets, Raetihi Phone 06 385 4447 Fax 06 385 4014 Bankers: Bank of New Zealand 101 Hakiaha Street, Taumarunui Auditors: Audit New Zealand on behalf of the Auditor General 280 Queen Street, Auckland Solicitors: Le Pine & Co PO Box 140, Taupo Major Contractors: Alf Downs Streetlighting Ltd Datacom Group Ltd Downer EDI Works Ltd Emmetts Civil Construction Ltd Envirowaste GHD J&J Walters Ltd Jilesen Contractors Ltd Lexel Systems Ltd Mulch & Mow Ltd Roadmarking Services Ltd Veolia Water Services (ANZ) Pty Ltd Visit Ruapehu


STATEMENT OF COMPLIANCE Council completed and adopted its 30 June 2017 Annual Report by 31 October 2017, as required by section 98(3) of the Local Government Act 2002. The Council and Management of the Ruapehu 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.

Dated this 25th day of October 2017.

Don Cameron JP Clive Manley MAYOR CHIEF EXECUTIVE


WHAT IS AN ANNUAL REPORT? The local authority is required to produce a plan showing how it will achieve the purpose of Local Government that is to meet the current and future needs of the community. The local authority demonstrates its contribution towards this purpose in the setting of Strategic Goals (SGs) and in the development of a Long Term Plan (LTP). The LTP describes what a local authority aims to achieve over a minimum period of ten years. The LTP must be produced once every three years, with an Exceptions Annual Plan (EAP) for the years in between. The EAP provides the budget for the coming year and explains any changes from the LTP. The first year of the LTP is the EAP for that year. The Annual Report is used to monitor the local authority’s progress against the SGs and work programmes identified in the LTP and against budgets contained within the EAP. Council’s current LTP is the Future Ruapehu Long Term Plan 2015-25 (LTP 2015-25). This LTP is being reported against in this Annual Report. The LTP 2015-25 includes a set of performance indicators and a list of major projects and activities. The 2016/17 Annual Report communicates the progress that has been made towards the SGs set out in the LTP 2015-25.

COUNCIL ORGANISATIONAL STRUCTURE

As at 30 June 2016

Residents of the Ruapehu District

Council

Mayor Don Cameron JP

Deputy Mayor Marion Gillard JP

Members Graeme Cosford JP

Cynthia Dowsett Adie Doyle

Ben Goddard QSM Vivienne Hoeta Karen Ngatai

David “Rabbit” Nottage Kim Wheeler

Jacques Windell Murray Wilson JP

Chief Executive Clive Manley

Executive Office Human Resources

Corporate Communications Information Technology

Group Manager Community Services

Margaret Hawthorne • Community Property • Environmental Health &

Liquor • Recreation & Community

Facilities • Resource Management • Civil Defence & Emergency

Management • Solid Waste • Building • Compliance • Information Management

Financial Controller Alan Young

• Financial & Management

Reporting • Annual & Long Term

Planning • Rating • Treasury • Services Asset Managers • Financial Analysis &

Decision Support Advice

Group Manager Customer Services

Pauline Welch • Customer Services • District Libraries • Policy/Planning • Business Analysis • i-SITEs

Environmental Manager Anne-Marie Westcott

• Water, Wastewater &

Stormwater Services • DoC Whakapapa

Land Transport/ Economic Development Manager

Warren Furner • Land Transport • Economic Development • RTO (Visit Ruapehu)

Ward Committee Taumarunui/Ohura

Community Boards National Park

Waimarino-Waiouru

Audit & Risk Committee


RUAPEHU DISTRICT MAP


MAYOR AND COUNCILLORS

Don Cameron JP Mayor 135 Matapuna Road, RD 6 RAETIHI 4696 Phone 06 385 3033

Murray Wilson JP National Park Ward 13 McKenzie Street NATIONAL PARK 3948 Phone 07 892 2774

Marion Gillard JP Deputy Mayor/ Ohura Ward 336B River Road, RD 1 TAUMARUNUI 3991 Phone 07 893 8575

Jacques Windell Taumarunui Ward 27 Ngatai Street TAUMARUNUI 3920 Phone 07 895 8828

Adie Doyle Taumarunui Ward 168 Golf Road TAUMARUNUI 3992 Phone 07 895 6766

Ben Goddard QSM Waimarino-Waiouru Ward PO Box 8 OHAKUNE 3660 Phone 06 385 8324

Kim Wheeler Taumarunui Ward 12 Racecourse Road Manunui TAUMARUNUI 3992 Phone 07 896 7736

Cynthia Dowsett Waimarino-Waiouru Ward 36 Shannon Street OHAKUNE 4625 Phone 06 385 8086 Fax 06 385 8980

Graeme Cosford JP Taumarunui Ward 42 Reu Street TAUMARUNUI 3920 Phone 07 895 7572 Fax 07 895 7572

David “Rabbit” Nottage Waimarino-Waiouru Ward 32 Southridge Drive OHAKUNE 4625 Phone 021 111 6514

Karen Ngatai Taumarunui Ward 446 Echolands Road, RD 4 TAUMARUNUI 3994 Phone 07 896 6658

Vivienne Hoeta Waimarino-Waiouru Ward 34 George Street RAETIHI 4632 Phone 06 385 4551


COMMUNITY BOARDS National Park Community Board Waimarino-Waiouru Community Board

National Park Ward Councillor Murray Wilson is Council’s appointed representative on the Board. Mayor Don Cameron is an ex-officio member.

Jenni Pendleton (Chair) 13 MacKenzie Street NATIONAL PARK 3948 Phone 07 892 2774

Simon O’Neill (Deputy Chair) 3803 State Highway 4, RD 1 RAURIMU 3989 Phone 07 892 2633

John Chapman 132 Raetihi Ohakune Road RD 3 RAETIHI 4573 Phone 06 385 4946

Peta Pehi Pehi Road NATIONAL PARK 3989 Phone 07 892 2898

Waimarino-Waiouru Ward Councillors Vivenne Hoeta and David “Rabbit” Nottage are Council’s appointed representatives on the Board. Mayor Don Cameron has speaking rights.

John (Luigi) Hotter (Chair) 99 Ruapehu Road OHAKUNE 4625 Phone 06 385 8193

Alan Whale (Deputy Chair) 125 Ruapehu Road OHAKUNE 4625 Phone 06 385 9139

Missy (Raewyn) Biddle 17A Balance Street RAETIHI 4632 Phone 022 132 6960

Winston Oliver 29 Makino Road, RD 6 RAETIHI 4696 Phone 06 385 4443


MESSAGE FROM THE MAYOR I am pleased to present the 2016/17 Annual Report on behalf of Ruapehu District Council. Over the last 12 months Council has continued to make good progress against our strategic goals and work programmes while maintaining our sound financial footing. As I talk with people around Ruapehu the overwhelming feeling is one of a district on the move and a desire for Council to continue to support this momentum as best we can.

With the backing of our ratepayers and communities we have continued to focus on supporting the development of safe, prosperous rural communities that are able to capitalize on our agriculture, business and tourism sectors while sustaining our beautiful environment. Council’s overall aim is on improving the well-being and quality of life for all our communities through increasing jobs, incomes and opportunities. Key to this is unlocking the growth opportunities identified in the Manawatu-Whanganui Regional Growth Study and subsequent Accelerate25 Economic Action Plan. The Growth Study identified Land Use Optimisation (sheep and beef farming), Manuka honey and tourism and visitor services as significant opportunities for Ruapehu. Council facilitated farmer workshops to assist identify the drivers and barriers to increasing on-farm productivity and profitability and since then work to establish good benchmarking data and a forum for sharing information and innovation has been on going. Support of the tourism and visitor sector has been directed through the i-SITE visitor information network and Regional Tourism Organisation (RTO) Visit Ruapehu. Over the past year both the i-SITE network and Visit Ruapehu have made outstanding contributions towards Council’s objectives of increasing jobs, incomes and opportunities for Ruapehu communities. In addition to its core role of growing the volume and value of domestic and international visitors to the district Visit Ruapehu has been working to unlock regional tourism potential on behalf of the central government and our Accelerate25 (Manawatu-Whanganui) Economic Action Plan partners. To date this work has resulted in Ruapehu being able to unlock just over $3 million in government support funding toward key infrastructure, extending the Mountains to Sea Cycle Trail from Turoa to Ohakune plus funding for market research and the development of a ‘Destination, Marketing and Value Proposition’ for the Region. Council is committed to doing all we can to take full advantage of Accelerate25 opportunities as we target the doubling of regional visitor expenditure from $181 million to $388 million by 2025. The Ruapehu i-SITE network has also performed strongly over the past year winning Qualmark awards, recognition from Bookit and Intercity Buses for sales success, implemented two new sites in the DOC Whakapapa Visitor Information Centre and the National Army Museum in Waiouru, and been awarded the hosting rights of the 2017 i-SITE National Conference. The contribution of Visit Ruapehu and the i-SITEs to our economic growth strategy is now being reflected in some of the key economic indicators we follow such as the Commercial Accommodation Monitor (CAM). CAM Figures for the year ended June 2017 show total guest nights rose 5.3 percent to 466,557 with international guest nights rising 10.6 percent to 175,816 and domestic guest nights rising 2.3 percent to 290,740.


Ruapehu iwi and hapu are also actively pursuing economic development among their people, enterprises and land and Council believes that supporting these aspirations is in the best interests of all Ruapehu communities. We have continued to work closely with the Ruapehu District Maori Council and our local iwi and hapu while regionally Council has engaged in the development of the Manawatū Whanganui Māori Economic Development Strategy Te Pae Tawhiti that has helped inform Accelerate 25 Action planning. One of the big things to have energised Ruapehu communities over the past year has been the opportunity to have their say, and engage with, discussions around township revitalisation. Council has committed to working with any Ruapehu township on revitalisation projects and to date Taumarunui, Ohakune, Raetihi, Waiouru, National Park Village, Ohura and Owhango are all engaged in the township revitalisation journey. We believe that economic growth and diversity are driven by the location choices people make and as such, quality of place is a critical factor in being able to attract and retain the people we need to stimulate the growth of jobs, incomes and opportunities. Likewise, vibrant, attractive townships are also make a big difference to the offering the Ruapehu visitor and tourism sector can make to its guests and the quality of the visitor experience. While the scope and progress of the revitalisation journeys are being driven by the readiness and capability of the individual communities some of the important detail around key issues such as funding will be the subject of next year’s 2018-2028 Long Term Plan (LTP) discussion. In the interim Council has been working to progress as many township revitalisation projects as we can which has included the implementation of free WIFI in the CBD areas of Taumarunui, Ohakune and Raetihi. Ruapehu residents, ratepayers and other stakeholders can have every confidence their Council is performing well and in many areas is “punching above its weight” on their behalf. Next year (2018) is a very important LTP consultation year and I urge people to maintain their interest and engagement with Council plans and activities and ensure that they take every opportunity to have their say. Putting Ruapehu on a path to growth and prosperity will take ideas, energy and passion from the people who will benefit the most, our local communities.

Don Cameron JP MAYOR


THE CEO’S YEAR AT A GLANCE

I have much pleasure in presenting my second Annual Report as Chief Executive for the Ruapehu District Council. Over the 2016/17 financial year Council performed well delivering excellent value to our ratepayers and other stakeholders in a safe and transparent way. Council has managed its finances well showing a net surplus of $2.2m against a budget of $3.8m and is well placed against all its key Treasury financial indicators. In my introduction to the 2015-2016 Annual Report last year I highlighted that Ruapehu was one of the 21 inaugural councils that chose to take part in the Local Government New Zealand (LGNZ) Excellence Programme branded CouncilMARKTM.

The programme involves independent experts assessing participating councils on four key performance indicators being; governance and leadership, finance and transparency, service delivery and asset management and communications and community engagement. Council decided to take part in the LGNZ CouncilMARKTM excellence programme as its intent and objectives aligned with our own strategic plans to lift the value we provide to our communities. We received an inaugural CouncilMARKTM rating of BB indicating that Council is performing very well in some priority areas but needs improvement in others, has good capacity to meet community needs, and is balancing our short and long-term priorities. Council felt that the BB rating was a fair reflection of how we were performing at the time. The assessors found that Council was performing well given the challenges of being a small organisation that services a geographically large district with challenging social demographics. The management of our infrastructure and community engagement were noted as particular strengths while finance was identified as an area needing improvement, which was feedback we had anticipated. Over the past 14 months council’s finance department has been implementing a programme to rebuild their capabilities which has included investing in new people, training and information technology and we are confident that the financial issues identified will be well and truly resolved. As a programme of continuous improvement Ruapehu communities can now assist Council in making decisions about whether they want more of a focus (spending) on a particular priority area to improve its performance. As highlighted in Mayor Cameron’s introduction the progression of economic development initiatives is a key goal that Council and our communities want to achieve for the District. As such, one of my areas of focus has been to ensure that Council is able to give proper effect to our strategic economic development objectives. The successes touched on in Mayor Cameron’s introduction were achieved with existing staff levels at the time and Council identified that if we wanted to promote Ruapehu to potential investors and assist businesses to grow we needed additional capacity. A new Business Development and Relationship Manager role was created supported by a Business Friendly Policy that seeks to improve Council’s communication with businesses, cut the red tape, and to advocate to Central Government on behalf of local businesses on matters that directly affect them.


While Council is committed to doing all we can to increase jobs, incomes and opportunities for Ruapehu communities we are also committed to doing what we can to ensure that any growth is shared across all our communities and sectors. To assist with this Council has been working on the development of a Social Policy that requires Council to assess how the decisions it makes may flow through and affect the community in a broad social sense. The overall objective is to help Council make better decisions, and just as importantly, help avoid making decisions with unintended consequences that might result in any of our communities being worse off in total. While the adoption of a Social Policy does not mean that Council is stepping into the social agency space its relevance was reinforced by Dr. Ganesh Nana the Chief Economist from independent economic research consultancy BERL who ran a special economic development workshop for Council in June. Dr. Ganesh highlighted that we tend to talk about economic development from a too narrow perspective when in fact everything that Council does supports economic development. It is not just about dollars and cents but about our key resources of land, climate and people and how we put these together to create a better tomorrow. As a workplace, Council takes the safety and well-being of our staff extremely seriously. In addition to regular staff surveys to seek feedback and insights to assist improve the culture of the organisation Council has a Health and Safety Committee that proactively works to eliminate and minimize workplace risks. A specialist Health and Safety Officer employed as a shared regional resource by Manawatu-Whanganui councils supports the work of the Health and Safety Committee. As the territorial authority for Ruapehu Council believes we have a stewardship role with a long-term objective to help people live better lives, now and into the future. Council has a vision to see expanded opportunities and capabilities for Ruapehu communities that increases their well-being on a sustained basis. While we cannot do it alone, and there are factors outside our control, Council is of the firm view that we have an important role in helping to facilitate these outcomes. I would encourage you to assist Council on this journey by either engaging with us, as part of a consultation on any specific issue, or providing on-going feedback and thoughts on any day-to-day issue as you see fit.

Clive Manley CHIEF EXECUTIVE


How We Performed Financially Operational Result Our operational result for the 2016/17 Financial Year shows a net surplus of $2.211M against a budget of $3.798m. Capital Works Programme We have completed a capital works programme in the last 12 months totalling $8.2m.

Activity Description $million

Community Support Various minor works under $100k 0.1

Recreation & Community Facilities Various minor works 0.3

Land Transport Renewals of various sorts 5.5

Various minor works 1.5

Wastewater Various minor works 0.1

Water Supply Various minor works 0.4

Overheads Computer Equipment, Software and Furniture 0.2

Plant and Vehicles 0.1

Solid Waste Various minor works under $100k -

Stormwater Various minor works -

Total 8.2 Debt Council debt was unchanged during the 2016/17 Financial Year (reduced by $1m in 2015/16).

Key Financial Indicators – Comparative Table ($million)

Budget 2017 2016 2015 2014 2013 2012 2011

Income 37.0 35.7 36.9 31.6 31.8 30.0 31.8 32.1 Less Expenditure 33.2 33.5 34.1 29.9 32.1 29.4 31.5 28.7

Surplus/(Deficit) 3.8 2.2 2.8 1.8 (0.3) 0.6 0.3 3.4

Weighted Average Interest Rates

2017 2016 2015 2014 2013

Short Term < 1 yr. 4.50% 5.22% 5.43% 5.72% 6.80%

Long Term > 1 yr. 4.80% 4.95% 5.36% 5.45% 5.56%


Key Treasury Management Indicators The table indicates the performance of Council’s Treasury Management against the Liability Management Policy limits on borrowing and interest rate exposures. Council is well placed against all financial indicators with two of the three being below the prescribed limits and the other being near the prudent lower limit.

Acceptable Range

2017 Actual

2016 Actual

2015 Actual

2014 Actual

2013 Actual

Interest Expense/Operating Revenue 3 to 12% 3.6% 3.7% 4.8% 5.4% 6.20%

Total Liabilities /Total Assets <12% 8.0% 8.1% 8.5% 8.7% 9.02%

Net Debt /Operating Revenue 1 to 1.5 0.79 0.79 0.85 0.99 1.0

Interest Rate Exposure

<12 months 10% to 40% 39.92% 21.3% 33.6% 21.2% 9.9%

12 months - 2 years 10% to 40% 15.51% 22.5% 20.5% 28.3% 26.4%

2 - 4 years 20% to 50% 29.07% 40.7% 32.8% 39.9% 44.6%

Over 4 years 10% to 20% 15.5% 15.5% 13.1% 10.6% 19.1% Key Performance Indicators Council records a variety of key performance indicators (KPIs) to report non-financial performance. Individual KPIs are reported in each activity area and can be found on the following pages.

2017

Achieved Not Achieved Not Assessed

Community Support 5 3 -

Leadership 2 2 -

Regulation 12 0 1

Recreation and Community Facilities 6 5 -

Land Transport 3 4 -

Stormwater 8 - -

Wastewater 8 - -

Water 5 4 -

Waste Management and Minimisation 6 4 -

Total 55 22 1


AUDITOR’S REPORT

SECTION ONE

COUNCIL ACTIVITIES


Section One cover image: Upper reaches of the Whanganui River, Ruapehu District


RUAPEHU’S OUTCOMES The purpose of Local Government, as set out in section 10 of the Local Government Act 2002 (LGA) is to:

(a) Enable democratic local decision-making and action by, and on behalf of, communities.

(b) 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.

The role of Council is to lead and represent the community and to meet the needs of people now and in the future, by providing public and regulatory services. As well, Council is obliged, under the LGA, to listen to its communities and encourage community engagement in decision-making. This is a broad mandate. To define its role further, Council sets out Outcomes. These Outcomes explain, at a high level, what Council wants to achieve. This, in turn, influences the activities, projects or issues that Council is involved in. By identifying Outcomes, the community has an opportunity to influence Council direction and to indicate priorities for the District. All Council activities should contribute to meeting the Outcomes and purpose of Local Government in some way. Provision of regulatory services is well defined under legislation like the Building Act, Health Act, Sale and Supply of Alcohol Act, Dog Control Act and Resource Management Act. Provision of local core infrastructure includes Water, Wastewater, Stormwater, Waste Management and Minimisation and local roading networks. Other public services provided include provision of Parks and Reserves, Cemeteries, Public Halls, Libraries, Swimming Pools and Social Housing. The LGA recognises that different organisations, individuals and Council must work together to achieve Outcomes. This Annual Report provides information to the community on what Council has done to promote the achievement of the Outcomes.


OUTCOMES


RUAPEHU’S STRATEGIC ACTIVITY GROUPS Council targets its activities to achieve Outcomes. There are nine groups of activity that Council reports against. These are grouped under two key areas – community services and facilities and assets.

Activities

Community Services

Community Support Community Development (Grants,

Agency)

Economic Development

Emergency Management

Library Services

Regional Tourism Organisation

and

Visitor Information Centres

Leadership Council

Community Boards

Strategic Development

Regulation Building Services

Compliance and Dog Control

Environmental Health

Liquor Licensing

Resource Management

Facilities and Assets

Community Facilities Cemeteries

Community Buildings

Community Halls

Parks and Reserves

Public Toilets

Social Housing

Swimming Pools

Land Transport (Roading)

Stormwater and Flood Protection

Wastewater (Sewerage)

Water Supply

Waste Management and Minimisation


This section provides information on what Council did, and how much it cost, for each group of activities. The information is provided in the following format for each Activity:

1 What services and activities are included in the Group.

2 Why Council does these things and the contribution to Outcomes.

3 What Council achieved (KPIs).

4 What Council spent on major capital projects against planned expenditure.

5 Highlights of the year.

6 Funding summary including the operational result and rates allocated to fund the activity. This is compared to the forecast budgets for the 2016/17 Financial Year and the 2015/16 Financial Year as set out in the Long Term Plan 2015-25.


COMMUNITY SUPPORT Introduction Community Support includes the functions of Community Development (Grants, Youth Development and Agency Services), Economic Development, Emergency Management (Civil Defence and Rural Fire), Library Services, Regional Tourism Organisation and Visitor Information Centres. Each function is outlined in more detail below. Council recognises the importance of partnerships in efficiently promoting the Outcomes related to Community Support and concentrates on these particularly in relation to the Community Development and Economic Development functions. Community Development - Grants

Council provides direct funding to specific community groups each year. Council also provides contestable funding for community halls as per to Council’s Community Grants Policy. More information in relation to grants is available on Council’s website, www.ruapehudc.govt.nz.

Community Development - Agency Services

Council provides agency services such as New Zealand Post, NZ Transport Agency (NZTA) and Registrar General of Births, Deaths and Marriages to the Waimarino area. This agency function ensures the community continues to have access to these services. It is a self-funded activity delivered by Council staff as part of its wider duties.

Community Development - Youth Development

Council actively supports youth development through facilitation and administration, co-ordination and providing in-kind support for the Ruapehu Youth Council (RYC). The RYC is made up of two groups of youth ambassadors; the Taumarunui-Ohura Youth Ambassadors (TOYA) and the Waimarino–Waiouru Youth Ambassadors (WWYA). The RYC is active in promoting opportunities for youth, building capability and leadership skills and organising and steering local initiatives. A Youth Liaison Officer facilitates the RYC and acts as a liaison point for youth initiatives within Ruapehu Communities.

Economic Development

The aim of this function is to help realise the potential that Ruapehu District has to offer that: capitalises on the agricultural, business and tourism sectors while maintaining the beautiful rural

environment, and provides better and more varied employment opportunities for our communities.

Council’s role in economic development is twofold. It ensures its own house is in order by adopting processes and policies that are user and business friendly and by ensuring infrastructure is sound. Council also has a role in influencing, facilitating and co-ordinating activities by working with the community, iwi, business, developers and providers and advocating for changes that are consistent with the aim of this function. Council has developed the ‘Growing Ruapehu 2015-2025’ strategy to direct its efforts. The purpose of this Strategy is to help Ruapehu communities focus on what actions can be taken through until 2025 to encourage economic development. It identifies key priorities and the role of Council in targeting these priorities. This includes the actions required to manage the competing pressures and issues in our different economic sectors, e.g. effect of tourism on infrastructure demands. In addition, Council has been actively working on projects to assist business and economic development in a practical way. These include: the development of resources to assist business development, the development of business friendly information, involvement in regional development, facilitating sector cooperation, and promoting local and international investment in the District.

http://www.ruapehudc.govt.nz/

http://www.ruapehudc.govt.nz/SiteCollectionDocuments/Strategies/Econ%20Dev%20Strategy%202015-25,%20Growing%20Ruapehu,%20Sept%2015%20-(R).pdf


Council retains a budget to enable it to invest in worthy projects as they arise and has established a number of partnerships. In addition, Council works closely with business associations throughout the District, with the aim of facilitating and supporting economic development.

Emergency Management - Civil Defence

Council is an active member of the Manawatu-Wanganui Civil Defence Emergency Management (CDEM) Group, as required by the CDEM Act 2002. The Group comprises all local authorities in the Region. The Group maintains a Plan that considers all phases of emergency: reduction, readiness, response and recovery. A business plan is also managed by the Group, with each of the member councils contributing to achieving the goals of the Group. The Group has adopted a philosophy of centralised co-ordination and local delivery and works closely with emergency services, welfare agencies and other strategic partners for effective and comprehensive emergency management.

Emergency Management - Rural Fire

Council was a registered Rural Fire Authority under the Forest and Rural Fires Act 1977. That meant that Council was responsible for permits and fire suppression in any rural area within the District not covered by the NZ Fire Service, Ministry of Defence or the Department of Conservation. On 1 July 2017, this function transferred to the new government entity Fire and Emergency New Zealand. As part of this transfer of Rural Fire responsibilities Council passed a resolution whereby the Rural Fire relative assets owned by Council, which had an estimated book value of $39,622, would be transferred to Fire and Emergency New Zealand at a nil transfer value. Thanks to all the volunteer firefighters who gave up their time to help defend the communities of Ruapehu.

Library Service

Libraries are situated in Taumarunui, Ohakune and Raetihi. Council also supports the community libraries in Ohura and Waiouru with grants each year.

Regional Tourism Organisation (RTO) and Visitor Information Centres (branded i-SITEs)

The RTO and i-SITEs are tasked with stimulating growth in the tourism sector, as well as having local community support functions. The District is positioned as the North Island’s premier outdoor recreation centre with National and World Heritage Parks, rivers, snow sports and a growing network of walking and cycling trails.

The RTO (Visit Ruapehu) supports the delivery of destination marketing under the umbrella of Tourism New Zealand and is a member of the Regional Tourism Organisations of New Zealand. Its primary role is to market and promote Ruapehu’s unique features and activities to potential domestic and international visitors. A group of dedicated Visit Ruapehu trustees lead the RTO linking the tourism infrastructure of Ruapehu to Taupo and Whanganui and highlighting to guests the significant features of all three regions.


Aim of Community Support and Contribution to Outcomes The Community Support activity aims to provide a safe environment for residents and visitors, support economic and youth development, provide modern library services to facilitate learning and enjoyment, and stimulate growth in the tourism sector by attracting more visitors and providing an efficient visitor information service. The Community Support activity targets the following Outcomes: Excellent standards of safety and welfare are promoted and respected. Traditions, values and history of all ethnic groups are respected. Preparation, planning and timely responses protect people and property from natural hazards. Economic diversity and core economic strengths are encouraged in partnership with others. Activities, facilities and opportunities for youth are provided and supported. Excellence and achievement in sport, arts/cultural pursuits, community service and business are supported

through provision of community facilities such as libraries, pools, halls and parks and reserves. Events and festivals are encouraged and supported. The promotion of our District includes our natural rivers, bush and mountains, as well as the built heritage,

agriculture and railways. The sections “What We Achieved” and “Highlights for the Year” show how this area has performed this financial year.


What We Achieved

Level of Service Key Performance Indicators

2015/16 Actual

2016/17 Target

2016/17 Actual Commentary

Emergency Management Goal: Provide a safe environment for residents and visitors.

Council will provide Civil Defence and Emergency Management for the District.

Percentage of staff who are adequately trained in the Co-ordinated Incident Management Systems (CIMS).

90% 70% 95% Achieved.

The number of public education presentations given each year to schools, staff and community groups throughout the District.

20 >20 22 Achieved.

As the Rural Fire Authority for the District, respond to all rural vegetation fires within one hour at all times.

100% 100% 100% Achieved.

Library Service Goal: Provide a modern and consistent environment for learning and enjoyment.

Provide a library service that meets the needs of the community.

Percentage of users who are satisfied with the service provided.

91% 75% 68% Not achieved. RDC Level of Service survey resulted in a lower than expected result.

Increase the number of active library members.

7.7% (7,179)

+1% on prior year.

(7,251)

+6.64% (7,656)

Achieved. Increase of numbers 7,179 in June 2016 to 7,656 in June 2017, resulted from better service and increased summer and holiday reading programmes.


Level of Service Key Performance

Indicators 2015/16 Actual

2016/17 Target


RTO and i-SITEs Goal: Provide an efficient visitor information service.

i-SITEs are open 40 hours minimum per week.

Tourist numbers increase.

+3%

(11,837 increase).

+2% +5%

(23,061 increase).

Achieved.

Measured by the Commercial Accommodation Monitor.

Door numbers (visitors) at i-SITEs.

Taumarunui - 5.23%

(2,691 decrease).

Ohakune + 16.97%

(6,349 increase).

+1% Taumarunui -7.67%

Ohakune -7.37%

Not achieved. 3,744 less than last year. New door counters have resulted in a lower door count due to being more accurate. Not achieved. 3,354 less than last year. New door counters have resulted in a lower door count due to being more accurate.

Capital Projects

Project Description

Carry Forward Budget

$000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

NZFS Radio Telephones - 2 - Renewal Rural Fire Vehicle - - 8 Renewal Rural Fire Pump - 6 6 Renewal Library Books & E Books - 53 59 Renewal Civil Defence Trailer - 4 7 LOS Animal Shelter Floor Renewal - 5 - Renewal Total - 70 80

Work in Progress

Project Description

Opening Closing Notes WIP WIP

$000 $000 Library Books Taumarunui 1 - Library Books Ohakune 2 - Total 3 -


Highlights for the Year Grants Direct grants totalling $32,958 were allocated to the Waiouru Library, Ohura Library, various Community

Halls (for maintenance activities), Neighbourhood Watch, and the Raetihi Information Centre. Grants also supported the Christmas parades, which are held in Taumarunui and Raetihi.

Economic Development A key highlight for this year has been the delivery of the Immediate Priorities identified in the Manawatū

Whanganui Economic Action Plan for tourism. The plan identified Ruapehu District as the natural lead for this work under the brand Accelerate25 which is the name for the Economic Action Plan implementation programme. Visit Ruapehu RTO and Ruapehu District Council has collaborated with Ministry of Business Innovation and Employment, Horizons Regional Council and Whanganui District Council to deliver the Ruapehu Regional Visitor Development Plan. The plan now rests with the Accelerate25 lead team and Regional Economic Development Ministers for consideration and action.

Council also engaged in the development of the Manawatū Whanganui Māori Economic Development Strategy Te Pae Tawhiti and has integrated its strategic elements into Accelerate 25 Action planning.

In December 2016, a new position was created to support Business Development and investment in

Ruapehu. The new role gives effect to strategic outcomes in the Growing Ruapehu Economic Development Strategy 2015-25 supporting business friendly actions and investment in growing existing and new business. The role also extends to representing Ruapehu in Regional Collaboration initiatives for skills and talent progression.

The Business Development and Relationship Manager role has focussed primarily on linking with the local

business community and regional groups that add value to the district more widely. This included the Central Economic Development Agency who are the Regional Economic Development agency and are tasked with developing the Growing Business Enabler as part of Accelerate25. This strategic approach to wider economic and business development outcomes works alongside a more operational approach in working very much at the customer service level. The operational activities are broad and can be seen in assisting individuals with advice and managing council processes to working alongside local business groups to achieve their goals and develop capacity.

Broadband enhancement and free Wi-Fi was delivered to main streets of Raetihi, Ohakune and

Taumarunui. The launch of these new services was supported by Digital Workshops throughout the district. In April 2017 Council adopted its Business Friendly Policy which seeks to improve Councils communication

with businesses, to “cut the red tape” and to advocate to Central Government on behalf of local businesses on matters that directly affect them. The policy proposes new investment to attract businesses to the district; this will be a focus in the Long Term Plan Review 2018-28 deliberations.


Visit Ruapehu RTO Destination Marketing - Visit Ruapehu (VR) delivered its committed, annual business plan as presented to

Council in August 2016. Progress against the business plan has been reported regularly to industry in the form of industry updates. The business plan contains KPIs & outcomes that align to deliver against Visit Ruapehu’s longer-term strategy document. In addition, Visit Ruapehu has exceeded its annual funding agreement KPIs of 2% growth in Regional Tourism Estimates by 4% achieving 6% growth to year-end June 2017.

Travel Trade Development - The focus has been on increasing the visibility of Ruapehu in key offshore

markets of Australia and the USA. The Adventure Highway & Beyond inaugural sales mission to the USA in September alone resulted in Ruapehu’s first ever presence in a USA brochure, multiple follow up travel agent familiarisations, training opportunities and media coverage. Participation continued at TRENZ, New Zealand’s biggest annual business-to-business travel and trade event, focusing on the US and UK/Europe delegates. This was supported by increased meetings with key Auckland based contacts that support those offshore travel agents. Ruapehu joined Air NZ/Tourism NZ on their inaugural Australian travel agent road show, and we had the opportunity to attend two Flight Centre consultant-training sessions in Brisbane.

China Travel Expo, Auckland

TRENZ, Auckland VR once again attended Tourism NZ market insights in Sydney, and had a strong Ruapehu presence at the Explore Central North Island trade show in Auckland. Discussions at the trade show were re-focussed and VR is taking more of a lead role particularly in the US market strategy. With increased human resource VR has been working on product development. This is already resulting in increased product being loaded in key AU wholesale systems. One of the most significant developments has been a product development opportunity with THL offering the region the expertise and distribution strength of a “trilogy” type product taking in the Adventure Highway.

Third Party & Joint Venture Development - FY17 saw the continuation of a joint venture Auckland Airport

winter campaign in Australia as well as our inaugural financial involvement in Tourism NZ’s $1m Tour the North campaign throughout Australia with Flight Centre and Air NZ as partners. The VR team have developed strong relationships with Tourism NZ, Air NZ, Tourism Industry Aotearoa, DOC, MBIE and others, resulting in greater influence and presence for Ruapehu in all facets of tourism discussions and promotion. Tourism NZ relationships have directly resulted in increased international trade and media coverage in addition to a Tourism NZ funded photo shoot in region this year.

Digital & Content Development - With the new website now one-year-old performance continues to improve. Year on year July – June has seen an increase of 30.68% sessions, 76.62% increase in page views and a decrease of 22.75% in bounce rate. Ongoing specific focus on digital continues with dedicated online resource and work on social media partnerships delivering fresh engaging content.


Ruapehu Regional Visitor Development Plan - VR has led, on behalf of Council, the development of the Ruapehu Regional Visitor Development Plan and Brand Refresh projects involving strong participation from, and consultation with, local industry, iwi and National tourism leaders.

The Ruapehu Commercial Accommodation Monitor – The result for the year ended June 2017 compared with the previous year achieved significant growth. Guest nights rose 5.3% to 466,557 with international guest nights rising 10.6% to 175,816 and domestic guest nights rising 2.3% to 290,740. The average length of stay fell slightly from 1.70 nights to 1.68 nights, however the overall occupancy rate rose from 29.3% to 32.1%. Of particular interest is the June 2017 result against June the previous year where Guest nights rose 22.9% with international guest nights contributing 37.6% and domestic guest nights rising 17.3%. This result reflects the impacts of the Lions Rugby Tour and the early opening of Whakapapa Ski area on 3 June 2017.

i-SITEs Qualmark (New Zealand Tourism's official mark of quality) awarded the Ohakune i-SITE for best overall

customer experience nationally. Ruapehu will be hosting the 2017 i-SITE national conference after successfully bidding to the Visitor

Information Network at last year’s conference. The conference will bring around 140 delegates and major sponsors to the region. It will support local business and impact on the local economy.

An i-SITE has been established at the Department of Conservation (DOC) Visitor Centre at Whakapapa.

This was recognised as a major step forward with the partnership between i-SITEs and DOC nationally and instigated a change in the VIN membership agreement to support other i-SITEs and enable them to leverage from the additional visitors (over 200,000) that visit the DOC Visitor Centre yearly.

An i-SITE has been established at The National Army Museum in Waiouru in a new extension to the

building, which will leverage from visitors and also increase visitors attending the museum, which is currently seeing around 150,000 annually. This is expected to open in October 2017.

Ruapehu i-SITE set up a promotional stand at the Traverse 42 Event in Owhango in May 2017. It is hoped

that the Ruapehu i-SITE will take part in other major events within the region in the future. Bookit (National accommodation booking provider & preferred booking site for i-SITEs) has recognised the

Ruapehu i-SITEs for the last five months of the financial year as achieving the highest average sale conversion.

Intercity has recognised Taumarunui i-SITE as being one of their top 30 sales centres within the country.


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Overnight Visitor numbers


Youth Development Ruapehu Youth Council is made up of two groups of youth aged 12-24 who represent the Youth of the

Ruapehu District. These two groups each meet once per month facilitated by Council’s Youth Liaison Officer. Representatives actively promote opportunities for youth, build capability and leadership skillsand organise and steer local initiatives. Youth Ambassadors submit on local and national issues and represent the Ruapehu District at national events such as the Festival for the Future and New Zealand Youth Council Conferences.

In addition to facilitating the Ruapehu Youth Council, Council’s Youth Liaison Officer also works alongside local schools to promote goodwill and an understanding of how local authorities work.

During the 2016/17 year, Ruapehu Youth Council supported the ‘Raising Potential Team’ in aiming to

minimise the social supply of alcohol to under 18s. Ruapehu Youth Council carried out a beautification project, which enabled six local groups to build display

stores in empty premises along Manuaute Street in Taumarunui. Ruapehu Youth Council facilitated the 2016 Taumarunui Christmas Parade and successfully handed this

role back to the local Business Organisation, Enterprising Taumarunui Inc. Ruapehu Youth Council attended Festival for the Future in September 2016, where Youth Ambassadors

had the opportunity to hear from and interact with other young New Zealand social entrepreneurs.

2016/17 Taumarunui-Ohura Youth Ambassadors (TOYA) 2016/17 Waimarino-Waiouru Youth Ambassadors

(WWYA)


Emergency Management Council staff and agencies along with our contractors participated in integrated training framework civil

defence intermediate training in October. The training is run nationally and helps people get used to working in a coordination centre.

The Civil Defence Welfare Response Team volunteers assisted Police with a search and rescue exercise

at Pipiriki in November 2016. The volunteers fed and watered 40 staff and volunteers from a range of agencies. Many commented on how well our Civil Defence welfare trailer is fitted out.

Cyclones Debbie, Cook and Donna hit New Zealand over April 2017. Ruapehu did escape the worst of the

damage that affected the East Coast. However, we had flooding and the Civil Defence team volunteers responded to 12 sandbag jobs, 6 vehicle recoveries from flood waters and one road closure. The Emergency Operations Centre was on standby. Thanks to all the staff that stayed after hours to make sure we were not needed.

LandSAR exercise in Pipiriki.

Civil Defence Volunteers sandbag business in Ohakune.

Rural Fire The Ruapehu District Rural Fire Authority had their triennial audit. There are a couple of areas we need to

improve on however we have gained a pass, which is a huge shift from our last audit. Thank you to the 30 volunteers who we rely on.

In 2016, Ruapehu Rural Fire Authority was asked to assist the Army at Waiouru in a controlled burn. This

is the first time an outside fire authority has assist the Army. The Army was happy with how the volunteers conducted themselves and look forward to our assistance in the future.

Agency Services Council has three staffed offices within the District. All offices provide general Council services plus

additional services to individual offices. Raetihi office for example also provides NZTA and NZ Post agency services, while Ohakune office provides marriage licences. Taumarunui office deals with the majority of Council related enquiries.


Customer Services Council’s Customer Services function is an integral part and face of the overall customer experience at

Council. In order to achieve good outcomes for customer experience the Customer Service Team liaise with all departments to upskill on relevant information in order to assist customers, resolve issues or to provide responses quickly and efficiently in a professional but friendly approach.

In 2016/17 Council offices received 40,770 phone enquiries and 7075 requests for service. These figures include after-hours service requests. Council also took 19,175 cash receipting transactions at the front counters. There were 197 Development Contribution assessments processed.

Libraries Following the successful implementation of a self-issue kiosk

in the Taumarunui library in the last financial year, the service is also now available in Ohakune library. Taumarunui Library has also installed the GoGo APNK computer self-booking system, due to the effectiveness of this service in Ohakune. Both libraries are experiencing the full benefits of the independence offered to their borrowers by using these services, and staff are able to focus on other duties.

The NZ Non-Fiction and General Non-Fiction areas of

Ohakune library have been merged and reorganised, with the separate areas for the ‘Tikanga Māori’ and ‘NZ Travel, NZ History, Scenic and Local’ relocated to near the APNK computers for improved visibility. Books from these areas are consequently being issued more frequently.

Bright new seating and tables for APNK and WiFi users in the Ohakune and Raetihi libraries have

successfully created a fresh, new and modern appeal for these areas, which have received much comment. Staff have modified their Library Management System’s OPAC service (Online Public Access Catalogue)

for its Ruapehu District users and have also custom designed a link to a children’s catalogue of resources and services in the regions libraries. These include digital resources such as eBooks and age-relevant research databases. A Facebook page has been established for Ruapehu libraries, which is being monitored and facilitated by Taumarunui library staff, for the purpose of promoting library services and events.

Staff have gone through the Taumarunui library Stack collection, most of which is stored in the

Administration filing room, to ensure that it was all recorded adequately in the catalogue of our library management system. Books are now shelved in a systematic order, and much of the popular old classic fiction and Tikānga Maori stack collection has been collated onto a list available for the public to view in the library. This enables more awareness of our older resources which are rarely requested, and which staff deem no longer viable enough to use up valuable shelf space. Yet, they still hold enough value to remain an essential part of the Ruapehu library collection and available for those who request them. As a consequence of the compilation of these lists, especially of Tikanga Māori resources, some of these previously hidden and unknown books are being viewed and issued.

Children reading in the Taumarunui Library.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Community Support Activity

LTP LTP Actual 2016 2017 2017 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, rates penalties

1,158 1,221 1,257

Targeted rates 320 277 393 Subsidies and grants for operating purposes - - 1 Fees and charges 521 534 1,289 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -

Total operating funding (A) 1,999 2,032 2,940

Applications of operating funding Payments to staff and suppliers 1,245 1,279 2,374 Finance costs 2 5 - Internal charges and overheads applied 717 741 701 Other operating funding applications - - - Total application of operating funding (B) 1,964 2,025 3,075 Surplus/(deficit) of operating funding (A-B) 35 7 (135) Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt 37 54 - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 37 54 -

Application of capital funding Capital expenditure:

- To meet additional demand - - - - To improve the level of service 13 2 5 - To replace existing assets 59 59 120

Increase/(decrease) in reserves - - (260) Increase/(decrease) of investments - - - Total applications of capital funding (D) 72 61 (135) Surplus/(deficit) of capital funding (C-D) (35) (7) 135 Funding balance ((A-B)+(C-D)) - - -


LEADERSHIP Introduction The Leadership activity provides for:

Council’s governance at a District and local level, Council’s advocacy on issues that impact on the Outcomes, A Strategic Development function that provides a framework and planning for the community’s strategic

direction, and Administration of elections. This activity provides plans and policies guiding strategic direction and strategic financial decisions and also prepares and consults on these, including the LTP, EAP, outcomes monitoring and other documents as necessary. Aim of Leadership and Contribution to Outcomes The aim of Leadership is to maintain a well-balanced and functional organisation which is responsive to local economic conditions and changes and to maintaining and improving community engagement.

The Leadership activity targets the following Outcomes:

Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services.

Council is proactive, transparent, accountable and takes an active, consultative approach to finding solutions.

The Leadership activity also has an impact on all of the other Outcomes as it is the decision-making part of Council.


What We Achieved


2015/16 Actual

2016/17 Target


Leadership Goal: To facilitate effective consultation processes to seek community input into decision-making and

advocacy on key issues.

Consultation material will be made publicly available from all Council offices and on its website.

Percentage of respondents who are satisfied or very satisfied with consultations.

70.8% 80% 73.5% Not achieved.

Council meets regularly with iwi.

Number of meetings with Ruapehu District Māori Council per year.

8 >6 7 Achieved.

Council provides public access to the community through Community Boards and Council meetings.

Number of Public Forums per year.

45 >40 37 Not achieved. First meetings of the triennium do not have a public forum, which is the reason for the decrease in the number of public forums.

Residents are satisfied with the Leadership of Council.

Percentage of respondents who are satisfied with Council’s leadership.

60.9% 60% 80% Achieved. RDC Level of Service survey resulted in a higher result in 2017.


Highlights for the Year Governance (Mayor and Council) During 2016/17 the following number of meetings were held:

Council ordinary meetings: 17

Waimarino-Waiouru Community Board: 10 Ruapehu District Māori Council: 7 National Park Community Board: 8 Taumarunui/Ohura Ward Committee: 5 Audit and Risk Committee: 3

Strategic Development Annual Plan (AP - exceptions to the Long Term Plan) Changes made in 2012 to the Local Government Act

2002 meant that the focus of the consultation process and documentation for the AP changed. The change focused specifically on exceptions to the 2017/18 year from what was forecast for that year in the LTP. The big issues that Council took out to the public for consultation were: an increase to the Economic Development budget, an increase to the Visit Ruapehu Budget, support for township revitalisation across the district, and support for tourism infrastructure seed funding.

These issues generated an encouraging level of public engagement with 154 formal submissions made. Hearings were held on 19 April 2017 in Taumarunui and 20 April 2017 in Raetihi and Ohakune. Across the district there was strong public support for all four proposals, however funding for the township revitalisation projects was an area of concern for many. Public feedback was taken into account and Council adopted the Annual Plan 2017/18 on 14 June 2017.

Policies - The following policies were reviewed (or developed) and adopted:

Business Friendly Policy. Community Grants Policy. Elected Member Code of Conduct. Fraud and Protected Disclosures. Local Governance Statement. Staff Email and Internet Policy. Staff Health and Safety Policy.

Significant projects that were completed:

Warm Your Whare (Phase 1). Annual Plan 2017/18.


Ruapehu District Māori Council Council continued to strengthen its relationship with Tangata Whenua through the Ruapehu District Māori

Council (RDMC). RDMC allows for the capacity of nine Iwi/Hapū mandated Members to gain a greater understanding of the day-to-day activities of Council and make recommendations which are then put before Council, thereby enabling Māori to participate and contribute to Council’s decision-making processes.

Over the 2016/17 year, RDMC held seven formal meetings. Of the seven meetings, six were held in Taumarunui and one in Raetihi. The meetings not only acknowledge the building of relationships with Tangata Whenua, but also the partnerships in terms of RDMC’s Memorandum of Understanding MoU (2015) and Strategic Plan (2016).

RDMC overwhelmingly supported the nomination of Traci Houpapa (MNZM JP) as a third appointee on the

Accelerate25 Lead Team giving representation to the northern reaches of the Manawatū-Whanganui region.

Tangata Whenua outside RDMC forum Council continued to build relationships with Iwi/Hapū who had chosen not to be a part of the RDMC forum.

This capacity of engagement has continued to increase as a result of Iwi/Hapū finalising their Treaty of Waitangi settlement claims.

Council continued to engage with Iwi/Hapū in relation to the renewal of Council’s resource consent

processes.

Council continued to liaise with local Kaumatua and regularly attend Ngā Kaumatua o Te Mauri Atawhai Hui which are held on a monthly basis.

Māori involvement continued in the Accelerate25 Manawatū-Whanganui Economic Action Plan this resulted

in Te Pae Tawhiti Manawatū-Whanganui Māori Economic Development Strategy.

Engagement with Tangata Whenua resulted in significant milestones being achieved. This included signage being erected in recognition of Ngā Huingā and the Whanganui and Ongarue Rivers at Cherry Grove reserve in Taumarunui.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Leadership Activity

LTP LTP Actual 2016 2017 2017 $000 $000 $000

Sources of operating funding General rates, uniform annual general charges, rates penalties

1,374 1,440 1,519

Targeted rates - - - Subsidies and grants for operating purposes - - - Fees and charges (10) 26 32 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -


Applications of operating funding Payments to staff and suppliers 472 544 510 Finance costs - - - Internal charges and overheads applied 885 915 897 Other operating funding applications - - - Total application of operating funding (B) 1,357 1,459 1,407

Surplus/(deficit) of operating funding (A-B) 7 7 144 Sources of capital funding - - - Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt (7) (7) - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) (7) (7) -


- To meet additional demand - - - - To improve the level of service - - - - To replace existing assets - - -

Increase/(decrease) in reserves - - 144 Increase/(decrease) of investments - - - Total applications of capital funding (D) - - 144 Surplus/(deficit) of capital funding (C-D) (7) (7) (144) Funding balance ((A-B)+(C-D)) - - -


REGULATION Introduction The Regulation activity works towards the goal of effectively and efficiently providing a safe and sustainable environment through the administration and enforcement of Central Government legislation, including its responsibilities for the sustainable management and use of natural resources under the Resource Management Act 1991 (RMA) and District Bylaws. Building Services

The Building Services Team issues building consents and inspects all building works and relocated buildings to ensure they meet the Building Act 2004 and Building Code requirements. Council is an accredited Building Consent Authority.

Compliance

The Compliance Team’s role is to ensure compliance with Council bylaws and legislation. The work covered is varied and includes Animal Control, Parking, Noise Control and Bylaws. Compliance Officers ensure that the amenities of the District are able to be enjoyed by all.

Resource Management

Resource Management involves both the issuing of resource consents and monitoring of conditions of these consents in line with relevant legislation and the District Plan.

Environmental Health and Liquor Licensing

The Environmental Health and Liquor Licensing functions promote, protect and improve the health of residents and visitors to the Ruapehu District. The activities are very high profile largely due to the overall implications on the community, members of the public, businesses and visitors coming into the District.

Council enforces provisions of: Health Act 1956 Sale and Supply of Alcohol Act 2012 Resource Management Act 1991 Local Government Act 2002 Food Hygiene Regulations 1974, Food Act 2014 and a variety of Public Health regulations and Council

bylaws.

Council ensures that members of the community and the public feel confident about their health and safety and they are not troubled by nuisances. This is achieved by:

Registering, inspecting and licensing businesses such as food premises, liquor outlets, camping grounds and hairdressing salons.

Investigating, resolving and monitoring nuisances and health-related complaints. Investigating infectious diseases notified by the Medical Officer of Health, food poisonings and food-borne

illnesses and taking action to eliminate health risks or future recurrence. Monitoring and enforcing relevant public health legislation and local Bylaws. Reviewing resource and building consents for compliance with environmental health standards in both

domestic and commercial situations.

Providing advice and information to the community regarding their rights, obligations and responsibilities under the relevant legislation and on general public health matters.

Undertaking noise monitoring to ensure that members of the community are protected from unreasonable

and excessive exposure to unwanted noise.


Aim of Regulation and Contribution to Outcomes As the level of service is already high, it is the aim of the Regulation activity to maintain that high level of service in the short term. Changes in rules and regulations, either decided by Central Government or changes in local government bylaws may impact long term level of service. This activity targets the following Outcomes:

Quality regulation, regulatory services and infrastructure support healthy communities.

That the impact of waste on our environment is minimised. Excellent standards of safety and welfare are promoted and respected.


What We Achieved

Level of Service Key

Performance Indicators

2015/16 Actual

2016/17 Target


Building Services, Compliance and Inspections Goal: Provide a safe environment for residents and visitors.

Council will effectively process all proposed applications.

Building consents processed within 20 working days.

100% 90% 100% Achieved.

Urgent LIMs processed in five working days (Note 1).

100% 100% 100% Achieved. 25 urgent LIM applications were accepted.

Non-urgent LIMs processed in ten working days.

97.68% 95% 97.52% Achieved. This year was the busiest since 2005 with 242 applications.

Urgent request for service calls responded to within 8 working hours (Note 2).

Not assessed

100% Not assessed. This KPI was not measured in 2017, as there was no methodology in place to measure it.

% of all registered dogs that are microchipped (Note 3).

76% 75% 87% Achieved. This year shows an increase of compliance around microchipping. Of the 1,281 registered dogs 1,114 were micro-chipped at June 2017.

Respond to dog attacks within two hours.

100% 100% 100% Achieved. Attacks on animals and persons are given top priority and are attended immediately.




2015/16 Actual

2016/17 Target


Environmental Health and liquor Licensing Goal: Provide a healthy environment for residents and visitors.

Council will undertake ongoing monitoring of conditions to ensure compliance.

Health-related food hygiene complaints are responded to within 24 hours and actioned within five days.

95% 95% 95% Achieved.

Percentage of food premises complying with requirements at second inspection.

90% 90% 93% Achieved.

The majority of food premises are aware of their requirements and are able to comply by the second inspection.

Ensure alcohol licensing complies with statutory and licensing provisions.

Percentage of alcohol licences that comply with statutory and licence conditions on first inspection.

95% 90% 95% Achieved.

There are still licenced premises who are not meeting some of the requirements on documentation under the Sale and Supply of Alcohol Act 2012.

Ensure noise complaints are responded to effectively, promptly and efficiently.

Percentage of noise complaints resolved at first contact.

95% 95% 99% Achieved.

Three abatement notices were issued during 2016/17.




2015/16 Actual

2016/17 Target


Resource Management Goal: Provide a sustainable environment for residents and visitors.

Resource consents are processed within the legal timeframes.

Land Use consents processed within the legal timeframes.

100% 100% 100% Achieved.

46 Land Use consents have been processed within the legal timeframe of 20 working days.

Subdivision consents processed within the legal timeframes.

100% 100% 100% Achieved.

28 Subdivision consents have been processed within the legal timeframe of 20 working days.

The public is informed ab out Resource Management processes and other issues related to maintaining a sustainable environment.

% of pre-application meetings to number of applications received.

69% >10% >29% Achieved.

74 pre-applications were received and 22 pre-application meetings were held resulting in a 29% achievement.

Notes:

Note 1: LIM = Land Information Memorandum.

Note 2: There were no urgent requests.

Note 3: Microchipping is a legal requirement. There are exemptions, e.g. based on the age of the dog. A target of 100% compliance is not appropriate.


Highlights for the Year Compliance The discounted fee of $25.00 was introduced to all pet owners providing Council with a digital photo of their

pet dog. An amnesty was extended until 2018 to allow all of these photos to be collected. Pet dog owners that have supplied Council with photos of dogs will receive a discount of $25.00 per dog. The photos will assist Council with several issues in identifying the right dog to return back to the owner if the tag is lost and the dog does not have a microchip.

The 2017 year started with the new pool legislation under the Building Act 2004 repealing the Fencing of

Swimming Pools Act 1987, this was made effective from 1 January 2017. The changes included allowing safety covers to be used as a barrier for spa pools and hot tubs not exceeding 5m2. This legislation change wasexpected bymany Territorial Authorities. The changes will bring more consistency throughout New Zealand. Compliance hosted a training day to other Councils who wished to be involved in learning the keys changes and how best to implement them.

Council took part in the Governments Excellence programme during the year and Animal Control was one

area that was investigated to see how we were doing. A review of Ruapehu dog control services was also undertaken in March. The review was conducted by John Payne, an experienced Animal Control Manager currently employed by Napier District Council. His review explored all aspects of internal and external process and procedures undertaken by Compliance. Mr Payne supplied Council with a full report which contained some suggestions to help staff and Council improve some practices. The suggestions have been accepted and are in the process of being implemented. The review was a good opportunity to gain a fresh perspective and staff gained confidence in the conclusion of the review which stated Ruapehu is in a sound position.

The Department of Internal Affairs invited Councils to apply for funding to assist with de-sexing menacing

and dangerous dogs within their District. This incentive came from an amendment proposal that Government were to implement to reduce the menacing type breeds of dogs by making it mandatory all menacing dogs are de-sexed. Ruapehu received a grant of $12, 000 to assist with a de-sexing programme. The offer is still open to owners who qualify for this opportunity.

Building Control Unit Building consent application numbers have been high, reflecting the

growth in the economy, there have been some significant building projects within the District in the past year. These include stage 2 & 3 of the Timber Trail in Waimiha, 4 Carpet Lifts and Elevator Shaft at Mt Ruapehu’s, Whakapapa Ski Area, Happy Valley and a new link way at the National Army Museum in Waiouru.

The Building Team have been challenged with processing over 40 new dwellings with 99% of these processed in-house. Inspections have increased due to high number of consents issued during the year with a total of 744 inspections completed

The Building Inspectors completed their National Diploma in Building

during the year.

New log house under construction, one of 40 new dwellings in the district.


Resource Consents 104 consents have been processed (1 July - 29 June) in the 2016/17

year. These took an average of 13 days to process which is well under the statutory time frame of 20 days to complete. The Timber Trail Adventures Resource Consent was Limited Notified and processed within the 60-day timeframe, at day 52.

1,016 Requests for Service have been received and completed. A number of consents heading into their final year of their consented

period have been activated. This reflects an increase in confidence in the economy.

Environmental Health and Liquor Licensing Liquor licensing is still experiencing issues even with the majority of premises having already renewed their

licenses under the Sale and Supply of Alcohol Act 2012. The additional information required under the Act has led to frustration on the part of many licensees, although some are still not maintaining the additional documentation required under the Act. The team is still experiencing the increased need for staff to work

more closely with them in order to ensure that the information provided is accurate and acceptable to the District Licensing Committee. The District Licensing Committee has conducted 10 hearings,

slightly less than the 14 held in the previous year. This again reflects the more stringent requirements, which the licensees must now demonstrate when filing a new or renewal application.

Health has experienced an increased number of enquiries from new and current food operators prior to, and following, the commencement of the Food Act 2014. We are now in the second year of the three-year transitional period with all premises who hold an On-licence now complying with the new requirements. The next group to transition is the largest with unlicensed cafes and restaurants, service stations, horticultural businesses, hospitals, rest homes and schools who have canteens who had previously been exempt. This is increasing demand for resources and education around the new systems that will require all people who have food within their business holding a registration under either a Food Control Plan or National programme in order to comply with the new Act.

Timber Trail Lodge, Piropiro, Pureora Forest Park.


Council have continued to support community groups to understand how the changes in Food Act 2014 affect them. There is now provisions to hold up to 20 events in a year for fundraising, over three times more than that under the previous regulations. We now have most community groups notifying Council of their activities. The fees are generally waived for those who fit within this category.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Regulation Activity


737 876 802

Targeted rates - - - Subsidies and grants for operating purposes - - - Fees and charges 809 841 885 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - 15


Applications of operating funding Payments to staff and suppliers 325 455 147 Finance costs - - - Internal charges and overheads applied 1,221 1,262 1,238 Other operating funding applications - - - Total application of operating funding (B) 1,546 1,717 1,385

Surplus/(deficit) of operating funding (A-B) - - 317 Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt - - - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) - - -


- To meet additional demand - - - - To improve the level of service - - - - To replace existing assets - - -

Increase/(decrease) in reserves - - 317 Increase/(decrease) of investments - - - Total applications of capital funding (D) - - 317 Surplus/(deficit) of capital funding (C-D) - - (317) Funding balance ((A-B)+(C-D)) - - -


COMMUNITY FACILITIES Introduction The Community Facilities activity includes Cemeteries, Community Halls, Community Buildings and Property, Parks and Reserves, Public Toilets, Social Housing and Swimming Pools.

The purpose of the Recreation and Community Facilities function is to provide efficient services, facilities and an environment that attracts people to the area and encourages good health and education for all residents. The purpose of the Community Property function is to act as a steward for property that is of social, cultural or environmental benefit to the community and to maintain these properties to a high standard. The portfolio of property includes Council administration buildings and libraries, social housing rental units, some small forestry plantations, parks, reserves, playgrounds, walkways, swimming pools, community halls, public toilets and cemeteries. Cemeteries

The objective of the Cemeteries service is to provide administration, record, enquiry and burial services for the burial of deceased persons at Council owned cemeteries within the District. Council owns and maintains cemeteries in Manunui, Matiere, Ohakune, Ohura, Owhango, Raetihi, Rangataua, Raurimu and Taumarunui. Council also owns the closed cemetery at Tatu (not maintained).

Community Halls

The purpose of the Community Halls activity is to provide and maintain suitable and appropriate public halls throughout the District for social, recreational, cultural or educational purposes. There are 15 halls that are managed by, or that have been vested in Council. These range from large facilities such as the Taumarunui Memorial Hall, to smaller local community-managed halls, such as the Rangataua Hall. The Taumarunui Memorial Hall has been assessed as earthquake-prone. Consultation will be undertaken with the community during the 2018-28 Long Term Plan process on the future of the hall. Most rural community halls are wooden single story buildings that would allow safe evacuation in the event of an earthquake.

Community Buildings and Property

Community buildings and property include the Council administration buildings, libraries, Taumarunui Aerodrome, Ohakune Railway Station, Taumarunui ex-saleyards and a number of other miscellaneous properties, such as the ex-library building in Ohakune. The most significant of all Council property assets are the Council administration and service centre buildings (which also incorporate the library services) in Taumarunui and Ohakune.


Parks and Reserves The purpose of Parks and Reserves assets is to:

Provide space for people to pursue active and passive recreational activities for their social, spiritual,

mental and physical wellbeing. Provide the landscape setting for towns. Ensure the protection and maintenance of history (ecological and human) and character of the area. Ensure the environments essential to the existence of plant and animal species are maintained. Protect public access to significant landscape features and recreation areas.

Areas covered by the Parks and Reserves activity include: Parks and Reserves. Playgrounds. Camping Grounds – Taumarunui, Raetihi and Ohakune Holiday Parks. Walkways. Miscellaneous structures, e.g. the Taumarunui Grandstand.

Public Toilets

The provision of public toilet facilities for residents and visitors is considered an important activity for Council, particularly in relation to public health and safety.

Social Housing

Council owns 81 individual social housing units constructed on six separate sites.

The Raetihi complex consists of six units constructed in 1977, with a further six units added in 1980 and four units completed in 1985.

The Ohakune complex contains eight units constructed circa 1976. The 20 units in Taupo Road (Rangimarie Flats), Taumarunui, comprise 10 initial units constructed in 1975.

Six units were added in 1981 and a further four in 1988. The 25 Taumarunui Street units (Rochfort Flats), Taumarunui, were erected in two stages in 1967 and

1970. The eight Taumarunui Street units (Cherry Grove Flats), Taumarunui, were erected in two stages in 1982

and 1983. The four Miriama Street units (Miriama Flats), Taumarunui, were erected in 1982.

Swimming Pools

Council maintains and operates three public swimming pools situated in the main population centres of Taumarunui, Ohakune and Raetihi. The purpose of this activity is to provide and encourage the use of swimming pools efficiently and effectively within the District as a safe and affordable leisure activity. The three swimming pool complexes owned by Council are considered significant assets. These assets are now at or beyond their estimated life span. There is no indication that the pool structures cannot continue to be maintained and used for at least another decade.


Aim of Community Facilities and Contribution to Outcomes Overall it is the aim of the Community Facilities activity to maintain current levels of service, with a few improvements by upgrading and renewing facilities.

For the 2016/17 financial year this has been achieved, through a renewal programme and some upgrades of facilities.

The Recreation and Community Facilities function targets a number of Outcomes by providing recreation and community facilities that meet the needs of the community, retain the beauty and aesthetic values of the area and provide leisure opportunities for residents and tourists. Community Property function aims to provide stewardship for property that is of benefit to the community and ensures this property is managed in a sustainable and responsible manner.

The following are the main Outcomes targeted:

Excellent standards of safety and welfare are promoted and respected. That the traditions, values and history of all ethnic groups are respected. That activities, facilities and opportunities for youth are provided and supported. That excellence and achievement in sport, arts/cultural pursuits, community service and business is

supported through provision of community facilities such as libraries, pools, halls and parks and reserves. That Council plans for and works with the community to ensure that our environment is accessible, clean and

safe and that our water, soil and air meet acceptable standards.


What We Achieved



2015/16 Actual

2016/17 Target


Recreation and Community Facilities

Goal: Parks, reserves and community facilities are accessible, attractive, and meet the needs and expectations of residents, visitors and youth wherever and whenever possible.

Goal: Urban streetscapes, parks, playgrounds and public toilets are clean and residents and visitors feel that they are safe places to be in.

Council will maintain and provide access to playgrounds, public green space, amenities, libraries and community halls.

Council-Owned Swimming Pools Achieve NZ Water Pool standards for all Pools (water quality certificates are achieved).

100% 100% 100% Achieved.

Contractor did not provide independently tested water quality certificates. A letter of compliance has been received from Veolia in lieu of the certificates to attest to pool water quality.

Cemeteries Number of customer complaints on the maintenance of the District cemeteries.

Three complaints received.

<3/annum 11 Not achieved. Complaints regarding grass maintenance, subsidence, headstone safety, and reinstatement. May need to review acceptable number of complaints for LTP.

Community Halls Council managed halls have the required building compliance and emergency procedures in place (Compliance Programme and trial Emergency Evacuations).

100% 100% 100% Achieved. BWOF up to date and trial evacuations completed.




2015/16 Actual

2016/17 Target


Recreation and Community Facilities

Goal: Parks, reserves and community facilities are accessible, attractive, and meet the needs and expectations of residents, visitors and youth wherever and whenever possible.

Goal: Urban streetscapes, parks, playgrounds and public toilets are clean and residents and visitors feel that they are safe places to be in.

Amenities and facilities are provided that meet the needs and safety of the community.

Playgrounds Compliance with NZ standards as measured by annual engineer safety audit.

100% 98% 100% Achieved.

Parks and Reserves Users feel safe and are satisfied with the quantity of green space and facilities available.

79% 85% 81% Not achieved. Safety: 22.22% very satisfied, 58.74% satisfied. Quantity: 22.93% very satisfied, 57.32% satisfied. Total Safety: 80.96%, Total Quantity: 80.25% Average: 80.6%

Public Toilets Emergency requests for service responded to within 24 hours.

91% 95% 73% Not achieved. 31/42 responded to within 24 hours. Still some issue with actual date of resolution being provided by the contractors.

Public Toilets Urgent requests for service responded to within 48 hours.

76% 95% 69% Not achieved. 24/35 responded to within 24 hours. Still some issue with actual date of resolution not being provided by contractors.



2015/16 Actual

2016/17 Target


Community Property

Goal: To act as a steward for property that is of social, cultural or environmental benefit to the community. Goal: Council-owned buildings are structurally sound and safe and Council occupants and tenants in

administration buildings and social housing feel safe.

Libraries, public meeting venues, Administration Buildings and the Ohakune Railway Station will be retained and well maintained.

Buildings Council public buildings (including administration, library and information centres) have the required building compliance in place. (All BWOFs renewed before expiry date, annually).

100% 100% 100% Achieved. BWOFs renewed as required. Exception is the Taumarunui i-SITE which is a KiwiRail owned building.

Library Library users are satisfied or highly satisfied with public library buildings.

76.4% 75% 71% Not achieved. Very Satisfied: 28.14%, Satisfied: 42.51%. Total 70.65%. Large proportion of N/A replies in the survey-20.96% resulted in a drop in the actual achievement percentage in the survey for 2016-17.



2015/16 Actual

2016/17 Target


Community Property

Goal: Council owned buildings are structurally sound and safe and Council occupants and tenants in administration buildings and social housing feel safe.

Housing units are maintained to a satisfactory standard and provide a safe environment for tenants.

Social Housing Percentage of residents who feel safe in their homes.

94% 95% 97% Achieved.

Do you feel safe and secure in your flat? Yes: 26/32, Usually 5/32.

Social Housing Percentage of residents who are satisfied or very satisfied with the LOS.

91% 75% 100% Achieved.

Your overall level of satisfaction with your housing?

Very Good: 18/29, Good: 7/29 Adequate/OK: 4/29.


Capital Projects

Project Description


$000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

Rochfort/Jubilee Park development 7 - - LOS. Ohakune i-SITE wall and heat pump - 20 11 Renewal. Ohakune Admin Building 42 - - Renewal. Work delayed, to start

October 2017. Ohakune walkway 28 20 28 LOS. Incomplete. Needs to be

carried forward. Ohakune Admin civil defence generator

- 20 9 LOS.

Ohakune Service Centre – replace toilet pans

- 3 2 LOS.

Ohakune i-SITE shade sails - 15 20 LOS. Ohakune Service Centre - 66 - 60% Growth, 40% Renewal. Ohakune swimming pool fencing renewal

- 15 11 Renewal.

Ohakune – chlorine tanks - - 9 LOS. Ohakune Flats facia and spouting renewal

- 10 - Renewal.

Repile Ohakune Railway Station - 41 - Renewal. On hold, awaiting advice from Historic Places Trust and final decision on design.

Fencing problem reserves south 11 10 13 Renewal. Raetihi cemetery fence - 10 - Renewal. Security CCTV CBD - - 11 LOS. Reallocated to Raetihi

Agency cameras. Complete. Islington Street garage roof 15 - - Renewal. On hold. Raetihi Agency building heat pump - 3 2 LOS. Raetihi campground ablution block - 100 - Renewal. Concept designs

have been delayed. Raetihi campground switchboard - 10 - Renewal. Taumarunui Domain facilities upgrade 11 - 3 LOS. Fencing problem reserves north 21 10 11 Renewal. Cherry Grove development 10 40 - LOS. Taumarunui town clock 5 15 26 Renewal. Taumarunui north entrance upgrade - 16 - Renewal. King Tawhiao sign.

Complete. Taumarunui Memorial Hall switchboard

10 - - Renewal. On hold.

Taumarunui walkway 20 45 31 LOS. Needs to be carried forward. Timing issues with weather.

Taumarunui amenity street lighting - 10 - Renewal. On hold due to revitalisation project.

Taumarunui i-SITE - 154 - LOS. On hold due to revitalisation project.

Taumarunui stainless steel rubbish bins

- 20 16 Renewal.

Taumarunui – chlorine tanks - - 9 LOS.


Project Description


$000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

Rangimarie Flat 2 repairs and maintenance

- 15 - Renewal.

Taumarunui grandstand refurbishment - 40 - Renewal. On hold until external funds are received and project can progress.

Hakiaha Street toilets upgrade - 77 - LOS. On hold due to revitalisation project.

Waiouru i-SITE set up costs - - 9 LOS. Social Housing security doors - 5 6 LOS. Social Housing minor capital works - 15 19 Renewal. Furniture and fittings over $500 - 20 11 Renewal. Majority of items

purchased were under $500. Community Housing upgrades - 12 13 70% Renewal, 30% LOS. District wide playground equipment - 51 - Renewal. On hold due to

revitalisation project. Rubberfall areas renewal - 20 - Renewal. Assets have lasted

better than expected. Total 180 908 270

Work in Progress

Project Description Opening

WIP $000

Closing WIP $000

Notes

Fencing problem reserves north 5 - Renewal. Completed. Security cameras CCTV CBD 8 - LOS. Completed. Signs 4 - Renewal. Completed. Taumarunui Domain facilities upgrade 4 - LOS. Completed. Taumarunui town clock renewal 10 - Renewal. Completed. Ohakune Admin Building - 7 Renewal. Repile Ohakune Railway Station - 4 Renewal. Cherry Grove development - 15 LOS. Rangimarie Flat 2 repairs and reconfiguration

- 1 Renewal.

Total 31 27


Highlights for the Year Cemeteries New fence extended at Raetihi Cemetery. Scrub cleared from north of Raetihi Cemetery. New Berms – Ohura, Taumarunui, Raetihi, Ohakune and Manunui cemeteries. Community Buildings and Property Repainting and LED lights installed at Taumarunui i-SITE. Shade sail installed adjacent to the Ohakune i-SITE.

Social Housing Flat redecorations and carpeting as required. Heat pumps installed at some Rochfort and Rangimarie one bedroom flats. Cherry Grove Court and Rangimarie flats exterior repainted. Long life photo-electric smoke alarms installed in all flats. Security doors installed at Rochfort Flats .

Scrub cleared from north of Raetihi Cemetery.

Ohakune i-SITE shade sail.


Parks and Reserves National Park Village memorial garden upgraded and seat installed. Shelter added to Soccer Club pavilion and toilets at Cherry Grove. Tree of Light in Manson’s Gardens community project. Taumarunui Town Clock replaced (and then fixed). Stainless steel rubbish and LoveNZ recycling bins installed in Hakiaha Street. Roslyn Street walkway bridge improvements. Carrot Park improvements community project. Two rusted out tables replaced in Manson’s Gardens Accessible walkway at Northern entrance.

National Park Village Monument Garden. Northern Entrance Accessible Walkway.

Cherry Grove shelter, Taumarunui Taumarunui Town Clock.

Stainless Steel Bins, Taumarunui Carrot Park Developments.


Community Halls Expenditure was limited as decision is still required on the future of the Taumarunui Memorial Hall. Public Toilets Christie Park toilets repainted. Taumarunui Domain Toilet septic field upgrade. Cigarette butt bins and new rubbish bins installed at Waiouru Public Toilets. Waiouru's public toilet won the 'Best Loo' category in the Keep NZ Beautiful Awards for 2016. The new loos

have been a huge success since their opening and are part of Council’s largers development strategy for Waiouru and the District.

Swimming Pools Taumarunui Swimming Pool was not able to be opened due to a leak, Council partnered with the

Taumarunui Trust Waikato Community Swimming Pool to provide subsidised entry fees for all users. .


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Community Facilities Activity


2,386 2,506 2,733

Targeted rates - - - Subsidies and grants for operating purposes 4 4 3 Fees and charges 406 416 565 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -


Applications of operating funding Payments to staff and suppliers 1,825 1,901 1,882 Finance costs 23 52 12 Internal charges and overheads applied 815 843 852 Other operating funding applications - - - Total application of operating funding (B) 2,663 2,796 2,746

Surplus/(deficit) of operating funding (A-B) 133 130 555 Sources of capital funding Subsidies and grants for capital expenditure - - -

Development and financial contributions - - - Increase/(decrease) in debt 339 548 28 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 339 548 28


- To meet additional demand 8 - 1 - To improve the level of service 106 311 42 - To replace existing assets 91 223 228

Increase/(decrease) in reserves 267 144 312 Increase/(decrease) of investments - - - Total applications of capital funding (D) 472 678 583 Surplus/(deficit) of capital funding (C-D) (133) (130) (555) Funding balance ((A-B)+(C-D)) - - -


LAND TRANSPORT Introduction The Land Transport activity involves the maintenance and development of public roads, kerbs and channels, bridges, street lighting, footpaths and street furniture for the District, with the exception of the State Highways, which are managed by the NZ Transport Agency (NZTA). Council maintains its roads under contract to a standard that provides safe and comfortable driving within the limitations of available funding.

The District land transport network consists of:

488 km of sealed roads, 851 km of unsealed road, 342 bridges and large culverts, 69 km of footpaths, and 1,445 street lights. Aim of Land Transport and Contribution to Outcomes The aim of the Land Transport activity is to provide reliable, cost effective all-weather transport corridors for the District and to maintain levels of service at the current standard. Land transport contributes to the following Outcomes by providing core services and managing the roading network to keep pace with development, as well as ensuring that roads and footpaths are safe, reliable and well maintained. The relevant Outcomes are: Council is proactive, transparent, accountable and takes an active, consultative approach to finding

solutions. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading)

endeavours to keep pace with changing demand. Excellent standards of safety and welfare are promoted and respected. Regulatory services and reliable infrastructure help the economy prosper and support a range of quality

retail, entertainment, educational, healthcare, businesses and services. Our transportation network is reliable, safe and endeavours to meet the needs of users.

Poro O Taroa Road Sealing.


What We Achieved


Indicators (Note 1)

2015/16 Actual

2016/17 Target

2016/17 Actual

Commentary

Land Transport Goal: District roads provide continuous all weather travel that is safe and accessible. Goal: Managing the network with a strong focus on safety to avoid or mitigate significant hazards.

The safety of the land transport network is acceptable to users.

The change from the previous financial year in the number of fatalities and serious injuries on the local road network, expressed as a number.

+1 increase in fatal and

serious injuries.

Target for reducing the number of serious injuries and fatalities = less than or equal to 1 (less than previous year).

+2 fatal and

serious injuries

over previous year total

Not achieved

One fatal and two serious injuries in 2015/16

No fatal and five serious injuries in 2016/17

Roads are managed to an acceptable level and the road network is available when required.

The average quality of ride on a sealed local road network, measured by smooth travel exposure.

86.4% Target level of smooth travel exposure ≥87%

83% Not achieved

Roughness measurements taken bi annually. The last survey was carried out in January 2016.

VKT readings relate to the current financial year.

The percentage of the sealed local road network that is resurfaced.

7.1% of 485.7km

34.7km resurfaced

during 2015/16.

7.5%

37km out of 485km.

7.0%

34.4km out of 493km

Not achieved Includes full width seal repairs 1.26km, reseals 26.9 km (Target 30km) and pavement rehabilitation 6.5km (Target 7km). 1.1km of pavement rehabilitation on Ohakune Mountain Road was deferred until 17/18 due to consenting issues. Reseals were under target due to budget constraints.

Maintain the sealed roads to a standard that allows <5.5 defects/km/quarter.

4.19 defects/km

<5.5 defects/km

/ quarter.

Q1 – 3.7

Q2 – 4.6

Q3 – 4.6

Q4 – 5.1

Achieved.



Indicators

2015/16 Actual

2016/17 Target

2016/17 Actual

Commentary

Maintain the unsealed roads to a standard that allows <5.5 defects/km/quarter.

4.21 defects/km

<5.5 defects/km/

quarter.

Q1 – 4.1

Q2 – 4.7

Q3 – 5.1

Q4 – 5.3

Achieved.

The percentage of footpaths that fall within the level of service for the surface condition of footpaths as per the AMP (Note 2).

94.3% average or

better condition.

2.4% poor condition.

75% of network to

be in average

condition or greater and

not more than 10% of

network in poor

condition.

97.7% in average or

better condition.

1.3 % in poor

condition

Achieved.

Condition rating carried out in 15/16 and updated in 16/17 to include improvements from 15/16 work programme.

Next condition rating to take place in 2017/18.

The percentage of customer service requests relating to roads and footpaths to which Council responds within the time frame specified in the LTP (Note 4).

82% 95% 90% Not achieved.

1125 calls received; 1017 on or before target date.

54% of overdue calls were completed by the following day. 92% of overdue calls were complete within 5 days following target date.

Note that 993 calls were received in 15/16.

Notes:

Note 1: In 2010, the LGA02 was amended to enable Central Government to make rules specifying non-financial performance measures for local authorities to use when reporting to their communities. The mandatory performance measure will do this through providing better information about the LOS for five groups of activities carried out by local authorities – stormwater drainage, wastewater and the disposal of wastewater, flood protection and control works, water supply and the provision of footpaths and roads. Requirements to report against the performance standards are mandatory from 2015. Most of the KPIs for Land Transport are new for this reason.

Note 2: Footpath Performance Measures – 2015/16 was the first time this Level of Service was measured. There was no base line at the beginning of the LTP period to establish targets.

Note 3: NB1: A serious accident in Q2 was not reported in the KPI report as it was not included in the Crash Analysis System (CAS) export for Q2 and a Traffic Crash Report (TCR) was not received from the police. NB2: NZTA are behind on importing crashes into CAS for Q3 and Q4 so Police TCRs have been used for these results.


Note 4: The Request for Service targets are:

Subtype Category Schedule by Complete by

1 Bridge Routine 2 days 15 days 2 Building relocation road inspections Routine 1 day 5 days 3 Contract / Engineer required Routine 1 day 5 days 4 Corrugations Routine 2 days 15 days 5 Culvert Urgent 4 hours 3 days 5 Culvert Routine 2 days 15 days 6 Flooding Urgent 4 hours 3 days 7 Footpath Issues Routine 2 days 15 days 8 Kerb or Channel Issues Routine 2 days 15 days 9 Litter Routine 2 days 15 days 10 Mowing / Vegetation Control Routine 2 days 60 days 11 Potholes Routine 1 day 15 days 12 Rapid Number plates Routine 1 day 10 days 13 Roading Team to Investigate Routine 1 day 5 days 14 Signs / Sight rails / markings Urgent 1 day 3 days 14 Signs / Sight rails / markings Routine 2 days 15 days 15 Slips Emergency 30 minutes 2 days 16 Streetlights Urgent 4 hours 2 days 16 Streetlights Routine 4 days 30 days 17 Surface - Frost / Grit / Oil / Accident Urgent 1 day 5 days 18 Trees - Fallen or standing Urgent 1 day 5 days 18 Trees - Fallen or standing Routine 2 days 15 days 19 Underslip Emergency 30 minutes 2 days 20 Water channel issues (rural) Urgent 1 day 3 days 21 Water channel issues (rural) Routine 2 days 15 days


Major Capital Projects

Project Description

Carried Forward Budget $000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

Unsealed Road Metalling - 1,003 985 Renewals Sealed Road Surfacing - 1,003 1,060 Renewals Drainage Renewals - 461 394 15% LOS, 85% Renewals Pavement Rehabilitation - 2,090 2,230 15% LOS, 85% Renewals Structures Components Replace - 600 363 15% LOS, 85% Renewals Traffic Services Renewals - 336 221 Renewals Sealed Road Surfacing - 139 170 Renewals Drainage Renewals - 26 6 15% LOS, 85% Renewals Pavement Rehabilitation - 323 135 15% LOS, 85% Renewals Traffic Services Renewals - 22 9 Renewals Minor Improvements (LR) - 942 916 80% LOS, 20% Renewals B353 Upokonui Stream Culvert Renewal 460 - - 15% LOS, 85% Renewals B152 Waitewhena Rail Over Bridge Renewal (Waitewhena Road) 312 - - 15% LOS, 85% Renewals B292 Mangateitei Rail Over Bridge Renewal (Mangateitei Road) - 418 - Renewals Minor Improvements (SPR) - 225 171 80% LOS, 20% Renewals Bus Shelter Renewals 18 11 - Renewals Facility Roads Capital 13 22 14 15% LOS, 85% Renewals Footpath Renewals 44 183 182 Renewals Kerb And Channel Development 57 43 107 LOS Motorist Service & Tourist Info Signs 45 29 4 50% LOS, 50% Renewals OMR Capacity Improvement 309 108 - 60% LOS, 40% Renewals Footpath Safety Improvements - 28 29 LOS Seal Extensions - 50 41 Growth Streetflags District - 16 25 Renewals Under Verandah Lighting Renewals 4 4 - Renewals Total 1,262 8,082 7,062

Note that the figures of some projects are not specifically detailed in the LTP or EAP in a certain year but are planned to be performed over the ten-year period of the LTP. Capital Projects Carried Forward Sometimes a capital project that was budgeted for is not undertaken or it is started but not completed, in the financial year for which it was budgeted. If the project is one that Council believes should be completed, it may decide to carry forward the unspent budget to the following financial year. Carried forward capital projects in this Activity are: Work in Progress


WIP $000

Closing WIP $000

Notes

B152 Waitewhena Rail Over Bridge Renewal (Waitewhena Road) - 481

Work in progress - to be completed in 17/18.

B292 Mangateitei Rail Over Bridge Renewal (Mangateitei Road) - 21

Work in progress - to be completed in 17/18.

Total - 502


Highlights for the Year Contract Renewals Contract 1667 for street light maintenance and renewal was tendered in May 2016 and awarded to Alf

Downs Street Lighting Ltd. on 31 August 2016.

Aggregate supply unit price negotiations are undertaken annually and in effect create new supply values annually.

The Ohakune Mountain Road Traffic Management Contract 1742 for the Ohakune Mountain was

awarded to Ruapehu Alpine Lifts Ltd. It is a negotiated contract. Unsubsidised Construction The Findlay Street footpath Safety Improvement from Buddo St to Station Road was completed in June

2017. Footpath renewal work occurred in Ohakune with the completion of a Tainui Street section and Arawa Street footpath renewal from SH4/Clyde St to Ayr Street. In Raetihi, Duncan Street from Seddon to Queen and Ward from Seddon to Queen were renewed. Taumarunui had Huia Street from Marae to Katarina and Taumarunui Street from Manuaute to Marae Streets old seal footpaths replaced with concrete. A total of 954m of footpath has been repaired or renewed.

Facility roads and carpark works included seal extending entrances into sport and recreation facilities such

as Cherry Grove and Taumarunui Rugby Club along with intersection sealing into the Owhango Transfer Station.

Subsidised Construction Heavy Maintenance and Improvements – Four River Valley meetings were attended during the year and

various types of work requests were discussed from plant pests to bridge replacements. Minor Improvement works at 23 sites were identified and programmed for these valleys with 55 sites completed District wide during the year to match available budgets.

Flood Damage - The Tasman Tempest on 12 March 2017 resulted in an Emergency Event due to flooding,

slips, trees and under slips, with 47 issues on 21 roads. NZTA approved funding for this event and includes for the reinstatement of 14 major sites. Cyclone Debbie from the 4th to 6th April affected 88 roads with 33 roads reported as closed and the last two roads opened on Friday 7 April. Approved funding for this event was also granted for immediate response and 47 major sites reinstatements, Cyclone Cook (13-14 April) had minimal further effect. Cyclone Donna (15 May) caused slips to reoccur, roads to be re-flooded, dropouts became larger and several new sites cropped up. Donna affected 64 roads and a further 31 major sites have been identified for repair works.

Te Maire Valley 2.36km and Crotons Road 0.09km


Renewals Reseals – The 2016/17 work programme was completed by J&J Walters Ltd, achieving a total reseal length

of 26.9km. Drainage – Culverts throughout the District are installed, replaced and extended on an as required basis

and within most major work activities. 62 culverts, ranging in size from 225mm to 1350 mm, with lengths from 5.0m to 20.0m, have been installed.

Metalling – A total of 59,000 tonne of aggregate was applied to the unsealed Ruapehu road network with a

further 23,500 tonne supplied for the sealed pavement renewals. Kerb & Channel – The construction of kerb and channel is usually undertaken in conjunction with the reseals

and pavement rehabilitation activities. This year, 150m of K&C was constructed on Bracken Street, 460m in Egmont Street, Ohakune with a further 300m on Findlay Street National Park.

Pavement Rehabilitation Due to budgetary pressures, the target 7.0 km of pavement rehabilitation was not achieved this year. The increase in logging traffic, particularly on the Poro O Tarao Road, has significantly affected the budget due to additional sealed and unsealed maintenance requirements. Engineers are monitoring trends in log harvest and its effect on low strength pavements. Early indications suggest that the rehabilitation priorities will continue to be influenced by forest harvest transport route selection. NZTA and Councils engineers are considering funding options to meet accelerated pavement deterioration in preparation for the Long Term Plan review 2018-2028.

Pavement Rehabilitation Sites 2016/17

Road Start RP (km) Length (km) Status

Whangaehu Valley Road 3.17 – 4.59 1.42 Sealed 21/11/16 Poro-O-Tarao Road 2.80 – 4.40 1.6 Sealed 7/02/17 Ongarue Waimiha Road 16.35 – 17.56 1.21 Sealed 18/03/17 Egmont Street 0 – 0.24 0.24 Sealed 30/06/2017 Poro-O-Tarao Road 4.85 – 6.00 1.15 Sealed 7/06/17

Total Length (Km) 5.62

Ohakune Mountain Road (vegetation in preparation for 2017/18 pavement construction)

2.84 – 5.12 2.28 Vegetation Removal

Ongarue Waimiha Road 17.56 – 18.045 0.49 Deferred

Ruapehu Road 1.30 – 1.9 Deferred


Bridges In the context of the 30-year infrastructure plan, the total forecast replacement expenditure on bridges is

$22m. Ninety bridges are due for replacement by 2044 with estimated replacement cost (2013 dollars) of $15m. The estimated component replacement forecast (where only part of a bridge is replaced, such as decks, beams, rails) is $7m.

Ruapehu District Council has been progressively renewing its bridge assets utilising structural component

replacements. Deck, component and handrail replacement was undertaken on several bridges in the 2016/17 year and completed by 30 June. Emmett’s undertook structural component replacement and repairs occurred on five sites in June (Raetihi Pipiriki Road, Ongarue Stream No.1, Ongarue Waimiha No.1, Ongarue Waimiha No.3 and Oio Road No.6).

The 2016/17 year saw the unplanned repair of the Poro O Tarao Bridge due to increased loading and

frequency of loadings and the increased use by logging operations. Contractors were able to reschedule their other works and institute a temporary repair to restore the bridge to full Class 1 status requiring 1.5 days closure of the 3 days programmed.

This work category will be a focus for Ruapehu for the foreseeable future.

New bridge deck at Waitewhena Road, Ohura


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Land Transport Activity

LTP LTP Actual 2016 2017 2017 $000 $000 $000


6,981 7,266 2,305

Targeted rates 70 71 5,055 Subsidies and grants for operating purposes 4,960 4,983 5,086 Fees and charges 96 97 68 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

148 150 135


Applications of operating funding Payments to staff and suppliers 7,238 7,399 7,236 Finance costs 586 635 463 Internal charges and overheads applied 2,294 2,372 2,475 Other operating funding applications - - - Total application of operating funding (B) 10,118 10,406 10,174

Surplus/(deficit) of operating funding (A-B) 2,137 2,161 2,475 Sources of capital funding Subsidies and grants for capital expenditure 5,269 4,929 4,533 Development and financial contributions 50 51 12 Increase/(decrease) in debt 828 782 974 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 6,147 5,762 5,519


- To meet additional demand 63 - 41 - To improve the level of service 1,662 1,873 1,489 - To replace existing assets 6,559 6,050 6,712

Increase/(decrease) in reserves - - (248) Increase/(decrease) of investments - - - Total applications of capital funding (D) 8,284 7,923 7,994 Surplus/(deficit) of capital funding (C-D) (2,137) (2,161) (2,475) Funding balance ((A-B)+(C-D)) - - -


STORMWATER AND FLOOD PROTECTION Introduction Stormwater is rainwater that runs over the ground on its way to a natural watercourse. When rain falls on buildings, car parks, roads, driveways and gardens but does not soak into the ground, it will follow a natural flow path downhill until it reaches a watercourse or is collected by a pipe system. Where there is development, runoff from properties and roads flows into stormwater systems. The greater the level of development in a catchment, the greater the level of impermeable surfaces (e.g. roofs, driveways and paths) and the greater conversion of rainfall into runoff. If this runoff is not managed it will cause flooding. Generally, stormwater is directed into channels on roadways or into drains, then into streams and rivers. Aim of Stormwater Activity and Contribution to Outcomes The Stormwater activity aims to mitigate problems of flooding in urban areas that pose hazards to people, roads and the urban economy. Under the Local Government Act, Council is required to assess water and other sanitary services available to the community, including stormwater drainage.

Council’s stormwater network includes 50km of piped drains and approximately 32km of open drains and natural watercourses within the urban boundary.

The Stormwater activity targets the following Outcomes by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning:

Core infrastructure (water, wastewater, waste management and minimisation, power and roading) keep pace with changing demand.

That Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable standards.


What We Achieved


Indicators (Note 1)

2015/16 Actual

2016/17 Target


Stormwater

Goal: To provide and maintain an appropriate level of infrastructure.

Capacity/degree of protection.

The number of flooding events that occur in a territorial authority district (Note 3).

- ≤3 - Achieved.

For each event, number of habitable floors affected (Note 4) (per 1,000 properties connected (Note 2) to system).

NA ≤3 NA Achieved. There were no flooding events in 2016/17.

Environmental impacts are managed and resource consents complied with.

Compliance with resource consents for discharges from the stormwater system as measured by the number of abatement notices.

NA ≤2 NA Achieved. There are no resource consents for Stormwater in the townships.

Compliance with resource consents for discharges from the stormwater system as measured by the number of infringement notices received.


Compliance with resource consents for discharges from the stormwater system as measured by the number of enforcement orders received.


Compliance with resource consents for discharges from the stormwater system as measured by the number of convictions.

NA - NA Achieved. There are no resource consents for Stormwater in the townships.



Indicators (Note 1)

2015/16 Actual

2016/17 Target

2016/17 Actual

Commentary

Responsiveness of service.

Median response time to attend a flooding event (Note 4).

NA 2 hours NA Achieved. There were no flooding events in 2016/17.

The number of complaints (Note 5) received about the performance of the stormwater system (per 1,000 properties connected (Note 2) to system).

4.5 ≤15 4.5 Achieved.

Notes:

Note 1: There are now mandatory Non‐Financial Performance Measures against which all stormwater infrastructure in New Zealand are measured. This is the second year these KPIs have been measured.

Note 2: The number of connections is calculated from the number of customers charged in their rates for use of

Council stormwater services (calculated at 5,316 in August 2016). Note 3: A flooding event means an overflow of stormwater from a Council stormwater system that enters a

habitable floor. Note 4: A habitable floor refers to a floor of a building (including a basement) but does not include ancillary

structures such as stand-alone garden sheds or garages. Note 5: There are occasions where there is more than one complaint per event. In such a situation, each

complaint is counted separately, not each event or occurrence.


Capital Projects

Project Description

Carried Forward Budget

$000

EAP 2016/17

$000

Actual 2016/17

$000

Notes

District wide projects 20 - - 20% Growth, 75% LOS & 5% Renewal.

District wide main replacement - 21 - LOS.

National Park open channel Stormwater drain reformation

4 4 - Renewal.

National Park Stormwater mains replacement

10 - - Renewal.

Ohakune channel A – upstream of Arawa Street

7 12 - 10% Growth, 90% LOS.

Ohakune condition assessments

44 - - LOS

Ohakune extension of the Stormwater network for growth

40 41 - 50% Growth, 50% LOS.

Ohakune open channel drain reformation

9 11 - Renewal.

Ohakune Park Avenue flood control

17 - - 10% Growth, 90% LOS.

Ohakune Southridge Drive Stormwater drain

10 - - 10% Growth, 90% LOS.

Ohakune mains rehabilitation/replacement

8 - - Renewal.

Ohura flood warning system 18 - - Renewal. To be capitalised in the new financial year.

Ohura mains replacement 9 - - Renewal. Ohura open channel drain reformation

13 6 - Renewal.

Owhango main replacement 8 3 - Renewal. Owhango open channel drain reformation

7 3 - Renewal.

Raetihi open channel drain reformation

3 8 - Renewal.

Raetihi Stormwater replacement - 1 - Renewal. Ohakune channel B flood control

- 94 - LOS.

Ohakune channel B vegetation clearance

28 - - LOS.

Raetihi Stormwater: Planning 12 9 - LOS. Rangataua: Open channel drain reformation

7 3 - Renewal.

Rangataua: Asset information - 4 - Raurimu open channel drain reformation

7 3 - Renewal.

Raurimu asset data 1 1 - Taumarunui open channel drain reformation

1 11 - Renewal.

Taumarunui Stormwater asset information network survey

5 - - LOS.

CCTV survey of network 7 - - LOS. Taumarunui condition assessment

15 8 - LOS

Taumarunui Stormwater main replacement

112 28 - Renewal.


Project Description


$000

EAP 2016/17

$000

Actual 2016/17

$000

Notes

Taumarunui, Turaki Street & Maata Street flood control

107 - - LOS

Waiouru Stormwater main replacement

18 - - Renewal

Total 547 272 - Work in Progress

Project Description

Opening WIP $000

Closing WIP $000

Notes

National Park open channel drain reformation

2 2 Renewal. To be completed in the new financial year.

Ohakune Miro Street drain flood control - 12 LOS. Ongoing. Ohakune condition assessment - 5 LOS. Ongoing. Ohakune channel B – flood control - 6 LOS. Ongoing. Ohura Stormwater: Flood warning system

- 18 Renewal. Completed, to be capitalised in the new financial year.

Raurimu open channel drain reformation - 23 Renewal. Completed, to be capitalised in the new financial year.

Taumarunui drain reformation - 9 Renewal. Ongoing. Taumarunui survey networks – CCTV - 47 LOS. Ongoing. Taumarunui stopbank infrastructure resource consent - 14 LOS. Ongoing.

Total 2 136


Highlights for the Year

The Stormwater system has, in general, operated well over the year with no major events affecting habitable floors in the communities.

Ruapehu District Council (RDC) and Horizons Regional

Council (HRC) continue to move toward a closer relationship in delivering Stormwater and river control works together. Strategic planning has slowed down the delivery of projects which appear to be better delivered together and some projects have been delayed as we align each organisation's work programmes.

Work has been completed on the Kahu Street stormwater drain in Ohura as part of works to address ongoing flooding issues.

A flood warning alarm system has been installed in Ohura for the early detection and warning of flood

levels. An alarm sounds prior to a flood impacting the township and will sound continuously until the township is breached, allowing residents to be prepared.

HRC have been doing flow modelling in the Makotuku River. Council has provided flood data with

evidential photos of how far the river reached during the 2013 flood. Phase 2 of the project will be to look at flood risks within the Raetihi township.

RDC has been awarded an environment grant by HRC to assist with the removal of 2.3km of Willow

congestion in the Makotuku River to increase river capacity and help to alleviate flood issues at the Wastewater Treatment Plant and in the township.

Closed Circuit Television (CCTV) has been undertaken on stormwater mains in Manson Street in

Taumarunui to assess condition and inform the need for upgrade.

Two upgrades have been approved for problematic stormwater mains in Ohakune to address ongoing issues with blockages and major root intrusion which have resulted in backing up of stormwater.

HRC has re-evaluated their model for the Mangawhero River and will release new flood maps. This has

significant implications for all stormwater works in Ohakune and work has been put on hold until the implications are understood.

Significant work on both watercourses running through Raurimu village has been undertaken in collaboration with affected Raurimu residents to eliminate the stormwater problems suffered by 80% of the village over the last 10-12 years.

RDC is making preparations alongside HRC to undertake significant stormwater works in 2017/18

identified for flood control in Tuku Street, Taupo Road, Turaki Street and Maata Street in Taumarunui. These works have been delayed by the need for RDC to apply to HRC for an infrastructure consent. The consent applied for will cover all infrastructure (water, wastewater, stormwater, roading, lighting and recreational property)) to allow Council to renew, maintain or upgrade Council owned infrastructure in Taumarunui sitting within 8 metres of the inner toe of a stopbank, or 10 metres from the river bed (where there is no stopbank).

A new infrastructure consent provides for works undertake 10 metres from the river bed within the town boundary as set out by HRC.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Stormwater Activity

LTP LTP Actual 2016 2017 2017 $000 $000 $000


391 412 410

Targeted rates 391 412 429 Subsidies and grants for operating purposes - - - Fees and charges 4 4 7 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -

Total operating funding (A) 786 828 846

Applications of operating funding Payments to staff and suppliers 295 319 229 Finance costs 36 44 28 Internal charges and overheads applied 115 119 116 Other operating funding applications - - - Total application of operating funding (B) 446 482 373

Surplus/(deficit) of operating funding (A-B) 340 346 473 Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - 4 Increase/(decrease) in debt 88 173 47 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 88 173 51


- To meet additional demand 23 44 - - To improve the level of service 96 163 78 - To replace existing assets 188 114 41



WASTEWATER Introduction The purpose of the Wastewater activity is to collect and dispose of wastewater in an effective and environmentally friendly manner. Effective and efficient wastewater collection and disposal is essential to protect the environment and to maintain public health. It is an essential service for public good. In order to ensure the successful disposal of wastewater in an environmentally sustainable manner and to promote and protect public health, Council provides treatment plants at Taumarunui, National Park Village, Ohakune, Pipiriki, Raetihi and Rangataua. In addition, Council co-operates with the NZ Army authorities in Waiouru to provide wastewater services for the town. Aim of Wastewater Activity and Contribution to Outcomes Council is committed to treating wastewater in such a way as to improve, promote and protect public health and the environment. Council aims to ensure that this activity is provided in the most cost-effective and efficient manner in accordance with the agreed Asset Management Plan. Council’s wastewater assets consist of six wastewater treatment plants, 109km of pipes, 18 pump stations, 1,418 manholes and 4,674 rateable service connections. The Wastewater activity targets the following Outcomes by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning: That the impact of waste on the environment is minimised. Quality regulation, regulatory services and infrastructure support healthy communities. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading)

endeavours to keep pace with changing demand. Regulatory services and reliable infrastructure help the economy prosper and support a range of quality

retail, entertainment, educational, healthcare, businesses and services that Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable, affordable standards.


What We Achieved


Indicators (Note 1)

2015/16 Actual

2016/17 Target

2016/17 Actual

Commentary

Wastewater

Goal: To provide and maintain an appropriate level of infrastructure.

Environmental sustainability.

Number of dry weather wastewater overflows from system, expressed per 1,000 connections (Note 3) to that system.

1.29 <7 1.1 Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of abatement notices.

- ≤2 - Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of infringement notices received.

- ≤1 - Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of enforcement orders received.

- ≤1 - Achieved.

Compliance with resource consents for discharges from the wastewater system as measured by number of convictions.

- - - Achieved.

Responsiveness to infrastructure issues.

Median time (Note 2) to attend to wastewater overflows resulting from a blockage or other fault.

0.95 hours (Note 5).

2 hours 0.56 hours (Note 5).

Achieved.



Indicators (Note 1)

2015/16 Actual

2016/17 Target

2016/17 Actual

Commentary

Median time (Note 2) to resolve sewage overflows resulting from a blockage or other fault.

4.5 hours (Note 5).

6 hours 4.0 hours (Note 5).

Achieved.

Public safety continuity of wastewater collection system.

Total number of complaints (Note 4) received about any of the following (expressed by 1,000 connections (Note 3) to the territorial authority’s wastewater system): (a) Wastewater

odour. (b) Wastewater

system faults. (c) Wastewater

system blockages.

(d) The territorial

authority’s response.

To issues with its Wastewater system.

(a) 0.9

(b) 0.2

(c) 2.8

(d) 0

<25

(a) 0.7

(b) 0.7

(c) 5.2

(d) 0

Achieved.

Notes:

Note 1: There are now mandatory Non‐Financial Performance Measures against which all wastewater infrastructure in New Zealand are measured. This is the second year these KPIs have been measured.

Note 2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these has not been verified by Council.

Note 3: The number of connections is calculated from the number of customers charged in their rates for use of Council wastewater services (calculated at 4,599 in August 2016).

Note 4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.

Note 5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.


Capital Projects

Project Description


$000

EAP 2016/17

$000

Actual 2016/17

$000

Notes

National Park WWTP upgrade 323 261 - 75% LOS, 25% Growth. National Park I & I reduction - 14 - Renewal. National Park WWTP wave band repair

- 20 - Renewal.

National Park resource consent - 20 - LOS. Ohakune headworks & treatment resource consent

16 - - LOS.

Ohakune inlet screens and grit trap - - 19 LOS. Upgrade of Ohakune WWTP to meet resource consent requirements

102 - - LOS.

Ohakune renewal (replacement and refurbishment) of assets

32 - 7 Renewal.

Ohakune Snowmass Drive WWPS upgrade

- 15 - LOS.

Pipiriki treatment facilities 3 3 1 Renewal. Raetihi aerators 81 - - 90% LOS, 10% Growth. Raetihi WWTP upgrade 70 - - LOS. Raetihi resource consent 9 - - LOS. Raetihi main relining based on remaining useful asset life – stage 2

- 50 - Renewal.

Raetihi above ground asset renewals

- 5 - Renewal.

Rangataua facilities plant upgrade 31 - - LOS. Rangataua WWPS: Asset renewal 2 - - LOS. Rangataua WWTP: Asset renewal - 4 6 Renewal. Taumarunui earthquake assessments

15 - - LOS.

Taumarunui above ground asset renewal

10 - - Renewal.

Taumarunui wastewater condition 68 71 - LOS. Victory Bridge WWPS: Asset renewal

- 20 3 Renewal.

Hikumutu WWTP: Asset renewal - 17 - Renewal. Sunshine Road WWPS: Asset renewal

2 - - Renewal.

Huia Street (TMN) WWPS asset renewal

- 2 - Renewal.

Tubby Woods WWPS: Asset renewal

- 2 - LOS.

Wastewater main refurbishment 13 100 2 Renewal. Waiouru Andrews Drive WWPS 3 34 - Renewal. Waiouru Ruanui Street WWPS: Asset renewal

1 4 - Renewal.

Waiouru wastewater networks 23 - - Renewal. Waiouru asset information - 4 - LOS. District wide scada upgrade - 6 1 Renewal. District wide critical spares - 36 6 LOS. Total 804 689 45


Work in Progress

Project Description

Opening WIP $000

Closing WIP $000

Notes

National Park – headworks & treatment resource consent

15 15 Can only be capitalised once asset is completed. LOS.

National Park – WWTP upgrade preliminary work


National Park resource consents 110 121 Can only be capitalised once asset is completed. LOS.

Ohakune wastewater resource consents 122 127 Can only be capitalised once asset is completed. LOS.

Ohakune – WWTP inlet grit trap 18 - Stage one capitalised, stage two to be completed. LOS.

Ohakune – WWTP – renewals - 15 Can only be capitalised once asset is completed.. Renewal.

Pipiriki treatment facilities 1 - Capitalised. Renewal. Raetihi WWTP – upgrade - 10 Complete. Due to be capitalised in

the new year. LOS. Raetihi – wastewater relining – stage 2 27 27 Can only be capitalised once asset

is completed. Renewal. Raetihi – Resource consent 73 88 Consent lodged with Horizons

Regional Council. LOS. Rangataua – Resource Consent 40 40 Consent lodged with Horizons

Regional Council. LOS. Rangataua – WWTP: Modification, facilities plant upgrade


Hikumutu WWTP – Asset renewal 29 42 Can only be capitalised once asset is completed. Renewal.

Hikumutu sewerage resource consent 72 72 Consent lodged with Horizons Regional Council. LOS.

Ohakune – headworks & treatment resource consent

- 8 Ongoing. LOS.

Raetihi sludge line installation - 24 Ongoing. LOS. Taumarunui wastewater mains 2 103 Can only be capitalised once asset

is completed. Renewal. Taumarunui – networks – Tuku Street WWPS: Asset renewal

2 6 Can only be capitalised once asset is complete. Renewal.

Taumarunui – network – Tubby Woods pump station – asset renewal

- 2 Complete. Due to be capitalised in the new year. Renewal.

Waiouru Andrews Drive WWPS: Asset renewal

- 38 Ongoing. Renewal.

Taumarunui CCTV inspections - 46 Ongoing. LOS. Taumarunui Sunshine Road WWPS switchboard replacement

- 11 To be completed in early 2017/18. Renewal.

Total 536 826


Highlights for the Year Closed Circuit Television (CCTV) investigation of wastewater reticulation

lines in Taumarunui informed the upgrade of 274 metres of poor condition sewer main within Taumarunui Township. Upgrade of the sewer lines will lead to reduced risk of pipe blockages, improved wet weather performance of the wastewater network (reduced inflow and infiltration through displaced joins and pipe breaks) and reduced reactive costs to Council.

Council continues to work with Horizons Regional Council toward the

renewal of resource consents lodged for the Raetihi, Ohakune and National Park Wastewater Treatment Plants, which were lodged on 17 August 2015.

A study has been undertaken by Massey University of the wetland at the National Park Wastewater Treatment Plant to gain an understanding as to why it is so effective in the removal of nutrients from the treated wastewater.

Delivery of treated Wastewater to National Park wetland

National Park Wastewater Treatment Plant wetland

Safety railings have been installed at some of the higher risk wastewater pump stations in Ohakune, Raetihi,

Rangataua, Pipiriki and Waiouru due to the depth at which the pumps sit below ground level. This enables maintenance and repair to be carried out more safely by the operator.

The solar unit on the outflow meter at the Raetihi Wastewater Treatment Plant (WWTP) has been relocated

to capture more sun and ensure continuous monitoring is provided for this site.

The Rangataua Wastewater Pump Station (WWPS) has been upgraded with the installation of a well level sensor and full remote control of the pump operation on Supervisory Control and Data Acquisition (SCADA).

A new ultrasonic level sensor has been installed on the inlet at the Taumarunui Wastewater Treatment

Plant to improve monitoring of the lagoon.

New macerating (chopper) pumps have been installed at two Wastewater Pump Stations in Taumarunui in order to reduce instances of ragging and blockages.

A new pump has been installed at the Hikumutu Wastewater Treatment Plant to allow for a water quality

sample to be taken while meeting Health and Safety requirements for confined spaces.

A new radio link has been installed between two of the Wastewater Pumping Stations in Taumarunui to improve remote monitoring of the sites.

Relining sewer main on Hospital

Hill, Taumarunui


Telemetry equipment has been installed in several Wastewater Pumping Stations (WWPS) in Ohakune, Taumarunui and Waiouru for improved alarming and monitoring and electrical switchboards upgraded to meet Ruapehu WWPS electrical standards.

An investigation of the hydraulic capacity of the Taumarunui Wastewater Supply scheme has been carried

out to assist Council in identifying, planning and managing potential future growth areas.

In August 2016 RDC was awarded the Resource Management Law Association (RMLA) Chapman Tripp Projects Award in recognition of the Wai Group process for iwi consultation around resource consent renewals in Ohakune, Raetihi and National Park

The RMLA makes awards for projects, which make a significant contribution to the development of best practice and the implementation of the Regional Management Act’s (RMA) purpose and principles.

To further understand the influences of nutrients on the Makotuku River, RDC has undertaken to contribute to a study being led by Horizons Regional Council. Findings would be of benefit on a national basis to anyone with a point source discharge to a river.

Chapman Tripp Award Presentation


The status of resource consents for water plants is as follows:

Town Expiry Date Notes

Taumarunui 1 March 2003 Under application with Horizons Regional Council (HRC) for review of conditions. Note 1.

National Park 17 November 2015 Application lodged with HRC 17 August 2015. This consent sits with Horizons for decisions around the notification of the consent. Note 1.

Raetihi 17 November 2015 Application lodged with HRC 17 August 2015. RDC has requested that this consent be put on hold to allow for an outcome of a request to the Government Tourism Infrastructure Fund to be notified. A successful application for funding will potentially affect the upgrades undertaken at the Raetihi Wastewater Plant. Note 1.

Ohakune 17 November 2015 Application lodged with HRC 17 August 2015. RDC has requested that this consent be put on hold to allow for an outcome of a request to the Government Tourism Infrastructure Fund to be notified. A successful application for funding will potentially affect the upgrades undertaken at the Ohakune Wastewater Plant. Note 1.

Pipiriki 1 July 2035 Current.

Waiouru* Unknown Current (NZ Army).

Rangataua December 2005 Application lodged with HRC 30 June 2014. RDC is in the process of responding to an s92 request for further information from Horizons. Note 1.

*Wastewater disposal for Waiouru Township is procured from the New Zealand Defence Force. Notes: Note 1: The Wastewater Plant continues to operate under the existing consent until the new consent is granted.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Wastewater Activity

LTP LTP Actual 2016 2017 2017 $000 $000 $000


(12) (32) (57)

Targeted rates 2,186 2,379 2,272 Subsidies and grants for operating purposes - - - Fees and charges 77 80 89 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -


Applications of operating funding Payments to staff and suppliers 939 1,025 701 Finance costs 202 255 132 Internal charges and overheads applied 393 407 399 Other operating funding applications - - - Total application of operating funding (B) 1,534 1,687 1,232

Surplus/(deficit) of operating funding (A-B) 717 740 1,072 Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions 30 31 6 Increase/(decrease) in debt 728 1,045 (19) Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 758 1,076 (13)


- To meet additional demand 1 1 - - To improve the level of service 892 1,238 151 - To replace existing assets 165 167 258

Increase/(decrease) in reserves 417 410 650 Increase/(decrease) of investments - - - Total applications of capital funding (D) 1,475 1,816 1,059 Surplus/(deficit) of capital funding (C-D) (717) (740) (1,072) Funding balance ((A-B)+(C-D)) - - -

The wastewater users of National Park are currently repaying the general ratepayer for an historical subsidy by the District. This shows as increased Targeted Rates and negative General Rates in this Funding Impact Statement.


WATER SUPPLY Introduction The purpose of the Water Supply activity is to supply safe drinking water to the communities of the District. Water supply is essential to run households, maintain public health and sustain economic development. Council is committed to providing a water supply service that meets the needs of the community. Council’s water supply service consists of 6 treatment plants, 16 reservoirs, 187kms of pipelines and approximately 5,374 rateable service connections and 4 pump stations. Aim of Water Supply Activity and Contribution to Outcomes Water supply is one of the essential services Council supplies to the community. Council has legal obligations to supply water. Council is required under the LGA to assess the need and provision of water services, including water supply (Sections 124 to 126), to retain its water supplies (Section 130) and has a duty under Section 23 of the Health Act 1956 to improve, promote and protect Public Health. Water supplies can be closed or transferred with the agreement of local communities. The Water Supply activity targets the following Outcomes, by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning. Quality regulation, regulatory services and infrastructure support healthy communities. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading)

endeavours to keep pace with changing demand. Regulatory services and reliable infrastructure help the economy prosper and support a range of quality

retail, entertainment, educational, healthcare, businesses and services. That Council plans for and works with the community to ensure that our environment is accessible, clean

and safe and that our water, soil and air meet acceptable, affordable standards. Excellent standards of safety and welfare are promoted and respected.


What We Achieved


Indicators (Note 1)

2015/16 Actual

2016/17 Target


Water Supply

Goal - To provide and maintain an appropriate level of infrastructure to the communities defined to be supplied potable water by Council.

Quality of Drinking Water - continuity of potable water supply to applicable community areas.

Extent to which drinking water supplies comply with Part 4 (bacteria compliance criteria) of the DWS.

Ohura =Y

Taumarunui =Y

Owhango =Y

National Park =Y

Raetihi =Y

Ohakune =Y

Ohura =Y

Taumarunui =Y

Owhango =Y

National Park =Y

Raetihi =Y

Ohakune =Y

Ohura =Y

Taumarunui =Y

Owhango =Y

National Park =Y

Raetihi =N

Ohakune =Y

Not Achieved.

Bacterial compliance was not achieved for Raetihi due to a single positive result for E. coli reported from the Raetihi Township distribution zone in April 2017. Follow up testing of samples taken on two consecutive occasions, were found to be negative.

See Note 9.

Extent to which drinking water supplies comply with Part 5 (protozoal compliance criteria) of the DWS.

Ohura =N

Taumarunui =N

Owhango =N

National Park =N

Raetihi =N

Ohakune =N

Ohura =N

Taumarunui =Y

Owhango =N

National Park =Y

Raetihi =N

Ohakune =N

Village = N

Ohura =N

Taumarunui =N

Owhango =N

National Park =N

Raetihi =N

Ohakune =N

Not Achieved. Ruapehu District Council (RDC) forecasted to achieve protozoal compliance with Drinking Water Standards New Zealand (DWSNZ) in 2016/17 for the National Park and Taumarunui supplies.

See Note 10.

Responsiveness. Percentage of real water loss from the networked reticulation system (Note 8).

41% <25% all supplies

53% Not Achieved.

An ongoing replacement programme is underway in the Ruapehu District, which should see the continued improvement to reducing water loss from our networks.

An important factor in capturing water loss in our district is



Indicators (Note 1)

2015/16 Actual

2016/17 Target


the significant number of unknown/unauthoris-ed connections. Council needs to address this in order to improve information around water loss from the network.

Median time (Note 2) to attend to an urgent (Note 6) callout (i.e. loss of water supply).

0.5 hours (Note 5)

2 hours 0.6 Achieved.

Median time (Note 2) to resolve an urgent (Note 6) callout (i.e. loss of water supply).

1.97 hours (Note 5)


Median time (Note 2) to attend non-urgent (Note 7) callouts (i.e. no loss of water supply).

1.05 hours (Note 5)


Median time (Note 2) to resolve non-urgent (Note 7) callouts (i.e. no loss of water supply).

3.7 hours (Note 5)


Public safety pressures and flow.

Total number of complaints (Note 4) received, District wide, about:

(a) Drinking water clarity.

(b) Odour. (c) Taste. (d) Pressure and

flow.

(e) Continuity of supply and response times

(a) 4.1

(b) 1.1

(c) 1.7

(d) 7.9

(e) 0.2

<25

(a) 0.8

(b) 0.6

(c) 1.1

(d) 7.4

(e ) 1.1

Achieved.



Indicators (Note 1)

2015/16 Actual

2016/17 Target


expressed per 1,000 connections (Note 2) to the networked reticulation systems.

The normal demand for drinking water (litres/day/person).

Normal demand (using Usually

Resident Population) =

605.

Peak demand (using Peak

Population) = 267.

500 Normal demand (using

Usually Resident

Population) = 665.

Peak demand (using Peak

Population) = 283.

Not Achieved.

See Note 11. The Ruapehu District has a large number of visitors which results in the appearance of high volumes of water being used by an apparently small Usually Resident Population (URP). The significance of the visitor numbers on the apparent water usage is demonstrated by the much lower normal demand for drinking water using Peak population figures.


Notes:

Note 1: Mandatory Non‐Financial Performance Measures, against which all water infrastructure in New Zealand are measured, were introduced by the Department of Internal Affairs in 2014.

Note 2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these have not been verified by Council.

Note 3: The number of connections is calculated from the number of customers charged in their rates for use of Council water services (calculated at 5,292 in August 2016).

Note 4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.

Note 5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.

Note 6: An urgent call-out is one that leads to a complete loss of supply of drinking water due to a fault or unplanned interruption.

Note 7: A non-urgent call-out is one where there is still a supply of drinking water.

Note 8: Real water loss refers to volumes lost through leaks, bursts or overflows on mains, service reservoirs and services connections, up to the point of the customer meter.

Note 9: The current upgrade of the Raetihi Water Treatment Plant will provide more treatment to ensure any potential contaminants of the supply are removed.

A positive bacteria test result could also potentially occur due to contamination of the sample either on collection or in the laboratory during testing. All possible steps are being undertaken to reduce the risk of this occurring.

Note 10: Recent upgrades to the National Park and Taumarunui Water Treatment Plants has improved the treatment of water and the ability of the Plants to achieve compliance with Drinking Water Standards New Zealand (DWSNZ). In 2016/17, however, the Plants have struggled to meet criteria at times of increased turbidity in the raw water supply. This typically occurs following heavy rainfall when dirt and debris are washed into the rivers.

Options to resolve the non-compliance of the National Park and Taumarunui Water Treatment Plants with the protozoa criteria for DWSNZ will be investigated in 2017/18.

Investigation into the upgrade of the Ohakune Water Treatment Plant is underway with compliance with DWSNZ believed to be achievable by June 2019, despite it not being forecast in the 2015-25 Long Term Plan (LTP).

Note 11: Much of the water in the Ruapehu District is attributed to supply of stock and farm or commercial use, making it difficult to accurately determine that being used solely for human consumption. Although Council has installed further water meters throughout the district in 2016/17 to better inform areas of high water usage, without metering of every property information to determine accurately the normal demand for drinking water remains limited.


Capital Projects

Project Description Carried Forward Budget

$000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

National Park installation of meters in township

83 20 - LOS.

National Park reservoir inlet chamber - 8 - LOS. National Park valve & hydrant replacement

- 2 - Renewal.

National Park WTP above ground asset renewals

- 5 30 LOS.

National Park water main replacement

- 2 - Renewal.

Ohakune replacement of failed valves and hydrants (reactive renewals)

14 6 - Renewal.

Ohakune meters across township 139 18 - 80% LOS, 10% Growth, 10% Renewal.

Ohakune WTP: Above ground asset renewals

16 11 - Renewal.

Ohakune WTP: Polymer dosing 5 22 - LOS. Ohakune WTP: Install emergency shower

2 - 4 LOS.

Ohakune WTP: Backwash processing

98 - - LOS.

Ohakune WTP: Backflow prevention 13 - - LOS. Ohakune renewal (replacement and refurbishment) of assets

3 - - Renewal.

Ohakune WTP raw water pump manifold replacement

20 14 - Renewal.

Structured scheduled replacement programme for the Ohakune water reticulation mains (includes associated valve, hydrant, etc. asset renewals)

- 222 184 90% Renewal, 10% Growth.

Ohakune WTP filtration - 122 - Renewal. Ohura replacement of failed valves and hydrants (reactive renewals)

3 1 - Renewal.

Ohura WTP asset renewals 9 18 - Renewal. Ohura intake asset renewal - 9 - Renewal. Ohura water main replacement 30 54 - Renewal. Ohura above ground asset renewal - 6 4 Renewal. Owhango replacement of failed valves and hydrants (reactive renewals)

- 4 - Renewal.

Owhango upgrade for fire supply - 4 - LOS. Owhango WTP reservoir asset renewal

- - 7 Renewal.

Owhango water reticulation mains (includes associated valve, hydrant, etc. asset renewals) structured scheduled replacement programme

11 12 - Renewal.

Raetihi WTP & reservoir asset renewal

23 1789 4 Renewal.(Note 1)

Raetihi intake: Resource consent 75 - - 91% LOS, 9% Growth. Raetihi intake & WTP Waimarino water supply option

97 - - LOS.

Raetihi renewal of water mains 2 194 - Renewal.



$000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

Raetihi valve & hydrant replacement 5 5 - Renewal. Raetihi water main replacement 20 42 - Renewal. Taumarunui: Manunui booster WPS - 3 - LOS. Taumarunui (Matapuna) health & safety

- 5 2 LOS.

Raetihi sludge & waterline - 100 - LOS. Raetihi radio network repeater - 26 - LOS. Raetihi WTP access upgrade - 22 - LOS. Taumarunui (Matapuna) intake: Resource consent

- 28 - LOS.

Taumarunui (Matapuna) intake: asset renewal

- 7 - Renewal.

Taumarunui (Matapuna) water filters - - 96 LOS. Taumarunui power savings project - - 5 LOS. Taumarunui Rangaroa reservoir asset renewal

- 53 - Renewal.

Taumarunui valve & hydrant replacement

11 11 - Renewal.

Taumarunui water main replacement - 100 29 Renewal. District wide earthquake assessments

45 - - LOS.

Taumarunui water meters 87 - - LOS. Taumarunui Matapuna WTP critical spares

- 25 - LOS.

Total 811 2,970 365 Notes: Note 1:The main reason for the underspend on the Water Supply capital projects is largely due to the Ministry

of Health funded Raetihi Water Treatment Plant upgrade where funds totalling $1.6 million remained unspent at year end. The funds were allocated for this project in the 2016-17 financial year but the project won’t be completed until June 2018. The funding for this project will be carried forward to the 2017-18 financial year.


Work in Progress


WIP $000

Closing WIP $000

Notes

District wide: Critical spares 12 57 LOS. Ongoing. National Park – WTP – asset renewal 28 - Renewal. Completed. National Park – resource consent 2 2 LOS. Consent lodged with Horizons

Regional Council. Ohakune valve & hydrant replacement

10 9 Renewal. Ongoing.

Ohakune water main replacement 122 118 Renewal. To be completed in 2017/18. Owhango intake: Resource consent 32 39 LOS. Require work for consent. Raetihi intake resource consent 1 24 LOS. Require work for consent. Raetihi WTP & reservoir: Asset renewal


Raetihi network – water main replacement

- 19 Renewal. Ongoing.

Taumarunui – Huia Street – water mains

2 - Completed. Renewal.

Taumarunui – intake resource consent

9 80 LOS. Consent lodged with Horizons Regional Council.

Taumarunui network – water main replacement


Ohakune water meters - 15 Renewal. Ongoing. 80% LOS, 10% Growth, 10%

Raetihi network valve & hydrant replacement


Raetihi sludge & waterline - 75 LOS. Ongoing. Taumarunui WTP – health & safety 4 - LOS. Completed. Taumarunui – PHR&P with cap funding

163 319 Renewal. To be completed in 2017/18.

Taumarunui – power savings project 2 - LOS. Completed. Taumarunui – Matapuna WTP filters 90 - LOS. Completed. Taumarunui – Matapuna WTP upgrade

- 2 LOS. To be completed early 2017/18.

Taumarunui – above ground asset renewals


Taumarunui water meters - 37 LOS. Ongoing. Taumarunui valve & hydrant replacement


Taumarunui Manunui booster WPS - 3 LOS. Ongoing. Taumarunui water modelling - 7 LOS. Ongoing. Taumarunui WPS switchboard replacements

- 47 Renewal. To be completed in early 2017/18.

Total 508 953


Highlights for the Year RDC has undertaken to establish a Whangaehu Catchment Working Party to protect and enhance Te Mana

o Te Wai o Te Whangaehu catchment. The group, though still in its infancy, has received positive feedback and support from a number of stakeholders.

Council’s continuing programme of water main replacement and upgrade has seen 680 metres of Asbestos

cement (AC) water pipeline, installed in the 1960s, upgraded in Ohakune. The outcome of this upgrade is reduced water loss from the network, reduced risk of pipe failure and interruption to supply and reduced reactive costs to Council.

Upgrade of 12 metres of steel main has been completed in Ohura. Council looks forward to a reduced number of pipe break issues on

Hakiaha Street in Taumarunui following the replacement of a 26-metre length of watermain, installed in 1995 and believed to be faulty.

Eight bulk meters have been installed within the Taumarunui water

supply network, and five in the Ohakune network, to provide information on where water is being used within the township and to help identify excessive usage. This complies with requirements by Horizons Regional Council to show adherence to key policies from the Horizons Regional One Plan for reasonable, justifiable and efficient use of water.

The second stage of the Ministry of Health (MoH) funded upgrade

of the Matapuna Water Treatment Plant (WTP) for the installation of a Ultra Violet (UV) disinfection system, run-to-waste facility on the rapid gravity filters and anti-short circuiting baffle was completed in July 2016. This is a significant step toward the capability of the Matapuna Treatment Plant achieving compliance with Drinking Water Standards NZ in 2017/18.

In August 2015 Council was awarded a grant by the Ministry of Health (MoH), under a funding programme

aimed at helping small, disadvantaged communities to establish or improve their drinking water supplies, to build a new Water Treatment Plant in Raetihi. The aim of the upgrade is improved water quality and safety for the supply of Raetihi. The contract began in March 2016 and preliminary works are underway with the upgrade of the access track and earthworks to level and prepare the building site near completion. The installation of a new wastewater and water main from the new Water Treatment Plant to the town network on Ranfurly Terrace is in progress. The Raetihi Water Treatment Plant upgrade is due for completion in June 2018.

Upgrade to the Existing Watermain In Miro Street, Ohakune

Earthworks underway in preparation for the Raetihi Water Treatment Plant upgrade.


An application to renew the Taumarunui Water Supply

Resource Consent was lodged with Horizons Regional Council on 20 March 2017 and is currently under review.

Council continues to work with Horizons Regional Council toward finalising resource consents lodged for the Owhango Water Supply (lodged in December 2016) and the Raetihi Water Supply (lodged in January 2015).

A study has been undertaken of the Ohakune Water Treatment Plant (WTP) to inform upgrade works, to be undertaken in 2017/18, necessary to achieve compliance with Drinking Water Standards New Zealand.

The Owhango Supply has received a new sensor level at the

reservoir for automatic control of water abstraction, and a new flow meter on the raw water main for measuring volumes taken.

A new drinking water fountain has been installed at the Roy Turner Memorial Playground at National Park

Village. Following the diesel contamination of the Raetihi Water Supply from a spill on Mount Ruapehu in September

2013 Ruapehu Alpine Lifts was fined, with $100,000 of this committed to a community project. The Raetihi community voted that the funds be used on Project Waireka (Sweet Water) for the supply and installation of under bench filtration units in households affected by the diesel spill. Project Waireka has been completed in 2017 with a total of 302 filter units installed in households in Raetihi. The remaining funds are to be distributed between a Raetihi town sculpture project, repair and upgrade of the Raetihi Domain tennis courts and the upgrade of the Makotuku River walkway. The remaining projects will be undertaken in 2018 with the assistance of the Council Property Team.

A 3G cellular modem has been installed at the Ohura Water Treatment Plant (WTP) in a move to wireless

communications, improving the reliability of remote monitoring of the WTP and reservoir, and alarm notification.

Backflow prevention devices have been installed on water connections, highlighted as high risk, on all

Council owned properties in order to protect the municipal water supply from contamination. These connections were highlighted as being high risk due to the activities on site which involve wastewater.

An investigation of the hydraulic capacity of the Taumarunui Water Supply scheme has been carried out to

assist Council in identifying, planning and managing potential future growth areas. The Time of Use meter installed at the Manunui Booster Water Pump Station (WPS) by the Lines Company

in December 2016 has been integrated into the Supervisory Control and Data Acquisition (SCADA) system so that the power consumption can be monitored immediately in real-time. This will assist work toward providing a possible solution for power reduction at the WPS.

A focus on Water Treatment Plant (WTP) upgrades to meet Health and Safety requirements throughout

the district has seen a safety shower installed at the Ohakune Treatment Plant, a small stairway and landing with handrails has been installed in the main building at the Matapuna WTP, and onsite Health and Safety signage has been upgraded.

Taumarunui Water Treatment Plant


The status of resource consents for water plants is as follows:

Town Expiry Date Notes

Ohura 14 November 2021 Current.

Taumarunui 20 June 2017

New application lodged with Horizons Regional Council 20 March 2017. RDC is in the process of responding to an s92 request for further information from Horizons. Note 1.

Owhango 20 March 2016

New application lodged with Horizons Regional Council 18 Dec 2015. The application remains on hold to allow RDC to consider catchment water allocation in conjunction with the Taumarunui consent. Note 1.

National Park 12 December 2026 Current.

Raetihi 30 April 2015

New application lodged with Horizons Regional Council 30 Jan 2015. Reconsideration of terminology used in the One Plan by Horizons has seen a revised application submitted to Horizons on 23 June 2017. Council awaits a response. Note 1.

Ohakune 11 September 2025 Current.

Waiouru * Not Applicable Current.

*Water for Waiouru Township is procured from the New Zealand Defence Force. Notes:

Note 1: The Water Supply Scheme continues to operate under the existing consent until the new consent is granted.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Water Supply Activity

LTP LTP Actual 2016 2017 2017 $000 $000 $000


22 (30) (111)

Targeted rates 3,011 3,245 3,549 Subsidies and grants for operating purposes - - 46 Fees and charges 339 350 13 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -



Surplus/(deficit) of operating funding (A-B) 1,097 1,115 1,377 Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions 30 31 2 Increase/(decrease) in debt 290 575 108 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 320 606 110


- To meet additional demand 3 3 20 - To improve the level of service 589 726 395 - To replace existing assets 809 682 484

Increase/(decrease) in reserves 16 310 588 Increase/(decrease) of investments - - - Total applications of capital funding (D) 1,417 1,721 1,487 Surplus/(deficit) of capital funding (C-D) (1,097) (1,115) (1,377) Funding balance ((A-B)+(C-D)) - - -

Operating funding figures have been changed to reflect targeted rates for water correctly. The net amount has not changed.


WASTE MANAGEMENT AND MINIMISATION Introduction The Waste Management and Minimisation activity manages the collection, receipt and disposal of refuse and recycling in the District. People generate waste each day and the current trend of increasing waste associated with consumption creates an ongoing challenge in waste management and minimisation. If solid waste is not managed in a suitable manner, it may pose a serious threat to public health. In addition, landfill waste can result in significant environmental effects, e.g. leachate can contaminate surrounding soil and water, while landfill gases (methane and carbon dioxide) contribute towards climate change. The disposal of waste to landfill has a significant cost associated with it. This cost is likely to increase with the closing of the District landfill in 2020. The national Emissions Trading Scheme (ETS) may also have an impact as prices in carbon markets change. To address these issues, Council is actively working to minimise the volume of waste produced, e.g. through the kerbside recycling programme and removing organics from the waste stream. The assets for Waste Management and Minimisation activity include the District landfill in Taumarunui, seven transfer stations and seven decommissioned landfills.


Aim of Waste Management and Minimisation and Contribution to Outcomes The aim of Waste Management and Minimisation activity is to maintain the level of service to the community, whilst increasing the proportion of solid waste being collected within the District for recycling.

The Waste Management and Minimisation activity targets the following Outcomes by providing core facilities, opportunities for community involvement and participation and working towards improving the environment with the goal of waste minimisation. That the impact of waste on our environment is minimised. Excellent standards of safety and welfare are promoted and respected. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading)

endeavours to keep pace with changing demand. That Council plans for and works with the community to ensure that our environment is accessible, clean

and safe and that our water, soil and air meet acceptable, affordable standards.

0

10

20

30

40

50

60

70

80

90

100

Kerbside rubbishcollection

Kerbside recyclingcollection

Transfer Stationservices

Level of Service (Percentage)

2005

2007

2010

2013

2016

2017


What we Achieved


2015/16 Actual

2016/17 Target


Waste Management and Minimisation Goal: Towards waste minimisation and a sustainable environment. Goal: That the impact of waste on our environment is minimised. Goal: To provide and maintain an appropriate level of infrastructure and people are informed about, and

participate in, waste minimisation.

The community is provided with opportunities to recycle.

The portion of waste recycled increases by 0.5% each year.

-6.6% +0.5% -4.07% Not achieved (see Note 1).

Greater refuse volume from Ohakune street bins are large contributors to the recycling – refuse ratio decrease.

Waste minimisation is encouraged.

An annual waste audit is conducted to identify opportunities to increase recycling.

1 1 - Not achieved. KPI to be reviewed for the 2018-28 LTP.

Recycling facilities are improved and/or expanded at two locations annually.

2 2 3 Achieved. National Park, Waimarino and Taumarunui.

Waste Minimisation initiatives promoted District wide.

2 2 2 Achieved.

Legislative compliance is achieved.

Annual resource consent breaches.

One minor consent

breach in regards to

water monitoring

.

<3 - Achieved.

Number of multimedia communications to the public on the Waste Hierarchy.

3 >3 3 Not achieved.

Two industry stewardship schemes promoted annually.

2 2 1 Not achieved. Support of recyclable meat trays.



2015/16 Actual

2016/17 Target


Waste Management and Minimisation Goal: Towards waste minimisation and a sustainable environment. Goal: That the impact of waste on our environment is minimised. Goal: To provide and maintain an appropriate level of infrastructure and people are informed about, and

participate in, waste minimisation.

Waste education in schools.

Percentage of schools visited annually that express a desire to participate in Zero Waste Education programme.

75% 75% 75% Achieved.

Community is satisfied with the overall level of service for Waste Management and Minimisation.

Percentage of community satisfied with the overall LOS.

67.71% 70% 76.46% Achieved.

RDC Level of Service survey revealed continuing improvement.

Number of requests for service that indicate poor service provision is less than 156 per year (approximately three per week).

53 <156 42 Achieved.

See above RDC Level of Service comment. Target to be reviewed for 2018-28 LTP.


Capital Projects


$000

EAP 2016/17

$000

Actual 2016/17

$000 Notes

District signs - 3 - Renewal. Sign information. District – painting containers - 5 - Budget transferred to operational

activity. Recycling facilities at transfer stations

- 5 - Current facilities modified and no new expenditure required.

Waimarino site development 10 10 - 50% Growth, 50% LOS. Waimarino weighbridge 82 - - Council approved carry over and

re-allocation of funding to new digger.

Waimarino bins - 5 1 50% Growth, 25% LOS, 25% Renewal. Expenditure predicted but amount proven unnecessary.

Waimarino road improvement - 5 - Minor works as part of site development.

Road improvement Taumarunui - 10 - Minor works as required on both; - Sealed road to weighbridge. - Transfer Station area adjacent weighbridge.

Digger Waimarino - 82 - LOS. Purchase of $57k. Paid for under vehicles expenditure. Completed.

Raetihi landfill site purchase - 81 38 LOS. Purchase completed. Ohura Landfill Taraunui Rd Fence - - 2 Renewal. Completed, Budget

allocated from Community Facilities, fencing problem reserves north

Total 92 206 41 Work in Progress There are currently no Work in Progress jobs as at 30 June 2017.


Highlights for the Year

Council procured a digger for Waimarino Transfer Station in addition to being more modern than the previous model on site. There are cost efficiencies to be had in using our own digger as opposed to wet-hiring one from our contractors.

Envirowaste conducted a series of internal audits on their sites throughout the country looking at the operations between different lenses notably environmental and safety. Our sites performed well in these categories and some small improvements were identified and carried out.

A new safety rail was installed at the Taumarunui landfill, this area was identified as potentially hazardous

as part of the site audit conducted with Envirowaste.

Horizons Regional Council Consents Officer Tracey Evans inspected the Taumarunui landfill and found that we are complying completely with our resource consent.


Funding Impact Statement Ruapehu District Council for the year ending 30 June 2017 Waste Management and Minimisation Activity


395 416 329

Targeted rates 1,087 1,136 1,057 Subsidies and grants for operating purposes - - - Fees and charges 705 732 755 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts

- - -



Surplus/(deficit) of operating funding (A-B) 119 133 346 Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt 234 22 14 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 234 22 14


- To meet additional demand 134 29 1 - To improve the level of service 131 33 38 - To replace existing assets 45 14 2


SECTION TWO

FINANCIAL INFORMATION


Section Two cover image: Tongariro National Park, Ruapehu District, New Zealand.


CONTENTS

Part A – Consolidated Statements ..................................................................................................................... 3

STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2017 ........................................................................................................................................................ 3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................................ 4

AS AT 30 JUNE 2017 ......................................................................................................................................... 4

STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2017 ...................................................................... 5

CONSOLIDATED STATEMENT OF CASH FLOWS ......................................................................................... 6

Part B – Notes to the Financial Statements for Council and Group ................................................................... 7

1. STATEMENT OF ACCOUNTING POLICIES ......................................................................................... 7 Reporting Entity .................................................................................................................................. 7 Basis of Preparation ........................................................................................................................... 7 Summary of Significant Accounting Policies .................................................................................. 9

2. RATES REVENUE ............................................................................................................................... 22 Rates Remissions ............................................................................................................................... 22 Non-Rateable Land ............................................................................................................................. 22

3. FEES AND CHARGES ......................................................................................................................... 23

4. SUBSIDIES AND GRANTS .................................................................................................................. 23

5. FINANCE INCOME AND FINANCE COSTS ........................................................................................ 23

6. OTHER REVENUE ............................................................................................................................... 24

7. GAINS ................................................................................................................................................... 24

8. PERSONNEL COSTS .......................................................................................................................... 24

9. OTHER EXPENSES ............................................................................................................................. 25

10. LOSSES................................................................................................................................................ 25

11. CASH AND CASH EQUIVALENTS ...................................................................................................... 26

12. DEBTORS AND OTHER RECEIVABLES ............................................................................................ 26 Fair Value ............................................................................................................................................ 26 Impairment .......................................................................................................................................... 27

13. INVENTORY ......................................................................................................................................... 28

14. INVESTMENT IN ASSOCIATES .......................................................................................................... 29 Purpose of the Associates .................................................................................................................. 30

15. OTHER FINANCIAL ASSETS .............................................................................................................. 30

16. PROPERTY, PLANT AND EQUIPMENT ............................................................................................. 32

17. INTANGIBLE ASSETS ......................................................................................................................... 38

18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY ................................ 38

19. BIOLOGICAL ASSETS ......................................................................................................................... 39

20. INVESTMENT PROPERTY .................................................................................................................. 39 Valuation ............................................................................................................................................. 39

21. CREDITORS AND OTHER PAYABLES .............................................................................................. 40

22. BORROWINGS .................................................................................................................................... 41 Secured Loans .................................................................................................................................... 41 Security ............................................................................................................................................... 41 Fair Values .......................................................................................................................................... 41


Internal Borrowings ............................................................................................................................. 41

23. EMPLOYEE ENTITLEMENTS.............................................................................................................. 42

24. PROVISIONS ....................................................................................................................................... 42 Landfill Aftercare Costs ....................................................................................................................... 43

25. EQUITY ................................................................................................................................................. 44 Purpose of Each Reserve Fund .......................................................................................................... 47

26. RECONCILIATION OF NET SURPLUS/(DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES .......................................................................................................................................... 48

27. COMMITMENTS AND OPERATING LEASES ..................................................................................... 49 Operating Commitments ..................................................................................................................... 49 Operating Leases ................................................................................................................................ 49

28. CONTINGENCIES ................................................................................................................................ 50 Contingent Liabilities ........................................................................................................................... 50

29. RELATED PARTY TRANSACTIONS ................................................................................................... 50 Transactions with Key Management Personnel ................................................................................. 50 Provisions/Impairments....................................................................................................................... 51

30. REMUNERATION ................................................................................................................................. 51 Chief Executive ................................................................................................................................... 51 Elected Representatives ..................................................................................................................... 51 Council Employees ............................................................................................................................. 54

31. SEVERANCE PAYMENTS ................................................................................................................... 55

32. EVENTS AFTER THE BALANCE DATE .............................................................................................. 55

33. FINANCIAL INSTRUMENT RISKS ...................................................................................................... 55 Financial Instrument Categories ......................................................................................................... 55

34. CAPITAL MANAGEMENT .................................................................................................................... 60

35. COUNCIL CONTROLLED ORGANISATIONS ..................................................................................... 60

36. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET .......................................................... 61

37. ASSETS HELD FOR SALE .................................................................................................................. 63

Part C - Other Legislative Disclosures .............................................................................................................. 64

1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2017 – ALL ACTIVITIES ............................................................................................................ 64

2. SUPPORT FUNDING IMPACT STATEMENT ..................................................................................... 65

3. OVERALL FUNDING IMPACT STATEMENT RECONCILIATION ...................................................... 66

4. RATING BASE INFORMATION ........................................................................................................... 67

5. INSURANCE ......................................................................................................................................... 67

6. BENCHMARKS .................................................................................................................................... 68

Part A – Consolidated Statements



STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2017

Group and Parent For the year ended 30 June 2017

Council And Group Notes Actual EAP Actual

2017 2017 2016 $000 $000 $000

Revenue Rates 2 21,767 21,248 20,877 Fees and Charges 3 2,217 3,653 2,074 Development and Financial Contributions 61 110 73 Subsidies and Grants 4 9,668 11,759 11,903 Finance Revenue 5 28 58 31 Other Revenue 6 1,790 130 1,965 Gains 7 143 28 6 Total Revenue 35,674 36,986 36,929 Expenses Personnel Costs 8 5,071 4,892 4,719 Depreciation and Amortisation Expense 18 8,429 8,407 8,491 Finance Costs 5 1,299 1,476 1,355 Other Expenses 9 18,321 18,413 19,513 Losses 10 385 - 43 Total Expenses 33,505 33,188 34,121 Share of Associate's Surplus / (Deficit) 42 - 76 Net Surplus / (Deficit) 2,211 3,798 2,884 Other Comprehensive Revenue and Expense Gain/(Loss) on Property, Plant and Equipment Revaluations 25 1,658 9,266 -

Property, Plant and Equipment Revaluation Adjustment 25 - - (970)

Financial Assets at Fair Value Through Comprehensive Revenue and Expense 15 4 - 15

Total Other Comprehensive Revenue and Expense 1,662 9,266 (955) Total Comprehensive Revenue and Expense 3,873 13,064 1,929

Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.



CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Group and Parent As at 30 June 2017


2017 2017 2016 $000 $000 $000

Assets Current Assets Cash and Cash Equivalents 11 1,795 (257) 642 Receivables 12 2,977 3,369 2,573 Prepayments and Accrued Income 1,138 790 1,696 Inventory 13 181 152 135 Assets held for sale 37 506 - - Total Current Assets 6,597 4,054 5,046 Non-Current Assets Investment in Associates - Investment in CCOs and other similar Entities 14 26 - 490 Other Financial Assets 15 110 117 117 Biological Assets 19 - 397 - Property, Plant and Equipment 16 381,496 424,929 379,002 Intangible Assets 17 362 512 437 Investment Property 20 2,434 2,381 2,319 Total Non-Current Assets 384,428 428,336 382,365 Total Assets 391,025 432,390 387,411 Liabilities Current Liabilities Creditors and Other Payables 21 3,729 3,491 4,035 Borrowings 22 10,300 6,000 5,500 Employee Entitlements 23 537 228 420 Income in Advance 886 825 906 Total Current Liabilities 15,452 10,544 10,861 Non-Current Liabilities Borrowings 22 15,500 24,772 20,300 Provisions 24 184 455 183 Creditors and other Payables 21 50 - 101 Total Non-Current Liabilities 15,734 25,227 20,584 Total Liabilities 31,186 35,771 31,445 Net Assets 359,839 396,619 355,966 Equity Accumulated Funds 25 265,832 267,339 263,318 Other Reserves 25 94,007 129,280 92,648 Total Equity Attributable to the Council 359,839 396,619 355,966




STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2017 Group and Parent For the year ended 30 June 2017


2017 2017 2016 $000 $000 $000

Balance at 1 July 355,966 383,555 354,037 Total Comprehensive Revenue and Expense for the Year 3,873 13,064 1,929

Balance at 30 June 25 359,839 396,619 355,966 Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.



CONSOLIDATED STATEMENT OF CASH FLOWS Group and Parent For the year ended 30 June 2017


2017 2017 2016 $000 $000 $000

Cash Flows from Operating Activities Cash was received from: Receipts from Rates Revenue 21,574 21,256 21,039 Receipts from Subsidies and Grants 9,821 11,759 12,139 Interest Received 28 58 31 Dividends Received - - - Other Revenue 4,266 3,894 3,904 Goods and Services Tax (Net) (103) - 161 35,586 36,967 37,274 Cash was distributed to: Payments to Suppliers (17,398) (18,368) (18,805) Payments to Employees and Elected Members (5,298) (5,402) (5,046) Interest Paid (1,285) (1,475) (1,349) (23,981) (25,245) (25,200) Net Cash Flow from Operating Activities 26 11,605 11,722 12,074 Cash Flows from Investing Activities Cash was received from: Receipts from Sale of Property, Plant and Equipment 54 - 8

54 - 8 Cash was distributed to: Purchase of Property, Plant and Equipment (10,381) (14,697) (10,041) Purchase of Intangible Assets (125) - (128) Purchase of Investments - - (15) (10,506) (14,697) (10,184) Net Cash Flow from Investing Activities (10,452) (14,697) (10,176) Cash Flows from Financing Activities Cash was received from: Proceeds from Borrowings 5,500 16,839 8,000 5,500 16,839 8,000 Cash was distributed to: Repayment of Borrowings (5,500) (14,000) (9,000) (5,500) (14,000) (9,000) Net Cash Flow from Financing Activities - 2,839 (1,000) Net Increase/(Decrease) in Cash, Cash Equivalents and Bank Overdrafts 1,153 (137) 898

Cash, Cash Equivalents and Bank Overdrafts at the beginning of the year 642 (120) (256)

Cash, Cash Equivalents and Bank Overdrafts at the end of the year 11 1,795 (257) 642


Part B – Notes to the Financial Statements for Council and Group



1. STATEMENT OF ACCOUNTING POLICIES

Reporting Entity Ruapehu District Council (the Council or RDC) is a territorial local authority established under 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 group consists of: The ultimate parent, Ruapehu District Council. RDC Holdings Ltd (100% owned subsidiary) which is non-trading. Manawatu Wanganui LASS Ltd (14.29%) which is equity accounted (an associate). Wanganui District Council’s Forestry Joint Committee (3.93%) which is equity accounted (an associate). All subsidiaries and associated entities are established and domiciled in New Zealand. The financial statements reflect the consolidated results for RDC and group. The only subsidiary of RDC (RDC Holdings Limited) is non-active and has no revenue, expenditure, assets or liabilities and there have been no transactions recorded in 2016/17 (Nil 2015/16) as Group and Parent accounts are materially the same. Only Group (consolidated) accounts have been prepared. The Council and Group provide local infrastructure, local public services, and perform regulatory functions. The Council does not operate to make a financial return. The Council has designated itself and the group as public benefit entities (PBEs) for financial reporting purposes. The financial statements of the Council and Group are for the year ended 30 June 2017. The financial statements were authorised for issue by Council on 25 October 2017.

Basis of Preparation The financial statements have been prepared on the going concern basis. The accounting policies have been applied consistently throughout the period. Statement of Compliance The financial statements of the Council and Group have been prepared in accordance with the requirements of the LGA which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). These financial statements have been prepared in accordance with Tier 1 PBE accounting standards. The PBE accounting standards that have been issued but are not yet effective are as follows;

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 interest in other entities (PBE IPSAS 6 – 8). The new standards are effective for annual periods beginning on or after 1 January 2019, with early adoption permitted. The Council plans to apply the new standards in preparing the 30 June 2020 financial statements. The Council and group has not yet assessed the effects of these new standards. Financial instruments

In January 2017, the XRB issued PBE IFRS 9 Financial Instruments. PBE 9 replaces PBE IPSAS 29 Financial

Instruments: Recognition and Measurement. PBE IFRS 9 is effective for annual periods beginning on or after 1 January 2021, with early adoption 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 and group has not yet assessed the effects of these new 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).



Summary of Significant Accounting Policies Basis of Consolidation The consolidated financial statements are prepared by adding together like items of assets, liabilities, equity, revenue, and expenses of entities in the group on a line-by-line basis. All intragroup balances, transactions, revenue and expenses are eliminated on consolidation.

Subsidiaries The Council consolidates in the group financial statements all entities in which the Council has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the subsidiary. This power exists where the Council controls the majority voting power on the governing body or where policies have been irreversibly predetermined by Council, or where the determination of such policies is unable to materially affect the level of potential ownership benefits that arise from the activities of the subsidiary. The only subsidiary owned is RDC Holdings Ltd (100% owned).

Associate The Council’s associate investment is accounted for in the group financial statements using the equity method. 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 investment in an associate is initially recognised at cost and the carrying amount in the group financial statements is increased or decreased to recognise the group’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 in the group financial statements. If the share of deficits of an associate equals or exceeds its interest in the associate, the group discontinues recognising its share of further deficits. After the group’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the Council has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where the group transacts with an associate, surpluses or deficits are eliminated to the extent of the group’s interest in the associate. Dilution gains or losses arising from investments in associates are recognised in the surplus or deficit. Associates of the Council are: Manawatu Wanganui LASS Ltd (14.29%, owned with six other local authorities). This entity is an exempt

Council Controlled Organisation. Wanganui District Councils’ Forestry Joint Committee (3.93%, owned with two other local authorities).



Revenue Revenue is measured at fair value of consideration received or receivable. Revenue may be derived from either exchange or non-exchange transactions.

Exchange Transactions Exchange transactions are transactions where RDC receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange. Revenue derived through the provision of services to third parties in a commercial manner is recognised in proportion to the stage of completion at balance date. Revenue from asset management services is recognised when provided to the customer. 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. When dividends are declared from pre-acquisition surpluses, the dividend is deducted from the cost of the investment.

Non-Exchange Transactions Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, RDC either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange or where the value given or received is not able to be accurately measured. This includes transactions for activities which are subsidised through rates. An inflow of resources from a non-exchange transaction, whether this be an asset or revenue, is only recognised if a liability is not also recognised for that particular asset or revenue. A liability is only recognised to the extent that the present obligations have not been satisfied. A liability in respect of a transferred asset is recognised only when the transferred asset is subject to a condition, such as a condition for the asset to be consumed as specified and / or that future economic benefits or service potential must be returned to the owner. The specific accounting policies relating to significant revenue items follow.

Rates Revenue The following policies for rates have been applied:

General rates and targeted rates (excluding water-by-meter), are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. The Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue.

Rates arising from late payment penalties are recognised as revenue when rates become overdue.

Revenue from water-by-meter rates 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.

Rates remissions are recognised as a reduction of rates revenue when the Council has received an application that satisfies its rates remission policy.

Development and Financial Contributions Development and financial contributions are recognised as revenue when the Council provides, or is able to provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as the Council provides, or is able to provide, the service.



New Zealand Transport Agency Roading Subsidies The Council receives funding assistance from the New Zealand Transport Agency, which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.

Other Grants Received Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if 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.

Building and Resource Consent Revenue Fees and charges for building and resource consent services are recognised on a percentage completion basis with reference to the recoverable costs incurred at balance date.

Landfill Fees Fees for disposing of waste at the Council’s landfill are recognised as waste is disposed by users.

Infringement Fees And Fines Infringement fees and fines mostly relate to traffic and parking infringements and are recognised when the infringement notice is issued. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the collection history of fines.

Vested or Donated Physical Assets For assets received for no 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. 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 developments, the fair value is based on construction price information provided by the property developer. For long-lived assets that must be used for a specific use (e.g. land must be used as a recreation reserve), the Council immediately recognises the fair value of the asset as revenue. A liability is recognised only if Council expects that it will need to return or pass the asset to another party.

Donated and Bequeathed Financial Assets Donated and bequeathed financial assets are recognised as revenue unless there are substantive use or return conditions. A liability is recorded if there are substantive use or return conditions and the liability released to revenue as the conditions are met (e.g. as the funds are spent for the nominated purpose).

Liabilities Income in Advance Income in Advance predominantly from rates and dog registrations paid in advance, these are non-exchange transactions.

Borrowing Costs In accordance with PBE IPSAS 5 Borrowing Costs, all borrowing costs are recognised as an expense in the period 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 the Council has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the Council and the approval has been communicated to the applicant. The Council’s grants awarded have no substantive conditions attached.

Leases 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. Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.

Cash and Cash Equivalents Cash and cash equivalents include cash on 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.

Receivables Receivables are recorded at their face value, less any provision for impairment.

Other Financial Assets Financial assets are initially recognised 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 financial assets are recognised on trade-date, the date on which the Council and group 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 the Council and group has transferred substantially all the risks and rewards of ownership.

Financial assets are classified into the following categories for the purpose of measurement:

fair value through surplus or deficit; loans and receivables; held-to-maturity investments; and fair value through other comprehensive revenue and expense. The classification of a financial asset depends on the purpose for which the instrument was acquired.



Financial Assets At Fair Value through Surplus Or Deficit Financial assets at fair value through surplus or deficit include 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. 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. 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.

Held-To-Maturity Investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities and there is the positive intention and ability to hold to maturity. They are included in current assets, except for maturities greater than 12 months after 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.

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 Council intends to dispose of, or realise, the investment within 12 months of balance date. The Council and group includes in this category:

Investments that it intends to hold long-term but which may be realised before maturity; and 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 de-recognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.

Impairment of Financial Assets Financial assets are assessed for evidence of impairment at each balance date. Impairment losses are recognised in the surplus or deficit.

Loans and Receivables and Held-To-Maturity Investments Impairment is established when there is evidence that the Council and group will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership, or liquidation and default in payments are indicators that the asset is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Impairment in term deposits, local authority stock, government bonds, and community loans, are recognised directly against the instrument’s carrying amount.



Financial Assets at Fair Value Through other Comprehensive Revenue and Expense For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are 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.

Inventory 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. Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition. Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. 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.

Assets Held For Sale Assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. 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 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. Assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.

Property, Plant and Equipment Property, plant and equipment consist of: Operational Assets – These include land, buildings, parks and reserves improvements, library books, plant vehicles, computer equipment and office equipment. Restricted Assets – Restricted assets are mainly parks and reserves owned by RDC that provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions. Infrastructure Assets – Infrastructure assets are the fixed utility systems owned RDC. Each asset class includes all items that are required for the network to function. For example, sewer reticulation includes reticulation piping and sewer pump stations.



Land (operational and restricted) – Is measured at fair value, and buildings (operational and restricted) and infrastructural assets (except land under roads) are measured at fair value less accumulated depreciation. All other operational and restricted asset classes are measured at cost less accumulated depreciation and impairment losses.

Revaluation Land and buildings (operational and restricted) and infrastructural assets (except land under roads) are revalued annually. 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 the Council and group and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds.

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 the 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.



Depreciation Property, plant and equipment depreciation is provided on a straight line (SL) or diminishing value (DV) basis at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. Infrastructure asset depreciation rates are based on the remaining useful life for each individual asset component. These rates are on a straight line basis. The revaluation approach, useful lives and associated depreciation rates of major classes of assets have been estimated as per the next page. For depreciated assets the residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. Any work undertaken on infrastructure assets to reinstate (termed “renewal”) or add to the service potential of the asset is capitalised. The useful lives and associated depreciation rates of major classes of assets have been estimated as per the following table:



Useful Lives and Depreciation Rates

Property, Plant and Equipment

Measurement Basis (*1) Estimated Life Depreciation Rate

Buildings (Excluding Investment Property)

RAD 10 – 100 Years 1 - 20% SL

Other Improvements CAD 10 – 100 Years 1 - 10% SL Computer Equipment CAD 2.5 Years 40% DV Office Equipment, Furniture and Fittings

CAD 5 Years 20% DV

Library Books CAD 10 Years 10% SL Plant and Vehicles CAD 3.33 – 10 Years 5 – 25% SL

Roads and Footpaths Measurement Basis (*1) Estimated Life Depreciation Rate

Top Surface (Seal) RAD 15 Years 6.67% SL Pavement (Base Course) RAD 100 Years 1% SL Culverts RAD 70 – 100 Years 1 – 1.43% SL Footpaths RAD 20 – 80 Years 1.25 – 5% SL Kerbs RAD 80 – 100 Years 1 – 1.25% SL Signs RAD 10 Years 10 – 11.1% SL Street Lights RAD 20 – 25 Years 4 – 5% SL Bridges RAD 70 – 100 Years 1 – 2.19% SL

Water Supply Measurement Basis (*1) Estimated Life Depreciation Rate

Pipes RAD 50 – 85 Years 1 – 2% SL Valves and Hydrants RAD 15 – 70 Years 1 – 6.67% SL Pump Stations RAD 10 – 60 Years 1.25 – 10% SL Tanks RAD 25 – 80 Years 1 – 6.67% SL Treatment Plants RAD 5 – 80 Years 1.25% – 20% SL

Wastewater Measurement Basis (*1) Estimated Life Depreciation Rate

Pipes RAD 50 – 85 Years 1 – 2% SL Manholes and Cesspits RAD 50 – 75 Years 1 – 2% SL Pump Stations RAD 10 – 60 Years 1 – 12.5% SL Treatment Plants RAD 10 – 200 Years 0.5 – 20% SL

Stormwater Measurement Basis (*1) Estimated Life Depreciation Rate

Pipes RAD 30 – 85 Years 1 – 13% SL Manholes and Cesspits RAD 75 Years 1 – 2% SL

Solid Waste Measurement Basis (*1) Estimated Life Depreciation Rate

Various RAD 20 – 70 Years 1.33 - 6% SL

Other (Not Depreciated) Measurement Basis (*1) Estimated Life Depreciation Rate

Land REV Formation Costs for Roading

COST

Stop Banks REV Work In Progress and Assets Under Construction

COST

*1 CAD = Cost Less Accumulated Depreciation And Impairment Losses. RAD = Revaluation Less Subsequent Depreciation. REV = Revaluation (Not Depreciated). COST = Cost.



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 that are directly associated with the development of software for internal use 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. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and maintenance of the Council’s website are recognised as an expense 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 and amortisation rates have been estimated as follows:

Amortisation Rates Intangibles Estimated Life Amortisation Rate

Computer Software 3 years 33.3% SL

Pipiriki Wastewater Treatment Plant Resource Consent 22 years 5% SL Impairment of Property, Plant and Equipment and Intangible Assets Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment. Property, plant and equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the 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 regarded as impaired and the carrying amount is written-down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. 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 cost 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 and cash-generating units is the present value of expected future cash flows.

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, all investment property is measured at fair value at each reporting date. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit.

Payables Short-term creditors and other payables are recorded at their face value.

Borrowings Borrowings are initially recognised at their fair value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Council or group has an unconditional right to defer settlement of the liability for at least 12 months after balance date.

Employee Entitlements Short-Term Employee Entitlements Employee benefits expected to be settled within 12 months after the end of the period in which the employee renders the related service are measured 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. A liability and an expense are recognised for bonuses where the Council or group has a contractual obligation or where there is a past practice that has created a constructive obligation. The Council expects all employee entitlements to be settled within 12 months of balance date.

Superannuation Schemes Defined Contribution Schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred.

Provisions A provision is recognised 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”.



Equity Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into the following components: Accumulated funds; Restricted reserves; Asset revaluation reserve; Fair value through other comprehensive revenue and expense reserve.

Restricted Reserves Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by the Council. Restricted reserves include those subject to specific conditions accepted as binding by the Council and which may not be revised by the Council without reference to the Courts or a third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met. Also included in restricted reserves are reserves restricted by Council decision. The Council may alter them without reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council.

Asset Revaluation Reserve This reserve relates to the revaluation of property, plant and equipment to fair value.

Fair Value through Other Comprehensive Revenue and Expense Reserve This reserve comprises the cumulative net change in the fair value of assets classified as fair value through other comprehensive revenue and expense.

Goods and Services Tax All items in the financial statements are stated exclusive of GST, except for receivables and payables. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the 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.

Budget Figures The budget figures are those approved by the Council for the year 2016/17 in its Exceptions Annual (EAP) and in its Long Term Plan 2015-25. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted 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 staff numbers and size of budgets.

Critical Accounting Estimates and Assumptions In preparing these financial statements, estimates and assumptions have been made concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions 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: Infrastructural Assets - Note 16 provides information about the estimates and assumptions applied in determining the fair value of infrastructural assets. Landfill Aftercare Provision - Note 24 provides information about the estimates and assumptions surrounding the landfill aftercare provision. Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 30 June 2017:

Classification of Property The Council owns a number of properties held to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for service delivery objectives as part of the Council’s social housing policy. The properties are therefore classified as property, plant and equipment rather than as investment property. Parcels of land held for an undetermined future use that are classified as Investment Property may be re-classified in the future if the land use changes. Taumarunui Airport and Ohakune Railway station are held for strategic reasons rather than for generation of revenue and are therefore classified as property, plant and equipment rather than as investment property.



2. RATES REVENUE

Actual 2017

Actual 2016

$000 $000 General Rates 8,676 8,114 Targeted Rates Attributable to Activities: Community Support 393 332 Land Transport 5,055 4,944 Stormwater 429 406 Wastewater 2,272 2,226 Water 3,271 3,130 Water Charges By Meter 278 296 Solid Waste 1,057 1,118 Rates Penalties 336 311 Total Rates Revenue 21,767 20,877

Of the total rates revenue, $259,418 (last year $258,821) is for rates paid to RDC by RDC on properties it owns or leases.

Rates Remissions Rates revenue is shown net of rates remissions. The Council rates remission policy allows rates to be remitted on land used for sport, land protected for historical or cultural purposes and contiguous and land-locked properties.

Actual 2017

Actual 2016

$000 $000 Total Gross Rates Revenue 22,380 21,481 Rates Remissions: - Land used for Sport, Clubs and Societies 19 18 - Land protected for Historical or Cultural Purposes 42 41 - Contiguous and Land-Locked Properties 404 396 - Community Organisations 148 149 Total Remissions 613 604 Rates Revenue Net of Remissions 21,767 20,877

Non-Rateable Land Under the Local Government (Rating) Act 2002 certain properties cannot be rated for general rates. These properties include schools, places of religious worship, public gardens and reserves. These non-rateable properties may be subject to targeted rates in respect of wastewater, water, refuse and sanitation. Non-rateable land does not constitute a remission under RDC's Rates Remission Policy.



3. FEES AND CHARGES

Actual

2017 Actual

2016 $000 $000

User Charges 799 800 Regulatory Revenue 307 268 Rental Charges 360 330 Refuse Charges 751 676 Total Fees and Charges (Non-Exchange) 2,217 2,074

4. SUBSIDIES AND GRANTS

Actual

2017 Actual

2016 $000 $000

New Zealand Transport Agency (NZTA) Roading Subsidies Operational Subsidies 4,985 6,805 Capital Subsidies 4,533 4,610 Streetlight Cost Recovery 101 159 Total NZTA Subsidies 9,619 11,574 Other Miscellaneous Subsidies 49 329 Total Subsidies and Grants (Non-Exchange) 9,668 11,903

There are no unfilled conditions and other contingencies attached to NZ Transport Agency subsidies recognised.

5. FINANCE INCOME AND FINANCE COSTS

Actual 2017

Actual 2016

$000 $000 Finance Income Interest Income 27 30 Dividend Income 1 1 Total Finance Income (Exchange) 28 31 Finance Costs Interest Expense - Interest on Bank Borrowings 1,299 1,338 - Interest on Bonds Issued - - - Discount unwind on Provisions - 17 Total Finance Costs 1,299 1,355 Net Finance Costs 1,271 1,324



6. OTHER REVENUE

Actual 2017

Actual 2016

$000 $000 Non-Exchange Infringements and Fines 30 36 Petrol Tax 135 133 Vested Assets - - Other 1,204 1,375 Total Non-Exchange Revenue 1,369 1,544 Exchange Rental Revenue (from Investment Properties) 21 23 Other 400 398 Total Exchange Revenue 421 421 Total Other Revenue 1,790 1,965

7. GAINS

Actual

2017 Actual

2016 $000 $000

Non-Financial Instruments Gain on Disposal of Assets 28 6 Fair Value Gain on Investment Property Valuation 115 - Total Non-Financial Instrument Gains 143 6

8. PERSONNEL COSTS

Actual 2017

Actual 2016

$000 $000 Salaries and Wages 4,838 4,541 Defined Contribution Plan Employer Contributions 116 110 Increase / (Decrease) in Employee Entitlements 117 67 Other Employee Benefits - 1 Total Personnel Costs 5,071 4,719

Employer contributions to defined contribution plans include contributions to KiwiSaver.



9. OTHER EXPENSES

Actual

2017 Actual

2016 $000 $000

Fees to Principal Auditor - Fees to Audit NZ for the Audit Of RDC's 2015 Financial Statements - 40 - Fees to Audit NZ for the Audit Of RDC's Financial Statements 145 135 - Fees to Audit NZ for the Audit of RDC’s LTP - - Total Fees to Principal Auditor 145 175 Roading Maintenance 6,073 7,814 All Other Maintenance 4,861 4,162 Consultants and Legal Fees 1,739 1,645 Rental Expenses 437 413 Operating Lease Expenditure 163 143 Impairment of Receivables (Note 12) (21) 116 Property Impairment (Note 16) - 241 Other Operating Expenses 4,924 4,804 Total Other Expenses 18,321 19,513

10. LOSSES

Actual

2017 Actual

2016 $000 $000

Non-Financial Instruments Losses of Disposals of Assets 385 4 Fair Value Loss on Investment Property Valuation - 39 Impairment of Solid Waste Assets Recognised as Loss - - Total Losses 385 43



11. CASH AND CASH EQUIVALENTS

Actual 2017

Actual 2016

$000 $000 Cash at Bank and On Hand 1,795 642 Total Cash and Cash Equivalents 1,795 642

The carrying value of cash at bank and term deposits with original maturities less than three months approximates their fair value. The Council holds unspent funds, included in cash at bank of $15k that are subject to restrictions. These unspent funds were received from Horizons Regional Council for the benefit or the Raetihi Community.

12. DEBTORS AND OTHER RECEIVABLES

Actual 2017

Actual 2016

$000 $000 Non-Exchange Rates Receivables 2,388 2,149 Other Receivables 1,099 820 Infringement Receivables 40 35 3,527 3,004 Less Provision for Impairment (591) (626) 2,936 2,378 Exchange Other Receivables 41 195 Total Debtors and Other Receivables 2,977 2,573

Fair Value Debtors and other receivables are non-interest bearing and receipt is normally on 30 day terms. Therefore, the carrying value of debtors and other receivables approximates their fair value.



Impairment RDC provides for impairment on rates receivables although it has various powers under the Local Government (Rating) Act 2002 to recover any outstanding debts. These powers allow RDC to commence legal proceedings to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made within three months of the Court's judgement, RDC can apply to the Registrar of the High Court to have the judgement enforced by sale or lease of the rating unit.

Ratepayers can apply for payment plan options in special circumstances. Where such repayment plans are in place, debts are discounted to their present value of future payments if the effect of discounting is material.

Ageing Profile At Year End 2017 2016

Gross Impairment Net Gross Impairment Net Not Past Due 1-30 1,062 - 1,062 698 - 698 Past Due 1-60 Days 339 - 339 519 - 519 Past Due 60-120 Days 512 - 512 228 - 228 Past Due > 120 Days 1,336 591 745 1,754 626 1,128 Total 3,249 591 2,658 3,199 626 2,573

The impairment provision has been calculated based on a review of specific overdue receivables and a collective assessment. The collective impairment provision is based on an analysis of past collection history and debt write-offs.

Impairment Profile Actual Actual

2017 2016 $000 $000

Individual Impairment 186 182 Collective Impairment 405 444 Total Provision For Impairment 591 626

Individually impaired receivables have been determined to be impaired because there is a dispute over a significant receivable.

Individually Impaired Receivable Actual Actual

2017 2016 $000 $000

Past Due 61 - 120 Days - Past Due > 120 Days 186 182 Total Provision For Impairment 186 182

Collectively Impaired Receivable Actual Actual

2017 2016 $000 $000

Past Due 61 - 120 Days - Past Due > 120 Days 405 444 Total Provision For Impairment 405 444



Impairment Source Actual Actual

2017 2016 $000 $000

Rates Debtors 387 413 Sundry Invoice Debtors 186 182 Infringement Debtors 18 31 Total Provision For Impairment 591 626

Movement In Impairment Provision Actual Actual

2017 2016 $000 $000

At 1 July 626 519 Provision Reclassification - - Total 626 519 Additional Provisions made during the year 5 116 Provisions Reversed during the year (26) - Receivables Written Off during the year (14) (9) At 30 June 591 626

13. INVENTORY

Actual Actual 2017 2016 $000 $000

Merchandise Visitor and Service Centres 69 52 Blue Recycling Bins 4 1 Critical Spares for Operations 108 82 Total Inventory at 30 June 181 135

No inventory is pledged as security for borrowings or payables.



14. INVESTMENT IN ASSOCIATES

Actual Actual 2017 2016 $000 $000

Investment In Associates - Investment In Manawatu-Wanganui LASS Ltd 26 25 - Investment In Wanganui District Councils’ Forestry Joint Committee - 465 26 490 Manawatu Wanganui Lass Ltd Summarised financial information of associates presented on a gross basis

Assets 545 540 Liabilities 413 362 Revenues 1,260 1,392 Surplus/(Deficit) 5 30 RDC’s Share of Surplus/(Deficit) 1 4 RDC's Interest 14.29% 14.29% Wanganui District Councils’ Forestry Joint Committee Summarised financial information of associates presented on a gross basis

Assets - 11,918 Liabilities - 89 Revenues - 1,541 Surplus/(Deficit) - 1,167 RDC’s Share of Surplus/(Deficit) - 46 RDC’s Share of Total Comprehensive Revenue and Expense - 72 RDC’s Interest - 3.93%

Wanganui District Councils' Forestry Joint Committee investment was re-classified in 2017 as Non-Current Assets held for sale (see note 37). All entities have a reporting date of 30 June. The actuals for 2017 are based on unaudited financial statements. The share of surplus/deficit in the Statement of Comprehensive Revenue and Expenditure includes any movement in prior years results post publication of Council’s Annual Report, when the Associates final numbers became available. None of the Council’s associates have contingent liabilities. An investor is deemed to have significant influence if it has 20% or more of the voting or potential voting power of the investee. In Ruapehu District Council’s case it holds less than 20% of the associates but is deemed to have significant influence by its representation on the Board.



Purpose of the Associates Manawatu-Wanganui Local Authority Shared Services Limited (MW LASS Ltd) MW LASS Ltd was formed in October 2008 to provide an ‘umbrella vehicle’ for the councils of the Manawatu-Wanganui region to investigate, procure, develop and deliver shared services. Such services will be initiated under the umbrella of MW LASS Ltd where a business case shows that they provide benefits to the council users by either improved levels of service, reduced costs, improved efficiency and/or increased value through innovation. Current feasibility studies being undertaken include GIS, Aerial photography and joint procurement. MW LASS Ltd has been exempted according to section 7 of the Local Government Act 2002. It is therefore not a Council Controlled Organisation for the purposes of the Act. Wanganui District Councils’ Forestry Joint Committee The committee was formed in 1996 to jointly administer forestry property of Wanganui District Council, South Taranaki District Council and Ruapehu District Council across the greater Wanganui Districts. Under the agreement between the parties the forestry is owned jointly as tenants in common. The Joint Committee was formed as a Joint Committee pursuant to S113(S) of the Local Government Act 1974. The Council is entitled to appoint one out of a potential of six representatives. Currently the Council has one representative in a committee of four. The committee has been exempted according to section 7 of the Local Government Act 2002. It is therefore not a Council Controlled Organisation for the purposes of the Act. In 2017, this investment was reclassified as a Non-Current Asset held for sale – refer note 37 for details.

15. OTHER FINANCIAL ASSETS Actual Actual

2017 2016 $000 $000

Current Portion Term Deposits With Maturities of 4 - 12 Months - - Total Current Portion - -

Non-Current Portion Other Investments: - King Country Energy (Unlisted Exchange) 12 12 - Unlisted Shares in Civic Assurance 87 83 - Loan to Kakahi Water Board Supply Limited 10 9 - Emissions Trading Scheme ETS 1 13 Total Non-Current Portion 110 117 Total Other Financial Assets 110 117



RDC owns an 8.33% share in the Manawatu Wanganui Regional Disaster Relief Fund Trust. The Trust is not in operation and the value of the Trust is therefore nil. Should the Trust come into operation, RDC will not be in receipt of any funds from the Trust, unless the District is struck by a disaster.

In the event of the Trust being wound up, the surplus assets and funds, after payment of the Trust’s liabilities, including expenses of winding up, shall not be paid or distributed among the Trustees or the Local Authorities, but shall be paid and transferred to such person or body corporate, for the furtherance of charitable purposes within New Zealand, as the Trustees shall determine at the meeting, when the resolution for winding up is duly confirmed.

Fair Value The carrying amount of other financial assets approximates their fair value. More details are shown in note 33.

Other Investments The investments in Civic Assurance are valued according to RDC’s share of the net assets in their financial statements. Shares in King Country Energy are recognised at fair value. The fair value of King Country Energy shares is determined by reference to published current bid price quotations on the “Unlisted” share trading facility. The investments in King Country Energy and Civic Assurance are held for strategic purposes and RDC has no intention of disposing of the assets.

The loan to Kakahi Water Board Supply Limited is a loan for unpaid rates, that is a fixed term, with an option of early termination, should the timber on the land be felled before expiry of the loan. Council will either receive the outstanding loan amount, or an agreed portion of the timber revenue, whichever is higher.

The investment in ETS credits is an investment intended to be held until they are needed to satisfy carbon emissions obligations.

Impairment Due to a diluted share of ownership of Civic Assurance, there was an impairment of the investment of $14,623 in 2013. There was no additional impairments in 2016 or 2017.

None of the other financial assets is either past due or impaired.



16. PROPERTY, PLANT AND EQUIPMENT

As at 30 June 2017 Opening Cost/ Valuation

Opening Accum Depn &

Impairment Charges

Opening Carrying Amount

Current Year Additions

Current Year Disposals

Current Year Depreciation

Revaluation Surplus/ (Deficit)

Cost / Valuation Accum Depn & Impairment

Charges

Carrying Amount

Operational Assets Land 9,333 - 9,333 2 (14) - 15 9,336 - 9,336 Buildings 14,811 (1,069) 13,742 65 (163) (821) 724 14,360 (813) 13,547 Other Improvements 1,079 (256) 823 138 - (27) - 1,216 (281) 935 Library Books 1,101 (865) 236 59 - (113) - 1,161 (979) 182 Plant & Vehicles 1,168 (710) 458 163

(42) (171) - 1,078 (670) 408

Computer Equipment 675 (525) 150 120 (1) (99) - 786 (616) 170 Office Equipment 1,737 (1,345) 392 90 (6) (90) - 1,815 (1,429) 386 Total Operational Assets 29,904 (4,770) 25,134 637 (226) (1,321) 739 29,752 (4,788) 24,964 Restricted Assets Land 200 - 200 - - - - 200 - 200 Improvements 793 (58) 735 9 - (55) (9) 735 (55) 680 Total Restricted Assets 993 (58) 935 9 - (55) (9) 935 (55) 880 Infrastructural Assets Roading & Footpaths 243,133 (3,816) 239,317 6,698 - (3,581) (8,613) 237,402 (3,581) 233,821 Bridges 37,207 (800) 36,407 364 - (973) 7,918 44,689 (973) 43,716 Land Under Roads 9,115 - 9,115 - - - - 9,115 - 9,115 Water Supply - Treatment Plants 3,611 (332) 3,279 117 (51) (341) 153 3,493 (336) 3,157 Water Supply - Reticulation 25,895 (784) 25,111 248 (111) (781) 246 25,490 (777) 24,713 Wastewater - Treatment Plants 8,338 (229) 8,109 36 (16) (257) 777 8,906 (257) 8,649 Wastewater - Network 15,840 (548) 15,292 9 (2) (562) 592 15,891 (562) 15,329 Stormwater 14,288 (411) 13,877 - (3) (343) (155) 13,718 (342) 13,376 Stopbanks 156 - 156 - - - - 156 - 156 Solid Waste 1,210 (68) 1,142 41 - (15) 8 1,191 (15) 1,176 Total Infrastructural Assets 358,793 (6,988) 351,805 7,513 (183) (6,853) 926 360,051 (6,843) 353,208 Items Under Construction 1,128 - 1,128 1,316 - - - 2,444 - 2,444 Total Property, Plant and Equipment

390,818 (11,816) 379,002 9,475 (409) (8,229) 1,656 393,182 (11,686) 381,496



As at 30 June 2016 Oening Cost/ Valuation

Opening Accum Depn

Opening Carrying Amount

Current Year Additions

Assets Reclassifed

Current Year Disposals

Current Year Depreciation

Revaluation Surplus / (Deficit)

Cost / Valuation Accum Depn & Impairment

Charges

Carrying Amount

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Operational Assets Land 10,203 - 10,203 7 (4) - - (873) 9,333 - 9,333 Buildings 14,359 (2) 14,357 586 - (241) (863) (97) 14,811 (1,069) 13,742 Other Improvements 801 (232) 569 277 - - (23) - 1,079 (256) 823 Library Books 1,054 (757) 297 48 - - (109) - 1,101 (865) 236 Plant & Vehicles 985 (624) 361 232 (1) - (134) - 1,168 (710) 458 Computer Equipment 651 (441) 210 26 (1) - (85) - 675 (525) 150 Office Equipment 1,598 (1,261) 337 138 - - (83) - 1,737 (1,345) 392 Total Operational Assets 29,651 (3,317) 26,334 1,314 (6) (241) (1,297) (970) 29,904 (4,770) 25,134 Restricted Assets Land 200 - 200 - - - - - 200 - 200 Improvements 751 - 751 42 - - (58) - 793 (58) 735 Total Restricted Assets 951 - 951 42 - - (58) - 993 (58) 935 Infrastructural Assets Roading & Footpaths 236,368 - 236,368 6,765 - - (3,816) - 243,133 (3,816) 239,317 Bridges 36,229 - 36,229 978 - - (800) - 37,207 (800) 36,407 Land Under Roads 9,115 - 9,115 - - - - - 9,115 - 9,115 Water Supply - Treatment Plants 3,055 - 3,055 556 - - (332) - 3,611 (332) 3,279 Water Supply - Reticulation 25,329 - 25,329 566 - - (784) - 25,895 (784) 25,111 Wastewater - Treatment Plants 8,033 - 8,033 305 - - (229) - 8,338 (229) 8,109 Wastewater - Network 15,495 - 15,495 344 - - (547) - 15,840 (548) 15,292 Stormwater 14,129 - 14,129 158 - - (410) - 14,288 (411) 13,877 Stopbanks 156 - 156 - - - - - 156 - 156 Solid Waste 1,197 (53) 1,144 13 - - (15) - 1,210 (68) 1,142 Total Infrastructural Assets 349,106 (53) 349,053 9,685 - - (6,933) - 358,793 (6,988) 351,805 Items Under Construction 2,058 - 2,058 (930) - - - - 1,128 - 1,128 Total Property, Plant and Equipment

381,766 (3,370) 378,396 10,111 (6) (241) (8,288) (970) 390,818 (11,816) 379,002



Core Infrastructure Asset Disclosures

Valuation A revaluation was performed on 1 July 2016 on the following classes of property, plant and equipment and the effects of this revaluation have been reflected in the 2016/17 financial statements: Roads and bridges. Infrastructural assets for Water, Wastewater and Stormwater. Solid waste infrastructural assets. Land and buildings. An annual revaluation was performed as at 1 July 2017 that will be reflected in the 2017/18 financial statements. This was reviewed for materiality and impairment. No material difference was noted between the current carrying value and their revalued amounts.

Land (Operational, Restricted and Infrastructural) 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 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. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value, an open market “willing buyer, willing seller” scenario is assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property. The most recent valuation of land and buildings reflected in these accounts was performed by Andrew Parkyn, SPNIZ, ANZIV, and Ashton Gibbard BBS (VPM) of Quotable Value Ltd and the valuation had an effective date of 1 July 2016.

2017 2016 Closing Book

Value Most Recent

Replacement Cost Estimate For Revalued

Assets

Closing Book Value

Most Recent Replacement

Cost Estimate For Revalued

Assets

$000 $000 $000 $000 Roading 233,821 310,147 239,317 310,147 Bridges 43,716 91,485 36,407 91,485 Water Supply - Treatment Plants & Facilities 3,157 7,459 3,279 7,459 - Reticulation 24,713 54,176 25,111 54,176 Wastewater - Treatment Plants & Facilities 8,649 12,167 8,109 12,167 - Reticulation 15,329 36,105 15,292 36,105 Stormwater 13,376 26,291 13,877 26,291



Buildings (Operational and Restricted) Specialised buildings are valued at fair value using depreciated replacement cost because no reliable sales data are available for such buildings. Depreciated replacement cost is determined using a number of significant assumptions: The replacement asset is based on the reproduction cost of the specific assets with adjustments where

appropriate for obsolescence due to overdesign 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 defined by taking the economic life of the improvement and reducing this by the effective age of the components within each property.

Straight line depreciation has been applied in determining the depreciated replacement cost value of the asset.

Non-specialised buildings (e.g., residential buildings) are valued at fair value using market-based evidence. Market rents and capitalisation rates were applied to reflect market value.

Infrastructural Asset Classes: Wastewater, Water, Drainage, Roads and Solid Waste

Wastewater, water and drainage are valued using depreciated replacement cost methodology. Roading infrastructural assets are valued using the optimised depreciated replacement cost method. There are a number of estimates and assumptions exercised when valuing infrastructural assets using the optimised depreciated replacement cost method. These include: Estimating any obsolescence or surplus capacity of the asset.

Estimating the replacement cost of the asset. The replacement cost is derived from recent construction contracts in the region for similar assets. In addition, indexed replacement costs are also used in the transport valuation (based on NZTA's March 2016 cost adjustment factors) and in three waters (indexed based on the cost fluctuation adjustment as per BSD3-15:2005)

Estimates of the remaining useful life over which the asset will be depreciated. These estimates can be affected by the local conditions (e.g., weather patterns and traffic growth). If useful lives do not reflect the actual consumption of the benefits of the asset, then RDC could be over or under estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Revenue. To minimise this risk, 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 asset management planning activities, which provides further assurance over useful life estimates.

The most recent valuation for wastewater, water and stormwater drainage was performed by Judith Ellenshon, MSc Resources & Environmental Management and reviewed by Michael Paschke B.Eng – Civil & Environmental, Master of Infrastructure Management, CPE, both of Veolia Water Australia and New Zealand. The valuation had an effective date of 1 July 2016. The most recent valuation for roading was performed by Scott McIntyre (BBIM AITP) and reviewed by Stephen Fletcher (REA, MTransport) both of GHD Limited and the valuation had an effective date of 1 July 2016. The most recent valuation for buildings, land and solid waste assets (valued by assessing the buildings on transfer station locations) was performed by Andrew Parkyn, B Com (VPM), PGDip Com, SPINZ, ANZIV, and Ashton Gibbard BBS (VPM) of Quotable Value Ltd and the valuation had an effective date of 1 July 2016.



Land Under Roads

Land under roads are carried at deemed cost.

Library Collections

Library collections are valued at depreciated cost.

Total Fair Value of Property, Plant and Equipment Valued by Each Valuer ($000) Actual Actual

2017 2016 $000 $000

QV Asset and Advisory 25,823 26,597 Veolia Water 67,223 66,125 GHD 275,029 272,597

A comparison of the carrying value of buildings valued using depreciated replacement cost and buildings valued using market-based evidence is as follows:

2017 $000

2016 $000

Operational buildings Depreciated replacement cost 11,687 11,959 Market-based evidence 3,102 3,265 Total carrying value of operational buildings 14,789 15,224 Restricted buildings Depreciated replacement cost 726 779 Market-based evidence - - Total carrying value of restricted buildings 726 779

Impairment and Security for liabilities

In light of the Building (Earthquake-prone Buildings) Amendment Bill, a high-level engineering assessment has been undertaken of Council owned buildings. The engineering assessments were provided to the valuers and their valuation made allowance for possible impairment or repair costs. This resulted in an impairment being reflected on the Taumarunui Memorial Hall during the year ended 30 June 2016 of $241k plus a reversal of previously recognised revaluations of $70k. There was no impairment or reversals recognised in the current year. None of RDC’s assets are pledged as security for liabilities in 2017 (2016: nil).

Proceeds from insurance Council received $18k from its insurers for vehicle damages (2016: Nil). No proceeds have been received in relation to the Raetihi diesel spill event from 2013 (2016: $107k).



Work in Progress Capital Works in Progress by class of asset is detailed below:

Actual Actual 2017 2016 $000 $000

Operational Assets Land - - Buildings 22 - Other Improvements 5 18 Library Books - 3 Plant and Vehicles - 13 Computer Equipment - 15 Office Equipment - - Infrastructural Assets Roading 502 - Bridges - - Land Under Roads - - Water Supply 953 508 Wastewater 826 536 Stormwater 136 2 Stopbanks - - Solid Waste - - Property Plant and Equipment Capital Works in Progress Total 2,444 1,095 Intangibles - 33 Total Capital Works in Progress by Asset Class 2,444 1,128



17. INTANGIBLE ASSETS The intangible assets owned by RDC include computer software and a resource consent.

Actual Actual 2017 2016 $000 $000

Carrying Amount at 1 July 437 512 Intangibles Cost Balance At 1 July 1,953 1,825 Additions 126 128 Disposals - - Balance At 30 June 2,079 1,953 Accumulated Amortisation Balance At 1 July (1,516) (1,313) Amortisation Charge (201) (203) Disposals - - Balance At 30 June (1,717) (1,516) Carrying Amount at 30 June 362 437

There are no restrictions over the title or security held on the intangible assets. There were no internally generated intangible assets (2016 Nil).

18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY

Directly Attributable Depreciation and Amortisation Expense by Group of Activity

Actual Actual 2017 2016 $000 $000

Community Support 23 18 Regulation - 1 Community Facilities 848 876 Land Transport 4,554 4,616 Leadership 7 7 Stormwater And Flood Protection 343 411 Wastewater 819 793 Water Supply 1,122 1,116 Waste Management And Minimisation 15 14 Total Directly Attributable Depreciation And Amortisation By Group Of Activity 7,731 7,852

Depreciation And Amortisation Not Directly Related To Group Of Activities 698 639 Total Depreciation and Amortisation Expense 8,429 8,491



19. BIOLOGICAL ASSETS RDC owns 10.6 hectares of land able to be used for forestry. On 8.1 hectares the timber has been felled during the last five years and no new operations have commenced. On the remaining 2.5 hectares there are no operations. RDC has therefore decided not to value the forestry assets. The land that is available for forestry is currently included in the asset category lands.

20. INVESTMENT PROPERTY

Movement in investment property during the year was:

Actual Actual 2017 2016 $000 $000

Balance at 1 July 2,319 2,358 Reclassification to PPE - - Additions – Vested Assets - - Fair Value Gains/(Losses) on Valuation 115 (39) Balance at 30 June 2,434 2,319

Investment properties are revalued annually effective at 30 June to fair value. The valuation was performed by Robert Lust BBS (VPM) MPINZ and Chelsea Mudge BCom (VPM) MPINZ, of Quotable Value Ltd and the valuation had an effective date of 30 June 2017. There are no restrictions on the realisability of investment property or the remittance of revenue or proceeds from disposal. Valuation Investment Property Land Investment 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 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. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value an open market “willing buyer, willing seller” scenario has been assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property.

Actual Actual

2017 2016 $000 $000

Land 1,985 1,906 Buildings 449 413 Balance at 30 June 2,434 2,319



Investment Property Buildings Valuations give consideration to:

Sales comparison approach, comparing structures based on market-based net rates per square metre;

Income approach, capitalising net income and discounted cash flow (based on assumptions including future rental revenue, anticipated maintenance costs, and appropriate discount rates);

Depreciated replacement cost is used if the fair value method cannot be established using market data. Depreciated replacement cost looks at replacement costs of material less economic physical obsolescence and any over design.

Revenue and Expenditure on Investment Property

Actual Actual 2017 2016 $000 $000

Rental Revenue 21 23 Expenditure on Property Generating Revenue (12) (11) Expenditure on Property Not Generating Revenue (7) (8)

21. CREDITORS AND OTHER PAYABLES

Actual Actual 2017 2016 $000 $000

Current Exchange Trade Payables 2,826 3,410 Accrued Expenses 676 390 Amounts Due To Customers For Contract Work - - 3,502 3,800 Non-Exchange Trade Payables 60 108 Accrued Expenses - - Other Financial Liabilities 116 76 Transitional GST Payable 51 51 227 235 Total Current Portion 3,729 4,035 Non-Current Non-Exchange Transitional GST Payable 50 101

Total Creditors and Other Payables 3,779 4,136

Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, therefore, the carrying value of the creditors and other payables approximates their fair value.

RDC has moved from a GST payable basis to invoice basis. A significant liability arose and IRD has agreed that the Council can pay this over an extended period.



22. BORROWINGS

Carrying Amount Fair Value 2017 2016 2017 2016 $000 $000 $000 $000

Current Portion Secured Loans 10,300 5,500 9,856 5,228 Bank Overdraft - - - - Total Current Portion 10,300 5,500 9,856 5,228 Non-Current Portion Secured Loans (Fixed Interest) 15,500 20,300 13,225 16,970 Total Non-Current Portion 15,500 20,300 13,225 16,970 Total Borrowings 25,800 25,800 23,082 22,198

Weighted Average Interest Rate Actual Actual

2017 2016 Current 4.50% 5.22% Non-Current 4.80% 4.95% Overall 4.68% 5.01%

Secured Loans RDC’s secured loans of $25,800,000 are borrowed at fixed rates of interest from the major trading banks. Fixed rate debt rates are set at the time of rollover and include a margin for credit risk. Rates are fixed on terms in line with RDC’s Liability Management Policy, with staggered rollovers to mitigate interest rate risk. Security An overdraft facility of $2,000,000 (drawn to $0) is secured by a charge over rates (2016: $2,000,000). There are no restrictions on the use of this facility. Secured loans are secured over either separate or general rates of RDC. Fair Values The fair values are based on cash flows discounted using weighted average interest rates based on borrowing costs ranging from 3.57% to 6.32% (2016: 3.88% to 6.32%). Internal Borrowings RDC has no internal borrowings, defined as per clause 27 of schedule 10 in the Local Government Act 2002. The Council is keeping track of internal movement of funds but these do not qualify as internal borrowings under this provision.



23. EMPLOYEE ENTITLEMENTS

Actual Actual 2017 2016 $000 $000

Annual Leave and Special Leave 313 240 Accrued Salaries 224 180 Total Employee Entitlements 537 420

24. PROVISIONS

Actual Actual 2017 2016 $000 $000

Non-Current Portion Landfill Aftercare Provision 184 183 Movement In Landfill Aftercare Provision Balance at 1 July 183 455 Additional Provisions Made 1 - Amounts Used - (117) Unused Amount Reversed - (172) Discount Unwind (Note 5) - 17 Balance at 30 June 184 183



Landfill Aftercare Costs The landfill aftercare costs and provision referred to in this note relate to the one operational landfill in Taumarunui (which will be capped and monitored in the future). Upon formation of RDC from amalgamation of smaller councils, and the introduction of the Resource Management Act (1991), 13 landfills throughout the District were phased out. Closed landfills are capped and monitored according to resource consent requirements. The risks associated with this operation are not believed to be significant and the expense is budgeted for annually as part of the relevant activity. RDC obtained resource consent in July 2001 to operate a landfill until October 2020. There is a responsibility under the resource consent to provide ongoing maintenance and monitoring of the landfill after the site is closed. The management of the landfill will influence when some liabilities are recognised. The current landfill will operate in two stages. A liability relating to Stage Two will only be created when this stage is commissioned and when refuse begins to accumulate. Stage One pre closure planning and operations is now underway with a closed landfill design commissioned. Cell one of three cells in the closure design has now been capped. Stage two post closure planning will be undertaken over the next three years with decisions made on whether to operate a clean fill on the site from 2020 in 2018/2028 LTP process. The cash outflows for landfill post-closure costs are expected to occur through to 2055. 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 known changes to legal requirements. The gross provision before discounting is $305,730 (2016: $306,749). Ongoing monitoring costs as required by the resource consent reduce the future provision. Should these costs be higher than provided for each year, then the additional charge is taken to the statement of comprehensive revenue. The following significant assumptions have been made in calculating the provision:

The remaining capacity for the existing site is 10,000m³ of airspace, which based on current filling rates of approximately 3,000m³ per year will result in closure in 2019/20.

The estimated remaining life is at least the duration of the resource consent. The remaining life of the resource consent is three years. A discount rate of 5% has not been applied for 2017 (2016: 5%). An inflation factor of 2% has not been applied for 2017 (2016: 2%). Estimates of the life have been made by RDC management and consultant engineers based on planned changes in use and efficiencies.



25. EQUITY

Actual Actual 2017 2016 $000 $000

Ratepayers Equity Balance at 1 July 263,318 260,533 Transfers (to)/from Asset Revaluation Reserves on Disposal 218 (40) Transfers from Restricted Reserves 85 79 Transfers to Restricted Reserves - (114) Transfers to Financial Assets at Fair Value through Other Comprehensive Revenue Reserve - (24)

Surplus / (Losses) for the year 2,211 2,884 Balance at 30 June 265,832 263,318 Other Reserves Restricted Reserves Balance at 1 July 445 410 Transfers to Accumulated Funds (85) (79) Transfers from Accumulated Funds - 114 Balance at 30 June 360 445 Asset Revaluation Reserve Balance at 1 July 92,164 93,094 Net Revaluation Gains/(Losses) 1,658 - Revaluation Adjustment - (970) Transfer to Ratepayers Equity on Disposal of Property (218) 40 Balance at 30 June 93,604 92,164



Actual Actual

2017 2016 $000 $000

Asset Revaluation Reserves For Each Asset Class Consist Of: Operational Assets - Land 5,041 5,026 - Buildings 5,422 4,837 Infrastructural Assets - Wastewater System 13,492 12,130 - Stormwater System 9,056 9,213 - Water Supply System 14,193 13,870 - Land Transport (Roading Network) 46,393 47,088 - Solid Waste 7 - Balance as at 30 June 93,604 92,164 Fair Value Through Comprehensive Revenue and Expense Reserve Balance at 1 July 39 - Transfer from ratepayers equity - 24 Net revaluation gains/(losses) 4 15 Balance at 30 June 43 39 Total Other Reserves 94,007 92,648 Total Equity 359,839 355,966

The fair value through comprehensive income reserve reflects the cumulative revaluations on other financial assets for which gains and losses are reflected through other comprehensive revenue and expense.



Information about reserve funds held for a specific purpose is provided below:

Reserve Activities for which the Reserve Relates

Balance 1 Jul

Transfers into Fund

Transfers out of Fund

Balance 30 Jun

$000 $000 $000 $000 2017 TBC Land Subdivision Reserve Community Facilities 73 - - 73 OBC Reserve Contributions Community Facilities 2 - - 2 Waimarino Reserves Community Facilities 6 - - 6 Property Disposition Reserves Community Facilities 150 - - 150 OBC Roading Contributions Land Transport 4 - - 4 ECNZ Stratford-Huntly Amenities Leadership 85 - - 85 ECNZ Whanganui River Amenities Community Facilities 11 - - 11

Raetihi Water Supply Water Supply 100 - 85 15 Raetihi Lighting Community Facilities 5 - - 5 Ohakune Lighting Community Facilities 9 - - 9 Total restricted reserves 2017 445 - 85 360 2016 TBC Land Subdivision Reserve Community Facilities 73 - - 73 OBC Reserve Contributions Community Facilities 2 - - 2 Waimarino Reserves Community Facilities 6 - - 6 Property Disposition Reserves Community Facilities 150 - - 150 Ohura Mayoral Relief Fund Leadership 79 - 79 - OBC Roading Contributions Land Transport 4 - - 4 ECNZ Stratford-Huntly Amenities Leadership 85 - - 85 ECNZ Whanganui River Amenities Community Facilities 11 - - 11

Raetihi Water Supply Water Supply - 100 100 Raetihi Lighting Community Facilities - 5 5 Ohakune Lighting Community Facilities - 9 9 Total Restricted Reserves 2016 410 114 79 445

Restricted reserves are those reserves subject to specific conditions accepted as binding by Council and which Council may not revise without reference to the Courts or a third party. Transfer from these reserves may only be made for certain specific purposes or when specified conditions are met. Most of the restricted reserves were “inherited” during the amalgamation that created RDC.



Purpose of Each Reserve Fund

TBC Land Subdivision Reserve

The fund is to be used within the former Taumarunui Borough Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

OBC Reserve Contributions

The fund is to be used within the former Ohakune Borough Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

Waimarino Reserves

The fund is to be used within the former Waimarino District Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

Property Disposition Reserves

The Property Disposition Reserve was created following the sale of the Owhango Pensioner Flats in early 2000. This was a book entry, which showed what proceeds were available following that sale. The Property Disposition Reserve is held for the purposes of buying more property in the future, anywhere in the Ruapehu District.

OBC Roading Contributions

This fund was established as a contingency to help fund emergency works that may occur in the former Ohakune Borough Council area and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.

ECNZ Stratford-Huntly Amenities

The fund was created prior to 1989 and was established to provide “public” amenities being amenities owned or administered by the Crown or Council for recreational, cultural or social purposes.

ECNZ Whanganui River Amenities

The fund was created prior to 1989 and was established for the purpose of maintaining or developing amenities in the Taumarunui urban area.

Raetihi Water Supply

This fund resulted from a contribution by Ruapehu Alpine Lifts Ltd which is designated for Raetihi community projects. $85k was allocated to the Raetihi community for the instalment of water filters in their homes.

Raetihi Lighting

In 2013 funds were allocated to the Raetihi community for community lighting. These remain unspent at 30 June 2017.

Ohakune Lighting

In 2013 funds were allocated to the Ohakune community. In addition, funds were vested on the Council for use on this project. These remain unspent at 30 June 2017.



26. RECONCILIATION OF NET SURPLUS/(DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Actual Actual

2017 2016 $000 $000

Net Surplus (Loss) 2,211 2,884 Add / (Less) Non-Cash Items Share of Associate's (Surplus) / Deficit (42) (76) Depreciation and Amortisation Expense 8,429 8,491 Property, Plant and Equipment Impairment - 241 Vested Assets - - (Gains) / Losses on Impairment of Receivables - - (Gains) / Losses in Fair Value of Investment Property (116) 39 10,482 11,579 Add / (Less) Items Classified As Investing Or Financing Activities (Gains) / Losses (Net) on Disposal of Property, Plant and Equipment 357 (2) (Gains) / Losses on Financial Assets Taken Through Gains / Losses 11 8 (Gains) / Losses on Property, Plant and Equipment Revaluations Taken Through Gains / Losses - -

368 6 Add / (Less) Movements In Working Capital Items (Inc) / Dec in Debtors and Other Receivables (404) 907 (Inc) / Dec in Prepayments and Accrued Income 558 (736) (Inc) / Dec in Inventory (46) 17 Inc / (Dec) in Creditors and Other Payables 579 591 Inc / (Dec) in Provisions 1 (272) Inc / (Dec) in Other Employee Entitlements 117 31 Inc / (Dec) in GST Term Liability (50) (49) 755 489 Net Cash Inflow / Outflow from Operating Activities 11,605 12,074



27. COMMITMENTS AND OPERATING LEASES

Actual Actual 2017 2016 $000 $000

Capital Commitments Roading 7,039 8,879 Bridges 928 464 Water - 56 Total Capital Commitments 7,967 9,399 Operating Commitments Not Later Than One Year 9,372 8,700 Later Than One Year And Not Later Than Five Years 11,534 15,651 Later Than Five Years 3,409 5,310 Total Non-Cancellable Operating Commitments 24,315 29,661 Operating Leases As Lessee Not Later Than One Year 148 124 Later Than One Year And Not Later Than Five Years 423 356 Later Than Five Years 256 211 Total Non-Cancellable Operating Leases 827 691 Operating Leases As Lessor Not Later Than One Year 70 66 Later Than One Year And Not Later Than Five Years 211 187 Later Than Five Years 47 80 Total Non-Cancellable Operating Leases 328 333

Operating Commitments RDC has entered into a number of non-cancellable contracts for the delivery of services. Further details on these commitments are disclosed in Section One of this report.

Operating Leases RDC leases property, plant and equipment in the normal course of its business. The future aggregate minimum lease payments payable under non-cancellable operating leases are as shown above.

RDC leases an office building as the lessee, for which the lease expires in September 2031, with a right of renewal for a further 25 years. There is no option to purchase the asset at the end of the lease term. There are no other significant leases.

The total minimum future sublease payments expected to be received under non-cancellable subleases at balance date is $nil (2016: $nil).

There are no restrictions placed on the council by any of the leasing arrangements. No contingent rents have been recognised during the period.



28. CONTINGENCIES

Contingent Liabilities

Actual Actual 2017 2016 $000 $000

Legal Proceedings 150 150

RDC is subject to one legal proceeding against it, alleging inadequate compensation for acquired land. The potential liability to RDC, if the claim is successful, is estimated to be $150,000. The outcome of the claim will not be known until legal proceedings progress further 2017 (as for 2016). 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 Ruapehu 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, 6 of which are located within the Ruapehu District. At present there is insufficient information to conclude on potential liability and claim quantum, if any. In April 2017, the Council received a personal grievance claim for unjustified dismissal (constructive dismissal) relating to a former employee. Council has denied this claim through its lawyers on the 26th of May 2017 and this is now going through a mediation process.

29. RELATED PARTY TRANSACTIONS

Transactions with Key Management Personnel

Key Management Personnel Compensation 2017 2016

FTE’s $000 FTE’s $000 Councillors Remuneration - 304 - 294 Full Time Equivalent Members 12 - 12 - Senior Management Team Including Chief Executive Salaries and other Short-Term Employee Benefits - 653 - 636 Post-Employment Benefits - - - - Other Long-Term Benefits - - - - Termination Benefits - - - - Full Time Equivalent Members 4 - 4 - Total Key Management Personnel Compensation 16 957 16 930

Due to the difficulty in determining the full-time equivalent for Councillors, the full-time equivalent figure is taken as the number of Councillors.

Key management personnel include the Mayor, Councillors, Chief Executive and the other three members of the senior management team.

During the year, Councillors and senior management, as part of a normal customer relationship, were involved in minor transactions with RDC (such as the payment of rates).

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is



reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances.

Related party disclosures have also not been made for transactions with entities within the Council group (such as funding and financing flows), where the transactions are consistent with the normal operating relationships between the entities and are on normal terms and conditions for such group transactions.

Councillors are also involved in various non-profit organisations throughout the community which receive funding from RDC. There has been no disclosure where the transactions are consistent with a client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances. RDC Holdings Ltd (a 100% Council owned subsidiary) which is non-active and has no revenue, expenditure, assets or liabilities, and there have been no transactions recorded in the 2017 financial year. (2016: Nil).

Provisions/Impairments No impairments have been required for any receivables to related parties (2016: $nil).

30. REMUNERATION

Chief Executive The total Chief Executive remuneration was:

2017 2016 Salary – P. Till - 69,981 Superannuation Contribution – P. Till - - Salary – C. Manley 238,831 151,288 Superannuation Contribution – C. Manley 6,522 - Total Chief Executive Remuneration 245,353 221,269

Elected Representatives Remuneration paid to elected representatives:

Council 2017 2016 Cameron, Don (Mayor) 82,400 79,869 Broderson, Bruce 5,500 17,940 Cooke, Ron 5,350 17,975 Cosford, Graeme 20,348 22,235 Dowsett, Cynthia 19,413 19,252 Doyle, Adie 13,416 - Gillard, Marion (Deputy Mayor) 28,307 26,215 Goddard, Ben 19,244 18,430 Hoeta, Vivienne 13,781 - Ngatai, Karen 21,224 19,060 Nottage, Rabbit 18,982 18,168 Pehi, Peta 5,350 17,800 Wheeler, Elaine 5,632 19,506 Wheeler, Kim 13,425 -



Wilson, Murray 13,162 - Windell, Jacques 13,669 - Wood, Rhonda 5,350 17,800 Total 304,553 294,250



Community Boards 2017 2016 Biddle, Missy 1,498 - Chapman, John 1,451 - Compton, John 1,780 8,123 Conway, Lucy 1,202 4,000 Hotter, John (Luigi) 6,523 4,000 Oliver, Winston 2,918 - O’Neill, Simon 1,970 - Paul, James 811 2,700 Pehi, Peta 1,263 - Pendleton, Jenni 5,706 4,800 Sinclair, Hamish 811 2,700 Taylor, William (passed away 3/10/15) - 1,394 Wilson, Murray (co-opted on 3/02/16) 811 1,244 Whale, Allan 4,120 4,000 Total 30,864 32,960 Total Elected Representatives' Remuneration 335,417 327,211

Councillors (excluding the Mayor) attended the following meetings as part of their roles:

Councillor Meeting Attendance Council

RDC Rep External

Total

Broderson, Bruce 7 - 7 Cooke, Ron 8 - 8 Cosford, Graeme 47 3 50 Dowsett, Cynthia 33 8 41 Doyle, Adie 30 5 35 Gillard, Marion 58 11 69 Goddard, Ben 34 1 35 Hoeta, Vivienne 33 3 36 Ngatai, Karen 49 4 53 Nottage, Rabbit 32 9 41 Pehi, Peta 13 - 13 Wheeler, Elaine 11 1 12 Wheeler, Kim 15 5 20 Wilson, Murray 30 5 35 Windell, Jacques 17 - 17 Wood, Rhonda 11 - 11 Total 428 55 483

RDC Rep External represents meetings where the Councillor is attending as the Council appointed representative.



Council Employees

Total Annual Remuneration By Band 2016 Bands 2016 < $60,000 50 $60,000 - $79,999 11 $80,000 - $99,999 9 $100,000 - $139,999 6 $140,000 - $239,999 1 Total Employees 77

Total remuneration includes non-financial benefits provided to employees. At balance date, the Council employed 53 (2016: 55) full-time employees, with the balance of staff representing 25.81 (2016: 15.43) full-time equivalent employees. A full-time employee is determined on the basis of a 40-hour working week.

Total Annual Remuneration By Band 2017 Bands 2017 < $70,000 64 $70,000 - $89,999 13 $90,000 - $109,999 7 $110,000 - $149,999 5 $150,000 - $259,999 4 Total Employees 93



31. SEVERANCE PAYMENTS For the year ended 30 June 2017, RDC made no severance payments (2016: $14,159).

32. EVENTS AFTER THE BALANCE DATE There are no known events after balance date.

33. FINANCIAL INSTRUMENT RISKS Financial Instrument Categories The accounting policies for financial instruments have been applied to the line items below:

Actual Actual 2017 2016 $000 $000

Financial Assets Cash And Cash Equivalents 1,795 642 Debtors And Other Receivables 2,678 2,461 Accrued Income 1,073 1,254 Total Loans And Receivables 5,546 4,357 Fair Value Through Other Comprehensive Revenue Other Financial Assets: - Listed Shares - - - Unlisted Shares 99 95 - Other Investments 11 22 Total Fair Value Through Other Comprehensive Revenue 110 117 Financial Liabilities Financial Liabilities At Amortised Cost Creditors And Other Payables 2,641 3,984 Borrowings: - Overdraft - - - Secured Loans 25,800 25,800 - Bonds (Fixed Interest) Total Financial Liabilities At Amortised Cost 28,441 29,784



Fair Value Hierarchy Disclosures The majority of RDC’s financial assets are valued using non-observable inputs. RDC has assessed the value of Council’s financial assets as not material and has therefore chosen not to present fair value hierarchy disclosures. Valuation Techniques with Significant Non-Observable Inputs (Level 3) The table below provides reconciliation from the opening balance to the closing balance for the Level 3 fair value measurements:

Actual Actual 2017 2016 $000 $000

Balance at 1 July 105 99 Gains and Losses Recognised in the Surplus or Deficit (6) 6 Gains and Losses Recognised in other Comprehensive Revenue - - Purchases - - Sales - - Transfers into Level 3 - - Transfers out of Level 3 - - Balance at 30 June 99 105

These investments include unlisted shares in Civic Assurance and King Country Energy (unlisted exchange), ETS units and a loan to the Kakahi Water Supply Board Limited. The increase in the value of the loan includes capitalisation of interest income and rates revenue. Financial Instruments Risk RDC has a series of policies to manage the risks associated with financial instruments, is risk averse and seeks to minimise exposure from its treasury activities. Council has approved RDC’s established Liability Management and Investment Policies. These policies do not allow any speculative transactions.

Market Risk Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. RDC does not have any material exposure to price risk.

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 and investments at fixed rates of interest expose RDC to fair value interest rate risk. RDC’s Liability Management Policy sets the minimum and maximum levels of fixed interest rate exposure to borrowings across various time intervals.

Cash Flow Interest Rate Risk

Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose RDC to cash flow interest rate risk. RDC’s policy is to raise long-term borrowings on fixed interest rates. There is no significant exposure to cash flow interest rate risk.



Credit Risk

Credit risk is the risk that a third party will default on its obligation to RDC, causing it to incur a loss. Financial instruments which potentially subject RDC to credit risk principally consist of bank balances, accounts receivable, investments and other guarantees. Debtors and other receivables arise mainly from 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. 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. Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers. RDC’s Investment Policy limits the amount of credit exposure on investment instruments to any one institution or organisation. There are also minimum credit rating limits in place. RDC holds no collateral or credit enhancements for financial instruments that give rise to credit risk. RDC’s maximum credit risk exposure for each class of financial instrument is as follows:

Actual Actual 2017 2016 $000 $000

Cash at Bank and Term Deposits 1,795 642 Debtors and Other Receivables 2,678 2,461 Accrued Income 1,073 1,254 Other Financial Assets (Investments) 110 117 Total Credit Risk 5,656 4,474

Credit Quality of Financial Assets The credit quality of financial assets, that are neither past due nor impaired, can be assessed by reference to Standard and Poor’s credit ratings, where such ratings are available.

AA- Unrated Total $000 $000 $000

2017 Cash at Bank and Term Deposits 1,795 - 1,795 Debtors and Other Receivables - 2,678 2,678 Accrued Income - 1,073 1,073 Other Financial Assets (Investments) - 110 110 Total Credit Risk 1,795 3,861 5,656 2016 Cash at Bank and Term Deposits 642 - 642 Debtors and Other Receivables - 2,461 2,461 Accrued Income - 1,254 1,254 Other Financial Assets (Investments) - 117 117 Total Credit Risk 642 3,832 4,474

Other financial assets are mainly assets not able to be credit rated. The remaining assets are of insignificant value and are therefore not rated.



Liquidity Risk

Management of Liquidity Risk Liquidity risk is the risk that RDC 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. RDC aims to maintain flexibility in funding by keeping committed credit lines available. RDC manages its borrowings in accordance with its funding and financial policies which include a Liability Management policy (adopted as part of RDC’s Long Term Plan). RDC has a maximum amount that can be drawn down against its overdraft facility of $2m (2016: $2m).

Contractual Maturity Analysis of Financial Liabilities The following table analyses RDC’s financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the relevant interest rate at balance date. The amounts disclosed are the contractual undiscounted cash flows and include interest payments.

Carrying Amount

Contractual Cash Flows Total < 1 year 1-2 years 2-5 years 5+ years

$000 $000 $000 $000 $000 $000 30 June 2017 Creditors and Other Payables

3,678 3,678 3,678

Overdraft - - - Secured Loans 25,800 28,441 11,353 4,686 8,264 4,138 Bonds (Fixed Interest) - - - - - - Total 29,478 32,119 15,031 4,686 8,264 4,138

30 June 2016 Creditors And Other Payables

3,984 3,984 3,984 - - -

Overdraft - - - - - - Secured Loans 25,800 29,483 6,760 6,668 11,735 4,320 Bonds (Fixed Interest) - - - - - - Total 29,784 33,467 10,744 6,668 11,735 4,320



Sensitivity Analysis

The following table illustrates the potential profit and loss impact due to reasonable possible market movements, with all other variables held constant, based on RDC’s financial instrument exposures at balance date. There are no financial instruments held for which foreign exchange risk applies.

Interest Rate Risk (Through Surplus) 2017 2016

-50bp +100bp -50bp +100bp $000 $000 $000 $000

Financial Assets Cash and Cash Equivalents - - - - Financial Liabilities Cash and Cash Equivalents - - - - Term Loans - - - - Total Sensitivity - - - -

Explanation of Interest Rate Risk Sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis point (bp) movement. For example, a decrease in 50bp is equivalent to a decrease in interest rates of 0.5%. As Council only secures borrowing through loans, there is no interest rate risk sensitivity on the financial liabilities.



34. CAPITAL MANAGEMENT Council’s capital is its equity (or ratepayers’ funds) which comprise accumulated funds and reserves. Equity is represented by net assets. The Local Government Act 2002 (the Act) requires RDC 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. Ratepayers’ funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general financial dealings. Council complied with all externally imposed capital requirements to which it is subject. The objective of managing these items is to achieve intergenerational equity. This is a principle promoted in the Act and applied by RDC. Intergenerational equity requires today’s ratepayers to meet the costs of utilising RDC’s assets and does not expect them to meet the full cost of long-term assets that will benefit ratepayers in future generations. Additionally, RDC has in place Asset Management Plans for major classes of assets detailing renewal and maintenance programmes, to ensure that ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance. RDC is also focussing efforts on ensuring that it is being “smart” with how it maintains and upgrades assets to minimise the impact on ratepayers now and in the future. The Act requires RDC to make adequate and effective provision in the Long Term Plan (LTP) and in its Annual Plan (where applicable) to meet the expenditure needs identified in these plans. The Act also sets out the factors that RDC 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 RDC’s LTP. RDC has the following Council created reserves: Reserves for different areas of benefit. 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 payers of general rates. 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 funds that are restricted for a particular purpose have been donated to RDC. Interest is added to trust and bequest reserves where applicable and deductions are made where funds have been used for the purpose for which they were donated.

35. COUNCIL CONTROLLED ORGANISATIONS RDC Holdings Limited is a company created as a Local Authority Trading Enterprise (LATE) to comply with changes in tendering rules for contracting. The trading activities ceased with the sale of the LATE contracts Plant and Equipment to Works Construction in 1997. The company has been retained as an inactive company because, periodically, opportunities arise which may make it a useful entity. None of these prospective opportunities has materialised to date. RDC Holdings Ltd is intended to be an exempt CCO and has no performance targets. The resolution was passed at the Council Meeting of 11 November 2014. Note 14 also has details of Council’s Associates which are also exempt CCOs.



36. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET Explanations for major variations from RDC’s budget figures for the 2016/17 year in the 2016/17 Exceptions Annual Plan are as follows: Statement of Comprehensive Revenue and Expense Revenue

Rates are over budget by $519k. This is due to the reclassification of $278k of water by meter charges which were previously being recorded and budgeted for in Fees and Charges. The recording of the water by meter charges revenue is now being recorded in Rates Revenue, however, the budget is still sitting under Fees and Charges. Another factor effecting the rates revenue being over budget are the unbudgeted rates penalties of $336k. Discounts given of $113k, which was also unbudgeted, has an offsetting effect on the rates. Fees and Charges are under budget by $1,436k. There was a change in the classification to the iSITE revenue from Fees and Charges to Other Revenue. The revenue now goes to Other Revenue but the budget of $580k for the iSITE revenue has been left in Fees and Charges. The water by meter charges previously mentioned has a budgeted figure in Fees and Charges of $278k, causing an overstatement of the budget for 2016/17 as the associated revenue is going to Rates Revenue. The Department of Conservation Three Waters Management Contract of $499k wasn’t budgeted. The Regional animal control charges were $42k under budget. This accounts for the majority of the total budget variance. These classification changes will be corrected in the 2018/28 Long Term Plan. Subsidies and Grants is below budget by $2,091k, the main reason for this is that a grant of $1,518k was not received from Central Government for a contribution to the Raetihi Water Treatment Plant due to the work to the plant being delayed, this project will progress during the 2017/18 financial year. There was also $570k budgeted in Land Transport from NZTA subsidies for Emergency Works. This budget remained unspent as there were no events which led to emergency works occurring during the year. Other Revenue is over budget by $1,660k. Major influences effecting this include $917k unbudgeted revenue for the Department of Conservation Whakapapa facilities management contract, iSITE revenue over budget by $214k part of this relates to the unbudgeted revenue from the new Whakapapa iSITE which opened during the financial year. Other influencing items include $136k for regional growth initiatives, $60k for remediating the Taumarunui sale yards and $46k from insurance recoveries.

Expenses Personnel Costs are over budget by $179k which is mainly due to additional staff required for the Whakapapa iSITE. Finance Costs are under budget by $177k, this is due to lower than anticipated debt levels and market interest rates being below what was budgeted. Losses are over budget by $385k. This is made up of $357k losses on disposals, with the major losses being $144k relating to the Manunui Camp Ground and $39k of Rural Fire assets transferred to Fire and Emergency New Zealand.



Statement of Financial Position Cash and Cash Equivalents are over budget by $2,052k mainly due to the delay in the starting of planned capital projects, with some movements in other current assets. Property, Plant and Equipment is under budget by $43,433k. However, the budgeted figure of $424,929k in the EAP was overstated by $36,598k and should have been $388,331k. The actual variance to budget should actually be $6,835k. This variance is due to capital projects not being completed by financial year end and capital project work not starting. Intangible assets is under budget by $150k which was mainly due to IT projects not being completed by financial year end and some projects not starting. Overall borrowings of $25,800k remains unchanged from the prior financial year. There has been a shift of $4,800k of borrowings from non-current to current liabilities, this timing change had not been accounted for in the EAP. The total budgeted debt level of $30,772k was $4,972k above the actual debt level which is a direct result of capital projects not starting during the year. Employee Entitlements is over budget by $309k. The actual figure of $537k consists of $224k in payroll accruals paid out in July, the remaining $313k is the annual leave provision for 2016/17. The EAP budget of $228k has been calculated too low. This is evidenced by the comparative actual figure for the 2015/16 Financial Year being $420k.

Statement of Cash Flows

Receipts from Rates Revenue is over budget by $318k. This includes $278k revenue from water by meter charges that was budgeted under Other Revenue and not Rates Revenue. Receipts from Subsidies and Grants is below budget by $1,938k, the majority of this relates to the Central Government grant of $1,518k for the Raetihi Water Treatment plant not being received as the receipt of grant funds doesn’t occur till certain milestones are completed during the construction process. There was also $570k budgeted in Land Transport from NZTA subsidies for Emergency Works. This budget remained unspent as no emergency events occurred during the year. Other Revenue is over budget by $372k. Major factors include $136k for regional growth initiatives, $60k for remediating the Taumarunui Sale Yards, $46k property related insurance settlement, $40k from MBIE for Cycle-ways grant, $33k unbudgeted commission sales for Whapapapa iSite, $17k grant from Sport and Recreation New Zealand. Payments to Suppliers, under budget by $970k mainly due to the iSite expenditure being under budget by $330k due to classification issues. In addition there was $570k of Roading Emergency Works not spent during the year as there were no emergency events. Interest Paid was under budget by $190k, this is due to lower than anticipated debt levels and market interest rates being below what was budgeted. Purchase of Property, Plant and Equipment is under budget by $4,316k. Much of this relates to the Water Supply activity, including the Raetihi Water Treatment Plant upgrade, which is to be funded by a Central Government grant of $1,518k. The budget for this project should have been split over the 2016/17 and 2017/18 financial years instead of lumped into one year. There was additional capital underspend in Wastewater $568k, Stormwater $190k, Roading $1,020k and $570k in Community Facilities. Overhead capital spend was also down by $450k. Intangible Asset purchases of $125k were not budgeted. Cash Flows from Financing Activities; budgeted borrowings of $2,839k were not required due to various budgeted capital projects not commencing and these projects will be carried forward to the 2017/18 financial year.



37. ASSETS HELD FOR SALE

Actual Actual 2017 2016 $000 $000

Summarised financial information of associates presented on a gross basis Assets 13,260 - Liabilities 384 - Revenues 1,463 - Surplus/(deficit) 1,088 - RDC's share of surplus/(deficit) 43 - RDC's Share of Total Comprehensive Revenue and Expense (2) - RDC's interest % 3.93% -

Wanganui District Councils' Forestry Joint Committee is currently held as Current Assets held for sale 506 -

Council’s share in the joint venture is 3.93%. The partnership covers six forestry blocks totalling approximately 1,150 hectares in the Wanganui District. After publically calling for expressions of interest and capability the Forestry Joint Committee appointed CBRE as agents to sell four of the six forest blocks. Forests put on the market were Tauwhare, McNabs, Te Ara to Waka and Sicelys. Four tenders were received and on 14 December 2016 the Joint Committee accepted the highest tender and entered into a sale and purchase agreement conditional on the approval of the Overseas Investment Office (OIO). OIO approval is expected in October 2017. The remaining two small forestry blocks comprise trees only in Nukumaru and Waitahinga and are in an early growth stage.

Part C – Other Legislative Disclosures


Part C - Other Legislative Disclosures

1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2017 – ALL ACTIVITIES

EAP Actual Budget Actual 2017 2017 2016 2016 $000 $000 $000 $000

Sources Of Operating Funding General Rates, Uniform Annual General Charges, Rates Penalties

13,965 9,011 13,432 8,426

Targeted Rates 7,283 12,754 7,065 12,451 Subsidies And Grants For Operating Purposes 5,049 5,136 4,963 7,293 Fees And Charges 3,653 3,858 2,947 3,870 Interest And Dividends From Investments 58 31 55 31 Local Authorities Fuel Tax, Fines, Infringement Fees, And Other Receipts

130 150 113 169

Total Operating Funding (A) 30,138 30,940 28,575 32,240

Applications Of Operating Funding Payments To Staff And Suppliers 23,305 23,437 21,570 23,998 Finance Costs 1,476 1,299 1,683 1,355 Other Operating Funding Applications - - - - Total Application Of Operating Funding (B) 24,781 24,736 23,253 25,353 Surplus/(Deficit) Of Operating Funding (A-B) 5,357 6,204 5,322 6,887 Sources Of Capital Funding Subsidies And Grants For Capital Expenditure 6,711 4,533 5,269 4,610 Development And Financial Contributions 110 60 110 73 Increase/(Decrease) In Debt 2,520 - 1,452 (1,000) Gross Proceeds From Sale Of Assets - 54 - 8 Lump Sum Contributions - - - - Total Sources Of Capital Funding (C) 9,341 4,647 6,831 3,691

Application Of Capital Funding Capital Expenditure:

- To Meet Additional Demand 384 65 320 113 - To Improve The Level Of Service 5,701 2,246 3,501 2,564 - To Replace Existing Assets 8,612 8,198 8,332 7,489

Increase/(Decrease) In Reserves - 342 - 276 Increase/(Decrease) Of Investments - - - 136 Total Applications Of Capital Funding (D) 14,697 10,851 12,153 10,578 Surplus/(Deficit) Of Capital Funding (C-D) (5,356) (6,204) (5,322) (6,887) Funding Balance ((A-B)+(C-D)) 1 - - -



2. SUPPORT FUNDING IMPACT STATEMENT

LTP LTP Actual 2016 2017 2017 $000 $000 $000

Sources Of Operating Funding General Rates, Uniform Annual General Charges, Rates Penalties

- - (176)

Targeted Rates - - (1) Subsidies And Grants For Operating Purposes - - - Fees And Charges 1 1 155 Internal Charges And Overheads Recovered 8,907 9,210 8,456 Interest And Dividends From Investments 20 21 31 Total Operating Funding (A) 8,928 9,232 8,465

Applications Of Operating Funding Payments To Staff And Suppliers 7,020 7,237 7,806 Finance Costs 456 477 356 Internal Charges And Overheads Applied 713 737 722 Other Operating Funding Applications - - - Total Application Of Operating Funding (B) 8,189 8,451 8,884 Surplus/(Deficit) Of Operating Funding (A-B) 739 781 (419) Sources Of Capital Funding Subsidies And Grants For Capital Expenditure - - - Development And Financial Contributions - - 36 Increase/(Decrease) In Debt (1,085) (1,268) (1,152) Gross Proceeds From Sale Of Assets - - 54 Lump Sum Contributions - - - Total Sources Of Capital Funding (C) (1,085) (1,268) (1,062)

Application Of Capital Funding Capital Expenditure:

- To Meet Additional Demand 89 175 2 - To Improve The Level Of Service 12 21 48 - To Replace Existing Assets 417 458 353

Increase/(Decrease) In Reserves (864) (1,141) (1,881) Increase/(Decrease) Of Investments - - - Total Applications Of Capital Funding (D) (346) (487) (1,478) Surplus/(Deficit) Of Capital Funding (C-D) (739) (781) 416 Funding Balance ((A-B)+(C-D)) - - (3)



3. OVERALL FUNDING IMPACT STATEMENT RECONCILIATION

Reconciliation between the Group of Activities’ Funding Impact Statements, the Overall Council Funding Impact Statement and the Statement of Comprehensive Revenue and Expense against EAP budget.

Actual EAP Actual 2017 2017 2016 $000 $000 $000

Total operating and capital funding sources as shown in the group of activities’ funding impact statements 44,043 48,649 45,181

Less Corporate Services revenue unallocated - - -

Less internal charges and overheads recovered (8,456) (9,170) (9,250) Total operating and capital funding sources as shown in the overall council funding impact statement 35,587 39,479 35,931

(Increase)/decrease in debt - (2,520) 1,000

Gross proceeds from sale of assets (54) 27 (8)

Vested assets - - -

Other gains 141 - 6

Total funding sources 35,674 36,986 36,929 Total revenue as shown in the statement of comprehensive revenue 35,674 36,986 36,929

Application of total operating and capital funding as shown in the group of activities’ funding impact statements 44,045 47,914 45,177

Add corporate services costs - - - Less internal charges and overheads applied (8,456) (8,436) (8,386) Application of total operating and capital funding as shown in the overall council funding impact statement 35,589 39,478 36,791

Capital expenditure (10,510) (14,697) (10,169)

(Increase)/decrease in reserves (344) - (138)

(Increase)/decrease in investments - - (33)

Less corporate services net gain in allocations - - (864)

Depreciation and amortisation 8,429 8,407 8,491

Other losses 341 - 43

Total funding application 33,505 33,188 34,121 Total expenditure as shown in the statement of comprehensive revenue 33,505 33,188 34,121



4. RATING BASE INFORMATION The 2016/17 rates were set based on the following information, as at 1 July 2016 and prior year comparatives.

Actual Actual 2017 2016

Number of Rating Units 9,806 9,877 Non-Rateable Units 923 926 Total Capital Value of Rating Units in the District 4,247,109,400 $4,225,443,850 Total Land Value of Rating Units in the District 2,224,109,450 $2,225,316,900

5. INSURANCE As at 30 June Ruapehu District Council had the following insurance contracts in place:

2017 2016

Max Insured Value Max Insured Value $000 $000 $000 $000

Material Damage Replacement 73,375 73,375 70,834 70,834 Motor Vehicles Market 1,002 1,002 630 630 Infrastructural Assets Replacement 12,500 116,467 12,500 113,868

The Material Damage Max Insured value was $73,375k from the first of July 2016 till the renewal of insurance on the first of November 2016 at which time it decreased to $72,101k. The Motor Vehicles Max Insured value was $1,002k from the first of July 2016 till the renewal of insurance on the first of November 2016 at which time it decreased to $629k. The Infrastructural Assets Limit of Indemnity value was $12.5m from the first of July 2016 till the 21st of June 2017 where it increased to $20m, the limit was increase again to $40m on the 30th of June 2017. Council has no self-insurance fund set aside. Risk mitigation include the NZTA subsides and Councils ability to borrow to replace lost / damaged assets.



6. BENCHMARKS

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. 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. Rates Affordability Benchmark 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 increase equals or is less than each quantified limit on rates increases. Rates (Income) Affordability The following graph compares Council’s actual rates revenue with the quantified limit on rates. Council set a quantified limit on the rates income for which it plans to rate (whole of Council), included in the Financial Strategy within its Long Term Plan. This quantified limit is that the whole of Council rate income will not increase by more than the Local Government Cost Index (LGCI) plus 2%, year on year.

In 2017 the rates income exceeded quantified limit ($21,691k) by $76k with a total rates take of $21,767. The 2016/17 rates budget was set within the qualified limits at 21,248k, but does not include $277k the reclassification for water meter charges, nor the additional rating take from penalties of (net $223k = ($336k penalties less discounts given $113k)).

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Rates (Increases) Affordability The following graph compares Council’s actual rates increase with the quantified limit on rates increases included in the financial strategy included in the Council’s Long Term Plan. The quantified limit is the Local Government Cost index (LGCI) plus 2% for each of the next 10 years of the plan.

Council has exceeded this target with a 4.3% actual increase vs a limit of 3.9%. This is mainly attributable to the $519k (Water meter charges $278k + net rate penalties $223k) actual rates take vs the budgeted position. Council has changed its limit for rate increases to reflect the LGCI in the first year of LTP 2015-25, because it is a better indicator of the costs actually faced by Council. This relates to costs of maintaining and improving infrastructure. Previously, Council’s costs have tended to rise at a greater rate than the CPI which is a measure of inflation for consumer goods rather than inflation for local government inputs.

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Quantified Limited on rates increases Actual rates increases (exceeds limit)

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Debt Affordability Benchmark The Council meets the debt affordability benchmark if its actual borrowings are within each quantified limit on borrowing. The following graph compares 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 should be less than twice the annual rates bill.

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.

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Quantified Limited on debt Actual Debt (at or within limit) Benchmark not met

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2013 2014 2015 2016 2017

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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 and equipment as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant and equipment). The Council meets this benchmark if its revenue equals or is greater than its operating expenses.

The balanced budget benchmark was not met in the 2013/14 year due to larger than expected depreciation charges as a result of the revaluation on the Council owned buildings. As this depreciation increase was unexpected, it had not been rated for.

102%

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2013 2014 2015 2016 2017

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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.

During the 2017 Financial Year there were previously unbudgeted wage costs due to the start of the Whakapapa i-SITE which caused Council to miss target for the year. 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.

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The targeted level of CAPEX spend is approximately $8.4M, which is very similar to the 2015/16 depreciation charge. The increase for 2015/16 is due to emergency works brought on by the June 2015 floods. The main driver is repair of roading and bridge assets and water infrastructure throughout the 2015 Financial Year. 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 and 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 it’s borrowing costs equal or are less than 10% of its revenue.

The interest to operating revenue benchmark that is measured against is that finance costs not exceed 10% of operating revenue. Council’s finance costs over the last five years have been significantly below this benchmark. The last five years have, however, had very low borrowing costs with interest rates having dropped significantly. The Weighted Average Cost of Capital for Council is 4.68% which is low next to historical data.

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