PRE
ELECTION
REPORT
THIS IS OUR
DISTRICT
TO MĀTOU TAKIWĀ
90,960
1049
Population recorded in
2018 Census
188,059
Sealed roads
Items available for loan in all
of our libraries
Land area
$21.3 billion
763
Land value of properties in the
District (at 12 June 2022)
Water distribution
Unsealed roads
system
$40.9 billion
Capital value of properties in the
District (at 12 June 2022)
44,309
Properties in the District
(at 12 June 2022)
Reserves and sportsparks
$1.80
Sewerage
system
3,549
Carparks in and around the
City Centre
Maintained walking tracks
14km
Shared paths
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ELECTIONS
2022
WHAT
Key dates for
YOU'LL FIND
Elections 2022
CANDIDATE NOMINATIONS
OPEN
INSIDE
Friday 15 July 2022
NGĀ MEA
CANDIDATE NOMINATIONS
CLOSE
KEI ROTO
Noon, Friday 12 August 2022
DELIVERY OF VOTING
Building on the past, providing
DOCUMENTS
for the future . . . . . . . . . . . . . . .4
From Friday 16 September 2022
Message from the Chief Executive . . . .6
CLOSE OF VOTING
What we're working towards . . . . . .8
Noon, Saturday 8 October 2022
Our aspirations for Whangārei . . . . 10
PRELIMINARY RESULTS
Regional collaboration and
AVAILABLE
shared services . . . . . . . . . . . . 12
Noon, Sunday 9 October 2022
Our major achievements over the past
OFFICIAL DECLARATION
three years . . . . . . . . . . . . . . . 14
OF RESULTS
Areas of focus for the next three years 21
Wednesday 19 October 2022
Financial strategy . . . . . . . . . . . 26
3
BUILDING ON THE PAST
PROVIDING FOR
THE FUTURE
KO NGĀ HUA O UKI HEI KĀMAKA
MO ĀPŌPŌ
Tēnā koe mō tōu aronga mai ki te tirohanga ā mua o tōu takiwā.
Thank you for taking an interest in your District’s future.
This Pre-election Report outlines Whangarei District Council’s role in your District and informs
you about the issues Council faces and the services we provide . We hope it assists you in the
choices you make in the upcoming local body election on 8 October 2022 .
This Report is a legal requirement and is prepared by the Chief Executive of Whangarei
District Council . Current elected Council members have not been involved in its drafting,
although the Report discusses the plans of the current Council and previous Councils . The
incoming Council may wish to take some activities, projects and policies in a new direction .
The Pre-election Report provides information about the past three years (from 2019-20
through to 2021-22), an overview of the 2022-23 year which began on 1 July 2022, and
Council’s planned performance during the term of the next Council (from October 2022) .
Several Council reports and plans inform this Report, including the 2021-31 Long Term
Plan (2021-31 LTP), the 2022-23 Annual Plan (year two of the 2021-31 LTP), and previous
Annual Reports .
AUDIT OF FINANCIALS
Council’s Long Term Plans and Annual Reports are audited by Audit New Zealand . This Pre-
election Report is not audited, although the information used to prepare it has been . It
should be noted, however:
• the 2021-22 financial year closed on June 30 . The Annual Report for 2021-22 is due to be
adopted in September 2022 . The information contained in this Report is actual data from
Council financial systems, although the year end position has been estimated using actual
figures from July 2021 to March 2022 and forecasts for April, May and June 2022 . The year
end and audit processes will not have been completed by the time this Report is released .
• Figures for the 2022-23 financial year, are based on the Annual Plan which was adopted on
30 June 2022 . The Annual Plan itself is not audited however it is based on year two of the
audited 2021-31 LTP .
4
i
FURTHER
INFORMATION
More information about Council’s planned and past
performances is available
on www .wdc .govt .nz, or
by contacting the Call Centre on 0800 WDC INFO
(0800 932463) .
Documents available are:
• the Long Term Plan(LTP) for 2021-31
• past Annual Plans and Reports
• Sustainable Futures – Kia Toitū ā Mua – Whangārei
District Growth Strategy
5
MESSAGE FROM THE
CHIEF EXECUTIVE
HE KŌRERO NĀ TE KAIHAUTŪ
The last two pre-election reports (2016
Almost three years down the track it has been
and 2019) began with statements full of
humbling to see how strongly our community
confidence, hope and an eagerness to meet
has responded, supporting each other, and
the rising expectations and fulfil the potential
supporting those whose jobs it has been to
of our district’s growing population and
ensure business (including the business of
expanding economy .
running a district) operates as planned .
In 2016 our population had been growing by
WE ARE ON TRACK
about 1000 people a year for over a decade,
Our District continues to grow . Council’s
and we were talking about the kinds of
financial position remains strong, our transport,
pressures a community (and council) face
infrastructure and recreational assets continue
moving from being a rural service centre to a
to improve and expand as directed by the public
significant metropolitan centre .
through our LTP . Our community continues
In 2019, we commented on major growth
to actively engage in consultation, helping
in Tikipunga, Kamo, Three Mile Bush and
to ensure our plans, projects and services
Maunu . The population of Marsden Point was
are meeting the needs of our growing and
approaching that of Kaikohe and Dargaville .
changing population .
There was a good possibility that Ruakākā could
We continue to provide the core services the
be bigger than both by 2023 .
community expects of a council – water supply,
Key topics of interest included rising community
waste and stormwater management, transport
expectations, our strong financial position,
– roads, parking, footpaths- regulatory and
the need to prepare for climate change, invest
strategic services from dog control to long-term
in infrastructure and manage increasing work
spatial planning, Building Act and Resource
programmes, improve partnerships with hapū,
Management Act responsibilities, community
seal roads and increase parking . We were on
and economic development initiatives .
a roll, with solid plans, adapting to changing
We have also continued to invest in new
government requirements and striving to meet
recreational facilities in neighbourhoods – with
our community’s ambitions .
the network of cycleways connecting outlying
However, two months after the October 2019
suburbs to the central city, and new parks
elections, reports started filtering through on
and playgrounds being added . At the same
the news about a novel coronavirus spreading
time, new parking, skateboarding, and park
through other parts of the world . By April 2020
developments have surged around the Hātea
we were in a full national lockdown . Borders
Loop . The culmination of these was the opening
were closed, we were working from home,
early this year of Putahi Park, complete with
queuing at supermarkets, businesses were
all-abilities play equipment, water park, shade,
struggling, economic factors gave a bleak
plantings, lawns and tiered seating .
outlook and families were grieving – it was a
shock felt locally .
6
FUTURE OF LOCAL GOVERNMENT
Over the coming term, we can expect policy
This term promises to bring the greatest
formulation and delivery mechanisms to shift
changes to local government New Zealand
away from local government to national,
has seen since 1989 . Thirty-three years ago,
subnational and regional organisations . We will
the government initiated wide-ranging local
see a greater focus on regional strategies and
government reform, which included combining
spatial plans rather than our current systems
hundreds of smaller local bodies to create
of district planning within regions . Resource
larger district and regional councils to carry out
management policy will be shifting away from
different functions in connected geographical
environmental effects and towards outcomes
areas . Whangarei District Council was one of
and well-being management for the population .
these . We are now on the threshold of a new
Alongside legislative change, we will continue
set of changes, and while these acknowledge
our work on climate change mitigation and
geography, they will focus more on function .
adaptation, and the management of natural
hazards in planning for future growth . We’ve
THREE WATERS RESPONSE
recently collaborated with Northland Regional
When change has not been initiated by us,
Council, Kaipara District Council and Far North
we have sought to influence its direction . In
District Council in adopting the Te Tai Tokerau
this most recent term, our Council, together
Climate Adaptation Strategy, which is Aotearoa’s
with other councils, have fought to ensure our
first regional climate adaptation strategy to be
ratepayers retain the value of their water assets,
cocreated and adopted by multiple councils .
and have a voice at the table of governance,
We will be working closely with tangata whenua
in response to government’s proposed Three
to deliver the actions in the strategy .
Waters Reform . We are waiting for final
TE TIRITI O WAITANGI
decisions to be made and passed through
legislation; however, it seems likely that a
We will also see greater movement toward
major responsibility for the in-coming council
Te Tiriti o Waitangi, increasing the integral role
will be to manage the transition of our water
of tangata whenua in decision making, policy
systems into the management of a single new
formation and delivery . For the first time in its
entity covering all of Northland and Auckland .
history Council will also this year include two
It will be one of four such entities to be set up
elected members representing the District’s first
nation-wide .
Māori wards . This change is just one of the areas
of great reward opening up to our Council – the
LEGISLATIVE CHANGE
opportunity to enrich and deepen relationships
From day-to-day operation to 50-year planning,
between the community and those elected
district councils have a lot on their plate .
to govern, through a more representative
Central Government is very aware of this and
structure .
has clearly signalled many areas for change . The
HELP SHAPE OUR FUTURE
Emergency Management Bill, the National CDEM
(Civil Defence and Emergency Management)
The following pages contain an overview of our
Plan and Guide, and New Zealand’s Roadmap
aspirations, priorities, projects, partnerships
for National Disaster Resilience Strategy
and finances . Whether you are a potential
are coming up for reform . In the resource
candidate or a voter, please use this report
management area, a new Natural and Built
to guide your participation in this year’s local
Environments Act, Strategic Planning Act and
government election . With the stage set for
Climate Change Adaptation Act are being
significant change in coming years, we have
developed . The Natural and Built Environments
a great opportunity to work together to help
Act and the Spatial Planning Act will be formally
shape the future of our District and get the best
introduced in 2022 . New waste legislation
outcomes for our people and place .
will affect core infrastructure, and changes to
services currently provided by councils are also
Simon Weston,
being proposed .
Whangarei District Council
Chief Executive
7
WHAT WE’RE WORKING
TOWARDS
E MAHI ANA MĀTOU KI
We’ve updated our Vision and Community Outcomes as part of our 2021-31 Long Term
Plan process to better reflect what we are working towards . This includes adjusting our
Community Outcomes to reflect the reinstatement of the four ‘well-beings’ (social, economic,
environmental, and cultural well-being) into the Local Government Act . The reinstatement
of the four well-beings into the Act recognises that councils have a significant role to play in
lifting the quality of life of our communities, and the health of our environment .
OUR
VISION
An inclusive, resilient and
sustainable District.
8
OUR
COMMUNITY OUTCOMES
Everything that Council does is guided by our four Community Outcomes – based on
what our community tells us is most important to them:
Efficient and resilient core services
• it is easy and safe for everyone to travel around the District
• there are opportunities to walk and cycle
• the District is well prepared for growth and can adapt to change
• services are supplied in ways that benefit the environment .
Positive about the future
• the District has productive land, people and a thriving City Centre
• there is a fair urban/rural balance
• Council has clear, simple documents and rules
• the District embraces new technology and opportunities .
Caring for the environment
• communities work to keep the environment clean and healthy
• access to the coast is protected
• open spaces in parks and streets are places where nature thrives
• the District is positively adapting to climate change .
Proud to be local
• the District is neat, tidy and looks attractive
• public areas feel and are safe
• there is always something to do and see
• there are opportunities for people of all abilities, ages and life stages to be active
• all of our cultures are valued and celebrated .
9
OUR ASPIRATIONS FOR
WHANGĀREI
A MĀTOU MANAKO MO WHANGĀREI
Council’s job is to take on board the things our community wants and expects from us – like
providing services and managing infrastructure (things like roads, parks, playgrounds and
water pipes) .
We hear this feedback in a variety of ways, through formal consultations and engagement,
public meetings, online, service requests or through the conversations our community has
with our elected members .
KEY PRIORITIES
Based on feedback from our community, Council identified a set of priorities to deliver
improvements on as part of the creation of the LTP 2021-31:
Transport (roading, public transport
Advocating for future opportunities
and other ways of getting around)
for our District
Sustainability (including waste
Revitalising our City Centre (creating
minimisation and responding to
quality public spaces for people to
climate change)
enjoy shopping, eating out, working
and living in the City Centre)
Housing
Key projects that are currently underway to address these key drivers include the Future
Development Strategy, which will set the direction of where and when urban development
occurs over the next 20-30 years . Alongside this, we are progressing our placemaking
programmes (with Hikurangi and Tikipunga completed and with planning currently underway
in Waipu and Parua Bay) . Work has also started on the Housing Strategy, and initial
planning is under way to identify a pilot location for community adaptation planning for
climate change .
10
STRENGTHENED TE TIRITI RELATIONSHIPS
Councils are working within an evolving relationship landscape with tangata whenua as
legislation moves the relationship closer toward the intent of Te Tiriti o Waitangi and as
Government and hapū/iwi work through Treaty Settlements . This includes Te Paparahi
o te Raki, Ngāti Wai and Kaipara Moana settlements (the Crown is currently in active
negotiations with Kaipara Uri and Te Tai Tokerau councils are providing advice in relation
to Council functions) . At the same time, this area is also evolving with the changes
under way as part of the Government’s legislative reform programme . Through these
processes, there will be increased and changed responsibilities of Council, resulting in
stronger/legislated Tiriti relationships with hapū and iwi .
We are taking some positive steps toward elevating the Tiriti relationship with tangata
whenua . The development of Te Tai Tokerau Climate Change Adaptation Strategy
involved governance oversight of a Joint Climate Change Adaptation Committee, which
has equal representation from elected members and tangata whenua representatives
from across Te Tai Tokerau .
A co-governance committee of Council made up of elected members and hapū
members was established for guidance and decision-making purposes on the Housing
Strategy . Both committee structures recognise the journey local government and
tangata whenua are on towards elevating Te Tiriti relationship .
We are increasing resourcing in this area to ensure we are developing our policies and
practices in a meaningful way that will improve results for the community .
11
REGIONAL COLLABORATION AND
SHARED
SERVICES
TE TŌPŪTANGA MAHI TAHI O
TE TAKIWĀ
Council’s focus often sits in areas where we have a direct legislative responsibility, like
transport, three waters, resource management, regulation, or building control . We also play
a supporting role in areas that sit outside our legislated responsibility . In these instances, we
work with other organisations, partnering and advocating for a cause .
NORTHLAND TRANSPORTATION ALLIANCE
Transportation is an area that fits squarely within our Council’s portfolio, and one where
partnering with others has proven to be the best way to achieve streamlined results .
Our Council, Northland Regional Council, Far North and Kaipara District Councils and Waka
Kotahi joined together in 2016 to form the Northland Transportation Alliance (NTA) to
streamline and gain efficiencies by working together .
Over the past term the NTA has delivered more than $300m of maintenance and capital
works on the region’s Council-owned transportation infrastructure . The $140m Council, Waka
Kotahi and Central Government-funded 2020-21 programme achieved the delivery of more
than 95% of the Capital Works planned for the three Northland District Councils during
the term .
Works included usual maintenance and improvement works, operating the Region’s
public transport services, sealing over 40kms of Northland’s significant unsealed
network, several safety infrastructure improvements, walking and cycling extensions and
streetlighting upgrades .
In 2020, the NTA also managed the delivery of the Te Tai Tokerau Worker redeployment
programme, a $10m Central Government-funded project providing additional investment
for footpaths, roadside vegetation clearance, roadside and waterway litter collection and
providing new employment for over 100 Northland locals .
12
TE TAI TOKERAU WHAI KAINGA
PARTNERSHIP FRAMEWORK
We are involved in a housing-focused partnership framework alongside Te Kahu o Taonui, the
other Northland District Councils and the following Crown agencies:
• Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development
• Kāinga Ora – Homes and Communities
• Te Puni Kōkiri
• Ministry of Social Development
• Regional Public Service Lead
The intent is to drive a prioritised programme of community housing and wider associated
activities for the recovery and transformation of the wellbeing for the people of Northland .
CLIMATE ADAPTATION TE TAI TOKERAU
The Te Tai Tokerau Climate Change Adaptation Strategy has been produced collectively,
adopted by all Northland councils and endorsed by Northland’s Joint Climate Change
Adaptation Committee, a formal standing committee under the Local Government Act
2002 . The key objective for this group is to align local government climate adaptation
policy, information, and methods, and pursue opportunities to enable effective regional
adaptation planning .
The Strategy was endorsed for adoption by Te Kārearea Strategic Partnership Forum in March
2022 and adopted by Council in April 2022 .
13
OUR MAJOR ACHIEVEMENTS
OVER THE
PAST THREE YEARS
NGA HUA NUI NO NGĀ TAU E TORU
KUA PAHURE
TRANSPORT
Urban improvements
This work included resurfacing Mill Road, a major
commuter route, and resurfacing of Rewarewa
Road, a heavily used route through an industrial
area, and completing the Porowini Avenue and
Maunu Road intersection safety improvements .
We have advanced work on road and bridge
widening at Hāhā (Limeburners Creek), which is
due to be completed this year .
Sealing gravel roads
We’re investing more in getting around with an increase of $47m over our 10-year LTP period
for sealing gravel roads . We want to increase our level of service in this area, and better meet
the expectations of our communities . Over the past three years this has included sealing
10km of new road .
Maintenance
During the past three years we have rehabilitated 13 .3km of existing sealed road, built 3 .8 km
of new footpaths, renewed 4 .9km of existing footpaths, re-metalled 105km of unsealed road
and resealed 292 km of sealed road .
City centre revitalisation
The first of a series of inner-city revitalisation projects included a tactical urbanism project on
Vine Street to improve pedestrian flows to and from the bus station into the City Centre, and
changes to John, James and Dent Street to improve connections to the Town Basin and the
freshly completed Pūtahi Park, beside the Hundertwasser Art Centre .
14
OUR THREE WATERS
Stormwater
This year we invested $1 .1m on stormwater lines and manhole renewals to help meet the
challenges of climate change and to improve water quality . Other work included replacing a
large diameter stormwater line on Kaka St .
Wastewater
The Tarewa storage tank and treatment facility was completed and commissioned,
completing a raft of work designed to eliminate wet-weather spills of dilute sewage into
the harbour . A main sewer line was replaced in Maunu, improving capacity and service
to residents in surrounding areas including Kauika Road . Stage 2 of the Hikurangi Sewer
Network upgrade was also completed .
At the Ruakākā wastewater treatment plant two oxidation ponds were reconfigured and new
aerators were installed to increase treatment capacity .
A new inlet screen and aerator were fitted at the Ngunguru wastewater treatment plant,
efforts were made to reduce ammonia levels and a technology review of current plant and
future treatment and capacity options was completed .
At the Hikurangi plant a new inlet screen was installed along with new “curtains” reduce
short circuiting in the aeration basin . Filtration plant membrane failures have been
investigated .
The resource consent renewal application for the the Kioreroa Road wastewater treatment
plant was lodged with the Northland Regional Council in December 2021 .
In other parts of the network, the One Tree Point Pump Station was upgraded, the 4 .5 km
long Ruakākā rising main renewal was designed and tendered and work is now in progress .
CCTV Investigations were completed in the Heretaunga catchment with mains
upgrades completed along Heretaunga Drive, providing more capacity .
At Waipu the rising main between the river and the plant inlet works
was renewed .
Drinking water
Capping off several years of capacity improvements, the new
$30m Whau Valley Water Treatment Plant was comleted
and commissioned, extending and enhancing Whangārei
City’s main water supply for future decades .
A two year project to upgrade the controls of all the
treatment plants and pumpstations was also
completed in 2022 . The upgraded SCADA
(Supervisory Control and Data Acquisition)
system provides better control and
monitoring of our treatment systems as
required to meet enhanced drinking
water standards and rules .
15
SPORTSFIELDS, PARKS, RESERVES AND FACILITIES
An enormous amount of work was achieved in the parks and reserves area during the term .
Much of this work has created new low- or no-cost facilities and opportunities for people to
enjoy the outdoors .
New lights were installed at Otaika, Horahora and Otangarei sportsfields, the parking area at
Cobham Oval was sealed and landscaped, providing 184 carparks in readiness for the Rugby
World Cup 2021 . Nearby, the Bascule Park carpark on the Hātea Loop was upgraded and
planted creating a further 72 carparks in the area . New sand carpet fields were developed at
Otaika and Tikipunga for football and rugby league use .
New yards were built at Barge Park in time to host the equestrian National One
Day Championships .
Walkways and tracks
The Tikipunga walkway was extended from Tikipunga Sports Park to Vinegar Hill and
Gillingham Rd to Totara Parklands, extending the 56km of Council’s walking tracks, and
increasing low-cost opportunities for residents to enjoy nature and healthy activity .
The July 2020 storm caused major damage to tracks and pedestrian bridges around the city
resulting in track closures . Funding from central government enabled tracks to be repaired
and made more resilient to cope with future weather events .
Pūtahi Park and children’s playground upgrade
The long-planned and eagerly awaited, $5 .2m Pūtahi Park, featuring lawns, play equipment,
a new boardwalk, tiered seating and a water park that
proved an instant hit with families opened this summer .
Nearby, the much-improved, refurbished Town Basin
children’s playground opened in February .
Pohe Island redevelopment
Multiple projects on Pohe Island progressed or were
completed during the term . The skatepark completed
in March 2021, is getting good use and is now the
District’s most diverse skating venue . Major work has
been completed on elements of the Bike Park, and the
Camera Obscura is open for viewing . The towers and
other framework and groundwork for the large-scale, new
destination playground are taking shape .
Stadium upgrades
To prepare for the Rugby World Cup 2021, improvements were made to the pitch and new
$3 .38m lights that meet international broadcasting standards were installed along with a new
46m² screen, a new scoreboard and sound system .
The past term of Council also saw a structural change to the management of the Northland
Events Centre with four new trustees appointed to set up the Northland Events Centre (2021)
Trust and a fifth trustee to be appointed from local hapū .
16
Further afield
In Ngunguru the new skatepark was completed, as was the Skatepark and Activity Zone
in Waipu .
We continue to adapt to climate change by protecting community assets with sand
replenishment undertaken again at Matapōuri and seawalls upgraded at One Tree Point
and Ruakākā .
Drainage was improved at Hikurangi, Hūkerenui, Ngunguru and Parua Bay sportsfields, and
new training lights were installed at Ruakākā . Playgrounds were renewed at Morningside and
McLeod Bay .
At Abbey Caves, volunteers planted 10,000 native trees on the 2019 Parihaka fire site with
funding from the Matariki Tu Rakau – Million Trees Fund . This complemented a Tourism
Infrastructure Funded development of a new parking area and installation of toilets and
improvements to road safety .
This array of work cannot be achieved without a clear vision and plan, and the District’s
Active Recreation and Sports Strategy was adopted during the term .
PLANNING AND STRATEGY
In the past three years, many visionary documents have been produced across our areas of
responsibility to guide us into the future .
The Urban and Services plan change, Notable and Public Trees plan change, an updated
Growth Strategy, Walking and Cycling Strategy, Active Recreation and Sports Strategy, and
our own organisation’s Organisational Strategy and Sustainability Strategy, are just a few of
those completed in three years . The Te Tai Tokerau Climate Adaptation Strategy was adopted
by all four Northland councils . High priority work currently underway includes the Housing
Strategy, the Future Development Strategy , Placemaking Plans in Waipu and Parua Bay, and
there is ongoing work on the draft Climate Action Plan .
COMMUNITY
Community funding
Community funding was reviewed to provide greater flexibility for community groups in terms
of what can be funded, and the nature of support that is available . The community funding
scheme has increased investment in the community to $3m a year and our enhanced grants
scheme now offers a broader range of support mechanisms, and improved and equitable
access to this support .
Funding is now available to support community facility development (Partnership Fund),
support for youth-led community initiatives (Gen Z Fund), and agile support options have
been created in response to the financial impacts of COVID-19 and any future emergencies
that may arise (Community Emergency Recovery Fund) .
Community development
The Community Development Framework, which seeks to support communities to
collectively impact positively upon the issues, needs and aspirations they identify as
important is now firmly embedded .
17
Partnerships
Partnerships with communities have been strengthened through our Community-Led
Projects . So far, Otangarei, Kamo and Hikurangi have successfully completed projects and
we are now working with Tikipunga, Maungatapere, Raumanga, Waipu, and Onerahi to help
build stronger and more connected communities .
We partnered with Police, Multicultural Whangārei, Immigration NZ, Ministry for Ethnic
Communities, and community leaders to create the Multi-Ethnic Collective .
All four Northland councils committed to development of a Regional Accessibility Strategy,
which seeks to assist our disabled community to live, work, play and more inclusively and
equitably participate within our communities .
We partnered on multi-agency projects such as the Kai Ora Fund and Northland Intersectoral
Forum initiatives, and community projects such as the inaugural SilverFest and inaugural
Whangārei Fringe Festival .
Tenancies
All 165 housing units for older people achieved full compliance with the Healthy Homes
Standards for insulation, heat pumps and extractor fans .
We continued the community facilities upgrade programme, making toilets and entrances
at community halls fully accessible, installed heat pumps, upgraded floor coverings, and
completed interior and exterior maintenance . We also replaced the Onerahi Hall and
Community House roof and installed a new water tank at Ngunguru Memorial Hall .
Tenants impacted by the fire at the Old Municipal Building were re-housed while we
worked with the insurer on reinstatement of and enhancements to this valued icon and
community hub .
Advisory groups
Our Positive Ageing, Disability, and Youth Advisory Groups were reviewed to improve their
effectiveness, diversity and functionality in providing valuable insight on council projects,
strategies and practices . Advisory Group initiatives included a Youth Survey that canvassed
the thoughts of over 500 young people in our district, and the inaugural Silver Festival
celebrating ageing positively .
Community safety
During the last term we partnered in a bid for more investment in
CCTV, securing $765,000 from the Proceeds of Crime Fund to
upgrade the current CCTV network and the community CCTV at
Kamo and Hikurangi . We also procured a new CitySafe Community
Officer contract with enhanced service delivery on the shared
pathways and Hātea Loop . Our community safety initiatives
continued to provide a secure presence and sense of safety in the
central city . We continued to provide the Summer Safe Carpark programme at our high-
risk carparks at Whale Bay, Whangārei Otuihau Falls, A H Reed Memorial Park, Parihaka,
Abbey Caves, Ocean Beach, Ruakākā and Waipu Cove .
18
ECONOMIC DEVELOPMENT
Airport Location Study
Since 2014 Council has been considering the options available, should the Whangārei Airport
at Onerahi need to cease operating because of changes to safety requirements and future
aircraft . This has included working with stakeholders including a Mana Whenua Advisory
Group of representatives appointed by Te Huinga and a Project Advisory Group including
representatives from Ministry of Transport, Waka Kotahi (NZ Transport Agency), Ministry of
Business, Innovation and Employment (MBIE), Northland Regional Council, Air New Zealand,
Northland Inc, the Chamber of Commerce and others with a particular interest in the project .
The aim was to identify a potential future locations for an airport elsewhere in the District .
In April this year Council opened public consultation on three potential sites for
consideration; Ruatangata, Ruatangata West and One Tree Point, along with the option of
continuing to operate from Onerahi . In August Council is due to consider the feasibility of
these sites, hear public submissions and make a decision on the way forward .
Whangārei District Airport
Whangārei District Airport (WDA) is operated as a joint venture between Whangārei District
Council and the Crown . Council is the Airport Authority .
Over the past three years airport operations have been significantly impacted by COVID-19
with passenger numbers falling from a record high 108,122 in 2019 to 59,152 in 2020 . Numbers
built to 82,781 in 2021 and are on track to exceed 92,000 in 2022 .
Despite this, development has continued in the past three years . Air New Zealand introduced
a fifth daily flight to schedules in 2022, which triggered the requirement for an Airport Rescue
Fire Service (RFS) . With capital costs funded by the Crown, WDA has established the RFS with
a specialist Airport Fire Truck and Support Vehicle and six permanent crew members . Work
is underway to design and tender for the construction of an operational building for Airport
Rescue Services, with work planned to start over the coming summer . WDA is currently
working with NEST to relocate Rescue Helicopter operations to the Airport .
Landing fee negotiations with Air New Zealand are in the final stages of implementation
which will see WDA landing fees brought into line with market rates across NZ . This is the first
pricing reset since 1997 and will move charges from a per aircraft per landing basis to a per
passenger model .
19
Becoming business-friendly council
Being a business-friendly organisation is about closely examining what council does, and
more importantly, what our customers’ journey looks like and what we can do to remove pain
points . It is a balance between Council as a regulatory body and enabling development and
business . Over the last 18 months, Council staff have worked closely with the private sector
and the construction supply chain to implement changes that will assist them to focus on
supplying housing and land to meet the District’s growing demand as painlessly as possible .
Property portfolio
Council’s property portfolio is a range of freehold and leasehold properties that
predominantly came into Council ownership in the mid-1990s as part of the Whangārei
Harbour Board’s Dryland Endowments . These enable many businesses to operate and
those within the Town Basin are arguably the jewel in the crown of Whangārei’s commercial
property . The overall portfolio is currently valued in the vicinity of $75m .
20
AREAS OF FOCUS FOR THE
NEXT THREE YEARS
KO NGA AROTAHINGA MO NGĀ TAU E
TORU E ANGA MAI NEI
Areas of focus during the next term of Council will include:
PREPARING FOR THE FUTURE
Building a responsive Tiriti framework
With pending legislation reform and the introduction of two Māori seats, we are gearing up
to establish a council which is more responsive to Māori communities . This will involve a Tiriti
engagement strategy and the introduction of a cultural capability framework to build the
confidence and capability of the organisation in a changing Tiriti environment .
Climate change adaptation programme
We are initiating a pilot community adaptation project now that Te Tai Tokerau Climate
Change Adaptation Strategy has been adopted by all four Northland councils . This project
will act as a case study for future adaptation projects .
Hazards and Esplanade Plan Change Package feedback
We are reviewing the District Plan chapters that relate to natural hazards, hazardous
substances and esplanade areas and have asked the public for feedback on initial drafts .
The Northland Regional Council has undertaken work to update the coastal erosion, coastal
flooding maps, and the region-wide flooding maps and we are legally required to incorporate
the updated hazard maps in our District Plan as soon as practicable . Going forward, revised
drafts of the associated District Plan Chapters will be worked through with the community .
Housing for seniors
We have budgeted $5 .1m for renewal and maintenance of Council's existing pensioner
housing, as well as an extra $4m over the first four years of the Plan for new pensioner
housing stock .
Whangārei Housing Strategy
The Whangārei Housing Strategy will direct how Council will support and enable housing
outcomes in Whangārei . The Strategy will represent housing ‘need’ in Whangārei and how
Council can support better pathways for papakainga and community housing initiatives .
The Strategy gives direction on how Council will work with Kainga Ora to support its housing
delivery in Whangārei .
21
THREE WATERS
Future proofing our water supply
As part of our drought resilience work, we will be investing in a full upgrade of the Porotī
Water Treatment Plant . This will not only allow the plant to treat more water but also enable
treatment of the water from the Wairua River . With the Northern part of the City growing fast
we will be constructing new treated water storage reservoirs at Dip Road and Three Mile Bush
Road . In addition, new and upgraded water mains will also be provided .
Refining NZ’s operational change from oil refinery to import terminal has significantly reduced
its water, seriously impacting Council’s water income . In addition Council will face significant
increases in costs to meet new drinking water standards and compliance rules through the
need to employ additional staff and purchase more equipment for monitoring . Sampling and
testing costs will also increase .
Augmenting Whangārei wastewater treatment
To maintain our critical infrastructure and to comply with Resource Consent requirements,
we will be upgrading the Whangārei Wastewater Treatment Plant over the course of the LTP .
This will include odour control work .
Upgrading wastewater infrastructure
To provide additional capacity in our pipe system for new connections and high rainfall
events, we are upgrading in the One Tree Point/Ruakākā, Kamo and Whangārei Heads areas .
We are also upgrading the technology with which we monitor and remotely control our pump
stations to avoid overflows and help keep our harbour clean .
At Ruakākā, future work will include installing an electronic flow meter and converting the
wetlands to a floating system to improve nutrient removal and simplify maintenance .
There will be further investigation of an Ocean Outfall .
Work on the Hikurangi wastewater treatment system will continue in consultation with the
Northland Regional Council .
Over the next five years the District’s largest wastewater treatment plant at Kioreroa, will
receive a second aeration basin, upgraded UV plant, improved hydraulic capacity, and new
tertiary filtration and work to control odour .
Additional storage capacity will be increased at Parua Bay to prevent localised spills .
22
TRANSPORT
More sealed roads
We’re investing more in getting around with an increase of $47m over
our 10-year LTP period for sealing gravel roads . Over the next three
years we expect to seal a further 16 .5km of our unsealed road
network . We aim to increase our level of service in this area, and
better meet the expectations of our communities .
Improving our cycleway and shared path network
We have $37m in the LTP to keep improving our cycleway and
shared path network .The final stage of Kamo Shared Path
is planned, which will take the path right through to
Station Road . We also have plans for new cycleways
in Bream Bay (Waipu to Waipu Cove), Raumanga and
the City Centre . Much of this work is dependent on
subsidies from Waka Kotahi (NZ Transport Agency) . If
this subsidy is not secured, changes could be made
to this programme .
Riverside Drive/Onerahi Road
Populations in Whangārei Heads, Parua Bay and Onerahi are expected to continue growing
in the next 10 years . Riverside Drive to Onerahi is a critical route for the connection of these
communities to the city . In the coming years we will be upgrading the existing road . The
alternative of a bypass could also be considered .
Port Rd/Kioreroa Rd intersection improvements
A $6 .7m roundabout will be built at the intersection of Port Road and Kioreroa Road to
improve traffic flows in a heavily used area . This work builds off the Ministry of Business,
Innovation and Employment investment to widen the Port Road Bridge, which is nearing
completion . Around 53% of the roundabout has been funded by Waka Kotahi, the rest by
Whangārei ratepayers .
Springsflat Roundabout
Kāinga Ora has approved a $20m project to build a roundabout on SH1 at Springs Flat
to connect the Pipiwai Rd and Tikipunga residential areas to cater for future residential
developments . Funding is to come from the Infrastructure Acceleration Fund .
City centre revitalisation
The City centre revitalisation programme is set to continue with further upgrade projects
planned for a Waterfront to City Centre connection, intersection upgrades at Maunu/Water
St, Bank/Cameron St and Robert/ Walton St .
Road to Zero programme
Under the Government Road to Zero programme Council will be investing $23 .5M in minor
Safety improvement works on the network, focusing on pedestrians, cyclists, footpaths,
public transport and road safety education .
23
COMMUNITY
Animal shelter
This term we will be constructing a new animal shelter (pound) facility, which will meet
all regulatory requirements and animal welfare needs, provide a secure, safe and friendly
environment and meet increasing demand as the population grows .
Civil Defence and Emergency response
We have provided for increased investment in the renewal and upgrading of tsunami sirens,
along with an operational grant for increased space within the Northland Regional Council's
Emergency Operations Centre . This facility will provide greater capacity for Northland to
respond to any major emergency events, like tsunami or floods .
Funding for communities
We are continuing to invest in community funding and maintaining our Community Led
Project budgets in Tikipunga, Maungatapere, Raumaunga, Waipu and Onerahi .
Rugby World Cup 2021 (playing in 2022)
Whangārei and Auckland were partners in the successful bid by New Zealand Rugby for
Rugby World Cup 2021 . The tournament will take place between 8 October and 12 November
2022 with the Northland Events Centre hosting a number of matches, including two
quarter finals .
Investments in our libraries
We will be investing over $900k on library resources in the coming year, including book and
eBook purchases and IT system upgrades and equipment .
CREATING CIVIC ASSETS
Civic Centre
The new Civic building in the City Centre, which will provide a welcoming, inclusive and easily
accessible customer experience for Whangārei residents . Building this while managing the
effects of COVID-19 has been extremely challenging, with significant price increases for the
construction sector leading to escalations in our original budget to $59 million to complete
the building in line with our latest forecasts .
Civic Centre precinct
Landscaping improvements to the area, including around the Central Library, Old Library,
and Lovers Lane, will ensure there is a cohesive civic precinct that connects the surrounding
public spaces and facilities . The Lovers Lane Bridge, which connects Second Ave to the Civic
Centre, Central Library and Rust Ave (which will link the Kamo and Raumanga Shared Paths)
is being replaced, as are our stormwater assets in this area .
Old Municipal Building
Work is planned to repair the Old Municipal Building following the 2019 fire will include
reinstating all fire damaged areas, replacing the roof, completing seismic strengthening, and
redesigning the layout to improve accessibility and meeting spaces and installing a lift to
allow better access to the upper floor .
24
SPORTSFIELDS, PARKS, RESERVES AND FACILITIES
Pohe Island development
More elements of the William Fraser Memorial Park on Pohe Island Master Plan will be
delivered, including a destination playground and new toilets . Bike Northland will finalise the
last elements of the Bike Park hub, including learn to ride and bike skills areas as well as a
revamped bike building, more toilets and bike storage . Future Council projects at Pohe Island
will include additional paths to connect activities and facilities and a marine hub area .
Skateparks and playgrounds
We’re gathering feedback from the local community on what they’d like to see in the
upcoming refresh of the Hikurangi skatepark, a new skatepark at Parua Bay and a new
playground at Raumanga Valley Road . Funding has also been allocated to a playground
at Ōakura .
Ngunguru seawall replacement
We are investing in climate adaptation by replacing the Ngunguru seawall, which is designed
to be modified in response to rising sea levels .
Sportsfields
We are working with the Ministry of Education to develop a community sportsfield at Parua
Bay and a second sand field at Tikipunga . We will develop two new fields at Ruakākā and
provide funding for carparking at Ruakākā’s new Community Wellbeing Centre .
25
FINANCIAL
STRATEGY
TE RAUTAKI AHUMONI
Our 2021-31 LTP sets out our Financial Strategy . This strategy outlines what Council believes
to be appropriate levels of borrowing, rates and expenditure while also considering
affordability and making sure we raise enough revenue to invest in our District .
Before we decide what we want to focus on, the projects we want to deliver, and the choices
necessary to balance the needs of the community, we first evaluate and consider a complex
set of financial factors . These include what sort of revenue we can raise, including user pays,
rates, loans and Government subsidies, and where best to spend that revenue .
We aim to do this in a way that ensures:
• people pay a fair share of the costs through rates
• what we do matches what we can afford
• we are creating a sustainable financial platform for future generations .
The Financial Strategy recognises that our District faces strategic issues and financial
challenges now and in the future that require Council to balance limited funding across
competing priorities .
THREE WATERS REFORM PROGRAMME
Our financials have been prepared as if three waters services will continue to be provided by
Council as we await final decisions and legislation as part of the Government’s Three Waters
Reform programme . Future decisions may result in significant changes to the information
provided in this report .
26
MANAGING OUR GROWTH
Our District is growing, and we expect it to continue to grow by an estimated 1 .6% per
annum over the next 10 years . This expected growth requires considerable investment in
infrastructure, services and community facilities to ensure we have capacity to provide for
our increased population .
The need to continue focusing on core assets
To maintain existing levels of service, Council needs to ensure that the assets it already has
are maintained and renewed to existing levels of service .
Increased expectation of things to see and do across our District
Our residents not only expect to have things to see and do, they expect them to be attractive,
high quality, engaging and appropriate to our people and place .
Building a sustainable financial strategy
Council maintains a sustainable financial strategy by ensuring our income base provides the
services that our community expects, without leaving a large backlog of asset maintenance
and renewal for later generations to deal with . While that does mean rates rises beyond the
level of inflation, we believe they are necessary
to provide the range and quality of services our
community demands .
Inter-generational equity
Council is a long-term business with a responsibility
to consider the interests of the community now as
well as into the future . We try to ensure that, as far
as possible, today’s ratepayers only pay for services
they are likely to use and not for benefits that will
be received by new ratepayers in the future . This
concept of achieving fairness between ratepayers
over time is called inter-generational equity, and
one of the ways we achieve this equity is through
the use of debt .
A CHANGING CLIMATE
Our climate is changing and the future impacts are likely to be significant and wide-ranging .
In Whangārei, our communities are already experiencing climate related impacts, from
flooding to prolonged periods of drought . We are still at the beginning of our response to
Climate Change and our LTP provides initial funding to ensure we can start to prepare for the
changes we expect to see in the future .
COVID-19 RESPONSE
Key to our response to COVID-19 is being both agile and resilient enough to respond
appropriately . Our financial strategy provides us with enough flexibility to react to events
such as this without fundamentally changing our strategic direction .
27
LOCAL GOVERNMENT REFORMS
There are currently three reform processes underway including Three Waters, Resource
Management and Future for Local Government review . These reforms will change the
functions and services currently delivered by our Council .
As these reforms progress, Council will gain more clarity about what the future will look like .
This will require a complete review of our existing Financial Strategy and the way we operate .
FUNDING OUR ACTIVITIES
Rates, debt, Government subsidies, development contributions and user charges are the
major sources of funding available for projects and carrying out day-to-day operations .
Net Debt
Rates
Revenue
Projected Net Debt
Projected Rates
Projected Revenue
300
250
200
150
100
50
-
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
Note that for all graphs and tables in this section, data for 2021-22 is estimated, data for
2022-23 onwards is projected . See comment on page 26 regarding the Three Waters Reform
programme .
ECONOMIC CLIMATE
During every term of Council unique economic and social factors will evolve and interact to
affect our capacity to deliver our very large work programmes . This was front-of mind leading
up to adoption of the 2021-31 Long Term Plan (LTP) and the risks associated with setting a
large and ambitious capital programme were frequently discussed . Council’s ability to deliver
such a large programme comes under strain as delays caused by the pandemic including
industry capacity, internal resources and supply chain issues, bite . This has seen a high
percentage of projects carried forward from the current year into the 2022-23 Annual Plan,
likely to create a ‘bow wave’ of carried forward projects in following years .
As large capital programmes generate income from government subsidies, the failure to
complete programmes in turn reduces the level of subsidy received, stretching the ability to
guarantee a balanced budget .
28
RATES
Rates remain our largest funding source .
Recent increases are consistent with our Financial Strategy . In the 2021-31 LTP, we retained
our approach of applying an annual general rates increase of 2% beyond inflation . However,
in year 1 of the LTP (2021-22), we included an additional 2% increase to catch-up for reducing
our rates increase to inflation-only for 2020-21 as part of our pandemic response . Rates were
also increased 0 .5% in 2021-22 to cover increased spend allocated as part of Council’s LTP
deliberations following requests for funding from the community . We also allow for growth of
1% in the rating base to reflect our growing District . This approach allows Council to increase
its operating revenue to reflect the cost of services provided to our community .
How do our rates compare?
For many years our residential rates have been among the lowest in the country, with
benchmarking surveys conducted by the Taxpayers Union confirming this . While they have
not published 2022 results yet, the rates movement in the 2022-23 year is once again lower
than most other councils . Since 2015 our financial strategy has been to have consistent levels
of rates increases that are based on inflation plus 2% each year; allowing us to keep raising
the standard of the services we deliver to the Whangārei District, while still remaining at
affordable levels based on the demographics of our community .
Impact of property revaluations
Property revaluations are carried out every three years to reflect changing market values . The
2021 general revaluation recognised the movement in property values from 1 August 2018 to
1 July 2021 . The average changes in property land values were around 45% for Residential,
49% for Commercial and Industrial properties, and 23% for Rural properties .
While these movements were significant, they do not automatically lead to corresponding
increases to overall rates income for Council, or the amount paid by each sector, as total
rates income and the share paid by each sector is set independently of property values . The
sector splits are:
• Residential, lifestyle, other 66 .5%
• Commercial and industrial 24 .6%
• Rural 8 .9%
However, the movement of an individual property’s value within each of these sectors can
lead to changes in the rates charged . In simple terms, if a property value moves more than its
sector average, rates for that property will increase more than others . If the movement is less
than the average, rates may even decrease .
29
DEBT
We borrow money to pay for large items of expenditure that last for many years . If these
assets were paid for solely from rates for that year, today’s ratepayers would be paying the
entire cost of assets that our future ratepayers would use in the years ahead . Using debt to
fund major assets allows Council to share the assets' cost between all users . In other words,
all the people using an asset pay for it over its lifetime . Spreading of costs over multiple
years is known as ‘inter-generational equity’ and is standard practice throughout the local
government sector .
The Financial Strategy 2021-31 sees net debt increase from $145 .0 million on 1 July 2021 to
$348 .6 million by 30 June 2031 . While our debt has increased, we have considerable capacity
to raise debt to deal with abnormal events and emergencies .
At the time of preparing this report, the forecast net debt position for the end of the 2021-22
financial year is $160 .6 million compared to a budget of $182 .4 million . Council's lower debt
position is driven by a reduced capital programme delivery, which will result in projects being
carried forward into 2022-23 .
Net debt as a percentage of total revenue
Net Debt/Revenue
Net Debt/Revenue Limit
Projected Net Debt/Revenue
200
160
120
80
40
-
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
Council debt limit is that our net debt to revenue ratio will remain below 175% .
30
OTHER FUNDING SOURCES
Fees and charges
Council will increase most fees and charges annually to align with the Local Government Cost
Index inflation rate . In some areas, such as food inspections and liquor licensing, Council will
seek to recover actual costs, which may result in increases beyond inflation . Council's fees
and charges are reviewed on an annual basis .
Development contributions
Council’s practice is to fund most of the growth component of capital expenditure through
development contributions, with the remainder funded through rates, subsidies and debt .
Over the past few years, Whangārei has experienced growth with correspondingly higher
development contribution revenue . As a result, we have budgeted for increased revenue in
this area .
Grants and subsidies
Subsidies from central government are a critical source of funding for our transportation
activities, including things like road construction and repair . Waka Kotahi (NZ Transport
Agency) subsidies represent 53% of the gross cost of both operating and capital expenditure
on a wide range of eligible roading projects .
EXPENDITURE
Council’s expenditure is classified as either ‘operating’ (funding day-to-day operations) or
‘capital’ (acquiring, renewing and increasing the capacity of assets) .
Council’s approach to forecasting operational expenditure is a balancing act . Local
government costs continue to increase meaning Council must rise to the challenge of
meeting levels of service while at the same time looking to save costs wherever it can in order
to keep rates affordable and achieve a balanced budget .
Council also needs to allow for the effects of population growth, community expectations,
operating costs associated with new assets and finance costs on additional debt in preparing
its budgets .
Council’s total annual capital expenditure ranges from $83 .8 million to $132 .6 million over the
10 years of the LTP .
Over the life of the LTP, 39% of capital expenditure is for the renewal of existing assets and
upgrades to extend their useful life . Council will continue to monitor asset performance to
ensure renewals are completed to maintain service levels in the foreseeable future and avoid
leaving a significant backlog of asset replacement for future generations .
The graph below shows that over the life of the LTP, 75% of capital expenditure is focused on
network infrastructure, reflecting Council’s recognition that it still must invest considerable
amounts in our core assets to meet the service levels the community expects .
31
Capital expenditure by activity ($m)
Transportation*
$490m
Flood protection*
$3m
Water*
$103m
Solid waste
$1m
Wastewater*
$90m
Stormwater*
$37m
Community facilities and
services $160m
Governance and strategy
$18m
Support services
$63m
Planning and regulatory
services $4m
* Network infrastructure
Council’s LTP includes a very ambitious capital programme . Our ability to achieve this
programme continues to be challenged, particularly with additional delays caused by the
pandemic, including industry capacity, internal resource and supply chain issues .
As a result of this, Council continues to see a high percentage of projects carried forward into
future years . The large capital programme also assumes a certain level of subsidy revenue .
This anticipated revenue is included as part of Council’s balanced budget benchmark . This
puts Council’s ability to achieve a balanced budget result at risk, and if subsidised projects
are not delivered, the associated revenue will not be realised .
Future consideration as to how to manage this will be needed when the Annual Plan is
prepared for Year 3 (2023-24), and ultimately during the preparation of the next LTP .
The following graph shows Council's actual and projected total expenditure .
32
Operating and capital expenditure
Operating expenditure
Capital expenditure
Projected operating expenditure
Projected capital expenditure
350
300
250
200
150
100
50
-
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
Investment property purchases of $18 .5m in 2020-21 have been excluded from this graph .
See comment on page 26 regarding the Three Waters Reform programme .
FINANCIAL PARAMETERS
Our financial parameters in the 2021-31 Financial Strategy are to:
• set a balanced budget in every year (as defined in the Financial Prudence Regulations)
• provide sufficient funding through debt and operating surpluses to complete the planned
capital expenditure programme without reliance on selling assets
• have net debt no higher than 175% of total revenue
• limit overall rates revenue (excluding water) to a maximum of 70% of total revenue
• increase general rates each year by inflation, growth (1%) plus an additional 4 .5% in Year 1
(2% is a COVID-19 catch-up) and 2% for all remaining years
• increase wastewater rates each year by inflation, growth (0 .8%) plus an additional 4% in
Year 1 (2% is a COVID-19 catch-up) and 2% in Years 2 and 3
• increase flood protection rates by inflation only for the Hikurangi Swamp Scheme . The
Annual Plan 2022-23 has reduced this targeted rate to an amount that provides sufficient
revenue to fund the operating and capital expenditure budgeted for the activity in 2022-23 .
This targeted rate will be reviewed after the working group explores potential options for
future operations
• increase water rates each year by inflation and growth (0 .8%) . The Annual Plan 2022-
23 contains a 31% one-off increase to the water consumption charge to cover reduced
revenue from the refinery changing its operating model and increased costs from new
drinking water requirements .
33
Looking back over preceding years, Council has achieved all benchmarks set in the 2018-28
Financial Strategy with the exception of a balanced budget in 2019-20 as detailed below:
● Achieved
● Not achieved
Financial
Annual
Annual
Strategy Limit
Report
Report
Financial parameter
2018-28
2019-20
2020-21
Balanced budget
100%
95%1
118%
Rates (income) affordability
70%
54%
41%
Rates (increases) affordability
5 .2%
4 .47%
1 .87%
External net debt to revenue
175%
72%
67%
External net debt per capita
$2,241 in 2019-20,
$2,290 in 2020-21
$1,208
$1,475
Net interest to rates revenue
25%
7%
4%
Information for 2021-22 is not available at the time of this report .
1 COVID-19 significantly impacted Council’s revenue during the last quarter of the financial year . Minimal
roading activity was able to be undertaken during lockdown . This resulted in roading programmes being
deferred to the 2020-21 financial year . NZTA subsidies attached to these projects have also been carried
forward, which resulted in reduced subsidy revenue for the 2019-20 financial year .
PAST, PRESENT AND FUTURE FINANCIALS
Basis of Preparation
This section provides an overview of the basis for preparation of the financial statements for
2019-20 to 2025-26:
• Council’s audited financial position and performance have been taken from our Annual
Reports for 2019-20 and 2020-21 .
• information for 2021-22 has been estimated as this report was prepared prior to the end of
the 2021-22 financial year . It uses information provided in the March 2022 monthly financial
report, supplemented with full year forecasts and the most accurate information available
at the time of this report . Assumptions around asset valuations for infrastructure assets,
pensioner housing, investment properties and financial derivatives may vary significantly
from the actual valuation undertaken in June 2022 .
• 2022-23 is from the 2022-23 Annual Plan approved by Council on 30 June 2022 .
• the forecast financial position and performance for the next three years (2023-24, 2024-
25 and 2025-26) has been extracted from years 3 to 5 of the 2021-31 LTP, and has been
audited . This prospective financial data and discussion of major projects are drawn from
the information in the current LTP and they reflect the policy and service delivery decisions
of the current council at that time .
34
Summary Funding Impact Statement
$000
eport
eport
ed Actuals
ear 3
ear 4
ear 5
Annual R 2019-20
Annual R 2020-21
Estimat 2021-22
Annual Plan 2022-23
LTP Y 2023-24
LTP Y 2024-25
LTP Y 2025-26
Sources of Operating Funding
General rates, uniform
annual general charges, rates
58,536
59,409
73,634
78,124
81,367
85,864
90,610
penalties
Targeted rates
42,447
42,961
37,187
40,019
41,586
43,063
44,588
Subsidies and grants for
operating purposes
7,643
27,191
16,434
8,400
8,656
8,973
9,172
Fees and charges
14,751
16,978
17,558
17,027
17,169
17,635
18,068
Interest and dividends from
investments
2,516
1,909
1,793
2,283
1,643
1,709
1,760
Local authorities fuel tax, fines,
infringement fees and other
7,829
11,993
9,945
9,123
9,701
10,133
10,250
receipts
Total Operating Funding
133,723 160,441 156,551 154,976 160,122 167,376 174,447
Applications of Operating Funding
Payments to staff and suppliers
99,692
111,971
106,538
117,987
116,225
115,532
118,588
Finance Costs
7,677
4,981
5,336
8,992
8,440
9,410
10,715
Other operating funding
applications
-
-
-
-
-
-
-
Total Applications of
Operating Funding
107,368 116,952 111,874 126,979 124,665 124,942 129,304
Surplus / (Deficit) of
Operating Funding
26,354
43,489
44,677
27,997
35,457
42,434
45,144
35
$000
eport
eport
ed Actuals
ear 3
ear 4
ear 5
Annual R 2019-20
Annual R 2020-21
Estimat 2021-22
Annual Plan 2022-23
LTP Y 2023-24
LTP Y 2024-25
LTP Y 2025-26
Sources of Capital Funding
Subsidies and grants for capital
expenditure
12,379
17,446
18,387
31,541
21,889
19,189
23,328
Development and financial
contributions
6,386
8,112
11,500
7,078
7,078
7,622
7,622
Increase / (decrease) in debt
10,000
20,000
20,000
42,000
32,611
16,125
9,545
Gross proceeds from sale of
assets
1,399
780
-
-
-
-
-
Other dedicated capital
funding
-
-
-
-
-
-
-
Lump sum contributions
-
-
-
-
-
-
-
Total Sources of Capital
Funding
30,164
46,338
49,887
80,619
61,578
42,936
40,494
Applications of Capital Funding
Capital expenditure
to meet additional demand
8,935
14,710
10,822
23,822
27,762
18,238
18,855
to improve levels of service
23,144
32,690
39,336
74,614
44,321
37,447
31,292
to replace existing assets
30,255
42,681
44,394
44,332
45,354
33,154
35,148
Increase / (decrease) in
reserves
(5,816)
(18,820)
12 (34,152)
(20,402)
(3,468)
343
Increase / (decrease) of
investments
-
18,566
-
-
-
-
-
Total Applications of Capital
Funding
56,518
89,827
94,564 108,616
97,035
85,370
85,638
Surplus / (Deficit) of Capital
Funding
(26,354)
(43,489)
(44,677)
(27,997)
(35,457)
(42,434)
(45,144)
Funding Balance
-
-
-
-
-
-
-
See comment on page 26 regarding the Three Waters Reform programme .
36
Statement of Financial Position
$000
eport
eport
ed Actuals
ear 3
ear 4
ear 5
Annual R 2019-20
Annual R 2020-21
Estimat 2021-22
Annual Plan 2022-23
LTP Y 2023-24
LTP Y 2024-25
LTP Y 2025-26
Assets
Current assets
Cash and cash
equivalents
36,060
27,001
31,358
32,196
26,443
25,318
24,774
Debtors and
receivables
19,871
15,962
16,593
16,898
19,941
20,457
21,696
Derivative financial
instruments
-
-
-
-
-
-
-
Other financial assets
532
487
487
487
532
532
532
Other current assets
1,369
907
1,480
1,180
1,069
1,069
1,069
Assets held for sale
-
-
-
-
-
-
-
Total current assets
57,832
44,357
49,918
50,761
47,985
47,376
48,071
Non current assets
Derivative financial
assets
-
98
98
98
-
-
-
Other financial
assets:
- Investments held
in joint ventures and
11,512
10,825
10,828
10,707
11,172
10,644
10,158
subsidiaries
- Investments held in
other entities
3,046
3,760
3,760
3,760
3,046
3,046
3,046
Other non current
assets
-
-
3,434
3,434
-
-
-
Property plant and
equipment
1,742,346
1,797,763
1,985,320
2,064,979
2,082,890
2,207,749
2,268,479
Intangible assets
11,361
11,963
8,087
12,575
11,741
11,318
10,695
Forestry assets
819
854
854
854
819
819
819
Investment
properties
56,347
90,369
97,353
99,853
85,951
85,951
85,951
Total non current
assets
1,825,431
1,915,632
2,109,734
2,196,260
2,195,619
2,319,527
2,379,148
Total assets
1,883,263
1,959,989
2,159,652
2,247,021
2,243,604
2,366,903
2,427,219
37
$000
eport
eport
ed Actuals
ear 3
ear 4
ear 5
Annual R 2019-20
Annual R 2020-21
Estimat 2021-22
Annual Plan 2022-23
LTP Y 2023-24
LTP Y 2024-25
LTP Y 2025-26
Liabilities
Current liabilities
Payables and
deferred revenue
31,121
33,440
27,145
29,053
28,030
26,449
26,806
Derivative financial
instruments
142
452
452
452
142
142
142
Current borrowings
33,000
30,000
30,000
28,000
30,000
30,000
30,000
Employee benefits
liabilities
3,062
3,245
3,407
3,489
3,249
3,314
3,381
Provisions
43
1,112
69
114
45
31
41
Total current
liabilities
67,368
68,249
61,073
61,108
61,466
59,936
60,370
Non current liabilities
Derivative financial
instruments
20,923
12,571
12,571
12,571
20,923
20,923
20,923
Non-current
borrowings
119,000
142,000
162,000
206,000
241,000
256,000
265,000
Employee benefits
liabilities
412
464
487
499
437
446
455
Provisions
524
749
697
600
336
314
281
Payables and
deferred revenue
90
343
343
343
90
90
90
Total non current
liabilities
140,949
156,127
176,098
220,013
262,786
277,773
286,749
Total liabilities
208,317
224,376
237,171
281,121
324,252
337,709
347,119
Net assets
1,674,946
1,735,613
1,922,481
1,965,900
1,919,352
2,029,194
2,080,100
Equity
Retained earnings
927,396
1,001,156
1,020,482
1,046,529
1,043,041
1,052,083
1,063,210
Other reserves
74,020
54,237
70,461
65,955
59,678
73,266
89,161
Asset revaluation
reserve
673,530
680,220
831,538
853,416
816,633
903,845
927,729
Total equity
attributable to
1,674,946
1,735,613
1,922,481
1,965,900
1,919,352
2,029,194
2,080,100
Council
See comment on page 26 regarding the Three Waters Reform programme .
38
THANK
YOU
Thank you for taking the time to read
this report . It's important that we all
participate in shaping the future of
our district and community .
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