annual plan 2017/18 - gisborne district · some of the main ways your money is spent each day....

TAIRĀWHITI FIRST! 2017/18 ANNUAL PLAN

2017/18 MAHERE-A-TAU ISSN 1178-1084

CONTACT US39 Gladstone RoadGisborne 4010

PO Box 747 Gisborne 4040

06 867 2049 0800 653 800

www.gdc.govt.nz

[email protected]

@GisborneDC

@GDC_updates

Tairāwhiti Tairāwhiti TangataTairāwhiti Taonga

Tairāwhiti WawataFirst to see the light

First choice for people and lifestyle

First choice for enterprise and innovation

First place for the environment, culture and heritage

Tairāwhiti Tāngata

Tairāwhiti Taonga

Tairāwhiti Wawata

VISIONOURTairāwhiti Tairāwhiti First

make it smart

make it easy

make it happen

kai mārama

kai ngāwhari

kai ū

VALUESOURTairāwhiti Piritahi Together Tairāwhiti

What's happening in 2017/18 4Mayor and Chief Executive Message 4About this Plan 5Improving our community facilities 6Caring for our environment 8Working with our community 9Keeping us safe and connected 10

Your Feedback 12

Financial Overview 14

Our Finances 18Contents Page 18Introduction 19Prospective Statement of Comprehensive Revenue and Expenses for the year ended 30 June 2018 20Prospective Statement of Financial Position as at 30 June 2018 20Prospective Statement of Changes in Equity for the year ended 30 June 2018 21Prospective Statement of Cash Flow for the year ended 30 June 2018 21Prospective Statement Concerning Balanced Budget for the year ended 30 June 2018 22Notes to the Prospective Financial Statements 23Significant Assumptions 39

Funding Impact Statement 44Schedule 1 46Schedule 2 46Schedule 3 46Schedule 4 47

Rates Information 51

Changes to our Performance Measures 56

Appendices 59Our Council - Governance and Structure 59Schedule of Councillors, Schedule of Senior Management & Schedule of Agents 60

Contents

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OUR PLANNGĀ MĀHERE

Mayor and Chief Executive Message

Nā te Koromatua me Te Pouwhakahaere o te Kaunihera

We’re excited to present the highlights of what ourCouncil will deliver over the coming financial year andintroduceour newChief Executive (CE), Nedine ThatcherSwann.

The Council is fostering a great working relationship withthe CE as we build on the good work we’ve achievedand continue to work towards the future goals andaspirations of the community that we serve.

This year we’re committed to continueworking togetherwith you to meet our levels of service while maintainingaffordability for our community.

The projects and activities set out for year three of our2015-2025 Long Term Plan are on track to be delivered,while maintaining the average rates increase at 2% fora majority of our district.

The Library expansion is underway after a thoroughprocurement process and a final budget allocation of$6.9m. We’re excited that the much-needed extensionwill soon be a reality for the enjoyment and educationof our people.

Progress on the Tairāwhiti Navigations project over thenext year will see the Inner Harbour redevelopmentdesign concepts and early construction works, and themulti-media historical storytelling plan get underway.

The Urban Cycleway Programme is also set to beginconstruction this year to provide safer school routes forchildren in Kaiti. We'll be discussing options with residentson what a cycle path along Rutene Road would looklike.

The upgrade of the Waipaoa Flood control scheme willbe progressed with lodging of consents, engagementwith landowners and the start of some minor earthworksin summer.

There are some changes fromwhat's in the current LongTerm Plan that will occur over the next year.

We're seeking additional external funding to completethe comprehensive upgrade of the Lawson Field theatrefacilities to ensure the necessary work can go aheadwithout an additional impact on rates.

A trial wetland system for wastewater treatment anddisposal has given us some results and some further workis needed on what our options are. Any further fundingrequired to implement the preferred treatment methodwill be consulted through the 2018-2028 Long Term Plan.

Underlying all of the work we plan to deliver, we’re alsofocussed on building confidence, better communicationand engagement with our communities as we ventureinto the next Long Term Planning phase.

We look forward tomaking it happen for Tairāwhiti in thecoming 2017/18 financial year.

Chief Executive NedineThatcher Swann

Mayor Meng Foon

What's happening in 2017/18

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About this PlanChanges to the Local Government Act in 2014 relevantto the Annual Plan are that:

Annual Plans now focus primarily on proposeddifferences to the Long Term Plan (LTP).

The level of consultation required depends on thesignificance or materiality of the proposeddifferences.

This year wedid not havea formal submissions or hearingsprocess becausewewere not proposingmajor changesto the cost, scope or timing of projects and services inthe LTP – but we did want to let you know what you canexpect this year and we still wanted your feedback. Aspecial Annual Plan edition of Tairāwhiti First waspublished online and in theGisborne Herald on 25March2017.

Feedback was sought on the following topics:

Peel Street Toilets - we asked for feedback on 3 options:

Upgrade the facility – strengthen, refurbish theinterior, overhaul surfaces and fixtures and make iteasier to clean and maintain.

Build-on a night-time facility that allows the maintoilets to be locked at night, reducing the cost ofvandalism.

Install a night-time facility and repurpose the historicbuilding for something else.

JamesCookObservatory – The JamesCookObservatoryon top of Tītīrangi is currently closed due to earthquakerisk. The community was askedwhat they thought of theobservatory and how it should be used in the future.

Easter Sunday Trading – we asked whether trading onEaster Sunday was supported or not.

Dual Name - It was also highlighted that Council recentlyagreed to research, consult and apply to the NewZealand Geographic Board to approve a dual Maoriname alongside the name of Poverty Bay.

RATES CHANGES FOR 2017/18

The graphbelow represents the 2% increase in rates from2016/17 to 2017/18.

A small number of ratepayers could pay more or lessdepending on:

the capital value of the property.

some targeted rates on the property.

increases in some fixed service related rates thatapply to the property.

eligibility for rate remissions.

96% of the district will receive an increase of 3% or less.

The Targeted Plant and Pests, Rural Fires and SoilConservation rates remission is renewed for 2017/18. Thisyear’s remissions will be for a lesser amount as Rural Firesis no longer funded by rates. Funding for the Rural Firesactivity is now provided from July 2017 by Fire andEmergency New Zealand (FENZ).

DECREASES 0-2% 2-3% 3-5% 5-10% 10-20% 20-30% 30%+

Number of Properties

845 680

10,577 10,169

5392793

HOW TO READ THIS SECTION

This 2017/18 Annual Plan highlights:

any minor changes or additions to the projects,activities including financial information.

it also provides a summary of the responses to thefeedback we received from you.

a high level financial overview.

The 2015-2025 LTP is available online at:www.gdc.govt.nz/long-term-plan-2015-2025


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Improving our community facilities

Te whakapai ake i nga whakaurunga hāpori

TAIRĀWHITI NAVIGATIONSAND INNERHARBOURUPGRADE

Tairāwhiti Navigations is a community and iwi drivenproject that acknowledges the stories of our greatnavigators through a connected landscape of design,art and facilities. Phase one is focused aroundGisborne’sInner Harbour area and will be implemented in time forthe 250th Sestercentennial commemorations in 2019.Over the next year, the Inner Harbour redevelopmentwill move frompreliminary concepts to design phase andthe start of constructionworks. This includes the Esplanadeupgrade, improvedparking layout, walkwaypromenadeand planting. The Navigations Historical Interpretationsplan for storytelling includes multi-media, trail markers,sculptures and landscape design due to start byNovember.

TĪTĪRANGI RESTORATION

The dry summer has left us with plenty to do. This winterwe’ll be continuing to build the Tītīrangi Guardianprogramme and involve the community in regularvolunteer days. We will be progressing actions from theReserve Management Plan, such as considering optionsto promote pedestrian safety through a one way roador traffic calmingmeasures, andworking on infrastructureacross the maunga with input from the NavigationsHistorical Interpretations plan.

JAMES COOK OBSERVATORY

The James Cook Observatory on top of Tītīrangi iscurrently closed due to earthquake risk. There is strongcommunity support to re-establish the observatory as aneducational, tourism and historical resource that holdsbenefits for locals as well as a national and internationalaudience. High-level designs will be prepared forCouncil's consideration. Once we have an approvedplan, Council can seek external funding to revitalise thisimportant community asset.

PEEL STREET TOILETS

Council has considered the options for thehistorically-significant Peel Street toilets. The communityby and large has told us we should refurbish the currentPeel Street toilet block as their preferred option. Thiswould not, however, resolve the Thursday to Sunday issuewe currently have with night-time vandalism of thefacilities. In order to ensure the issue of night timevandalism is resolved, we proposed, as part of theupgrade, to install a dedicated night-time facilityadjacent to the current building. The night-time facilitywill be self-cleaning andmore vandal proof. Council hasallocated $400,000 in the 2017/18 financial year torefurbish the Peel Street toilets, subject to approval ofdesign by the Community Development and ServicesCommittee.


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LAWSON FIELD THEATRE UPGRADE

In the Long Term Plan we budgeted $1.1m towardsearthquake strengthening to be completed in 2017.However, after more detailed estimates were presentedand a decision made with the theatre users to includeadditional refurbishments - making the theatre moremodern andwell equipped - we need to raise additionalfunding to complete the upgrades needed. Preliminarydesigns for priority upgrades will be drawn up andapplications will be made to major external fundersincluding Lottery Commission andMinistry for Culture andHeritage.

HB WILLIAMS MEMORIAL UPGRADE

The HB Williams Memorial Library upgrade is underwaylater than planned after a more thorough procurementprocess and a final budget of $6.9m confirmed usingreserve funds and activity surpluses. We anticipate the1000-square metre extension will be completed and agrand opening event is planned for early 2018. With upto 4000 visitors a week, library users can look forward toa bigger more user-friendly library with better space forpublicmeetings, quiet study areas and disabled access.During the construction period, the library staff and100,000 books and resources have been relocated tothe Gilmours building at 53 Awapuni Road to continueoffering our library services. Bus routes have beenchanged tomakea stop outside our temporary location.

COMMUNITY FACILITIES STRATEGY

We’re working on a strategy that outlines thedevelopment of a network of community facilities toguide how Council and other funders and agenciesinvest in facilities over the next twenty years. The strategywill include plans for Council gardens, cemeteries, parksand sports grounds, the theatres, library, museum andpool. Draft plans will be ready end of June 2017.

BARKERS HILL WALKWAY

We’re about to start work on the new Barkers HillWalkway. The path will join from the end of BallanceStreet and run through to Shelley Road. It’s a populararea for pedestrians and cyclists and feedback from thecommunity has seen the project brought forward. Onceunderway, it will take 16 weeks to complete the work.We can look forward to new retaining walls, a curb andchannel, railings, a pram crossing, new LED streetlightsand improvements to the stormwater drainage.

WALKING AND CYCLING

The Urban Cycleway Programme is set to beginconstruction this year, extending the current route fromWainui to connect with Kaiti School and through Kaiti onto the city. The programme is an ongoing partnershipwith NZTA to create safe school routes. We’ve assessed


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options for an on-road route along Aberdeen Roadparallel to the Taruheru River. A feasibility study has beencompleted for a proposed cycle and walkway whichwill extend from the river walkway along the Taruheruriverbank. The priority for completing the project will beconsulted on with the community in the 2018 - 2028 LTPand Regional Land Transport Plan.

TOWNSHIP UPGRADES

Tokomaru Bay’s planned upgrades are underway oncearchaeological consents havebeengiven thegoahead.Work includes improvements around the cenotaph,playground, picnicandaBBQarea, enhancedentrancesto the township, footpath and walkway improvements.Earlier this year we introduced 3D technology to allowcommunities to see what the improvements will be likewell before the first sod is turned. Manutuke andMuriwaiare the next townships to be upgraded as part of theongoing schedule. Hui with the communities to planupgrade work will be completed by the end of this year.

Caring for our environment

Te tiaki i te taiao

WATER MANAGEMENT

Growers are helping us gather information that will helpthe region when we have drought conditions. Irrigatorsare inserting their water meter information directly intoour database, giving us an accurate account of what isbeing usedandwhen. This will meanbettermanagementand enable more robust information for future planning.For the city water supply, the Waipaoa Water DemandManagement Strategy is in place and a similar one willsoon be put in place for theWaingake take, which is fedby the Te Arai River. The strategy was completed inmid-2016 and is a pre-requisite of the Freshwater Plan.

MANAGED AQUIFER RECHARGE TRIAL

The trial in the Makauri Aquifer is on track. Theconstruction of the injection and pilot bores has beencompleted. The trial will inject 110,000 cubic meters ofwater from the Waipaoa River into the aquifer overwinter, between May and September. Results will beanalysed to determine the effect on increasing waterlevels and geochemistry in the aquifer. The trial is majority

funded by ECT and Ministry for Primary Industries, withresults leading to a report on the next steps and potentialcommercialisation of using MAR to supplement waterstorage for users on the Poverty Bay Flats.

FRESHWATER PLANS

Efforts to finalise the Freshwater Plan continue with thehearings panel now considering submissions received.Council staff continue to collect water quality data fromthe Waiapu River and will be engaging with ourstakeholders on the Waiapu Koka Huhua restoration aspart of creating the catchment plan.We’re alsoworkingon the Motu Catchment Plan development whichincludes a fish and ecosystem survey of the Motu Riverand low flow habitat mapping.

WAINUI BEACH EROSION MANAGEMENT

Work is progressing on the implementation of the strategy.Resource consents were lodged in June 2017 for sandpush-ups, replacement of approximately 30 metres ofrock and a rail wall between the southern groyne andTuahine Crescent beach access steps and removal ofthe rock undertaken as emergency works on Council’sEsplanade Beach Reserve. Repairs to the HamanatuaStream TrainingWall has been completed. 113 propertiesunder the Wainui Coastal Protection Scheme will seeincreases to their rates to fund erosion protection works.Check your rates for 2017/18 on our website.

RERE WATER ENHANCEMENT PROJECT

All 15 farmsalong theWharekopaeRiver havecompletedtheir farm environment plans, covering the whole uppercatchment area.With support fromCouncil and NZ Beefand Lamb,mitigationmeasures to reduce contaminantsgetting into theWharekopae River, and its tributaries, arebeing put in place. TheMinistry for the Environment havenow contributed $40,000 to complete a social researchprogramme. A further sixmonitoring sites above the RereFalls are planned together with a faecal source trackingstudy.


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TARUHERU RIVER RESTORATION PROJECT

The project aims to improve water quality by reducingnutrient and bacteria levels so that they fall withinacceptable levels for swimming and recreationalactivities. The Taruheru River and its tributaries cover adiverse range of land uses including forestry, pastoralfarming, reserves, horticulture and urban areas. Goingforward, more monitoring will be put in place to help usunderstandwhere the nutrient contaminants are comingfrom,with opportunities for the community to be involved.

WASTEWATER MANAGEMENT

We’re working on identifying affordable ways for bettermanagement of our wastewater, including removing itfrom our bay. We’ve completed trials on wetlands andother alternative treatment options. In the first half of thisyear we’ll be refining the options, finding out associatedcosts, and looking at possible locations and otherpractical issues. A review group has been set up to helpin this process, and we’ll consult on the options in thesecond half of 2017. Any further funding required toimplement the preferred treatment method would alsoneed to be consulted through the 2018 – 2028 Long TermPlan.

Working with our community

Te mahi tahi ki to tātou hāpori

EASTER TRADING

The Government amended the Shop Trading Hours Actin 2016. This means Council can nowcreate local policiesto allow trading in our district on Easter Sunday. We’ll betalking with stakeholders to draft a policy, to be formallyconsulted on with the community later this year. We areplanning for hearings and a decision to be made earlynext year in time for Easter Sunday in April 2018.

DUAL NAME

Council recently agreed to research, consult and applyto the New Zealand Geographic Board to approve adual Maori name alongside the name of Poverty Bay.We'll work with iwi and the community to completehistorical research on the original name for the area.Then we'll consult with the community on applying to

change the name with the New Zealand GeographicBoard.

PARTNERSHIP WITH IWI

A working party has been established with Turanga iwito implement the Local Leadership Body (LLB). Thisstatutory body was set up through the Ngai TamanuhiriClaims Settlement Act 2012. Comprising six iwirepresentatives – two from Ngai Tamanuhiri,Rongowhakaataand TeAitangaaMahaki andaffiliates,alongwith theMayor and five councillors-the LLB is a jointcommittee created towork together on significant issues.We’re also continuing to work in co-management withNgati Oneone on decisions and implementation of theReserve Management Plan for Tītīrangi. Implementationof the JointManagementAgreementwith Te Runanganuio Ngati Porou for the Waiapu River catchment will beprogressed and will include iwi contribution into theupcoming Unitary Plan development.

WAIKANAE TO WAIPAOA STUDY

The stretch of coastline between Waikanae beach andWaipaoa river mouth is a very popular place forrecreation. There are many ideas on how to use thisspace from investing further in cycleways, to providinginfrastructure and services to support recreational use.A study on what the optimal use of this coastal area is,now and in the longer term, will provide a frameworkthat correspondswith the interests of manawhenua. Thiswill help us make choices about the future use of thearea and the required investment needed.

REGIONAL GROWTH

Tairāwhiti is one of several regions that’s part of centralgovernment’s Regional Growth Programme. Developedwith key local stakeholders, the Tairāwhiti RegionalEconomic Action Plan identifies the most importantactions to stimulate local growth. If investment of $22mcan be negotiated with government, local businessesand stakeholders, within five years our district's domesticprofit could growby $236.5mper annumwith 1,260morejobs created. Key areas for growth include potential forprimary production, promoting tourism, building ourcapacity to support local business and connectingpeople and goods with markets.


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Keeping us safe and connected

Te haumaru me te hononga i a tātou

DRAINWISE

TheDrainWise projectwas created to reducewastewateroverflows on private property and discharges into rivers.During heavy rains, stormwater getting into wastewaterpipes is a major contributor to the problem. This yearwe're undertaking renewals of Council's pipe networkfocusing on Kaiti. But 95%of stormwater gets in fromdownpipes, gully traps and poor drainage on residentialproperties. We're undertaking a campaign to educateand guide the community on how to be DrainWise andlook at ways we can help homeowners address drainand pipe issues on their properties.

CIVIL DEFENCE EMERGENCY MANAGEMENT (CDEM)

Following the past few busy months, Tairāwhiti CDEMwillbe continuing to update our emergency plans andprocedures to stay prepared for when the unexpectedhappen. Responsibility for rural fire has been transferredfromCDEM to a new partnership with the NZ Fire Service.We’ll also be looking at our contingency plans for tier 2marine oil spills and undertaking practical spill exercisesin the field. We’ll be making sure people are preparedtoo, with a public survey, community education andpresentations, and training and exercises with our keypartners andcommunity link. Community Link is the groupof volunteers in Tairawhiti who encourage theircommunities READINESS andmanage their communitiesduring RESPONSE.

PARKING

Feedback from public meetings, surveys and socialmedia will be used to determine options for changingour CBD parking system. Financial impacts are beingdrawn up and consultation on the draft policy made inmid-2017. The next step would be to look at whattechnology is needed for the change. In the meantimeall our Parking Wardens and City Watch staff will bewearing personal security cameras to assist with safetyin our city centre.

ANIMAL CONTROL

Community education is key to the success of our animalcontrol unit. They are heading into the district’s schoolsto talk with students about what makes a responsibledog owner. Council is working alongside a localorganisation who is helping to re-home suitableimpounded dogs. The animal control unit are also in themidst of reviewing the policy surrounding stock on roads,and looking to educate people about who is responsiblewhen animals get out.

LED STREET LIGHTS

Our street lights are more efficient thanks to the switchfrom sodium to LED. The sodium lights ran at 70 watts,and the new environmentally-friendly LED bulb, whichcome with a 10-year warranty, will run at just 27 watts.This will make a significant saving in power andmaintenance costs. Currently, lights in theCBDare beingswitched over, but the programme will continue in thecoming years to change all 3,500 lights across the wholedistrict.

WAIPAOA FLOOD PROTECTION

Project planning is well underway with the resourceconsent lodged in June for public submissions during July


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2017 . As part of the consent, provision is being made fora cycleway along the stop banks. We're currentlyengaging with stakeholders and landowners on landpurchases and access. Our priority is to upgrade the stopbanks along the eastern city side first, followed by thewestern side. Construction of the first 2km of stop bank isscheduled for summer 2017/18.We're currently reviewingwhether the project duration can be shortened from 15years to 10 years. When complete, the banks will havebeen raised 0.9metres andwidenedby at least 2metres,providing 100-year flood protection up to the year 2090.

STORMWATER

We brought forward plans to improve the stormwaterdrainage in Douglas Street. The designs are beingworkedon nowand the installation of stormwater pipes andotherinfrastructure will be done in the summer. We’ve alsostarted a project to reduce the negative effects ofstormwater on our urban streams. More water qualitymonitoring will determine pollutant hot spots. We’ll alsolaunch a campaign with our communities on how toreduce stormwater volumes and contaminants.


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Summary of community feedback noted byCouncil

This section provides a summary of the responses to thefeedback we received from you.

Council did not propose any significant changes to ourplans for year three of the 2015-2025 Long Term Plan.TheAnnual Plan consultation instead focused onCouncildelivering its plans for 2017/18 within the agreed financiallimits (restricting rates increases to 2% and capped debtlevels), and asked for specific feedback on:

The future of Peel Street toiletsThe future of the James Cook observatoryThe issue of Easter Sunday tradingDual name

The period for receiving feedback was 24 March – 21April 2017 (4 weeks). A total of 250 feedbackcomments/submissionswere received from thewebsite.

Peel Street toilets

Ninety-four submitters provided feedback on the PeelStreet toilets options.

The community by and large has told us we shouldrefurbish the current Peel Street toilet block. This wouldnot, however, resolve the Thursday to Sunday issue wecurrently havewith night-time vandalism of the facilities.In order to ensure the issue of night time vandalism isresolved staff propose, as part of the upgrade, to installa dedicated night-time facility adjacent to the currentbuilding. The night-time facility will be self-cleaning andmore vandal proof.

Council has allocated $400,000 in the 2017/18 financialyear to refurbish the Peel Street toilets, subject toapproval of design by theCommunity Development andServices Committee.

Easter Trading

Sixty-nine submitters provided feedback on whetherEaster Sunday trading was supported or not.

It is evident that there are many who support the statusquo of no trading. There were also views that it shouldbe the businesses’ decision.

Council staff propose to consult with stakeholders as wedraft an Easter Trading Policy for the district. Furtherconsultation, including a hearings process, are planned.ACouncil decision is scheduled for early next year in timefor Easter Sunday in April 2018.

James Cook Observatory

Seventy-one submitters provided feedback onwhat theythink about the facility and how it should be used.

Many submitters supported to re-establish theobservatoryas an educational, tourism and historical resource thatholds benefits for locals as well as a national andinternational audience.

High level designs will be prepared for Councilconsideration. Once there is an approvedplan, Councilcan seek external funding to revitalise this importantcommunity asset.

Dual name

It was also highlighted that Council recently agreed toresearch, consult and apply to the New ZealandGeographic Board to approve a dual Maori namealongside the name of Poverty Bay.

Annual Plan Consultation Document

Feedback on the Annual Plan Consultation Documentwill be made available on our website and promotedthrough socialmedia. Submitters will also receive a directresponse from Council officers on decisions and nextsteps.

Council Cuppa meetings

In addition to the Annual Plan consultation, we also heldcommunity meetings throughout the district. TheCommunity Cuppa's ran separately to the Annual Planprocess, with an increased focus on the variouscommunities. Altogether 25 meetings and events wereattended by the Mayor, Councillors and staff. TheCommunity Cuppa meetings are an opportunity toconnect with each community, and discuss:

relevant Council projects and servicesanswer questionsgather feedbackidentify any issues the community faces; anddevelop an understanding of what’s important toeach community.

The summary of our 2017/18 Annual Plan was alsopresented at themeetings and feedbackwas recordedby our staff.

Feedback received from themeetingsmainly concernedroading, utilities and community facilities rather thantopics in the Annual Plan.

Key issues raised at the meetings included:

Responsiveness to requests for serviceMetal and grading issues of roads on coast andwestern rural areasSealing and dust mitigationMaintenance of toiletsClarity on maintenance and caretaker contractsIllegal rubbish dumpingWater supply to townshipsRiver erosionIrrigation solutionsEnforcement of animal controlStock control issues and bylawMonitoring of summer campingMaintenance of weeds and drainsBetter engagement and communication

Your Feedback

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Waiapu landfill and transfer station improvementsTe Puia Springs service centre

Senior management staff from Tairāwhiti Roads, roadingcontractors and Council groups attended to be able torespond questions raised directly in meetings.

Outcomes from the meetings will be followed up andcommunicated back to communities on an ongoingbasis.

Customers that made Requests for Service (RfS) throughcommunity meetings are contacted directly by Councilofficers. Staff will also communicateback to communitieswith the minutes and actions for each meeting, inparticular for rural and coastal communities, through keycontact people, venues and hubs. A new Area Liaisonofficer has also been appointed for the East Coast, whowill assist with following up completion of the actions andcommunicating back to communities and maintainingthat communication with communities.

Management staff from Tairāwhiti Roads and roadingcontractors also recorded feedback specific to roadissues and engaged customers directly for follow upduring and after the meetings.

Any requests from themeetings that were not processedas Requests for Service will be reported to the relevantCouncil Committee in July.

Your Feedback

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The financial information presented here is an overview.For more detailed information, please refer to the OurFinances section.

Financial Estimates for 2017/18

The Financial Strategy for the 2015-2025 Long Term Plan(LTP) proposed a 2% overall increase in rates for years1-3, debt thresholds of $55m for external debt, and $80mfor total debt. The estimates proposed for the 2017/18Annual Plan are within these financial limits. There arevery few variations to the financial estimates for yearthree of the 2015-2025 LTP. The main variation is the shiftof the Rural Fire activity from aCouncil operated activityto being under the authority of the Fire and EmergencyNew Zealand (FENZ). The elimination of the rural firetargeted rate decreases the overall rate intake, but dueto additional operational costs in other areas, the overallincrease in rates remains at 2%.

Themain capital variances are the changes to the timingand scope of some major projects and the utilitiesrenewal program.

Council has refined operational and capital budgetswith a focus on:

keeping rates affordablekeeping debt lowincreasing non-rates income over the long term

maintaining our core asset infrastructurefocusing on some key major projects.

We have a general requirement to manage financialmatters prudently, and in a manner that promotes thecurrent and future interests of the community. Councilmust consider the balanced budget requirement underthe Local Government Act where its forecast operatingrevenuedoes notmatch its forecast operating expenses.What we're proposing to budget for an accountingsurplus. This is the result of capital grants/subsidies, theunfunding of depreciation on specific Council assets andthe use of activity surpluses to partially fund someoperations as opposed to fully rates fund.

What we spend your rates on - our activitiesand services for 2017/18

Ka whakapau nga reiti i ēnei nā - nga nekehanga menga ratonga

Through the LTPwe set out plans for the activities Councilprovides. They included: why we do it, our plans for thenext ten years, how much they will cost, levels of serviceand performance measures to check we are on trackto delivering them. There are no significant changes tothe plans or costs of activities for year three of the LTP.Here's an example of what activities and services wespend your rates on each day.

ENVIRONMENT AND SCIENCE

$0.53PER DAY

On average each rate payer pays $6.67 per day, or annually around $2.4k* per year. Here are some of the main ways your money is spent each day.

FLOOD CONTROL

$0.33PER DAY

LAND TRANSPORT

$1.30PER DAY

REGULATION AND ENFORCEMENT

$0.41PER DAY

STRATEGIC PLANNING & ENGAGEMENT

$0.59PER DAY

COMMUNITY FACILITIES

$0.57PER DAY

GOVERNANCE AND SUPPORT

$0.22PER DAY

PARKS AND OPEN SPACES

$0.71PER DAY

SOLID WASTE

$0.53PER DAY

URBAN STORMWATER

$0.36PER DAY

WASTEWATER

$0.84PER DAY

WATER

$0.28PER DAY

WHAT WE SPEND YOUR RATES ON KA WHAKAPAU NGA REITI I ĒNEI NĀ

*How much you pay in rates will vary depending on the valuation of your property, how your land is used, where your property is located and what targeted rates/ services apply.

Financial Overview

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Following below is a summary for the 2017/18 financialyear of where the money will come from (rates and forother income) to fund our activities and services.

2017/18 Rates Increase

$50.3

m

$51.2

m

$52.3

m

$53.3

m

$54.4

m

$54.4

m

48

49

50

51

52

53

54

55

Actual2014

Actual2015

Actual2016

Budget2017

LTP Budget2018

AP Budget2018

$m

This year Council will collect $54.4m in rates. Ratesaffordability continues to be a significant issue for ourdistrict. Council's commitment to minimising ratesincreases is set out in our Financial Strategy in the LongTerm Plan 2015-2025 (LTP).

Where does the money come from?

Council's income

Rates$54.4m

Water by meter$2.7m

Grants$27.2m

Dividends, $1.8mOther, $9.3m

57%

10%2%

28%

3%

How will the money be spent?

Council's operational expenditure

Governance &Support Services

$4.6m

Flood Protection$2.8m

Wastewater$8.1m

Stormwater$2.9m

Water Supply$5.5m

Solid Waste$4.0m

Community Facilities$12.5m

Roading$26.3m

Commercial Operations$1.7m

Planning & Development$5.0m

Environmental Policy & Services$12.9m

31%

15%

6%

15%5%3%

9% 3%6%

5%2%

Council's projects

As a result of the review of major project costs, fundingand timing, the capital expenditure has increased from$29m to $42. The main changes and additions areincluded below.

VarianceIncrease/(Decrease)

$m

APBudget2018$m

LTPBudget2018$mNotes

Capital

Major projects

3.73.702Library - Building Expansion

3.03.00.02Lawson Field Theatre

0.30.80.52Tairāwhiti Navigations

0.51.51.0Wastewater Pipeline Renewals

1.01.00.0Wastewater Kaiti Pipeline Upgrades

0.20.20.0Wastewater MangapapaUpgrades

0.20.50.2Wastewater Remaining AreasUpgrades

(0.3)0.00.3Suburban & Township Upgrades

1.41.90.5Urban cycleways project

0.91.70.8Waipaoa River Flood ControlScheme Resilience Improvements

10.914.33.4

Core Capital projects

1.01.00Douglas Street StormwaterImprovements

0.40.40Tauwharepare Road - RouteSecurity

0.20.20Wastewater - mobile generator &separator plant

Other Community Projects

0.80.802Junior Cycle Park

2.320

13173

Notes

1. Rounding has been applied within totals

2. Grant funding componentry within projects

2018 Major Project Grant Funded Values $m

1.1Library - Building Expansion

2.0Lawson Field Theatre

1.5Tairāwhiti Navigations

0.7Junior Cycle Park

5.3Total Grant Funding

Financial Overview

15

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2017/18

Core and Major Projects $m

05

1015202530

4035

Actual2014

Actual2015

Actual2016

Budget2017

LTP Budget(amended)

2018

AP Budget2018

Core Capital Major Projects

14

8

14

717

14

19

14

19

10

21

21$m

Council's Debts

Council reviewed the assumptions surrounding ourforecast debt, resulting in an increase in debt projections.The forecast total debt is $79m, up $4m compared tothe LTP (amended) forecast of $75m. Also, updatedcostings for capital projects have impacted on our debt.

010203040

60

8070

50

Actual2014

Actual2015

Actual2016

Budget2017

LTP Budget(amended)

2018

AP Budget2018

External Internal

29

36

32

29

32

41

42

36

45

30

49

30$m

Significant Forecasting Assumptions

The estimates contain prospective financial information.Actual results are likely to vary from the informationpresented and the variations may be material.

Fees and Charges

The Council fees and charges are used to fund theoperation and maintenance of a variety of servicesprovided to the community.

Some fees and charges have been increased by 2% to2.6% for 2017/18. This is in line with the expectation in the2015-2025 Long Term Plan. Most changes are as a resultof inflation. Dog registrations however, have changedfromadiscount beingapplied for paymentsmadebefore31 July 2017, to a 25% penalty added if paid after thisdate.

Fees needed to be increased further in some activitiesto meet Council’s Revenue and Finance policies orincreased costs. These include:

War Memorial TheatreResource consentsEnvironmental Health – Food Act regulationsRoading - Corridor Access FeesWater and Coastal resources – water meteringregulations.

Full details of the fees and charges can be found on theCouncil's website: www.gdc.govt.nz

Rating Policy ChangesThe targeted rate remission policy for Pest Plants, Rural Firesand Soil Conservation rates is being renewed for the 2017/18rating year. As the Rural Fires activity is now funded by Fireand Emergency New Zealand (FENZ) no remission will applyfor Rural Fires. This means that the remission applied toindividual properties under this policy will be less than lastyear. Any continuation of the rates relief will automaticallybe applied to affected properties prior to instalment 1 beingsent out to ratepayers.

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http://www.gdc.govt.nz

OUR FINANCESTE TOHATOHA PŪTEA

Contents Page

Page 19Introduction

Prospective Statement of Comprehensive Revenue and Expenses

Page 20Prospective Statement of Financial Position

Page 21Prospective Statement of Changes in Equity

Page 21Prospective Statement of Cash Flow

Page 22Prospective Statement Concerning Balanced Budget

Notes to the Financial Statements

Page 23Note 1 Statement of Accounting Policies

Page 31Note 2 Prospective Summary Cost of Services by Activity

Page 32Note 3 Rates Revenue

Page 32Note 4 Revenue from Grants and Subsidies

Page 32Note 5 Revenue from Operating Activities

Page 32Note 6 Revenue from Other Gains/(Losses)

Page 32Note 7 Employee Benefit Expense

Page 33Note 8 Depreciation and Amortisation Expense

Page 33Note 9 Expenditure on Operating Activities

Page 33Note 10 Finance Costs

Page 33Note 11 Development Contributions Revenue

Page 34Note 12 Movements in Reserves

Page 35Note 13 Reconciliation of Funding Impact Statement with Prospective Statementof Comprehensive Revenue and Expenses

Page 36Note 14 Capital Expenditure 2016/17

Page 39Significant Assumptions

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IntroductionTheAnnual Plan sets out Council’s priorities and identifieshow Council intends to fund its operations and capitalprojects.

The forecasts prepared for Council have beenpreparedbased on agreed levels of service for each activity. Thelevels of service are set out in detail in the 2015-2025 LongTerm Plan (LTP).

The finances include:

Prospective Statement of Comprehensive Revenueand ExpensesProspective Statement of Financial PositionProspective Statement of Changes in EquityProspective Statement of CashflowsProspective Statement Concerning BalancedBudget.

Further detailed information is provided in the Notes tothe Prospective Financial Statements which identifiesrevenue and expenditure for each group of activities(Note 2) and a full list of capital projects planned for2017/18 with comparison figures to Year 3 of the2015-2025 Long Term Plan (Note 14).

The operational and capital costs within the Annual Planinclude:

Existing CostsCosts to continue to deliver the current level ofservice.

Growth CostsCosts to deliver current level of service to a largercommunity due to growth.

Level of Service ChangesCosts to deliver an increase in level of service.

Project CostsCosts such as depreciation and interest that occurfrom Council financing capital projects.

InflationIncreases in revenue and costs due to pricechanges.

The Nature of the Prospective FinancialInformation - cautionary note

The prospective financial information contained in theAnnual Plan is a forecast. It has been prepared on thebasis of assumptions as to future events that the Councilreasonably expects to occur, associatedwith the actionsit reasonably expects to take at the date the forecastwas prepared. The forecast relates to events and actionswhich have not yet occurred and may not occur.

The actual results achieved for the period covered arelikely to vary from the financial information presentedand the variations may be material. The uncertainty

increases as the number of years of prospective financialinformation increases. Uncontrollable external events willsignificantly affect the forecast.

The Prospective Statement of Financial Position has beenreviewed to incorporate the audited Statement ofFinancial Position for the year ended 30 June 2016 andthe movements per the second year of the 2015-2025Long Term Plan (2016/17). This has been adjusted for anymaterial events during the current financial year.

A number of assumptions need to be made about theeconomic and financial conditions whichwill apply overthe lifetime of the model. The major assumptionsunderpinning the LTP are set out in the SignificantAssumptions.

Please Note

Revenue from the Grants, Subsidies and Contributions -Capital includes grants received where the associatedexpenditure will be capitalised. Expenditure relating tothese projects will be recognised (primarily asdepreciation) over the life of the capitalised assets.

Council has budgeted for a net surplus in the 2017/18Annual Plan. This is mainly the result of the capital grantsand subsidies. Further information is available in theProspective Statement Concerning Balanced Budgetlater in this section.

The financial information contained within the 2017/18Annual Plan may not be appropriate for purposes otherthan those described.

There may be rounding differences throughout thefinancial statements and notes included in this section.They do not impact the overall usefulness of theinformation presented.

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Prospective Statement of ComprehensiveRevenue and Expenses for the year ended30 June 2018

AP2018$000s

LTP2018$000sNotes

AP2017$000s

REVENUE FROMNON-EXCHANGETRANSACTIONS

9,22794Grants and Subsidies -Operational

9,438.00

17,954134Grants, Donations, Subsidiesand Contributions - Capital

12,232.00

1,65022Other Non Exchange Revenue 1,608.00

17,644183General Rates And UniformAnnual General Charge

16,485.00

36,748363Targeted Rates 36,857.00

REVENUE FROM EXCHANGETRANSACTIONS

699111Development and FinancialContributions

699.00

6,9459*'2/5Other Revenue 9,049.00

2,6463*3Targeted Water Rates 2,579.00

1,83322/5Dividends 1,459.00

1402/5Interest Received 14.00

1206Other Gains/(Losses) - Profit onSale of Assets

12.00

95,37192Total Revenue 90,433.00

EXPENSES

17,687187Employee Benefit Expenses18

45,353469Expenditure on OperatingActivities

46

21,098218DepreciationandAmortisation21

2,199310Financing Costs2

00Internal Transfers0

86,337872Total Expenses86

9,0345Net Surplus/(Deficit) beforeTaxation

4

00Subvention Payment fromGHL0

00Income Tax Expense0

9,0345Net Surplus/(Deficit) afterTaxation

4

3920Gains/(Losses) on PropertyRevaluation

0

9,4256TOTAL COMPREHENSIVEREVENUE AND EXPENSES

5

Note

* Other revenue is split to show 'TargetedWater Rates' as a separate category, re-stating the AP2017 & LTP 2018.

This aligns with the Annual Report categories.

Prospective Statement of Financial Positionas at 30 June 2018

AP2018$000s

LTP2018$000s

AP2017$000s

CURRENT ASSETS

2824,589Cash & Bank293

5,3925,980Non Exchange TradeandOtherReceivables*

4,299

5,8345,351Exchange Trade and OtherReceivables*

5,785

123184Inventories105

6 10Investments8

-50Non Current Assets Held forResale

50

11,69316,154Total Current Assets10,540

CURRENT LIABILITIES

377380Deposits Held463

17,42414,021Trade and Other Payables14,235

2,0052,791Employee Benefits andSuspense

1,928

14,61511,222Borrowings14,830

2,60378Provisions for Other Liabilities78

699489Derivative Financial Instruments535

37,72528,981Total Current Liabilities32,067

(26,032)(12,827)Total Net Working Capital(21,530)

NON CURRENT ASSETS

1,970,3631,951,355Property Plant and Equipment1,956,172

3,6361,668Intangible Assets2,080

3,2772,186Biological Assets2,368

42,41629,771Investments29,891

2,019,6931,984,980Total Non Current Assets1,990,511

NON CURRENT LIABILITIES

34,33033,579Borrowings27,283

325255Employee Benefit Liabilities303

1,6951,481Provisions for Other Liabilities1,475

2,7231,137Derivative Financial Instruments2,031

39,07436,452Total Non Current Liabilities31,092

1,954,5881,935,699Total Net Funds Employed1,937,895

EQUITY

423,506424,085Accumulated Surplus414,920

31,05230,635Special Funds33,611

1,500,0301,480,979Revaluation Reserves1,489,364

1,954,5881,935,699Total Equity1,937,895

Note

* Exchange & Non Exchange Receivables for the AP2017 & LTP 2018 have been recategorised, to align with the

Annual Report categories. Relates to Water Meter receivables.

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Explanation of Variances in the Statement ofFinancial Position

Current Assets - Cash & Bank

The LTP stated $4.6m of Cash through-out the ten years.This was based upon the actual closing position as at 30June 2014. At that time there was a temporary depositcategorized as being aCash & Bank asset. However, thistemporary deposit was reversed in the beginning of thefollowing year. AP 2017 shows the reversal of thetemporary deposit and the AP 2018 is in line with this.

Current Liabilities - Provision for Other Liabilities

AP 2018 has increased provision arising from various legalmatters.

Non-Current Assets - Investments

AP 2018 investments have increaseddue to the increasein shares, after the sale of GVT and theWaikanaeHolidayPark to GHL.

Prospective Statement of Changes in Equityfor the year ended 30 June 2018

AP2018$000s

LTP2018$000s

AP2017$000s

EQUITY OPENING BALANCES

410,870418,484Accumulated Funds and Retained Earnings407,993

34,65531,102Special Funds and Reserves36,280


1,945,1621,930,174Total Equity Opening Balance1,933,260

CHANGES IN EQUITY

Accumulated Surplus (Retained Earnings)/Revaluation Reserves

9,4255,525Total Comprehensive Income for the Year*4,694

3,603467Transfer to/(from) Special Funds and Reserves2,669

00Transfer to/(from) Restricted Funds LiabilityMovement

0

Special Funds and Reserves

(3,603)(467)Transfer to/(from) Retained Earnings(2,669)

9,4255,525Total Changes in Equity4,694

EQUITY CLOSING BALANCES

423,506424,084Accumulated Funds and Retained Earnings414,920

31,05230,635Special Funds and Reserves33,611


1,954,5881,935,699Total Equity Closing Balance1,937,895

Attributable to :

1,954,5871,935,699Gisborne District Council1,937,895

Note

* AP 2018 surplus is higher than the 2018 LTP due to capital grants received for Lawson Field Theatre, Library,

Junior Cycle Park and Urban Cycleway Program.

Explanation of Terms used in the ProspectiveStatement of Cash Flows

Cash and Cash Equivalents is considered to be cash onhand and current accounts in banks, net of bankoverdrafts.

Investing Activities are those activities relating to theacquisition, holding and disposal of fixed assets andinvestments. Investments can include securities not fallingwithin the definition of cash.

Financing Activities are those activities which result inchanges in the size and composition of the capitalstructure of theGroup. This includes both equity anddebtnot falling within the definition of cash.

Operating Activities include all transactions and otherevents that are not investing or financing activities.

The GST (net) component of operating activities reflectsthe net GST paid and received with the Inland RevenueDepartment. The GST component has been presentedon a net basis, as the gross amounts do not providemeaningful information for financial statement purposes.The GST rate assumed in these estimates is 15%.

Prospective Statement of Cash Flow for theyear ended 30 June 2018

AP2018$000s

LTP2018$000s

AP2017$000s

Cash Flow from Operating Activities

Cash provided from:

52,93652,939Rates Receipts51,920

27,18121,916Government Grants and Subsidies21,670

11,84014,062Receipts from Activities13,882

1414Interest Received14

1,8331,833Dividends Received1,459

00Subvention0

93,80490,76388,945

Cash provided to:

60,57160,867Payments to Suppliers and Employees60,003

1,124924Grants906

00GST (Refund)0

00Income Tax0

2,2382,647Interest Paid2,030

63,93264,43762,939

29,87126,326Net Cash Inflow/(Outflow) Operating Activities26,006

Cash Flow from Investing Activities

Cash provided from:

1212Sale of Property Plant and Equipment12

121212

Cash provided to:

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AP2018$000s

LTP2018$000s

AP2017$000s

42,02628,960Purchase of Property Plant and Equipment33,378

00Purchase (w/down or sale) of Investments0

42,02628,96033,378

(42,014)(28,948)Net Cash Inflow/(Outflow) Investing Activities(33,390)

Cash Flow from Financing Activities

Cash provided from:

11,7812,622Increase/(Decrease) in Borrowings7,384

11,7812,6227,384

11,7812,622Net Cash Inflow/(Outflow) Financing Activities7,384

(362)(0)Net Increase/(Decrease) in Cash0

2824,589Cash at beginning of the year293

(79)4,589Cash and Cash Equivalents at Year End293

Prospective Statement ConcerningBalanced Budget for the year ended 30June 2018

AP2018$000s

LTP2018$000s

AP2017$000s

95,371 92,488Operating Revenue 90,433

86,337 87,352Operating Expenditure 86,115

00Subvention Payment0

00Income Tax Expense0

9 5,136Net Operating Surplus/(Deficit) After Taxation 4,318

LESS

579 579Capital Rates Income 543

17,954 12,631Capital Grants and Subsidies* 12,232

699 699Other Capital Grants, Donations and Contributions 699

584 650Operations Funded by Reserve Funds 101

PLUS

7,865 7,867Depreciation not Funded 7,536

2,917 1,556Increase/(Decrease) in Deficit** 1,722

00Balanced Budget - operating income agrees tooperating expenditure0

Notes

* Increased subsidy from NZTA for carried forward Urban Cycleway Program, Library, Lawson Field Theatre and

Junior Cycle Park project.

** Increased deficit in 2018 AP over the LTP 2018 relates to carrying forward surplus funds in activities for the

Wetlands Feasibility costs, ISSP and for Civic expenses relating to discretionary grants over the district.

Balancing the budget

Council sets operating income at a level to meet eachyear’s operating expenditure. This is to ensure that thereis access to enough funding to enable the services tocontinue to be provided long term. However, there areactivities where this approach may not be practical orprudent due to the activity’s long term nature such asinfrastructure assets, forestry and soil conservationnurseries. Council is forecasting an accounting surplusfor 2016/17.

Council intends to:

Smooth the rates increase by running activitydeficits/surpluses in some activities (e.g. forestry,conservation nurseries, contestable fund).Not fund a portion of depreciation on specificassets or components of assets funded throughcapital rates or subsidies (i.e. wastewater treatmentplant and some roading assets).Use operational reserves and/or activity balancesto fund some operational expenditure whereappropriate. The main activities that are partiallyfundedbyactivity surpluses/deficits are theOlympicpool, planning and development as well as watersupply activities.

When preparing and reviewing the budget; Council hashad regard to the following specific matters in relationto all activities of Council, as per the LGA section 100:

Maintaining levels of serviceMaintaining the service capacity and integrity ofassetsIntergenerational equityCompliance with Council’s funding and financialpolicies established under LGA section 102.

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Notes to the Prospective FinancialStatements

Note 1 : Statement of Accounting Policies

Reporting Entity

Gisborne District Council (“Council”) is a Unitary Authoritygoverned by the Local Government Act (LGA) 2002.

The Gisborne District Council Group (the “economicentity") consists of Gisborne District Council and itscontrolled entities, Gisborne Holdings Ltd (100% owned),Tauwhareparae Farms Ltd (100% owned) andTauwhareparae Forests Ltd (100% owned). All Councilcontrolled entities are incorporated in New Zealand.

Council has not presented economic entity prospectivefinancial statements because we believe that thecontrolling entities, prospective statements are morerelevant to users. The main purpose of prospectivefinancial statements in the Annual Plan is to provide userswith information about the core services that Councilintends to provide ratepayers, the expectedcost of thoseservices and, as a consequence, how much Councilrequires by way of rates to fund the intended levels ofservices. The level of rates funding required is not affectedby controlled entities, except to the extent that theCouncil obtains distributions from, or further invests in,those controlled entities. Such effects are included in theprospective financial statements presented.

TheCouncil is a Public Benefit Entity (PBE) for the purposesof Financial Reporting. The Financial Bill enacted inDecember 2013 defines a PBE as "entities whose primaryobjective is to provide goods or services for communityor social benefit, and where equity has been providedwith a view to supporting that primary objective, ratherthan for a financial return to equity". Gisborne DistrictCouncil is defined as a Tier 1 entity with expenditure inexcess of $30m.

Basis of Preparation

The Council’s prospective financial statements havebeen prepared in accordance with the requirements ofthe LGA 2002, which includes the requirement to complywith New Zealand Generally Accepted AccountingPractice (NZGAAP).They complywith Public Benefit Entity(PBE) Standards andother applicable Financial ReportingStandards, as appropriate for public benefit entities. Thisincludes compliance with PBE Financial ReportingStandard No. 42 (PBE FRS-42) ‘Prospective FinancialStatements’.

The prospective financial statements have beenprepared on a historical cost basis, modified by therevaluation of certain fixed assets, forestry assets, livestockassets and certain financial instruments to reflect fairvalue.

The prospective financial statements are presented inNew Zealand dollars and all values are rounded to thenearest thousanddollars ($'000). The functional currencyof Council is New Zealand dollars.

The Nature of the Prospective FinancialInformation - Cautionary Note

The prospective financial information contained in theAnnual Plan is a forecast. It has been prepared on thebasis of assumptions as to future events that the Councilreasonably expects to take at the date the forecast wasprepared. The forecast relates to events and actionswhich have not yet occurred and may not occur. Theactual results achieved for the period covered are likelyto vary from the financial information presented and thevariations may be material.

A number of assumptions need to be made about theeconomic and financial conditions whichwill apply overthe life-time of the model. The major assumptionsunderpinning this Plan are set out in the SignificantAssumptions section.

The financial information contained within the AnnualPlan may not be appropriate for purposes other thanthose described.

Specific Accounting Policies

The following specific Accounting Policies whichmaterially affect the measurement of financialperformance and the financial position have beenapplied.

Revenue Recognition

Revenuehas been split into Exchangeandnon Exchangeas per the requirements of the new Public Benefit Entity(PBE) accounting standards. Non Exchange revenue iscategorised as receiving value without givingapproximately equal value in exchange e.g. generalrates, government grants.

Revenue is measured at the fair value of considerationreceived. The following specific recognition criteriamustbe met before revenue is recognised.

Rates Revenue

Rates are set annually by a resolution from Council andrelate to a financial year. All ratepayers are invoicedwithin the financial year to which the rates have beenset. Rates revenue is recognisedwhen invoices are raised.

Government Grants and Subsidies

Government grants are initially recognised as income attheir fair value where there is reasonable assurance thatthe grant will be received and all attaching conditionswill be complied with.

Council receives government subsidies fromNewZealandTransport Agency, which subsidises part of Council’s costsin maintaining the local roading infrastructure.

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The subsidies are recognisedas revenueuponentitlementas conditions pertaining to eligible expenditure havebeen fulfilled.

Other Revenue

Revenue from the rendering of services is recognised,based on the actual service provided on an accrualbasis.

Sales of goods are recognised when a product is sold tothe customer. Sales are usually in cash or by electronicpayment. The recorded revenue is the gross amount ofthe sale, excluding GST. Interest income is recognisedusing the effective interest method.

Dividends are recognised when the right to receivepayment has been established.

Where a physical asset is acquired for nil or nominalconsideration the fair value of the asset received isrecognised as revenue. Assets vested in Council arerecognised as revenue when control over the asset isobtained.

Borrowing Costs

Borrowing costs (except borrowing costs incurred as aresult of capital work) are recognised as an expense inthe period in which they are incurred.

When the construction of assets are loan funded, allborrowing costs incurred as a result of the capital workare capitalised as part of the total cost of the asset upuntil the point where the asset enters service.

Grant Expenditure

Non-discretionary grants are those grants that areawarded if the grant application meets the specifiedcriteria. They are recognised as expenditure when anapplication thatmeets the specified criteria for the granthas been received.

Discretionary grants are those grants where Council hasno obligation to award on receipt of the grantapplication and are recognised as expenditure when asuccessful applicant has been notified of Council’sdecision.

Income Tax

Income tax expense in relation to the surplus or deficitfor the period comprises current tax and deferred tax.

Current tax is the amount of income tax payable basedon the taxable profit for the current year, plus anyadjustments to income tax payable in respect of prioryears. Current tax is calculated using rates that havebeenenactedor substantially enactedbybalancedate.

Deferred tax is the amount of income tax payable orrecoverable in future periods in respect of temporarydifferences and unused tax losses.

Temporary differences are differences between thecarrying amount of assets and liabilities in the financialstatements and the corresponding tax basis used in thecomputation of taxable profit.

Deferred tax liabilities are generally recognised for alltaxable temporary differences. Deferred tax assets arerecognised to the extent that it is probable that taxableprofits will be available against which the deductibletemporary differences or tax losses can be utilised.

Deferred tax is not recognised if the temporary differencearises from the initial recognition of goodwill or from theinitial recognition of an asset and liability in a transactionthat is not a business combination, and at the time of thetransaction, affects neither accounting profit nor taxableprofit.

Deferred tax is recognised on taxable temporarydifferences arising on investments in subsidiaries andassociates, and interests in joint ventures, except whereCouncil can control the reversal of the temporarydifference and it is probable that the temporarydifference will not reverse in the foreseeable future.

Deferred tax is calculated at the tax rates that areexpected to apply in the period when the liability issettled or the asset is realised, using tax rates that havebeenenactedor substantially enactedbybalancedate.

Current tax and deferred tax is charged or credited tothe Prospective Statement of Comprehensive Revenueand Expenses, except when it relates to items chargedor credited directly to equity, in which case the tax isdealt within equity.

Leases

Operating Leases

An operating lease is a lease that does not transfersubstantially all the risks and rewards incidental toownership of an asset. Lease payments under anoperating lease are recognised as an expense on astraight-line basis over the lease term.

Finance Leases

A finance lease is a lease that transfers to the lesseesubstantially all the risks and rewards incidental toownership of an asset, whether or not title is eventuallytransferred.

At the commencement of the lease term, the Councilrecognises finance leases as assets and liabilities in theProspective Statement of Financial Position at the lowerof the fair value of the leased item or the present valueof the minimum lease payments.

The amount recognised as an asset is depreciated overits useful life.

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Trade and Other Receivables

Trade and other receivables are recognised at fair valueand subsequently measured at amortised cost using theeffective interest method, less any allowance foruncollectible amounts.

A provision for impairment of receivables [doubtful debts]is established when there is objective evidence that theCouncil will not be able to collect all amounts dueaccording to the original terms of the receivables. Theamount of the provision is the difference between theasset’s carrying amount and the present value ofestimated future cash flows, discounted using theeffective interest method. Non-current receivables arerecognised at the present value of their expected futurecash flows, discounted at the current market rate ofreturn for a similar asset.

Inventories

Inventories are recognised at the lower of cost and netrealisable value. Net realisable value is the estimatedselling price in the ordinary course of business, less theestimated costs of completion and selling expenses. Thecost of inventories is based on the first-in first-out (FIFO)principle and includes expenditure in acquiring theinventories and bringing them to their existing locationand condition.

Financial Assets

Council classifies its financial assets in the following twocategories:

Available-for-sale financial assets; andLoans and receivables.

The classification depends on the purpose for which theassets are held. Management determines theclassification of its investments at initial recognition andre-evaluates the designation at every reporting date.

Financial assets and liabilities are initially measured at fairvalue plus transaction costs unless they are carried at fairvalue through the Prospective Statement ofComprehensive Revenue and Expenses in which casethe transaction costs are recognised in the ProspectiveStatement of Comprehensive Revenue and Expenses.

Purchases and sales of investments are recognised ontrade-date, the date on which the Council commits topurchase or sell the asset.

The fair value of financial instruments traded in activemarkets is based onquotedmarket prices at the balancesheet date. The quoted market price is the current bidprice. The fair value of financial instruments not tradedin an active market is determined using valuationtechniques. Council uses a variety ofmethods andmakesassumptions that are based onmarket conditions existingat each balance date.

Quoted market prices or dealer quotes for similarinstruments are used for long-termdebt instruments held.

Other techniques, such as estimated discounted cashflows are used to determine fair value for the remainingfinancial instruments.

Derecognition of Financial Assets

Financial assets are derecognised when the rights toreceive cash flows from the financial assets have expiredor have been transferred and theCouncil has transferredsubstantially all the risks and rewards of ownership.

Council presently has the following categories of financialassets:

a. Loans and Receivables

Loans and receivables are non-derivative financial assetswith fixed or determinable payments that are not quotedin an active market. Council’s general and communityloans are designated as loans and receivables. They arerecognised initially at fair value, and subsequently carriedat amortised cost less impairment losses.

Loans to community organisations made by Council atnil, or below-market interest rates are initially recognisedat the present value of their expected future cash flows,discounted at the current market rate of return for asimilar asset/investment. Theyare subsequentlymeasuredat amortised cost using the effective interest method.

The difference between the face value and presentvalue of the expected future cash flows of the loan isrecognised in the Prospective Statement ofComprehensive Revenueand Expenses as a grant. Loansto other parties at market rates are measured atamortised cost using the effective interest method.Non-current loans are discounted at the current marketrate of return for a similar asset.

b. Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivativesthat are either designated in this category or notclassified in any of the other categories.

TheCouncil’s investments in equity securities are classifiedas available for sale and are stated at fair value. Gainsand losses are recognised directly in equity except forimpairment losses, which are recognised in theProspective Statement of Comprehensive Revenue andExpenses.

In the event of impairment any cumulative lossespreviously recognised in equity will be removed andrecognised in the Prospective Statement ofComprehensive Revenue and Expenses even thoughthe asset has not been derecognised.

Impairment of Financial Assets

At each balance sheet date Council assesses whetherthere is any objective evidence that a financial asset orgroup of financial assets is impaired. Any impairmentlosses are recognised in the Prospective Statement ofComprehensive Revenue and Expenses.

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Accounting for Derivative Financial Instrumentsand Hedging Activities

Council uses derivative financial instruments such asinterest rate swaps (“hedges”) and forward rateagreements to manage its cash flow and interest raterisk. In accordance with its treasury policy, the Councildoes not hold or issue derivative financial instruments fortrading purposes.

Derivatives are initially recognised at fair value on thedate a derivative contract is entered into and aresubsequently re-measured at their fair value at eachbalance date.

Council does not satisfy all the conditions for hedgeaccounting and therefore all gains or losses in fair valueof instruments used to manage cashflow and interestrate risk are recognised through the ProspectiveStatement of Comprehensive Revenue and Expenses.

Financial Liabilities - Borrowings

Borrowings are initially recognised at their fair value. Afterinitial recognition, all borrowings are measured atamortised cost using the effective interest method.

Non-Current Assets Held for Sale

Non-current assets held for sale are classified as held forsale if their carrying amount will be recovered principallythrough a sale transaction, not through continuing use.Assets held for sale are measured at the lower of theircarrying amount and fair value less costs to sell.

Any impairment losses for write-downs of assets held forsale are recognised in the Prospective Statement ofComprehensive Revenue and Expenses.

Any increases in fair value (less costs to sell) arerecognised up to the level of any impairment losses thathave been previously recognised.

Non-current assets (including those that are part of adisposal group) are not depreciated or amortised whilethey are classified as held for sale. Interest and otherexpenses attributable to the liabilities of a disposal groupclassified as held for sale continue to be recognised.

Property, Plant and Equipment

Property, Plant and Equipment consists of:

Operational Assets

These include land, buildings, improvements, librarybooks, wharves, floating plant, plant equipment, andmotor vehicles.

Infrastructural Assets

Infrastructural assets are the fixed utility systems ownedby Council and comprise the sewer, water, stormwater,roading, flood control, and the waste disposalinfrastructures.

Each asset type includes all items that are required forthe network to function, for example, sewer reticulationpiping and sewer pump stations.

Biological Assets

Forestry Assets

Forestry assets consist of the Council’s forestry holdings.Forestry assets are valued on the basis of fair value lessestimated point of sale costs. Fair value is determinedbased on the present value of expected net cash flowsdiscounted at a currentmarket determined pre-tax rate.Forestry assets are revalued annually. Valuationmovements pass through the Prospective Statement ofComprehensive Revenue and Expenses. The costs tomaintain the forestry assets are included in theProspective Statement of Comprehensive Revenue andExpenses.

Pamoa Forest Joint Venture

Council has transferred forestry rights to Juken NewZealand Limited in respect of a total of 1,608 hectares ofland associated with the Pamoa Forest.

The transfer relates to one harvest cycle. Under theagreement Council has contributed the land and isentitled to 16.47% of stumpage. All costs of developmentare borne by Juken New Zealand Limited. The value ofthe land (excluding the trees) and Council’s right to ashare of the stumpage is reflected in the ProspectiveStatement of Financial Position.

Intangible Assets

Intangible assets predominately comprise computersoftware and carbon credits.

Software Acquisition and Development

Acquired computer software licenses are capitalised onthe basis of the costs incurred to acquire and bring touse the specific software.

Costs associated with maintaining computer softwareare recognised as an expensewhen incurred. Costs thatare directly associatedwith the development of softwarefor internal use or with the acquisition of software licencesby Council, are recognised as an intangible asset.

Amortisation

The carrying value of an intangible asset with a finite lifeis amortised on a straight line basis over its useful life.Amortisation begins when the asset is available for useand ceases at the date that the asset is derecognised.The amortisation is charged to the Prospective Statementof Comprehensive Revenue and Expenses on a straightline basis over the useful life of the asset.

Typically, the estimated useful lives of these assets are asfollows:

Computer software 6 years.

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Emissions Trading Scheme

Council’s forestry holdings incorporates forestry assetsheld byCouncil and its subsidiary, Tauwhareparae FarmsLtd.

Tauwhareparae Farms Ltd (TFL) has voluntarily enteredthe New Zealand Emissions Trading Scheme (ETS) inrespect of 1,181.6 hectares of forest land located in theTauwhareparaearea. This entitles TFL to receive emissionsunits (units) for carbon stored in the specified area froma 1 January 2008 baseline.

Units received are recognised at fair value on the datethey are received and subsequently measured at costsubject to impairment. While there are no specificconditions attached to units received, should carbonstored in the specified area fall below the amountcompensated for, a portion of the units received mustbe returned.

Units received are recorded on the ProspectiveStatement of Financial Position as an intangible assetuntil it is clear that theywill not be required tomeet futureemissions obligations. The value of units is then recognisedin the Prospective Statement ofComprehensive Revenueand Expenses.

Where there is an obligation to return units this liability isrecognised on the Prospective Statement of FinancialPosition, measured with reference to the carrying valueof units on hand. Where there is insufficient units on handto meet the emissions obligation, this is measured byreference to the current market value for units held.

Future cash flows associated with unitsreceivable/payable are taken into consideration indetermining the valuation of the specified area.

Council’s forestry holdings separate from the subsidiariesholdings, consist of approximately 97 hectares of smallwoodlots and 1,124 hectares held by the Pamoa ForestJoint Venture. These forestry blocks were registered withETS in November 2011.

At the time of the Long Term Plan there was noconfirmation of the number of issued units to Council andas such no units have been recognised and recordedon the Prospective Statement of Financial Position for thisAnnual Plan.

Property, Plant and Equipment Valuation

Council has elected to use the Public Benefit Entitiesexemption to revalue property, plant and equipment onan asset class basis. The results of revaluing are creditedor debited to an asset revaluation reserve for that classof asset. Where this results in a debit balance in the assetrevaluation reserve, this balance is expensed in theProspective Statement of Comprehensive Revenue andExpenses. Any subsequent increase on revaluation thatoff-sets a previous decrease in value recognised in theProspective Statement of Comprehensive Revenue andExpenses will be recognised first in the ProspectiveStatement of Comprehensive Revenueand Expenses up

to the amount previously expensed, and then creditedto the revaluation reserve for that class of asset.

Additions

Additions between valuations are recorded at cost,except for vested assets. Certain infrastructural assetsand land have been vested in Council as part of thesubdivision consent process. Vestedassets are recognisedas revenue when control over the asset is obtained.Vested assets are valued at fair value when received.

Disposals

Gains and losses on disposals are determined bycomparing the proceeds with the carrying amount ofthe asset. Gains and losses on disposals are included inthe Prospective Statement of Comprehensive Revenueand Expenses.

When revalued assets are sold, the amounts included inasset revaluation reserves in respect of those assets aretransferred to retained earnings.

Subsequent Costs

Costs incurred subsequent to the initial acquisition arecapitalised only when it is probable that future economicbenefits or service potential associated with the itemwillflow to Council and the cost of the item can be reliablymeasured.

Operational Assets Valuations

All Operational assets are carried at cost lessaccumulateddepreciationand impairment losses exceptfor:

Operational Land

Operational land is valued at fair value and is notdepreciated.

Operational Buildings

Operational buildings are revalued to optimiseddepreciated replacement cost and depreciatedbetween valuations. These assets are independentlyrevalued every 3 years, or more frequently when thereare indications that the values may have changedsubstantially from carrying value.

Library Books - General Collection

All new and replacement books are capitalised in theyear they are purchased and subsequently depreciatedbased on useful lives. The valuations are performed bythe Head Librarian and are not subject to independentreviewbecause there are readily availablemarket pricesto determine fair value.

Library Books Permanent Collection

The permanent collection is carried at deemed cost.

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Infrastructure Assets Valuations


Infrastructural assets are initially recordedat depreciatedreplacement cost. Infrastructureassets other than roadingare independently valued every 3 years at depreciatedreplacement costs, unless conditions indicate thatcarrying value is materially different to fair value, in whichcase assets are revalued more frequently.

Roading Assets

Roading assets are independently revalued annually.

Airport Assets

Airport assets include land, buildings, runway aprons,roading and below ground infrastructure. Airport assetsare independently valued every 3 years or morefrequently when there are indicators that the fair valuesmay have changed substantially from carrying value.

Depreciation

Depreciation is provided on a straight-line basis on allfixed assets other than land and land under roads.

The depreciation rates used will write off the cost (orvaluation) of the assets to their estimated residual valuesover their useful lives. The useful lives and associateddepreciation rates of major classes of assets have beenestimated as follows:


Roads

1 – 20 yearsPavement Surface (seal)

5 yearsPavement Surface (unsealed)

Wearing Course

75 – 100 yearsPavement Layers (basecourse)

(not depreciated)Formation

25 – 50 yearsCulverts

20 – 75 yearsFootpaths

50 yearsSurface Water Channels

12 yearsSigns

15 – 25 yearsStreet Lights

25 – 80 yearsBridges

80 yearsRetaining Structures

15 yearsTraffic Signals

25 yearsParking Meters

10 – 15 yearsRailings

10 – 13 yearsSafety Projects

Water Reticulation

30 – 165 yearsPipes

25 yearsValves, Hydrants

15 – 100 yearsPump Stations

400 yearsDams

16 – 200 yearsStructures

Sewerage Reticulation


100 yearsManholes

15 – 100 yearsPump Stations

15 – 50 yearsTreatment Plant

100 yearsLaterals

Stormwater Systems


25 – 100 yearsIn-drain structures

25 – 100 yearsFlood Control Systems

4 – 25 yearsSolid Waste

Operational Assets

(not depreciated)Land

3 – 100 yearsBuildings/Land Improvements

2 – 20 yearsPlant/Machinery/Motor Vehicles

3 – 50 yearsOffice Equipment/Furniture

5 – 25 yearsOther Equipment

1 - 50 yearsLibrary Books

50 yearsWharves

25 yearsFloating Plant

3 – 8 yearsLeased Assets

Capital work in progress is not depreciated. The totalcost of a project is transferred to freehold buildings, plantand equipment or infrastructural assets on its completionand then depreciated.

Assets Under Construction

Assets under construction are valued at cost but theyare not depreciated. The total cost of a project istransferred to freehold buildings, plant and equipmentor infrastructural assets on its completion and thendepreciated.

Impairment of Non Financial Assets

Assets that have a finite useful life are reviewed forimpairment whenever events or changes incircumstances indicate that the carrying amount maynot be recoverable.

If the recoverable amount of a non-financial asset is lessthan its carrying amount, the item is written down to itsrecoverableamount. Thewrite downof an item recordedat cost is recognised as an expense in the ProspectiveStatement of Comprehensive Income.Whena re-valueditem is written down to recoverable amount, the write

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down is recognised as a downward revaluation to theextent of the corresponding revaluation reserve, and anybalance recognised in the Prospective Statement ofComprehensive Revenue and Expenses.

The carrying amount of a non-financial asset that haspreviously been written down to a recoverable amountis increased to its current recoverable amount if therehas been a change in the estimates used to determinethe amount of the write down. The increased carryingamount of the itemwill not exceed the carrying amountthat would have been determined if the write down torecoverable amount had not occurred.

Trade and Other Payables

Trade and other payables are non-interest bearing andare normally settled on 30-day terms. Therefore, thecarrying value of trade and other payables used in theProspective Statement of Financial Position approximatestheir fair value.

Financial Liabilities: Borrowings

Borrowings are initially recognised at their fair value. Afterinitial recognition, all borrowings are measured atamortised cost using the effective interest method.

Employee Entitlements

The provision for annual leave employeeentitlement andother employee benefits expected to be settled within12 months of balance date has been calculated on anactual entitlement basis at current rates of pay while theother provisions have been calculated on future rates ofpay, discounted using an appropriate discount rate.

Provision for accumulated sick leave is made only to theextent that it is expected to be used in future periods.The expected usage is assessed using historical averagerates of use.

Long Service Leave and Retirement Leave

For retiring leave and long-service leave not expectedto be takenwithin 12months of balancedate, the liabilityis equal to the present value of the estimated future cashoutflows, calculated on an actuarial basis, as a result ofemployee services provided at balance date.

Superannuation Schemes

Defined Benefit Scheme

Council belongs to the Defined Benefit Plan ContributorsScheme (the scheme), which is managed by the Boardof Trustees of the National Provident Fund. The schemeis a multi-employer defined benefit scheme.

Insufficient information is available to use defined benefitaccounting, as it is not possible to determine from theterms of the scheme, the extent to which thesurplus/deficit will affect future contributions by individualemployers, as there is no prescribed basis for allocation.

The scheme is therefore accounted for as a definedcontribution scheme.

Provisions

Provisions are recognised for future expenditure ofuncertain amount or timing when the Council has apresent obligation (legal or constructive) as a result of apast event, and it is probable that an outflowof resourcesembodying economic benefits will be required to settlethe obligation and a reasonable estimate can bemadeof the amount of the obligation.

If the time value of money is material, provisions aredetermined by discounting the expected future cashflows at a rate that reflects current market assessmentsof the time value of money and, where appropriate, therisks specific to the liability.

Where the Group expects some or all of a provision tobe reimbursed, for example under an insurancecontract,the reimbursement is recognised as a separate asset butonly when the reimbursement is virtually certain. Theexpense relating to any provision is presented in theProspective Statement of Comprehensive Revenue andExpenses net of any reimbursement.

Public Equity

This represents the ratepayer’s net ownership of Council.It is made up of the following components:

Accumulated Funds and Retained EarningsSpecial Funds and ReservesAsset Revaluation Reserves

Accumulated Funds

Comprise accumulated surpluses over the years.

Special Funds and Reserves

Reserves are acomponent of public equity and representa particular use to which parts of equity have beenassigned. Reserves may be legally restricted or createdby Council.

Special funds are recorded at cost plus accumulatedinterest. These funds are restricted in nature and can onlybe used for the special purpose for which they were setup.

Also included are reserves restricted byCouncil decision.These funds are subject to specific conditions acceptedas binding by Council which may not be revised byCouncil without reference to a third party or the Courts.

Asset Revaluation Reserve

Comprise accumulated revaluation increments ordecrements.

Detail on themovement of reserves held byCouncil (withexception of revaluation reserve) can be found in Note12 ( Page 34 ).

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Prospective Statement of Cash Flows

Cash flows from operating activities are presented usingthe direct method.

Definitions of terms used in the Prospective Statement ofCash Flows:

Operating Activities

These activities include all transactions and events thatare not investing or financing activities.

Investing Activities

These comprise those activities relating to the acquisition,holding and disposal of fixed assets and investments.Investments can include securities not falling within thedefinition of cash.

Financing Activities

These are activities which result in changes in the sizeand composition of the capital structure of Council;inclusive of both equity and debt not falling within thedefinition of cash.

Changes to Accounting Policies

There has been no changes in accountingpolicies duringthe Annual Plan. All accounting policies have beenapplied on a consistent basis throughout the yearspresented.

Critical Accounting Estimates andAssumptions

In preparing these prospective financial statementsCouncil hasmadeestimatesandassumptions concerningthe future. These estimates and assumptions may differfrom the subsequent actual results. Estimates andjudgments are continually evaluated and are based onhistorical experience and other factors, includingexpectations of future events that are believed to bereasonable under the circumstances. The estimates andassumptions that have a significant risk of causing amaterial adjustment to the carrying amounts of assetsand liabilities within the next financial year are discussedbelow.

Landfill Post Closure Costs

Paokahu

As former operator of the Paokahu landfill site, Councilhas an obligation to ensure the ongoing maintenanceand monitoring services at this landfill site after closure.

A landfill aftercare provision has been recognised as aliability in the Prospective Statement of Financial Position.Provision is made for the present value of post closurecosts expected to be incurred in restoring the area to itsformer status. The calculated cost is based on estimatesof future site maintenance, supervision and monitoringcosts. The estimated length of time needed for postclosure care for the Paokahu site is 35 years from 31December 2002.

The calculations assume no change in the legislativerequirements or technological changes for closure andpost closure treatment.

Waiapu

As operator of the Waiapu landfill site, Council has anobligation to ensure the ongoing maintenance andmonitoring services at this landfill site after closure.

A landfill aftercare provision has been recognised as aliability in the Prospective Statement of Financial Position.

Provision is made for the present value of post closurecosts expected to be incurred in restoring the area to itsformer status. The calculated cost is based on estimatesof future site maintenance, supervision and monitoringcosts. The estimated length of time needed for postclosure care for the Waiapu site is 35 years from 30 June2045.


There are a number of assumptions and estimates usedwhen performing the depreciated replacement costvaluations in respect of infrastructural assets. Theseinclude:

The physical deterioration and condition of asset,for example, Council could be carrying an asset atan amount that does not reflect its actualcondition. This is particularly so for those assetswhich are not visible, for example stormwater,wastewater and water supply pipes that areunderground. This risk is minimised by Councilperforming a combination of physical inspectionsand condition-modeling assessments ofunderground assets.

Estimating any obsolescence or surplus capacityof an asset.

Estimates are made when determining theremaining useful lives over which the asset will bedepreciated. These estimates can be impactedby the local conditions, for example, weatherpatterns and traffic growth.

If useful lives do not reflect the actual consumptionof the benefits of the asset, then Council could beover or under-estimating the annual depreciationcharge recognised as an expense in theProspective Statement of Comprehensive Revenueand Expenses. To minimise this risk, Council’sinfrastructural asset’s useful lives have beendeterminedwith reference to the NZ InfrastructuralAsset Valuation and Depreciation Guidelinespublished by the National Asset ManagementSteering Group, and have been adjusted for localconditions based on past experience.

Asset inspections, deterioration and conditionmodelling are also carried out regularly as part ofCouncil’s asset management planning activities,

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which providesCouncil with further assuranceoverits useful life estimates.

Experienced independent valuers perform Council’sinfrastructural asset revaluations.

GST

The financial statements have been prepared exclusiveof GST with the exception of receivables and payables,which are stated with GST included.

Budget Figures

The budget figures are those approved by Council andpublished in the 2015-2025 Long TermPlanand this AnnualPlan.

The Annual Plan 2017/18 figures have been produced inaccordance with the requirements of the Public BenefitEntity (PBE) accounting standards.

Cost Allocation

Expenditure has been reported by the nature of theexpense.

Capital Management

Council’s capital is its equity (or ratepayers’ funds) whichcomprise accumulated funds and reserves. Equity isrepresented by net assets.

The Local Government Act 2002 (the Act) requiresCouncil to manage its revenues, expenses, assets,liabilities, investments and general financial dealingsprudently and in a manner that promotes the currentand future interests of the community. Ratepayers’ fundsare largely managed as a by-product of managingrevenues, expenses, assets, liabilities, investments andgeneral financial dealings.

The objective of managing these items is to achieveintergenerational equity, which is a principle promotedin the Act and applied by Council. Intergenerationalequity requires today’s ratepayers to meet the costs ofutilising the Council’s assets and not expecting them tomeet the full cost of long-term assets that will benefitratepayers in future generations. Additionally, Councilhas in place asset management plans for major classesof assets detailing renewal and maintenanceprogrammes, to ensure that ratepayers in futuregenerations are not required to meet the costs ofdeferred renewals and maintenance.

The Act requires Council to make adequate andeffective provision in its Annual Plan to meet theexpenditure needs identified by those plans. The Act setsout the factors that the Council is required to considerwhen determining the most appropriate sources offunding for each of its activities. The sources and levelsof funding are set out in the funding and financial policiesin the Council’s LTP.

Note 2 : Prospective Summary Cost ofServices by Activity for the year ended 30June 2017

AP2018$000s

LTP2018$000s

AP2017$000s

Expenses

1,1231,104Animal Control1,156

1,9931,963Arts & Culture1,868

1,7191,696Building Services1,735

5811,179Civil Defence & Emergency Management1,176

1,6523,937Commercial Operations3,834

1,9271,891Environmental Health1,823

4,9954,961Environmental Services5,068

2,8432,698Flood Protection2,872

2,5272,196Governance2,343

2,0872,127Libraries2,078

1,006933Parking987

6,5246,286Parks & Open Spaces6,161

4,9824,774Planning & Development4,856

1,8771,861Pools1,842

1,5301,515Resource Consents1,524

26,32326,413Roading25,893

3,9913,974Solid Waste3,923

2,9342,872Stormwater2,886

2,0641,959Support Services1,515

8,1127,475Wastewater7,370

5,5495,538Water Supply5,208

86,33787,352Total Expenses86,115

Revenue

762762Animal Control800

123123Arts & Culture120

930930Building Services907

6687Civil Defence & Emergency Management94

1,1373,407Commercial Operations3,345

320320Environmental Health312

437574Environmental Services757

184184Flood Protection179

1414Governance14

140140Libraries137

1,3971,340Parking1,361

377385Parks & Open Spaces367

153211Planning & Development158

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AP2018$000s

LTP2018$000s

AP2017$000s

543544Pools526

202202Resource Consents197

9,0119,011Roading8,845

166166Solid Waste165

00Stormwater0


339339Wastewater331


22,32624,763Total Revenue24,159

64,01162,58961,956

Note 3 : Rates Revenue

AP2018$000s

LTP2018$000sNotes

AP2017$000s

57,03857,040Rates Revenue55,921

Rate revenue consists of:

4.5993,543General Rates3,613

13.04514,680Uniform Annual General Charge12,873

36.74836,172Targeted Rates36,857

2.6462,6461Metered Water Rates2,579

57.03857,040Rates Revenue55,921

Less

8418412Remissions820

56.19656,199Net Rates Revenue55,101

Notes

1. Targeted water rates was re-categorised from Note 5 (Revenue from operating activities revenue) to align

with the Annual Report.

2. Council grants rates remission to certain rate payers. Council has a number of rates remission policies which

include, Rates for Permanent Crops, Whenua Rahui and Community, Sporting and Other Organisations.

Note 4 : Revenue fromGrants and Subsidies

AP2018$000s

LTP2018$000sNotes

AP2017$000s

Revenue from Grants andSubsidies

6454Central Government Grants437

18,30917,1341NZ Transport Agency RoadingSubsidies16,116

8,8084,7272Other Grants and Subsidies5,117

27,18121,916Total Revenue fromGrants andSubsidies21,670

Notes

1. AP 2018 has increased NZTA grant for carried forward Urban Cycleway Plan.

2. Increased 'Other grants and Subsidies' in AP 2018 relates to grants expected to be received for the Library,

Lawson Fields and Junior Cycle Park capital projects

Note 5 : Revenue fromOperating Activities

AP2018$000s

LTP2018$000sNotes

AP2017$000s

Revenue from Operating Activities

00Reserves Contribution0

699699Development Contributions699

00Capital Contributions0

894894Rates Penalties871

7,3319,7101Activity Revenue9,426

1414Interest14

1,8331,833Dividends1,459

370370Petroleum Tax361

00Gains on Derivatives (Interest RateSwaps)0

11,14113.519Total Revenue from OperatingActivities12,829

Note

1. Targeted water rates has been re-categorised to show under rates revenue in alignment with the Annual

Report.

Note 6 : Revenue fromOtherGains/(Losses)

AP2018$000s

LTP2018$000s

AP2017$000s

Revenue from Other Gains

00Gain / (Loss) on Changes in Fair Value ofForestry Assets and Stock0

00Gain / (Loss) on Changes in Fair Value ofLivestock0

1212Gain / (Loss) on Disposal of Property, Plant andEquipment12

00Gain / (Loss) on Changes in Fair Value ofNon-Current Receivables / Investments0

1212Total Revenue from Other Gains12

Note 7 : Employee Benefit Expense

AP2018$000s

LTP2018$000s

AP2017$000s

Employee Benefit Expense

19,32119,200Salary and Wages19,635

496532Defined Contribution Plans Expense525

00Increase / (Decrease) in Leave Liabilities0

(2,130)(1,868)Less Recharged to Other ExpenseCategories**(2,092)

17,68717,864Total Employee Benefit Expense18,067

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Note 8 : Depreciation and AmortisationExpense

AP2018$000s

LTP2018$000s

AP2017$000s

Depreciation and Amortisation Expense

00Animal Control0

527527Arts & Culture496

22Building Services2

4545Civil Defence & Emergency Management46

810894Commercial Operations865

66Environmental Health6

4444Environmental Services44

137138Flood Protection136

22Governance2

316366Libraries313

00Parking0

615612Parks & Open Spaces604

11Planning & Development1

208180Pools187

00Resource Consents0

11,39911,432Roading11,041

289289Solid Waste281

919919Stormwater892


2,2872,315Wastewater2,238


21,09821,248Total Depreciation and Amortisation Expense20,522

Note 9 : Expenditure onOperatingActivities

AP2018$000s

LTP2018$000sNotes

AP2017$000s

Expenditure on Operating Activities

1,2391,5591Administration Expenses1,319

205205Audit Fees - Financial Reporting200

1,2441,2441Consultants and Professional Services1,213

687571Elected Members and Director's Fees560

122129Indirect Employment Costs119

1,124924Grants and Donations1,106

7336981Insurance Costs729

1,9091,8331Rental and Operating Leases1,892

9,65410,1861Repairs and Maintenance9,508

589589Bad Debts Written Off - Rates574

AP2018$000s

LTP2018$000sNotes

AP2017$000s

7658001Bad Debts Written Off - Other789

1021021Change to Impairment of Receivables95

1742021IRD Compliance Costs187

2,5352,5361Litter Bins and City Cleaning2,471

2,0112,0111Emergency Works2,011

22,26222,0371Other Operating Expenditure22,751

45,35345,625Total Expenditure onOperating Activities45,525

Note

1. AP2017 & LTP 2018 have been re-categorised, to align with the Annual Report categories.

Note 10 : Finance Costs

AP2018$000s

LTP2018$000s

AP2017$000s

Finance Costs

1,020900Interest on Debentures and Interest Rate Swaps1,020

1,0791,616Interest on Bank Borrowings and CommercialPaper879

100100Line Fee100

00Losses on Derivatives (Interest Rate Swaps)0

2,1992,616Total Finance Costs1,999

Note 11 : Development ContributionsRevenue

AP2018$000s

LTP2018$000s

AP2017$000s

Development Contributions Revenue

7979Reserves & Open Spaces79

117117Roading117

9191Water Supply91

280280Wastewater280

133133Stormwater133

699699Total Development Contributions Revenue699

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Note 12 : Movements in Reserves

Closing Balance30 June 2018

$000s

Transfersfrom

Reserves$000s

Transfersto

Reserves$000s

OpeningBalance

1 July 2017$000sNotes

Special Funds and Other Reserves

270027Municipal Theatre Project

(317)991(3)676Library Building

751021730Waipaoa River Flood Control Scheme

542015527Civil Defence Disaster Relief

2,5160712,446Capital Development Fund

1,1740331,141Quarry Rehab

300129Olympic Pool Development

1001Rates Postponement Fidelity

960393Reserves Contributions

(57)0113(170)Land Transport - Urban DevelopmentContributions

(670)6771(674)Water Supply - Urban DevelopmentContributions

62884295417Wastewater - Urban DevelopmentContributions

(817)142110(785)Stormwater - Urban DevelopmentContributions

358188271Reserves - District DevelopmentContributions

7006HMNZ Blackpool Scholarship Fund

(3,255)2,454459(1,261)1GHL Forestry Reserve

370010359Land Subdivision

00002Parking

0000Roading Flood Damage Reserve

30,00721,91221,09830,821Depreciation

31,05225,98922,38634.655Total Special Funds and Other Reserves

Notes

1. GHL Forestry Reserve has a negative balance, as capital projects have been funded ahead of the planned forestry dividend from GHL. Capital funded projects to date include Waipaoa River Flood Control, Inner Harbour

Redevelopment and township upgrades.

2. Parking Reserve was transferred in 2013 to Parking activity surplus/deficit balances.

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Note 13 : Reconciliation of Funding ImpactStatement with Prospective Statement ofComprehensive Revenue and Expenses

AP2018$000s

LTP2018$000s

AP2017$000s

RECONCILIATION OF REVENUE

Sources of operating funding

76,71879,160Total operating funding (A) as per Funding Impact Statement77,502

0Add Sources of capital funding

17,95412,631Subsidies and grants for capital expenditure12,232

699699Development and financial contributions699

00Lump sum contributions0

95,37192,49090,433

95,37192,488As per Prospective Statement of Comprehensive Income - Total OperatingIncome

90,433

RECONCILIATION OF EXPENDITURE

Applications of operating funding

65,23966,106Total applications of operating funding (B) as per Funding ImpactStatement

65,593

21,09821,248Add depreciation and amortisation expense20,522

86,33787,35286,115

86,33787,352As per Prospective Statement of Comprehensive Income - Total OperatingExpenditure

86,115

RECONCILIATION OF TOTAL COMPREHENSIVE INCOME

17,95412,631Add subsidies and grants for capital expenditure12,232

11,47913,054Surplus/(deficit) of operating funding (A-B)11,909

699699Add development and financial contributions699

(21,098)(21,248)Add depreciation and amortisation expense(20,522)

392389Add gains/(loss) of property revaluation377

9,4255,5254,694

9,4255,525As per Prospective Statement of Comprehensive Income - TotalComprehensive Income

4,694

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Note 14 : Capital Expenditure 2017/18

Variance

AP2018$000s

LTP2018$000sLevel Of ServiceDescription

Arts & Culture03232MAINTAINPublic Art - Promote, CommissionAnd Install Public Art To Reflect TheDistrict's

History And Culture01,5501,550INCREASEInner Harbour Redevelopment

3,0003,0000MAINTAINLawson Field Theatre -300825525INCREASETairāwhiti Navigations Project

3,3005,4072,107Total

Civil Defence & Emergency Management0236236MAINTAINCivil Defence Radio System Renewal - Arowhana

(5)05MAINTAINRural Fires Hose Packs - Replace And Upgrade(5)236241Total

Commercial Operations04242MAINTAINCommercial Property - Staff Housing Upgrades0200200MAINTAINCommunity Housing - Upgrades

(21)021MAINTAINVehicle Testing - Facility Renewals(63)063MAINTAINCommercial Property - Waikanae Beach Holiday Park Facility Renewals(6)06INCREASECommercial Property - Gvt Facility And Business Improvements

(21)021MAINTAINCommercial Property - Gvt Equipment Replacement(76)076MAINTAINCommercial Property -Waikanae BeachHoliday Park, Facility Refurbishment

(187)242429Total

Environmental Services08989MAINTAINTelemetry And Hydrological Equipment08989Total

Flood Protection01111MAINTAINRuatoria Flood Protection - Provide A Means Of Halting/slowing Down

Erosion8581,658800MAINTAINWaipaoa River Flood Control Scheme Resilience Improvements8581,669811Total

Governance000INCREASEMobile Sound000Total

Libraries3,7043,7040INCREASELibrary - Building Expansion

0167167MAINTAINLibrary Books01111MAINTAINLibrary Books Ex Book Trust01212MAINTAINLibrary-DVD ,CD's, Talking Books055MAINTAINLibrary - E-Books

3,7043,899195Total

Parks & Open Spaces01010INCREASEKaiti Beach Reserve - Beach Protection And Revegetation02424MAINTAINConveniences - Rural05555MAINTAINRefurbish Conveniences - City0150150MAINTAINParks And Reserves - Alfred Cox Park - Redevelopment And Revegetation0236236MAINTAINParks And Reserves -Waikanae/midway Beach Reserve Site Improvements04747MAINTAINParks And Reserves - Botanical Gardens - Implement Management Plan05050MAINTAINParks And Reserves - Adventure Playground Recreation Reserve Softfall

And Shading044MAINTAINParks And Reserves - Te Arai Recreation Reserve (manatee Park)03131MAINTAINParks And Reserves - Buildings09090MAINTAINParks And Reserves - Hard Surfacing/paving/concrete/car Parks/

Paths/boardwalks/access ways/tracks04747MAINTAINDistrict - Parks And Reserves - Picnic Tables, Furniture, Bibs And Fountains02828MAINTAINParks And Reserves - Walls/Retaining Sea Walls/Monuments renewals0100100MAINTAINParks And Reserves - Playground Equipment Renewals0210210MAINTAINParks And Reserves - Titirangi Recreation Reserve Upgrades And

Improvements099MAINTAINParks And Reserves - Dune Care

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Variance

AP2018$000s


01515GROWTH / MAINTAINParks And Reserves - Wd Lysnar & Wainui Beach Reserves - ImplementManagement Plan

01414MAINTAINParks And Reserves - Neighbourhood Parks And Local Purpose Reserves -Fencing, Signage, Revegetation, And Furniture And Fittings

8008000INCREASEParks And Reserves - Junior Cycle Park099MAINTAINParks - District - Fencing - Renewals01010MAINTAINParks - District - Lighting Renewals07171MAINTAINParks - Irrigation And Drainage Of District Sports Parks01414MAINTAINParks - Kopututea Private Reserve - Co-Governance0118118MAINTAINParks - Waikirikiri Reserve S/park - Papawhariki Project01010MAINTAINParks - Dune Care - Wainui Beach Ms055MAINTAINCemeteries Capital Renewals01919MAINTAINCommunity Property - District - Monuments, Public Art, TownClock Renewals04747MAINTAINCommunity Property - Signage Renewals

8002,2251,425Total

Pools64,0064,000INCREASE / MAINTAINRedevelopment Of Olympic Pool Complex (Gisborne Indoor Water Park

2014)64,0064,000Total

Roading01,6001,600MAINTAINPavement Maintenance - Renewal0950950MAINTAINRoadside Drainage Renewals0650650MAINTAINBridge Renewals (renewals Of Local Roads)0300300MAINTAINBridge Replacements - Heavy Vehicle Bridge Strengthening02,0002,000MAINTAINResurfacing Of Roads (renewals Of Local Roads)02,5002,500MAINTAINRehabilitation Of Roads (renewals Of Local Roads)0900900MAINTAINMinor Improvements Projects0700700GROWTH / INCREASEPreventative Maintenance - River Protection Work

(300)0300INCREASESuburban & Township Upgrades05555MAINTAINFootpath Replacement01515MAINTAINBus Shelter Replacements06060INCREASEDrainage Renewals0400400MAINTAINTraffic Service Renewals (renewal Of Local Roads)0350350INCREASEGisborne City Carpark Facility01212MAINTAINEnvironmental Renewals

3503500INCREASETauwharepare Road - Route Security02,0002,000GROWTH / INCREASETauwharepare Link Road0300300INCREASEStreetlight Upgrades To Led

1,3701,870500INCREASEWalking And Cycling (intersection And Route Safety Improvements)1,42015,01213,592Total

Solid Waste01111INCREASEWaiapu Landfill - Stage 301313MAINTAINPaokahu Closed Landfill04242MAINTAINTransfer Stations05353MAINTAINLitter Bins0118118Total

Stormwater0250250GROWTH / MAINTAINStormwater Pipeline Renewals05353MAINTAINStormwater Renewals For Rural Townships04444MAINTAINStormwater In Drain Structures0100100GROWTH / MAINTAINStormwater Localised Urban Upgrades02525GROWTHUpsizing Of Infrastructure To Cater For Additional Growth03737MAINTAINStanford Crescent Stormwater Catchment Upgrade0144144MAINTAINTolaga Bay - Piping of Existing Open Water Drains Along Parkinson Street

1,0001,0000GROWTH / MAINTAINDouglas Street Stormwater Improvements1,0001,654654Total

Support Services04444MAINTAINOrthophoto Regeneration - Aerial Photography0158158MAINTAINIs Contestable Capex0281281MAINTAINExisting Core Hardware Renewal0750750INCREASEIssp Capex04242MAINTAINBuildserv. Electronic Process0310310MAINTAINSoftware Renewals & Upgrades

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Variance

AP2018$000s


0235235INCREASEInformation Technology Software Enhancements0300300MAINTAINVehicle Replacements01616MAINTAINMinor Plant Renewals02,1372,137Total

Wastewater03131GROWTHLocalised Urban Upgrades0278278MAINTAINWastewater Pump Station Renewals06969MAINTAINPermanent Flow Loggers

5001,5001,000GROWTH / MAINTAINWastewater Pipeline Renewals9809800MAINTAINWastewater Kaiti Pipeline Upgrades2502500GROWTH / MAINTAINWastewater Mangapapa Upgrades250500250GROWTH / MAINTAINWastewater Remaining Areas Upgrades

0267267GROWTH / INCREASEWastewater Treatment Plant Further Treatment01010MAINTAINTe Karaka Oxidation Pond Improvements0123123MAINTAINWaiapu Septage Site Improvements

1001000MAINTAINAdditional Mobile Generator3953950MAINTAINWastewater Wetlands Project90900MAINTAINSeptage Solids Removal

2,5654,5942,029Total

Water Supply0500500MAINTAINDistribution : Pipe Renewals [asbestos Main Replacement]02121MAINTAINDistribution : Water Meter Renewals03434GROWTH / MAINTAINLocal Urban Upgrades0400400MAINTAINBulk Distribution - Waingake Trunk Main Refurbishment0179179MAINTAINBulk Distribution - Waingake Trunk Main Air Valve Renewals01,1341,134Total

13,46142,42128,960Grand Total

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Significant AssumptionsThe following section details the assumptions Council hasmade in preparing this Annual Plan. These assumptionsare necessary as they ensure that readers are aware ofthe basis for the estimates and forecast. The Annual Planprovides forecast financial information in accordancewith New Zealand Financial Reporting Standard 42(FRS42), Prospective Financial Statements. Actual resultsare likely to vary from the information presented and thevariations may be material.

Significant Forecasting Assumptions and Risks

Schedule 10 (Section 11) of the Local Government Act2002 contains provisions relating to ‘significant forecastingassumptions’. The Act requires that Council identifies thesignificant forecasting assumptions and risks underlyingthe financial estimates. Where there is a high level ofuncertainty, Council is required to state the reason forthat level of uncertainty and provide an estimate of thepotential effects on the financial assumptions.

General

It is assumed there will be no changes in the nature ofthe Gisborne District Council’s business.

Population Growth

Theprojected resident population for theGisborneDistrictis 47,691 as at 30 June 2016, an increase from 47,000 in2013. Between 2013 and 2043, the population forGisborne District is forecast to increase by 5,063 persons(10.77% growth), at an average annual change of 34%.The projections show that:

Many established suburbs that have recentlyexperienced population loss will begin to gainpopulation by the end of the forecastThe biggest gain in population will be found inRiverdale, with lower amounts of growth expectedin Gisborne Central, Wainui-Okitu, andMakaraka-MatokitokiContinued loss of population in the rural areas.

The number of dwellings in Gisborne District is forecast togrow from 18,057 in 2013 to 20,615 in 2043 -an averageannual increase of 0.38 percent. Average household sizefor this period is expected to decrease from 2.75 to 2.62.

Between 2013 and 2023, the number of persons agedunder 17 is forecast to decrease by 310 (2.2%), and willcomprise 28.1% of the total population. The number ofpersons aged over 60 is expected to increase by 2,496(27.8%) and comprise 23.6% of the total population.

Development Contributions Funding

The income and expenditure forecast related todevelopment contributions assume that growth occursas projected and growth-related capital projects areimplemented as planned.

GST

The Annual Plan assumes a GST rate of 15%.

Interest Rates

The interest rate on Council external debt is estimatedto be 5.04% in this Annual Plan. Council covers its interestrate exposure using interest rate swaps. The interest ratesare based on estimates of the 90-day bank bill rate andinclude bank margins and the effect of continuing useof interest rate swaps.

Inflation

The forecast financial information includes provision forinflation. Council has used forecasts of price levelchanges prepared by Business and Economic ResearchLimited (BERL) to calculate the inflation rate for eachyear of the Long Term Plan. Council has left the inflationat levels used in the 2015-2025 LTP. Council has notincluded any inflation on Roading operation costs for the2017/18 financial year. This is based on firm indicationsfrom National Roading bodies.

Debt Levels

The re-forecast debt levels assume that:

Some capital project's cost estimates have revisedcosts and timing based on current estimates as atDecember 2016

NZTA subsidy is assumed at 63% of roadingexpenditure.

Rates cashflows are forecast to remain at 2017/18levels - a 2% increase in rates offsets any increasein level of rates, bad debts.

Fees and Charges

Some fees and charges have been increased by 2% to2.6% for 2017/18. This is in line with the expectation in the2015-2025 LTP. Most changes are as a result of inflationor cost recovery basis.

Renewability of Funding

Bank facilities are arranged with multiple banks andstructured to ensure there is a range of maturity dates.Bank facilities are reviewed annually. The Annual Planassumes that the necessary level of fundingwill continueto be available through a mixture of bank facilities anddebentures.

Income Tax

It is anticipated that no tax will be payable by Councilduring the term of the Annual Plan.

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Forecast Return on Investments

Council has forecast the following returns for significantinvestments:

Tauwhareparae Farms Ltd

Gisborne Holdings Ltd (GHL) is a Council ControlledOrganisation (CCO) set up to hold the District’s strategiccommercial business assets on behalf of theCouncil, andto provide the management expertise needed for theircommercial operations. It is 100% owned by GisborneDistrict Council.

GHL directs and monitors the activities of its subsidiary,Tauwhareparae Farms Ltd. GHL wholly ownsTauwhareparae Farms Ltd and Tauwhareparae ForestsLtd.

Tauwhareparae Farms Ltd is the only trading operationand is involved in the ownership of farming activities.

The 2017/18 Annual Plan includes a dividend fromGisborne Holdings Ltd. The payment of dividends issubject to the Directors' approval after their taking intoaccount the financial position of GHL.

Forestry

The Council owns 92.7ha of commercial forestrycomprising a relatively large number of small blockscontaining a variety of age-classes. Council is alsoinvolved in a joint venture with Juken NZ Ltd on Council’sPamoa Lands.

External Funding

Included in the forecast financial statements are anumber of operational and capital projects that areassumed to be either significantly or 100% funded byanother agency or grant. There are also a number ofmajor projects to be fundedby a combination of Counciland external funding.

Council has $42.4m of capital projects planned for theterm of the Annual Plan (after project prioritisation). Ofthis, $18m is budgeted to be funded fromgrants, subsidiesor donations. There is a risk that sources of funds for somecapital projects may not eventuate. It is assumed that ifthe external funds budgeted are not available then theprojects will be reviewed and the availability of otherfunding sources will be assessed.

Depreciation

All assets, excluding those listed below, are assumed tobe replaced at the end of their useful life. The followingassets are assumed not to be replaced at the end oftheir useful life:

Tolaga Bay WharfPatutahi Hall.

Council does not fund depreciation on these assets.

Council does not fully fund the depreciation on itsroading assets in the Forecast Financial Statements. It isassumed that a set proportion of the Land Transportcapital expenditure will continue to be funded throughNZTA financial assistance subsidies. It is thereforeconsidered appropriate to only collect rates revenue onthe portion of roading depreciation funded fromCouncilreserves.

Council does not fund depreciation on the Airport assetsas it is assumed that theCouncil lease of theAirport assetsand operations to Eastland Infrastructure Ltd will result inthe assets being returned to Council at the end of thelease in the same condition as when the lease beganon 1 April 2005.

Useful lives of assets are as recorded in AssetManagement Plans or based upon professional advice.There is a risk that some assets may wear out and failsooner or later than calculated. There is no certainty thatasset components will last exactly their design lives.However, replacement is budgeted at the expectedend of useful life and earlier replacement will result in aloss on disposal of any residual value.

Earlier replacement may result in deferring otherdiscretionary capital projects in order to remain withinthe total Annual Plan capital budget and Council’sborrowing limits as set out in the Council LiabilityManagement Policy.

The depreciation rates used for plannedasset acquisitionare in line with current policies.

Depreciation on Planned Asset Acquisitions

Thedepreciation rates used for plannedasset acquisitionsare in line with current policies.

Asset Sales

The forecast financial information does not make anyprovision for income from the sale of Council assets.

Resource Consents

All of Council’s works projects require resource consentsto be granted beforeworks can commence. It has beenassumed that resource consents can be obtained for allcapital works, and that obtaining those resourceconsentswill not significantly impact on the timing of capital worksshown in the Annual Plan.

It is also assumed that the currency and conditions ofexisting resource consents held by Council will not bealtered significantly during the term of the Annual Plan.

Revaluation of Assets

The forecast financial information includes an annualestimate to reflect the change in asset valuations anddepreciation. The effect of the revaluations, is a bestestimate basedon historical asset values, forecast capitalexpenditure, the BERL inflation indices and recentrevaluation information.

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Themost recent revaluation ofCouncil’s assets (excludingflood assets) was at 30 June 2014. Roading infrastructureassets are revalued annually. It is assumed revaluationswill result in an increase in the asset values, revaluation,reserves and the depreciation expense.

Efficiency Gain Targets

Council has identified the need to reduce the ratesdemand by making efficiency gains. These gains will bemade through improved systems and managementwithin the organisation.

Emissions Trading Scheme

Council has made no provisions for the effects of theEmissions Trading Scheme in this Annual Plan. The effectsof the scheme are difficult to predict. It is anticipatedthat any increase in costs will be mostly offset byincreased efficiency gains.

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Financial Reporting & Prudence Disclosures

The Local Government Act 2002 sets out a number of disclosure requirements for Councils over and above the generallyaccepted accounting practice (GAAP) information. Local Government (Financial Reporting and Prudence) Regulations 2014sets out specific requirements in terms of the information to be reported and the format in which it is to be reported.

Benchmarks - per LG (Financial Reporting and Prudence) Regulations 2014

Annual Plan Disclosure Statement for the year ending 30 June 2018

MetAP 2018$ 000's

Planned$ 000'sBenchmark

Rates affordability benchmarks:

Yes54,39254,394- quantified limit on rates income (per LTP)

Yes1.97%2.00%- quantified limit on rates increase (per LTP)

Debt affordability benchmark

Yes48,945<$55,000- quantified limit on borrowing < $55m

Yes108%Balanced budget benchmark >100%

Yes119%Essential services benchmark >100%

Yes2.32%Debt servicing benchmark <10% (borrowing costs/revenue)

Council’s Other Funding Sources

Subsidies and Grants

Fromgovernment and non-government organisations tofund maintenance or capital projects.

Fees and Charges

Council charges for services provided, for examplebuilding consents and dog licences.

Interest Received and Dividends Income

From funds invested or Council investments.

Capital Rates

Rates used to repay Loans and Capital Expenditure, forexample solid waste loan.

Development Contributions

Money received to fund capital expenditure for newdevelopment.

Asset Sales

Money received from the sale of assets

Reserves

Money set aside for a specific purpose to fund capitalexpenditure. For further details of Council’s revenuefunding mechanisms, please refer to the Revenue andFinancing Policy in 2015-2025 LTP.

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Council

AP2018$000s

LTP2018$000s

AP2017$000sNotes

Sources of operating funding

18,53818,56017,3561General rates, uniform annual general charges, rates penalties

39,39439,37439,4361Targeted rates

9,2279,2859,438Subsidies and grants for operating purposes

6,2218,6408,317Fees and charges

1,8471,8471,472Interest and Dividends from Investments

1,4811,4401,4691Local authorities fuel Tax, fines, infringement fees and other receipts

76,70679,14677,490Total Operating Funding (A)

Applications of operating funding

63,04063,48963,594Payments to staff and suppliers

2,1992,6161,999Finance costs

000Other operating funding applications

65,23966,10565,593Total applications of operating funding (B)

11,46713,04011,897Surplus/(deficit) of operating funding (A-B)

Sources of capital funding

17,95412,63112,232Subsidies and grants for capital expenditure

699699699Development and financial contributions

5,3745544,406Increase/(decrease) in debt

1212121Gross proceeds from sale of assets

000Lump sum contributions

24,03913,89617,349Total sources of capital funding (C)

Applications of capital funding

Capital expenditure

1,7221,564702- to meet additional demand

16,0179,79211,704- to improve level of service

24,68217,60321,231- to replace existing assets

(6,915)(2,023)(4,390)Increase/(decrease) in reserves

000Increase/(decrease) of investments

35,50626,93629,246Total applications of capital funding (D)

(11,467)(13,041)(11,897)Surplus/(deficit) of capital funding (C-D)

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

Note

1. AP2017 & LTP 2018 have been re-stated, to align with Annual Report categories.

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Funding Impact Statement

This statement sets out the information required bySchedule 10 of the Local Government Act 2002, togetherwith additional information provided to assist ratepayersin understanding the impact of the Annual Plan.

Revenue and Financing Mechanisms

Targeted Rates

Rates which apply in certain areas or to certain activities.

General Rates

Rates directly related to the value of the property,charged on capital value.

Uniform Annual General Charges (UAGC)

A fixed amount charged to each separately used orinhabited part of a rating unit.

Definition of a Separately Used or Inhabited part of aRating Unit:

A separately used or inhabited part of a rating unitincludes any portion inhabited or used by the owner / aperson other than the owner, and who has the right touse or inhabit that portion by virtue of a tenancy, lease,licence, or other agreement.

This definition includes separately used parts, whether ornot actually occupied at any particular time, which areprovided by the owner for rental (or other form ofoccupation) on an occasional or long term basis bysomeone other than the owner.

a. Each separate shop or business activity on a ratingunit is a separate use, for which a separate UAGCis payable. (See Guidance Note 1.)

b. Each dwelling, flat, or additional rentable unit(attached or not attached) on a residentialproperty which is let for a substantial part of theyear to persons other than immediate familymembers is a separately inhabited part of aproperty, and separate UAGCs are payable. (SeeGuidance Note 2.)

c. Each residential rating unit which has, in additionto a family dwelling unit, one ormore non residentialuses (ie home occupation units) will be chargedan extra UAGC for each additional use. (SeeGuidance Note 3.)

d. Each non-residential activity which has, in additionto its business or commercial function, co-sitedresidential units which are not a prerequisite partof the business or commercial function, will payadditional UAGCs for each residential unit. (SeeGuidance Note 4.)

e. Individually tenanted flats, including retirementunits, apartments and town houses (attached ornot attached) or multiple dwellings on Māorifreehold land are separately inhabited parts, andwill each pay a separate UAGC. (See Note 5.)

f. Each title on a multiple-managed forestry holding(that is, where the forest is broken into severalindividual small titles) is a separately used partexcept when one or more titles are adjacent andunder the same ownership, in which case the rulesof contiguity apply.

g. Each block of land for which a separate title hasbeen issued is liable to pay a UAGC, even if thatland is vacant. NOTE: for the purpose of thisdefinition, vacant land and vacant premisesoffered or intended for use or habitation by aperson other than the owner and usually used assuch are defined as 'used'.

h. Two or more adjacent blocks of vacant land arenot eligible for Remission under "Contiguity" (S.20 ofLG(R)A 02) because they are not "used for the samepurpose" (i.e. they are not used at all).

i. Each dwelling, flat, or additional rentable unit(attached or not attached) on a pastoral,horticultural or forestry property which is let for asubstantial part of the year to persons other thanimmediate family members is a separatelyinhabited part of a property, and separate UAGCsare payable.

j. For the avoidance of doubt, a rating unit that hasa single use or occupation is treated as having oneseparately used or inhabited part.

k. A substantial part of the year is considered to bethree months or more (this total period may befragmented, and may occur at any part of therating year).

Guidance Notes

The following Notes are not rules, but are intended to aidOfficers in the interpretation of the Rules.

1) Commercial Properties

A single building on one title with 24 separate shopswould pay 24 UAGCs.

Amotel with an attached dwelling would pay onlyone UAGC, because the attached dwelling isessential to the running of the motel. (See rule dabove).

A motel with an attached restaurant which isavailable to the wider public has two separatelyused parts, and would pay two UAGCs. Likewise,a motel with an attached Conference Facilitywould pay an additional UAGC.

A business which makes part of its income throughthe leasing of part of its space to semi-passive usessuch as billboards, or money machines, is notregardedas having a separately used or inhabitedpart, andwould not be chargeda separate UAGC.


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For the avoidance of doubt, an apartment block,inwhich eachapartment is on a separately ownedtitle, is merely a series of co-sited Rating Units, andeach will pay a UAGC.

If, however, in the above example amanagementcompany leases the individual titles for 10 years ormore, and those leases are registered on the titles,and the leases stipulate that the managementcompany is responsible for paying the rates, and ifthe management company then operates theapartments as a single business operation, thatbusiness operation may be considered for aremission under Council’s remission policies andhave all but one UAGC remitted.

An apartment block with a separate laundry, orrestaurant, which are available to the generalpopulation as a separate business enterprise, wouldpayanadditional UAGC for eachof these functionsas separately used parts.

2) Residential Properties

The rule will apply to properties identified as “flats”on the valuation record, administered byCouncil’sValuer. Sleep-outs and granny flats will generallybe identified as “sleep-out” on the valuation recordand will not normally qualify for additional UAGCs.

If a property is identified on the valuation recordas having flats, but these in fact are used only forfamily members or for others for very short periods,then the additional UAGCs may be remitted onCouncil receiving proof of their use, including asigned declaration from the property owner (seeremission policies). A property owner who activelyadvertises the flats for accommodation will notqualify for the remission.

A property such as a large housewhich is identifiedas being split into, say, three internal flats at thetime the valuation records were established, butwhich is not actually used as such, will need toapply for remission under Council’s remission policy.(Note: This property should be referred to Council’sValuer for correction on the next valuation cycle.)

3) Residential with Non-Residential Part

A residence with a separately accessible “office”such as may be used for surveyor, architect, ormedical services, will pay an additional UAGC forthe office, because it is a separately used partwhich generates additional use of roads, services,planning resources, and democratic processes.

A residencewitha “HomeOccupation” (commonlycalled a “hobby business”) will not generally becharged a separate UAGC unless the intensity ofoperation is high. For example, a resident whooccasionally manufactures boat trailers in hisgarage on the weekends would not incur an

additional UAGC, but someonewhoworks formostof the week panel beating or painting, particularlyif the activity is accompaniedby advertising, clearlyhas a separately used or inhabitedpart of the ratingunit, and would incur an additional UAGC.

A residential property, part of which is usedcontinually for storage of large industrial machinery,has a separately used part, and would incur anadditional UAGC.

4) Non-Residential Activity with Co-sited Dwelling

A fish and chip shop, with a flat above which canbe accessed without passing through the shop,does have a separately used part, and wouldnormally incur an additional UAGC charge.

A dairy which has an integral dwelling attached,would not incur an additional UAGC, because thehome is an integral part of the operation of thedairy.

A boarding house containing a caretaker’sapartment and several separately let rooms (withor without facilities) all within the structure of theone building, is a single (commercial) use andwould not incur an additional UAGC. (The sameapplies to home-stays and bed and breakfasthomes).

Certain government agencies, churches, marae,and the like are automatically rate exempt (exceptfor service charges suchaswater andwastewater)but if these organisations undertakeaccommodation or business activities which arenot related to their core function, they may becharged rates and additional UAGCs for eachseparately used or inhabited part of the rating unit.

5) Individually Tenanted Flats

Each flat, apartment, or retirement or disabilityhome, and each property under a “licence tooccupy”, is a separately used or inhabited part ofa rating unit, no matter what number of peoplemay be living in the unit, and each does pay anadditional UAGC charge.

If, because of construction work, poor condition,public health, or specific conditions pertaining tothe property owner, one or more flats cannot belet on the open market, then the unit may begranted a remission under Council’s remissionpolicy. (A specific condition pertaining to theproperty ownermight include the use of one of theunits for a live-in caregiver). (Note: This propertyshould be referred toCouncil’s Valuer for correctionon the next valuation cycle.)


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The following information is presented solely and for thepurpose of clauses 5 and 20 of Schedule 10 of the LocalGovernment Act 2002 and the Local Government(Financial Reporting and Prudence) Regulation 2014.

These statements are not NZ GAAP compliant. Theinformation presented is incomplete, (in particular it doesnot include depreciation and internal overheads).

This statement should not be relied upon for any otherpurpose than compliance with the Local Government(Financial Reporting and Prudence) Regulation 2014.

Mentioned under section Note 13 - we have provided areconciliation betweenCouncil’s Prospective Statementof Comprehensive Revenueand Expenses andCouncil’sFunding Impact Statement.

Schedule 1The following rates will be set by Council for the financialyear commencing 1 July 2017 and ending 30 June 2018.All figures in the Funding Impact Statement exclude GST.

General Rates

Ageneral rate in accordancewith the LocalGovernment(Rating) Act 2002 13(2)a based on the capital value ofeach rating unit in the district is assessed by multiplyingthe capital value of a property by the rate per dollar.The general rate is used to fund council activities thatare deemed to generally and equally benefit allratepayers in the Gisborne District and are on activitieswhich user pays are not applied.

The general rate funds rivers control, stormwater, treasury,andeconomicdevelopment and strategic planningandengagement.

Uniform Annual General Charge (UAGC)

Council will use a Uniform Annual General Charge inaccordancewith section 15(1)bof the LocalGovernment(Rating) Act 2002

Targeted Rates

Lump sum contributions will not be invited in respect ofthe targeted rates.

The following matters and categories may be used todefine categories of rateable land and calculate liabilityfor targeted rates. These are set out in the LocalGovernment (Rating) Act 2002 Schedule 2 and Schedule3.

Schedule 2Matters that may be used to Define Categories ofRateable Land :

1. The use to which the land is put.

2. The activities that are permitted, controlled, ordiscretionary for the area in which the land issituated, and the rules to which the land is subjectunder an operative District Plan or Regional Planunder the Resource Management Act 1991.

3. The activities that are proposed to be permitted,controlled, or discretionary activities, and theproposed rules for the area in which the land issituated under a proposedDistrict Plan or proposedRegional Plan under the Resource ManagementAct 1991, but only if:

a. No submissions in opposition have beenmade under Clause 6 of the First Scheduleof the Act on those proposed activities orrules, and the time for making submissionshas expired; or

b. All submissions in opposition, and anyappeals, havebeendetermined,withdrawn,or dismissed.

4. The area of land within each rating unit.

5. The provision or availability to the land of a serviceprovided by, or on behalf of the local authority.

6. Where the land is situated.

7. The annual value of the land.

8. The capital value of the land.

9. The land value of the land.

Schedule 3Factors that may be used to calculate Liability forTargeted Rates:

1. The annual value of the rating unit.

2. The capital value of the rating unit.

3. The land value of the rating unit.

4. The value of improvements to the rating unit.

5. The area of land within the rating unit.

6. The area of landwithin the rating unit that is sealed,paved, or built on.

7. The number of separately used or inhabited partsof a rating unit.

8. The extent of provision of any service to the ratingunit by the local authority, including any limits orconditions that apply to the provision of the service.


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9. The number or nature of connections from the landwithin each rating unit to any local authorityreticulation system.

10. The area of land within the rating unit that isprotectedby any amenity or facility that is providedby the local authority.

11. The area of floor space of buildings within the ratingunit.

12. The number of water closets and urinals within therating unit (Note: A rating unit used primarily as aresidence for one (1) household must not betreated as havingmore than one (1) water closet).

Schedule 4Rates Due Date

Instalment 1 - 21 August 2017Instalment 2 - 20 November 2017Instalment 3 - 20 February 2018Instalment 4 - 21 May 2018

Rates Penalty Date

Instalment 1 - 22 August 2017 Penalty 10%Instalment 2 - 21 November 2017 Penalty 10%Instalment 3 - 21 February 2018 Penalty 10%Instalment 4 - 22 May 2018 Penalty 10%

Additional Charges

P2 PENALTY

A further penalty of 10% will be added to any ratesremaining unpaid on 7 July 2017.

DUE DATES FOR WATER CHARGES

Water meters are read on a monthly, quarterly,six-monthly or annual cycle and are payable on themonth following the issue of the invoice as set out below.There is a free 300 cubic metre domestic allowance onrural domestic supplies.

PENALTIES ON WATER CHARGES

Under Sections 57 & 58 of the Local Government (Rating)Act 2002, any portion of thewater rates invoices not paidby the due date will incur a 10% penalty on the followingdates.

Invoiced Annually

PenaltyAmount

Date PenaltyAdded

Due DateMonth of Invoice

10%21-Jul-1720-Jul-17Jun-17

Invoiced 6-monthly

PenaltyAmount

Date PenaltyAdded


10%21-Jul-1720-Jul-17Jun-17

10%23-Jan-1822-Jan-18Dec-17

Invoiced Quarterly

PenaltyAmount

Date PenaltyAdded


10%21-Jul-1720-Jul-17Jun-17

10%24-Oct-1720-Oct-17Sep-17

10%23-Jan-1822-Jan-18Dec-17

10%23-Apr-1820-Apr-18Mar-18

Invoiced Monthly

PenaltyAmount

Date PenaltyAdded


10%21-Jul-1720-Jul-17Jun-17

10%22-Aug-1721-Aug-17Jul-17

10%21-Sep-1720-Sep-17Aug-17

10%24-Oct-1720-Oct-17Sep-17

10%21-Nov-1720-Nov-17Oct-17

10%21-Dec-1720-Dec-17Nov-17

10%23-Jan-1822-Jan-18Dec-17

10%21-Feb-1820-Feb-18Jan-18

10%21-Mar-1820-Mar-18Feb-18

10%23-Apr-1820-Apr-18Mar-18

10%22-May-1821-May-18Apr-18

10%21-Jun-1820-Jun-18May-18


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Rating Definitions

Note:In the rating definitions below, Differential Rating Areas (DRA) such as;DRA1,DRA1A, DRA2, DRA3, DRA4, DRA5and Inner and Outer Zones are defined. In accordance with the system of Differential Rating established by SpecialOrder on 27 June 1991. The District was split into six differential areas. Except for DRA5 these areas were establishedon 27 June 1991 andmaps detailing the boundaries are available onCouncil's website and also available at Council'sAdministrative Offices, 39 Gladstone Road, Gisborne. DRA4 was split into two areas, a new DRA5 and residual DRA4by way of a Special Order on 16 May 2001. They are as follows:

Sub typesAreas coveredShorttitle

Residential, Commercial , Industrialand other

Former Gisborne City Council boundaries, excluding Rural Farm Land.DRA1

Residential, other, Commercial andindustrial

All Rural Farm Land within the previous Gisborne City Boundaries and the area surrounding theCity, including Wainui and Makaraka.

DRA1A

Residential, Rural, all otherproperties

Poverty Bay Flats including fringe hill properties.DRA2

Rural and all other properties andRural Townships

The areawithin reasonable and currently exercised commuting distance toGisborne, includingpart Waerenga-o-kuri and Ngatapa, Whatatutu and Te Karaka.

DRA3

Rural and all other properties andRural Townships

The inland rural areas beyond DRA3, up to the boundary of DRA5 Tolaga Bay and Matawai.DRA4

Rural and all other properties andThe whole of the East Cape area from a line running inland from a point in the vicinity ofMangatuna north of Tolaga Bay Township, to the tip of the East Coast. Hicks Bay, Te Araroa,Tikitiki, Ruatoria, Waipiro Bay, Te Puia Springs and Tokomaru Bay.

DRA5

Rural Townships

Urban and rural propertiesThe total land area of DRA1, DRA1A and DRA2.InnerZone

All other propertiesThe total land area of DRA3, DRA4 and DRA5.OuterZone

Revenuesought $ exclGST 2017/18Factor used

Factors(Sch 3)LocalGovt

(Rating)Act 2002

Category(Sch 2)LocalGovt

(Rating)Act 2002Categories of Rateable LandRates Funding Source

4,599,192Capital value2Capital value on all Rateable land for Planning,Rivers Control, Stormwater, Treasury, EconomicDevelopment and Tourism.

General Rate

13,044,814Separately Usedor Inhabited Part of a RatingUnit (SUIP) see definition

7All Rateable land. A uniformAnnualGeneral Chargeset under section 15 of the Local Government

Uniform Annual General Charge

(Rating)Act 2002 per Separately Used or InhabitedPart of a Rating Unit (SUIP) see definition of SUIP atbeginning of this section

Targeted Rates28,704Capital Value26Differential targeted rate on Inner Zone and Rural

Towns 30% of revenue soughtLegacy Loans (District Loans) andStock Control

70,589Area: Hectare56Differential targeted rate on Outer Zone (excludingRural Towns) 70% of revenue sought

1,663,677Capital value26Differential targeted rate on Inner Zone 1.0weightingAquatic and Recreational Facilitiesand Theatres

255,674Capital value26Differential targeted rate on Outer Zone 0.3weighting

798,621Capital Value26Differential targeted rate on Inner Zone 85% ofRevenue Sought

Building Services and Non SubsidisedLocal Roads

140,933Capital Value26Differential targeted rateOuter Zone 15%of revenuesought

1,327,920Land Value3an undifferentiated targeted rate on all rateableland.

Resource Consents

53,813Separately Usedor Inhabited Part of a RatingUnit

75 & 6A uniform targeted rate on Inner ZoneNoise Control


75 & 6A uniform targeted rate on Residential properties :DRA1, DRA1AandResidential Rural Townships in DRA3, DRA4 & DRA5

Dog Control


75 & 6DRA1 ResidentialPassenger Transport


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(Rating)Act 2002



213,597Land Value36A differential targeted rate on DRA1, DRA1A, DRA2(Inner Zone)

Pests & Plants

1,210,386Land Value36A differential targeted rate on DRA3, DRA4, DRA5(Outer Zone)

245,853Land Value36Adifferential targeted rate onDRA1, DRA1A&DRA2(Inner Zone)

Soil Conservation – Advocacy andLand Use

368,779Land Value36A differential targeted rate on DRA3 & DRA4614,632Land Value34A differential targeted rate on DRA5

1,177,637Land Value36A differential targeted rate on the Inner Zone 70%of revenue sought

Water Conservation

504,701Land Value36A differential targeted rate on the Outer Zone 30%of revenue sought

3919921Per rating Unit6A differential targeted rate on the Inner Zone 85%of revenue sought

Parks & Reserves

597,158Per rating Unit6A differential targeted rate on the Outer Zone 15%of revenue sought

285,080Separately Used or Inhabited Part of a ratingunit

75 & 6Within 15 km radius scheme area as defined on amapavailable fromCustomer Services andCouncilWebsite

Rural Transfer Stations

1,839,071Separately Usedor Inhabited Part of a RatingUnit

75 & 6Within scheme refuse collection areas - Residentialproperties in Gisborne City and environs and

UniformWasteManagementCharge– Gisborne District

Ruatoria. Map available from Customer Servicesand Council Website.

1,310Separately Used or Inhabited Part of a ratingunit

75 & 6Within scheme recycling collection area , being nonresidential area within the CBD who have electedto receive the service.

Commercial Recycling Charge

90,990Capital Value21, 2 & 6Commercial Properties within the CBD Area:Non-residential properties on both sides of the roads

Business Area Patrols

boundedbyCarnarvon Street, Childers Road, ReadsQuay and Palmerston Road and all roads inside thisarea and also that part of Grey Street as far as theskateboard park and Customhouse Street as far asthe Waikanae Cut.

185,580Capital Value21, 2 & 6Commercial Properties within the CBD Area:Non-residential properties on both sides of the roads

City Centre Management andPromotion

bounded by Cobden Street, Childers Road, ReadsQuay and Palmerston Road and all roads inside thisarea and also that part of Grey Street as far as theSkateboard Park and Customhouse Street as far asthe Waikanae Cut and also all non residentialproperties within the blocks boundedbyCarnarvonStreet, Childers Road, Palmerston RoadandCobdenStreet.

319,368Capital Value21 & 2All Industrial and Commercial, Retail andAccommodation Properties.

Economic Development & Tourism

Provision of Roads and Footpaths3,467,102Capital Value21 & 2Residential/Lifestyle Blocks. Weighting of 1Subsidised Local Roads and Flood

Damage and EmergencyReinstatement

966,318Capital Value21 & 2Industrial and Commercial. Weighting of 22,479,099Capital Value21 & 2Horticulture & Pastoral Farming. Weighting of 1.51,042,255Capital Value21 & 2Forestry weighting of 5

Stormwater Drainage1811539Per Rating Unit6DRA1 & DRA1A Residential properties includes

Sponge Bay, Wainui & OkituStormwater

183,498Per Rating Unit6All Rural Townships includingManutukeand Patutahi352,065Capital Value26DRA1 & DRA1A All Commercial and industrial

properties.

Wastewater Sewerage and the treatment and disposal of sewage3,467,489Per rating unit5 & 6Within scheme areas connectedGisborne City Wastewater

51536Per rating unitWithin scheme area, service available but notconnected

3,195,743water closet or urinal connected125 & 6Pan charges per water closet or urinal connected(in addition to the above charges for connections)

67,022Per rating unit5 & 6Within scheme area connectedTe Karaka Wastewater7,331Per rating unit5 & 6Within scheme area, service available but not

connected

Water2,263,135Per Separately Used or Inhabited Part of a

rating unit75 & 6Within scheme areas connectedUniform Water Charge

37,292Per Separately Used or Inhabited Part of arating unit

75 & 6Within scheme areas where service is available butnot connected


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(Rating)Act 2002



Flood Protection And Control Works38,493Capital value25 & 6Rateable Properties within the defined area band

A within the Hazard Area based on Capital value.Map available on council website.

Coastal Property Protection Scheme

7,398Capital value25 & 6Rateable Properties within the defined area - bandB within the Hazard Area based on Capital Value.Map available on council website.

2,162Land Value36Rateable Land within the defined area band Cwithin the Hazard Area based on Land Value, Mapavailable on council website.

10374Per hectare105Rateable Land within the Hazard Area.Wainui Foredune Capital Works6,342Capital value25 & 6A differential targeted rate on Non Residential

properties based on Capital ValueTe Karaka Flood Control

28,218Capital Value25 & 6A differential targeted rate on Residential propertiesbased on Capital value

18,131Capital Value25 & 6Direct Beneficiaries within the defined area onCapital value

Waiapu River Erosion ProtectionScheme

4530Capital Value25 & 6Indirect Beneficiaries within the defined area oncapital value

4,530Per hectare56Contributors within the defined area on area171,471Capital Value25 & 6Waipaoa River Flood Control Scheme classes A - FWaipaoa River FloodControl Scheme619,606Per hectare55 & 61 - Ormond

2 - Eastern Taruheru3 - Western Taruheru4 - Willows5 - Waikanae Creek6 - City/Wainui7 - Taruheru Class A7 - Taruheru Class B7 - Taruheru Class C7 - Taruheru Class DA - WaipaoaB - PatutahiC - NgatapaD - ManutukeE - Muriwai

Drainage Rate– Direct Beneficiaries

14,716per hectare55 & 68 - Eastern Hill Catchment andF - Western Hill Catchment based on area

Drainage Rate- Contributors

54,391,837Sub Total893,903Rates Penalties

2,645,630Extraordinary and Rural Domestic users $1.27 percubic metre plus GST

*Metered Water Rates

57,931,370Net Rates Revenue

OTHER FUNDING SOURCES27,180,838Grants & Subsidies

698,872Development and FinancialContributions

7,713,396Other Revenue1,846,500Dividends and Interest

95,370,976TOTAL FUNDING


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Rates Information

This year Council will collect $54.4m in rates. Ratesaffordability continues to be a significant issue for ourdistrict. Council's commitment to minimising ratesincreases is set out in our Financial Strategy in the LongTerm Plan 2015-2025 (LTP).

2017/18 Rates Increase

$50.3

m

$51.2

m

$52.3

m

$53.3

m

$54.4

m

$54.4

m

48

49

50

51

52

53

54

55

Actual2014

Actual2015

Actual2016

Budget2017

LTP Budget2018

AP Budget2018

$m

Types of Rates - Targeted Rates, General Rates on CapitalValue and Uniform Annual General Charge

The majority of the income Council receives is throughrates. There are approximately 23,536 rating units in theGisborne district.

Council collects a significant portion of its rates incomeby targeted rates (63%). Targeted rates are based onwhat services you receive or have access to, such asdrainage, public transport, water, stormwater,wastewater, roads, and rubbish collection. If you haveaccess to them, then you pay. For the purpose of thedifferential roading rate, horticulture andpastoral farmingand forestry rating units with land area less than 5hectares will be assessed as lifestyle blocks.

Council also collects General Rates on Capital Value(CV) and a Uniform Annual General Charge (UAGC).TheGeneral Rates onCVare directly related to the valueof the property and are charged as a "rate in the dollar"of CV. These rates vary from property to property as theyare based on the property's CV. The UAGC is chargedon each 'separately used or inhabited part of a property'(SUIP) throughout the district unless it receives a reductionas per section 20 of the Local Government (Rating) Act2002 or complies with aCouncil rate remission policy thatis set out in the LTP.

The capital value of theGisborne district is approximately$8,861,560,600. The land value of the Gisborne district isapproximately $4,836,125,600.

Some of Council's services are more related to theexistence of a property or a household than to land,capital value or land area. In these cases a UAGC ischarged on each 'separately used or inhabited part ofa property' throughout the district unless it receives areduction as per section 20 of the Local Government

(Rating) Act 2002 or complies with a Council rateremission policy that is set out in the LTP 2015-2025. Thisyear the UAGC will be $596.77 (GST excl) compared to$591.66 (GST excl) in 2016/17. The UniformAnnualGeneralCharge funds the following activities.

$10.98Cemeteries

$23.55Civil Defence

$7.13District Civil & Corporate Expenses

$2.92Economic Development incl Tourism

$52.28Environmental & Public Health Protection

$88.68HB Williams Memorial and Rural Libraries

$21.38Litter Bins and Cleaning Public Areas

$54.56Managing Solid Waste & Transfer Stations

$98.69Mayor & Councillor Representation Costs

$50.05Public Toilets (conveniences)

$84.54Roading – Portion of Maintenance Costs

$66.86Strategic Planning & Engagement

$35.15Tairawhiti Museum

Uniform Charges Cap

The total of uniform or fixed charges rates that is soughtby Council cannot exceed 30% of the total ratescollected. If the 30% cap is in threat of being exceeded,Council must move the uniform rates to another rate asspecified in the Revenue and Financing Policy. TheRevenue and Financing Policy states which activities willmove to General Rates in these circumstances. Theseactivities are Planning, Performance and StrategicPlanning and Engagement, Civil Defence andEmergencyManagement, EconomicDevelopment andCivic and Corporate Expenses of the district.

Council's Rates for 2017/18

Uniform Basis

General RateOther

29%

8%63%

The large amount of targeted rates adds complexity toour rates andCouncil has reviewed some targeted rates

Rates Information

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AnnualPlan

2017/18

tomake them simpler, more predictable and consistent.How much you pay depends on:

changes to rating policy and Council budgets

changes to the property (i.e. Subdivision oramalgamation, rating value changes, newbuildings, new service connections etc)

how your land is used

where your property is located and what targetedrates/ services apply

Key changes that have occurred in this year’s rates are:

Water by Meter FeeCouncil has increased the cost of water meteringper cubic meter to $1.27 (GST excl) from July 2017.

General RateThe General Rate is $4.6m (8.46%) of the total raterequirement for 2017/18. This was 6% for 2016/17.The rate smoothing practices described in the LTP2015-25 were used and thus increased the generalrate to prevent the uniform charge cap of 30%being exceeded. The funding of specific activitieshas been moved from the UAGC to General Rate(capital value) as set out in the LTP 2015-2025.

Rural Fires:

The Rural Fires activity is no longer rate funded.Fire and Emergency New Zealand (FENZ) will fundthis activity from 1 July 2017.

Civil Defence

Rural fire tanker costs of $32.5k have shifted to CivilDefence which is funded by the UAGC.

Gisborne Holding Limited (GHL) Restructure

The GHL restructure stage 2 occured in July 2016.The Gisborne Vehicle Testing Station and theWaikanae Holiday Park moved to GHL. This haschanged the incidence of how rates fall acrossthe district.

Pests and Plants, Rural Fires and Soil Conservationactivities.Council is not making any changes to the way itrates the targeted rates for Pests and Plants andSoil Conservation. These rates and theprevious RuralFires rate caused significant rates increases forratepayers in the last 3 years. The change to theRevenue and Financing Policy in 2013/14 didimpact negatively on properties that had a smallland area and a high land value. A rate remissionpolicy was introduced and Council will continuerates relief for those ratepayers most affected bythe changes to these targeted rates. The rate

remission for 2017/18 will no longer include aremission for rural fires as this activity is no longerfunded by rates from 1 July 2017.

Plants and Pests: The Pest Management Strategy iscurrently under review and will be finalised in the2017/18 financial year.

Soil Conservation: It makes sense to review thisactivity at the same time as the Plants and Pest’sactivity as they are inter-related.

Examples of Indicative Rates Changes forProperties

The graph below shows that 96% of properties have anincrease of less than 3%, or a decrease. That is 21,591properties in total, and includes 845 properties whoserates decreased. There are 862 properties throughoutthe district that increased over 3%. These increases arefor a variety of reasons including the provision of newservices, significant changes in capital value for newdevelopment and changes in eligibility to rate remissionsand rating units in common ownership (Sec 20 of theLocal Government (Rating) Act 2002).

Rates Movement for the 2017/18 year

DECREASES 0-2% 2-3% 3-5% 5-10% 10-20% 20-30% 30%+

Number of Properties

845 680

10,577 10,169

5392793

Changes to Remission Policies

2.22 Remission of Rates –Targeted Plants and Pests; RuralFires; and Soil Conservation Rates -2017/18 year only

Introduction

The rates setting for 2012/13 and 2013/14 created somelarge swings in the rates incidence across the district forthe three rates. Council approved a change to theRevenue and Financing Policy in 2013 which changedthe basis of rating from land area to land value for thesethree rates (Pests and Plants, Rural Fires and SoilConservation).This changed the incidence of rates forsomeproperties with high land value. The propertiesmostaffected were properties with smaller land area buthigher land values when compared to like properties in

Rates Information

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the same DRA (differential rating area) especially so inTolaga Bay and Tokomaru Bay.

This remission policy will continue to provide the samelevel of rates relief for those properties most affected bythe policy change 2013/14, in the 2017/18 year forTargeted Plants and Pests and Rural Fires. Rural Firesactivity will no longer receive the rate remission as thisactivity is no longer rate funded. Fire and EmergencyNew Zealand (FENZ) will fund this activity from 1 July 2017.

Objective

Council will be carrying out a reviewof the three activitiesduring the course of the Long Term Plan when the ratingstructure will also be reviewed. The basis for rating thethree activities has not changed from 2013/14.

This remission policy will continue to provide the samelevel of rates relief for those properties most affected bythe policy change in 2013/14, in the 2017/18 year forTargeted Plants and Pests and Rural Rural Fires.

The policy is very specific and will not give rates relief toratepayers whose rates go up for any other reason.

Conditions and Criteria

The calculations for the thresholds will be based on ratesincreases from 2012/13 to 2013/14.

The assessment criteria will have two components foreligibility: a rate increase for each of the Plants and Pests,Rural Fires, and Soil Conservation rates of 30% and aminimum of $100. This approach gives continued reliefto the most severely affected by changes to the threerates.

1. The policy only applies to a rating unit wherechanges to the basis for calculation of the targetedrates for Plants and Pests, Rural Fires; and SoilConservation adopted in the 2013/14 rating yearcause significant and unwelcome rates increasesfor a rating unit.

2. Each relevant targeted rate (Plants and Pests, RuralFires; and Soil Conservation) will be assessed forremission individually.

3. To qualify for automatic remission each targetedrate must have a minimum increase of $100 and30% of the total for that targeted rate in 2013/14when compared to the 2012/13 rating year.

4. The effect of qualifying for remission will be to remitthe increase in the targeted rate above thethreshold of 30% (calculated using 2013/14 ratesinformation). The rate remission will be applied asa lump sum amount to each property againstinstalment one of the rating year for which theremission is granted.

5. No remission will granted where the total remissionfor all the relevant targeted rates combined (Plantsand Pests, Rural Fires; and Soil Conservation) doesnot exceed $25 (GST inclusive).

6. Notwithstanding the above each individual casethat does not meet the criteria above, will onapplication be considered on its merits at thediscretion of Council.

7. Remission under this policy will not be consideredfor rating units that havechanged since the 2013/14year. For the avoidance of doubt this includessubdivision of lots or part sale of lots held in a singlerating unit.

Any qualifying property will have the remission appliedautomatically to Instalment 1of the rating year for whichthe remission is granted.

Rates Information

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Rates Examples for 2017/18

There is a 2% increase in the rates requirement from 2016/17 to the 2017/18 financial year. The budgeted ratesforecast for 2017/18 is an increase of 3% or less over 96% of rateable properties.

Capital ValueLowMediumHighTokomaru BayTolaga BayTolaga BayRURAL TOWNSHIP

$210,000$187,000$235,0002014 Valuation$1,737$1,544$1,648Proposed Rates 2017/18$1,699$1,514$1,615Actual 2016/17

$38$30$33Change2%2%2%%

Makauri$192,000$370,000$975,0002014 Valuation

$1,618$2,241$4,828Proposed Rates 2017/18$1,596$2,212$4,758Actual 2016/17

$22$29$40Change1.4%1.3%0.8%%

ResidentialLifestyleHorticultural Farm

Muriwai$51,000$336,000$2,115,0002014 Valuation

$1,278.00$1,608.00$8,514.00Proposed Rates 2017/18$1,266$1,580$8,417Actual 2016/17

$12$28$97Change0.9%1.8%1.2%%

ResidentialLifestyleArable Farm

Patutahi$115,000$305,000$3,895,0002014 Valuation


$19$24$175Change1.2%1.2%1.2%%

ResidentialLifestyleArable Farm

Te Karaka/ Whatatutu$47,000$415,000$3,770,0002014 Valuation$1,950$2,148$13,239Proposed Rates 2017/18$1,913$2,120$13,186Actual 2016/17

$37$28$53Change1.9%1.3%0.4%%

ResidentialLifestylePastoral Farm

Hicks Bay$82,000$158,000$1,088,0002014 Valuation$1,377$1,329$5,596Proposed Rates 2017/18$1,350$1,299$5,512Actual 2016/17

$27$30$84Change2.0%2.3%1.5%%

ResidentialLifestylePastoral Farm

Tolaga / Anaura Bay$24,000$100,000$14,000,0002014 Valuation

$903$1,359$48,814Proposed Rates 2017/18$897$1,335$48,496Actual 2016/17

$6$24$318Change0.7%1.8%0.7%%

Pastoral FarmResidentialPastoral Farm

Tiniroto$116,000$800,000$3,275,0002014 Valuation


$12$24$44Change1.1%0.8%0.4%%

LifestylePastoral FarmPastoral Farm

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Capital ValueLowMediumHigh

RESIDENTIALLytton West

$138,000$329,000$960,0002014 Valuation$2,493$2,916$4,237Proposed Rates 2017/18$2,445$2,849$4,106Actual 2016/17

$48$67$131Change2.0%2.4%3.2%%

Mangapapa$100,000$193,000$1,180,0002014 Valuation

241226534844Proposed Rates 2017/18236925984680Actual 2016/17

4355164Change1.8%2.1%3.5%%

Kaiti & Elgin$90,000$200,000$490,0002014 Valuation$2,379$2,606$3,262Proposed Rates 2017/18$2,336$2,552$3,176Actual 2016/17

$43$54$86Change1.8%2.1%2.7%%

Whataupoko$171,000$330,000$820,0002014 Valuation


$53$71$127Change2.1%2.5%3.1%%

Wainui$320,000$1,165,000$1,475,0002014 Valuation


$51$416$199Change2.4%7.6%3.8%%

In Coastal Protection Area

COMMERCIALGisborne City

$78,000$335,000$11,600,0002014 Valuation$2,142$3,382$70,219Proposed Rates 2017/18$2,108$3,320$69,135Actual 2016/17

$34$62$1,084Change2%2%2%%

Rural$60,000$183,000$905,0002014 Valuation$1,148$1,798$4,014Proposed Rates 2017/18$1,137$1,776$3,955Actual 2016/17

$11$22$59Change1%1%1%%

FORESTRY$27,000$75,000$10,145,0002014 Valuation

$994$1,292$64,257Proposed Rates 2017/18$993$1,299$65,892Actual 2016/17

$1-$7-$1,635Change0%-1%-2%%

Te AraroaWaingakeMuriwai$3,610,000$1,241,000$1,490,0002014 Valuation

$26,243$8,663$10,103Proposed Rates 2017/18$26,625$8,862$10,340Actual 2016/17-$382-$199-$237Change-1%-2%-2%%

Rates Information

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2017/18

Wearemakingminor changes to someof the activity performancemeasures. For someof the performancemeasureswe explained in LTP Year 1 (2015/16) that targets will be confirmed. The changes are listed below:

New Target

Performance measureLevel of Service Years 1-3

Environmental Health

AchieveOur response to exceedances of National Water Quality Guidelines for safecontact recreation bathing standards at monitored recreational bathing sites,meets the guidelines.

We regulate commercialoperations and respond toenvironmental health issuesin the interest of protectingpublic and environmentalhealth.

Environmental Services

Coastal 86%Percentage of monitored sites where water quality is being maintained or isshowing a trend of improvement for Coastal Enterococci and Freshwater E.coli

We manage natural waterresources, river and lakebeds and coastal areas toconserve natural values

Freshwater 78%

and sustain consumptiveusage.

51%Percentage of monitored freshwater sites where the MacroinvertebrateCommunity Index (MCI) monitoring result indicates good water quality or wherethe sites are showing a trend of improvement.

We manage natural waterresources, river and lakebeds and coastal areas toconserve natural valuesand sustain consumptiveusage.

Land Transport

DecreaseAnnual number of pedestrian and cyclist injury accidents.We ensure the roadingnetwork is designed andmanaged for safe use withlow crash and injury rates.

DecreaseRoad Safety - The change from the previous financial year in the number offatalities and serious injury crashes on the local road network, expressed as anumber.

We ensure the roadingnetwork is designed andmanaged for safe use withlow crash and injury rates.

69%Percentage of residents using the walking and cycling network as found in theResident Satisfaction Survey

We provide and maintainaffordable and accessibletransportation services thatbalance the needs of allusers.

Solid Waste Management

DecreaseTotal waste received as illegal dumping.We provide a littercollection service includinga network of litter bins, andenforcement of illegaldumping.

Arts and Culture

80%Percentage of residents satisfied with the quality of art in public places and theway it is maintained as found in the Resident Satisfaction Survey.

We provide facilities andservices that help create astrong sense of communitymanna, pride and identity,reflecting the heritage andculture of the region.

Library

Onsite: 230,000 andNumber of visitors to HBWilliamsMemorial Library per annum (on site and on-line).We provide a range ofaccessible, quality libraryservices tailored to meet Online: 18,880the needs of Gisbornedistrict residents.

Changes to our Performance Measures

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New TargetLevels of Service Performance measure

Years 1-3

Parks and Community Property

77%Percentage of residents that have visited a Council park or reserve in the last 12months as found in the Resident Satisfaction Survey.

We provide a parks andopen spaces network thatprotects landscapeamenity values andbiodiversitywhile promotingleisure and recreationalopportunities thatmeet theneeds of the district.

90%Percentage of users satisfied with the maintenance of parks.We provide a parks andopen spaces network thatprotects landscapeamenity values andbiodiversitywhile promotingleisure and recreationalopportunities thatmeet theneeds of the district.

Strategic Planning and Engagement

Website: 70%Percentage of residents, as found in the Resident Satisfaction Survey, satisfiedwith Council's provision of information to the public including:

We support theorganisation to providegoodquality information tothe public.

Social media: 70%- content on the Council website.- Council updates/notices via social media (Facebook and/or Twitter)- Council newsletters, brochures and consultation documents.

Publications: 50

Changes to our Performance Measures

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OUR APPENDICESHE KUPU ĀPITI

Our Council - Governance and Structure

Our Role

As one of only five Unitary Authorities, theGisborneDistrictCouncil (Council) combines the functions, duties andpowers of a territorial council with those of a regionalcouncil. In most other parts of the country, the functionsof regional councils and territorial councils are split asfollows:

Regional Councils

resource management (quality of water, soil,coastal planning etc)

biosecurity control of regional plant and animalpests

river management, flood control andmitigation oferosion

regional land transport planning and contractingof passenger services

civil defence (natural disasters, marine oil spills).

Territorial Councils

community wellbeing and development

environmental health and safety (includingbuildingcontrol, and environmental health matters)

infrastructure (roading and transport, sewerage,water/stormwater)

recreation and culture

resourcemanagement including landuse planningand development control.

Our Governance Structure

The elected Council consists of the Mayor and 13Councillors (including theDeputyMayor). TheCouncillorscover five areas of the district (referred to as wards).These are Waipaoa, Taruheru-Pātūtahi, Gisborne,Tawhiti-Ūawa, and Matakaoa-Waiapu. While theCouncillors have been elected from their respectivewards, they have an obligation and a duty to representthe interests of the district as a whole.

TheCouncil is electedevery three years and is responsiblefor setting the overall direction of the district and thebudget through Long Term Plans and Annual Plans,setting policies, setting and reviewing bylaws, monitoringCouncil’s performance, adopting a Code of Conductfor elected members, employing the Chief Executive,and adopting (or otherwise) reports as required undervarious legislation.

Councillors also have a key role in engaging with theirlocal communities, advocating on behalf of others andraising any issues that need to be addressed.

Our Committees

ElectedCouncils cancreate subordinatedecisionmakingstructures such as committees. Committees can beestablished or disestablished by way of a resolution ofCouncil. Council has nine committees. These are:

Finance and AuditAssets and InfrastructureEnvironmental Planning and RegulationsCommunity Development and ServicesRegional TransportWastewater ManagementFuture TairāwhitiHearingsDistrict LicensingCivil Defence and Emergency Management

Appendices

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Schedule of Councillors, Schedule of SeniorManagement & Schedule of Agents

Schedule of Councillors

TAWHITI-UAWAGISBORNEGISBORNEGISBORNE

Cr Patricia A Seymour (Pat) OBEP 06 862 2697M 0274 725 997F 06 862 2703

Cr Larry FosterP 06 868 8927M 027 450 8814

Deputy Mayor Rehette StoltzP 06 868 5382M 021 279 7948

Mayor Meng FoonP 06 867 1870M 027 44 84 084F 06 867 9265

MATAKAOA-WAIAPUGISBORNEGISBORNEGISBORNE

Cr Brian I WilsonM 027 237 8080

Cr Andy W CranstonP 06 868 1160M 027 27 33 192

Cr Amber DunnP 06 867 3131M 021 475 470

Cr William S Burdett (Bill)P 06 864 8966 (H)P 06 864 8341 (W)F 06 864 8967

Appendices

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WAIPAOATARUHERU - PATUTAHIGISBORNEGISBORNE

Cr Graeme S ThomsonP 06 862 8737

Cr Malcolm MacLeanM 027 222 1468

Cr Shannon DowsingM 021 222 2571

Cr Meredith Akuhata-BrownP 06 867 7496M 027 200 5605

GISBORNEGISBORNE

Cr Josh WharehingaM 027 512 5195

Cr Karen FennP 06 868 1442M 027 3781 846

Appendices

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Schedule of Senior Management

Chief Executive, Nedine Thatcher Swann, has established a new Hub structure for Council, effective May 2017.

Each Hub has a cohesive community and customer focus committed to deliver the goals and aspirations of thecommunity that we serve and share accountability and risk for achieving agreed priorities.

SeniorManagers are now referred to as Directors, with the exception of theChief Financial Officer who has a specificfocus on Finance and Affordability.

The Director positions are strategic in nature and support the Chief Executive to lead the Council’s focus on ourlong-term challenges. They have direct accountability for the activities that have the opportunity to most likelyinfluence the needs of our communities and customers.

The Senior Management Team are referred to as the Central Organising Roopu – or the COR.

Schedule of Agents

AUDITORSINSURANCE CONSULTANTSSOLICITORSBANKERS

Ernst & YoungPO Box 490Wellington(on behalf of the AuditorGeneral)

Aon New Zealand16th FloorAMP Centre29 Customs Street WestPO Box 1184Auckland 1010

Cooney Lees Morgan247 Cameron Road, Tauranga

Simpson Grierson195 Lambton Quay, Wellington

Westpac Banking Corporation101 Gladstone Road, Gisborne

ANZ National Bank LtdCnr Karamu Road & Heretaunga Street,Hastings

Buddle Findlay1 Willis Street, WellingtonBank of New Zealand

125 Queen Street, PO Box 2139Auckland 1140

Appendices

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39 Gladstone RoadGisborne 4010

PO Box 747 Gisborne 4040

06 867 2049 0800 653 800

www.gdc.govt.nz

[email protected]

@GisborneDC

@GDC_updates

annual plan 2017/18 - gisborne district · some of the main ways your money is spent each day....

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