CREATING GREAT PLACES HE ARA TAMATA

Transcription

1 CREATING GREAT PLACES HE ARA TAMATA Consultation Document for our Long Term Plan

2 1 Have your say Welcome to this consultation document which sets out what Council proposes to do in the next 10 years. We welcome your views on these proposals and encourage you to provide feedback by completing the submission form. You can also go to: and make a submission online. Councillors will consider your feedback before finalising and adopting the plan on 21 June This is a one-in-three year chance to influence the direction and priorities of Council, so we encourage you to have your say. 5 MARCH - 4 APRIL How long have you got to make a submission? We need your feedback by 4.30 pm Wednesday 4 April 2018 This includes, online, , hand-delivered and posted submissions. Contents Mayor s and CEO s message Our vision and mission Community Outcomes Update on our current project....3 Our 30 year Infrastructure Strategy at a glance....4 Summary of our Financial Strategy....6 Proposed 10 year capital works programme summary Proposed capital works locations...15 Major projects timeline Our issues Other items that we are consulting on...32 Other items that might affect the plan...34 Updates from previous consultations What you get for your rates dollar Audit opinion Where to find other information How to have your say...38 Kia ora koutou We are proud to present this consultation document which outlines our plans and major proposals for the next 10 years. We have achieved much since we adopted our last Long Term Plan in Construction of a new sewerage scheme for Kerikeri is underway after years of planning and we have started work on a Te Hiku Sports Hub that will provide Kaitaia with world-class sports facilities when it is finished. We have also completed the long-awaited Twin Coast Cycle Trail and have repaired and strengthened roads that were damaged in one of the biggest storms to hit the district in decades. Despite still addressing historic infrastructure gaps across the district, we are much further along the road to recovery and planning to do more, including addressing issues such as dusty roads and improving our information and asset management. Maintaining assets and providing affordable services is always a challenge, but we also need to cater for growth (where it is occurring), meet community needs and expectations, and be open to opportunities that deliver economic and social prosperity. We therefore propose to focus on maintaining, and getting the most out of, existing services and infrastructure, while keeping debt and rates as low as possible. We also propose to take advantage of Government subsidies and other funding and develop new infrastructure where possible to deliver the economic and social prosperity our communities are seeking. We encourage you to read about these proposals, which include upgrading Kaitaia s wastewater system and providing Te Kao with safe drinking water. We are also seeking feedback on a bold and exciting proposal to create a network of cycle trails in the district, so more communities can enjoy the benefits the Twin Coast Cycle Trail is already delivering. Funding this network of trails would come at a significant cost, so we need to know if ratepayers support this idea. Similarly, we want to hear your views about whether we should fund a new Community and Civic Hub to revitalise Kaikohe. We are also seeking feedback on a proposal that will determine how much money is available for community infrastructure and projects that create great places. Our plan affects all ratepayers and most communities across the district, so please spend a few minutes looking through this document and tell us what you think. Ka kite ano. Hon John Carter QSO Mayor Shaun Clarke ONZM Chief Executive Officer Cover information He Ara Tāmata Tāmata can refer to cultivating and the working of soil, or a new cultivation. In the Far North, tāmata also refers to the special woven mats found on the marae. Ara is a pathway or the course one might create or use to reach a place or goal and also refers to the lines of weaving required to make a tāmata. He Ara Tāmata is about the creation of or the pathway to something or somewhere important and special. Photograph: Russell Wharf. Courtesy of Northland Inc. ISSN: (print) ISSN: (online)

3 Our Vision and Mission 2 Vision Mission Creating great places, supporting our people Community Outcomes These are the outcomes we believe our District needs to grow and succeed. Liveable communities that are healthy, safe, connected and sustainable Our aspiration is that communities have access to everything that they need to have a good quality of life. We have the freedom of opportunity and choice in the way that we live. We know our communities and can participate in all that they have to offer. Can do communities prepared for the unexpected Our communities are aware, informed and well-equipped to be able to respond to an unexpected event. We are resilient and know that we can look to each other to get through whatever comes our way. This is our strength. Proud, vibrant communities Our communities celebrate who they are and where they live. We embrace and respect the diversity within our communities and take pride in our unique places and spaces. We are working together to achieve our aspirations. Whakatauki He tina ki runga, he tāmore ki raro. Contentment above, firmly rooted below. Those with good family foundation and grounding in their own culture and heritage will find satisfaction and contentment in life. Whakatauki Te toka tū moana. The boulder standing in the ocean. This refers to a chief or to a group of warriors being buffeted by opposing forces but standing firm. Whakatauki Te pā harakeke. A community of harakeke plants. Prosperous communities supported by a growing economy Our communities are unlocking the potential of our district and are empowered to pursue opportunities. We are leveraging our valuable resources and producing quality products that will directly support our communities. Our communities are known for quality, for manaakitanga and for prosperity. A wisely managed and treasured environment Our natural resources are valued and are thriving. We are safeguarding them for the future and ensuring that they are being used sustainably. We are actively seeking balance in the environment to maintain its life-sustaining properties for everybody to enjoy. Whakatauki He kūaka marangaranga, kōtahi te manu i tau ki te tāhuna, ka tau, ka tau, tau atu e. Godwits rise and flock together in the air, one bird comes down to land on the sandbank to feed, then another, then another and another. Emphasises the importance of combining group action with individual initiative and vice versa. Whakatauki Whatungarongaro te tangata, toitu te whenua. As man disappears, the land remains. Do you agree with our Community Outcomes? Have we captured the right mix for our communities to become great places? And are we supporting our people? See the submission form to have your say.

4 3 Our approach for the next 10 years In recent years there has been a call from our District for Council to maintain a steady and careful approach in the delivery of services over the next 10 years, and Council agrees that a steady as she goes approach makes sense. In past years we have been recovering from previous underspending on our assets as a result of global economic challenges, and although we ve made good progress, there is still a way to go. The Long Term Plan therefore focuses on making sure enough money is put into efficiently maintaining the assets we already have, placing more emphasis on delivering essential services such as roads, rubbish, waste and water, while continuing to support our communities through the provision of those things that make life pleasant, such as walking and cycling tracks, playgrounds and sports fields. Our population growth over the period of this plan is modest and unevenly spread, and we recognise genuine affordability challenges for many of our small, rural, remote communities and those on fixed incomes. Continued prudent financial management, keeping debt and rates increases as low as possible, and making as much use of Government funding assistance as possible therefore remain top priority. We also plan to conduct a comprehensive review of all funding mechanisms, including rates, development contributions and fees and charges within the next two years. This plan has been prepared based on the best information we have now. We will improve our asset management practices (including a concerted effort to gain better condition assessment information on our underground and community assets) in the early years of this plan. To manage the risk of sudden asset failure we are putting processes and contracts in place to ensure that maintenance occurs when it needs to and the replacement of assets occurs at the right time. We are planning to meet anticipated changes in environmental standards and we will continue to monitor the regulatory environment and work with the community and stakeholders to reduce uncertainty and find reasonable, affordable solutions should standards rise. Update on current projects Kerikeri wastewater project In the Long Term Plan , we sought public feedback on options for improving sewerage services in Kerikeri where the current treatment plant is failing and many households and businesses rely on septic tanks which can pollute waterways if they aren t maintained properly. Following this consultation, Council resolved to extend its sewerage network in central Kerikeri and build a new Kerikeri Wastewater Treatment Plant at a rural location near the town. Council started building the new sewerage network in May 2017 and recently started construction of the new treatment plant. When we adopted the last Long Term Plan in 2015, we estimated the new scheme would cost $20.5m and the annual capital rate for properties that were able to connect to the scheme would be $1,073 (including GST) for the average property (with one or two toilets). s in the construction sector have gone up since then. We are working with contractors to reduce the impact these have on the project and aim to deliver the project so that costs to ratepayers are roughly the same as forecast when we consulted on the project in We will know the final cost when we have completed the project in early to mid-2019, and we will communicate the rates impact at that time. The example targeted sewerage rates specified on pages 10 and 12 are subject to change as a result of the confirmation and receipt of Government subsidy. Te Hiku aquatic centre In the Long Term Plan , we sought public feedback on a proposal to build an indoor, heated pool complex at Moerua Park, Kaitaia, where Council and community are developing the Te Hiku Sports Hub. Following consultation, Council resolved to fund 33.34% of the capital cost of an $8.4m pool from a targeted rate no earlier than 2018/19, provided the community raised 66.66% of the costs. With inflation, the cost of the pool has risen to just over $9m. Council has allocated these funds in years three (2020/21) and four (2021/22) of the Long Term Plan and they are still dependent on community funding of approximately $5.9m. The Labour Party pledged to contribute $2.8m (or half of the community cost) to this project before it formed a coalition government. This means that the community needs to raise approximately $2.8m. We are helping the community to reach its fundraising goal by funding a Kaitaia Sporting Infrastructure Plan this year (2017/18). The community will be able to use this to show potential funders that there is sufficient demand for the aquatic centre and that the facility is located in the right place in Kaitaia. The community aims to approach funders in early Further, the Northland Regional Council is seeking public feedback on a proposal to increase its Regional Recreational Facilities Rate in its Long Term Plan One of the projects that could benefit from this funding is the Te Hiku aquatic centre. If this goes ahead, it could reduce the burden on Te Hiku Ward ratepayers further, meaning that Council could reduce the targeted rate proposed in this document. Safe drinking water for Omanaia In 2015, we sought community feedback on proposals that would improve the quality of drinking water Omanaia residents receive. We were later successful in obtaining a $1.8m Ministry of Health subsidy to offset the costs of building a new water treatment plant (today s cost $2.3m) A tender process is now underway, and we expect construction to be complete by the end of The new water supply will make a big difference to the lives of Omanaia residents who currently have to boil their water before drinking it. Rawene residents will also benefit from this project, because they rely on water from a treatment plant that will need replacing in the next 10 years. We are also building raw water storage to reduce demand on the Petaka Stream during dry weather, and we are building treated water storage to provide back-up in emergencies. New water source for Omapere-Opononi We also sought feedback in 2015 on ways to make our water supply at Opononi and Omapere more drought-resilient. Options included finding a new water source for the supply which currently relies on a dam and a stream that are dependent on regular rainfall. We decided to continue investigating underground water options and are pleased to have identified a site at Smoothy Road, Omapere, where it may be possible to develop a production well. We have already drilled a test bore and are continuing tests to determine the viability of the bore. We are also developing a Water Demand Management Plan to ensure the water system operates as efficiently as possible and water is used wisely. Progress on Paihia sewerage We are currently improving the Paihia wastewater treatment plant which has been breaching ammonia and nitrogen standards. We have made a number of interim to the treatment process to reduce ammonia levels in treated effluent discharges, but we need to undertake medium to long-term testing to see if these will remain effective over time. We are also investigating a long-term redevelopment of the plant which is on Crown-owned land in the Waitangi Forest. The next step is a geotechnical investigation. Any will need to be within the footprint of the current plant due to a potential Treaty of Waitangi settlement.

5 Our 30 year Infrastructure Strategy at a glance OUR GOAL: Affordable Council infrastructure meeting the needs of people, communities and the environment now and into the future. 4 Our draft Infrastructure Strategy for 2018 to 2048 covers our transport, stormwater, water and wastewater assets. It also includes two significant flagship community facilities the Te Hiku Sports Hub and the Kaikohe Community and Civic Hub (Kaikohe Renaissance). Key issues for all of our assets: Statutory changes Three yearly election cycle Socio-economic issues (affordability) Resilience and climate change Population change Asset data and management Ongoing changes to legislation and central government policy creates uncertainty around infrastructure investments and imposes higher standards and increased costs. Can create a challenging environment for strategic, long term infrastructure management and investment. The Far North District is subject to social and economic challenges (including significant levels of deprivation) that present constraints for the ongoing provision of cost effective infrastructure services. Hazards from and the impacts of climate change (including flooding, sea level rise and storm surge, drought, landslides and erosion, overflows and infiltration). Population ageing, low population growth, declining communities, and the impact of tourists affect affordability and will result in changes to the location and types of infrastructure services communities require. A largely age-based approach to asset management and the need to strengthen asset condition information, processes and systems is acknowledged in Council s focus on the strategic priority for better data and information. This work is scheduled within the next three years. Despite the need for improved asset data, Council s assets are performing adequately. We consider the risk of critical asset failure as low. For each asset group we have identified where we are today, what the asset performance is like, key issues for the assets, and Council priorities for the 30 years. The highlights include: Key facts TRANSPORT AT 81 % ROADING IS OUR LARGEST ASSET GROUP POTABLE WATER 4 SUPPLY TOWNS IN THE DISTRICT ACCOUNT FOR 70% OF THE RETICULATION NETWORK 2,507 km 1,648 km 715 1, SERVICING URBAN AND RURAL AREAS IS UNSEALED AND IN RURAL AREAS BRIDGES AND LARGE CULVERTS STREET LIGHTS km WATER TREATMENT PLANTS OF WATER MAINS TREATED WATER RESERVOIRS PUMPING STATIONS POU HERENGA TAI TWIN COAST CYCLE TRAIL VEHICLE FERRY KOHU RA TUARUA HOKIANGA FERRY IN ADDITION, MANY COMMUNITIES RELY ON PRIVATE WATER SCHEMES WASTEWATER STORMWATER 17 COUNCIL OWNED AND OPERATED SCHEMES 20 URBAN STORMWATER AREAS AND 4 RURAL DRAINAGE DISTRICTS km ,307 TREATMENT PLANTS OF PIPES PUMPING STATIONS PROPERTIES ARE CONNECTED TO COUNCIL S SYSTEMS 129 km 39 km 2, ,922 OF PIPES OF LINED AND UNLINED CHANNELS MANHOLES DETENTION PONDS FLOODGATES INLETS AND OUTLETS

6 5 Transport Performance The transport network is in reasonable condition. When compared to NZTA peer groups the roughness of our roads is as good, if not slightly better. However, the unsealed network and forestry routes are ongoing issues. Our bridges need attention. Our priorities developing a strategic district transport plan improving the unsealed network and dealing with issues like dust catering for increased traffic in our growth areas (mainly around Kerikeri and Waipapa) developing drainage, culvert and bridge structure improvement programmes strengthening key forestry roads footpaths and the extension of Pou Herenga Tai Twin Coast Cycle Trail monitoring new operations and maintenance contracts for our roading network and improving our asset management information and planning using the Northland Transport Alliance replacing the Hokianga ferry. Potable Water Supply Performance Our schemes are performing well. Some schemes are, however, reaching their capacity (Kaikohe, Paihia and Kaitaia). Our priorities improving the quality of supply to Omanaia improving drought resilience to all schemes (in particular Kaitaia, Rawene and Opononi) expanding and relocating the Paihia Water Treatment Plant a new treatment plant and water source for the growing Kerikeri / Waipapa area in investigating options for Kaikohe, including whether current or new irrigation supplies could be used. Wastewater Performance Generally these assets perform adequately but there is room for improvement to deal with compliance issues, increasing regulatory standards, growth, infiltration, sludge and condition information for individual underground assets. Our priorities reducing the volume and frequency of wet weather overflows in all WWTPs, with an emphasis on Kaitaia expanding the Kerikeri reticulated area and completing the upgrade of the treatment plant compliance with current and future consent conditions (especially at Taipa and Paihia) treatment plant upgrades (including Hihi where there is an unacceptable risk of failure) sludge management and disposal. Stormwater Performance Generally the stormwater network can be considered fit for purpose; however there are some large scale flooding issues such as Waipapa, Kaitaia, Kaeo and Moerewa. Condition information, stormwater / catchment management plans and modelling is out of date and this information and the protection of overland flowpaths could be better integrated into Council s plans. There is a lack of proactive maintenance leading to reactive renewals. Our priorities develop a stormwater strategy (with clear criteria for investment), policies, standards and bylaws that integrate with other Council plans improve our asset information and review and update our models and stormwater catchment plans (identifying secondary flow paths, climate change implications, etc.) implement maintenance programmes address resilience issues ($25.8m) and renewals and ( $13.8m over the first 10 years roughly evenly split), including upgrades, in Kaikohe, work following storm events, minor upgrades and new drains in smaller centres. Our maintenance expenditure is likely to increase as a result of better planning, asset information and completing renewals and upgrades allowing us to invest less ($0.6m per annum) in our renewals programme, subject to the outcomes of condition assessments and modelling. Te Hiku Sports Hub and Kaikohe Community and Civic Hub (Kaikohe Renaissance) Performance The Te Hiku Sports Hub is a new facility filling a community need. This project will become a landmark asset. The current Council facilities in Kaikohe (Council headquarters, library, and Memorial Hall) are not fit for purpose in their current state. Funding The future comprehensive review of all funding mechanisms, including rates and development contributions, will likely impact on our Infrastructure Strategy and we will keep it under review. The feedback we receive on the proposals contained in this consultation document will affect the final Infrastructure Strategy that we adopt. The draft version of the Infrastructure Strategy can be found by going to our website:

7 6 Summary of our Financial Strategy Council s overall focus of our Financial Strategy is financial sustainability and affordability, meaning our commitments to deliver infrastructure and services are funded in a way that is affordable for the community and meet Council s obligation to be effective stewards of the assets of the District, now and into the future. Key financial goals that drive the budgets for the Long Term Plan (LTP) include: achieve a balanced budget each year, ensuring that projected operating revenues are set at a level sufficient to meet that year s projected operating expenses that no more than 90% of revenue will be from rates (currently about 82% funded), with the balance being other sources such as subsidies (from Government agencies including the New Zealand Transport Agency) and user fees and charges limit overall rates increases for the District to inflation (Local Government Index) plus 2.5% each year limit net debt to no more than 175% of our total annual revenue have external debt at a level no higher than $163m at the end of the 2027/28 financial year maintain interest costs at less than 10% of rates revenue. Underpinning our approach to the 2018 Financial Strategy: investment in the continuous improvement of our core processes and tools to enhance infrastructure and service investment decisions and delivery in the short, medium and long-term maintaining the core services we currently provide as cost-effectively and efficiently as possible, ensuring that finding operational efficiencies remains of paramount importance protecting our past investment in assets by developing a prioritisation model, using key decision criteria, that weights capital renewal projects ahead of initiatives to increase Levels of Service or provide additional capacity for growth replacement or renewal of infrastructure assets where it is reasonable and economic to do so continuing to use the method of depreciation value to fund renewals while a comprehensive review of all funding mechanisms, including rates and development contributions, is carried out continuing to use borrowing to spread the cost of new capital expenditure over a longer time period to ensure that the cost of infrastructure today is spread equitably between the ratepayers of today and tomorrow. Our financial challenges A number of factors are expected to impact on our business and its finances over the Long Term Plan which have been considered in developing the Financial Strategy. demographics and future population change impact of tourism Council s capacity to deliver maintaining Levels of Service affordability of sustainable assets climate change, hazards and resilience. The strategy aligns with our Infrastructure Strategy, Asset Management Plans, growth expectations, and financial policies. Blo-karts Ninety Mile Beach. Photographer: David Kirkland. Courtesy of Northland Inc.

8 7 Financial Strategy highlights Amount of rates we will collect and debt level of the next 10 years Financial Year ended 30 June Proposed rates $m Proposed rates increase 2 3.5% 4.0% 2.3% 3.4% 5.1% 2.1% 3.4% 3.2% 4.0% 3.7% Rates limit (Inflation + 2.5%) 3 4.5% 4.7% 4.7% 4.7% 4.8% 4.8% 4.9% 5.0% 5.0% 5.1% Debt $m Debt / revenue ratio % 78.8% 82.0% 89.0% 99.8% 103.5% 98.3% 99.8% 100.1% 99.5% Interest / revenue ratio 6 2.6% 3.1% 3.3% 3.5% 4.0% 4.7% 4.8% 4.5% 4.6% 4.7% 1. Proposed rates are the rates requirement based on the prospective revenue and expenditure for the 10 years. Revenue and expenditure projections are based on BERL forecast Local Government Index (LGCI). 2. Proposed rates increase is the movement in budgeted rates year on year. 3. The rates limit is the maximum rates increase per annum. This is based on inflation for the year plus 2.5%. The inflation estimates are based on BERL forecast Local Government Index (LGCI). 4. Debt is calculated as total borrowings. 5. Debt to revenue ratio is calculated as debt divided by operating revenue plus subsidies capital work. 6. Interest to revenue ratio is calculated as interest expense divided by total operating income. Total rates increase per year 6.0% 5.0% 5.1% Percentage Increase 4.0% 3.0% 2.0% 3.5% 4.0% 2.3% 3.4% 2.1% 3.4% 3.2% 4.0% 3.7% Limit 1.0% 0.0% Notes: All figures are adjusted for inflation. Council policy on rates increases (inflation + 2.5%) is our guide on rates limits. We are aware the current budgets indicate a breach in 2023 and we will be reviewing to enable all years to come within the limit.

9 8 What will our debt pay for? Capital spend ($576m over 10 years) Other 7% Customer Services 1% District Facilities 17% Water Supply 10% Solid Waste Management 1% Stormwater 3% Environmental Management 0% Wastewater 13% Roading & Footpaths 48% Capital spend broken down by: maintain the existing asset base (renewals) achieve or increase the level of service (loans) Total asset renewals Levels of service Depreciation is higher than actual renewals for the 10 years of the plan. This is because the Council has a number of assets which have a long useful life and are not due for replacement within the 10 year period covered by this plan. Any excess depreciation funds are ring-fenced and Council does have plans to use these funds (albeit outside of the 10 years of the plan). Council intends to undertake a comprehensive review of all funding mechanisms (including rates) within the next two years. Council is also committed to developing an Asset Management System to ensure that asset information is provided that will allow for improved planning for asset replacement. Until these reviews have been completed, Council is planning a business as usual approach which includes funding depreciation rather than renewals. Impact on Rates Our main source of funding is from rates. While we try to maximise the Government subsidies available and have adopted a user pays policy (exercised through targeted rates and consumption and user charges) for many services and assets, the bulk is funded by rates.

10 9 Where does our revenue come from? Council expenditure is proposed funded 82% from rates (including water), and 18% from other revenue including user fees & charges and subsidies. In addition, we are budgeting for funding from Government subsidies to support capital expenditure e.g. NZTA and Ministry of Health. Revenue Sources Total Over 10 Years $m Percentage of Operating Revenue Rates % Water by meter charges 61 5% Other including user fees and charges and subsidies % Total Revenue Funding Operating s 1, % Funding sources GENERAL RATES 42% SUBSIDIES 18% Other Revenue Funding Capital Expenditure Subsidies 175 Operating spend Operating spend ($1,398m over 10 years) TARGETED RATES 21% Customer Services 8% District Facilities 13% Water Supply 7% Solid Waste Management 4% Stormwater 3% Other 11% Capex and Opex spend Combined capital and operating spend for core activities Environmental Management 10% Roading & WARD RATES 9% USER FEES AND CHARGES 7% OTHER 3% Solid Waste Management 4% Water Supply 10% District Facilities 18% Stormwater 4% Wastewater 17% Roading & Footpaths

11 10 Proposed Rates over 10 years Example Residential Rates by Ward and Schemes (including water / wastewater where connected) Financial Year ended 30 June Average Land Values 1 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Bay of Islands / Whangaroa Kaeo 75,184 $2,603 $2,573 $2,617 $2,692 $2,760 $2,852 $2,923 $2,991 $3,068 $3,144 $3,224 Kawakawa 41,918 $2,611 $2,541 $2,599 $2,657 $2,708 $2,770 $2,826 $2,884 $2,947 $3,018 $3,093 Moerewa 17,618 $2,492 $2,409 $2,462 $2,518 $2,563 $2,615 $2,669 $2,721 $2,777 $2,840 $2,907 Kerikeri 193,725 $3,114 $3,656 $4,068 $4,156 $4,232 $4,352 $4,451 $4,544 $4,633 $4,893 $5,186 Okaihau 71,577 $1,700 $1,702 $1,746 $1,827 $1,849 $1,890 $1,908 $1,932 $1,961 $1,996 $2,209 Paihia / Opua 192,011 $3,050 $3,110 $3,256 $3,335 $3,442 $3,634 $3,864 $3,988 $4,123 $4,228 $4,330 Russell 377,364 $3,833 $3,990 $4,109 $4,200 $4,327 $4,544 $4,624 $4,792 $4,953 $5,129 $5,307 Whangaroa 188,101 $3,165 $3,162 $3,235 $3,321 $3,422 $3,559 $3,632 $3,736 $3,854 $4,358 $6,699 Kaikohe / Hokianga Kaikohe 40,111 $2,202 $2,157 $2,200 $2,265 $2,337 $2,405 $2,484 $2,685 $2,756 $2,821 $2,887 Kohukohu 94,713 $2,792 $2,668 $2,727 $2,805 $2,893 $3,125 $3,201 $3,281 $3,370 $3,461 $3,555 Opononi / 126,417 $3,114 $3,113 $3,337 $3,432 $3,525 $3,646 $3,869 $3,948 $4,038 $4,132 $4,229 Omapere Rawene 75,632 $2,919 $2,821 $3,013 $3,116 $3,191 $3,274 $3,353 $3,422 $3,544 $3,624 $3,706 Te Hiku Ahipara 142,931 $2,423 $2,472 $2,533 $2,605 $2,750 $2,907 $2,972 $3,060 $3,153 $3,249 $3,352 Kaitaia / Awanui 38,126 $2,174 $2,145 $2,192 $2,276 $2,410 $2,566 $2,670 $2,811 $2,870 $3,093 $3,152 East Coast Bays 2 169,649 $2,510 $2,560 $2,645 $2,749 $2,873 $3,018 $3,082 $3,173 $3,273 $3,377 $3,489 Hihi 135,826 $2,714 $2,733 $3,441 $3,507 $3,592 $3,701 $3,780 $3,846 $3,923 $4,003 $4,093 Rangiputa 143,443 $2,490 $2,516 $2,578 $2,651 $2,809 $2,936 $3,000 $3,085 $3,179 $3,276 $3,380 Whatuwhiwhi 143,443 $2,497 $2,523 $2,582 $2,655 $2,760 $2,886 $2,948 $3,033 $3,136 $3,241 $3,482 1 Average Land Value source: QV Far North District Revaluation Mangonui, Coopers Beach, Cable Bay and Taipa. Residential Rates increases over 10 years Kerikeri - example Residential Rates increases over 10 years Includes wastewater scheme targeted rate $6,000 $5,000 $4,000 $412 $89 $75 $120 $99 $94 $89 $260 $293 $3,000 $2,000 $1,000 $

12 11 Kaikohe - example Residential Rates increases over 10 years $6,000 $5,000 $4,000 $3,000 $2,000 $42 $65 $72 $68 $79 $201 $71 $64 $66 $1,000 $ Kaitaia / Awanui - example Residential Rates increases over 10 years $6,000 $5,000 $4,000 $3,000 $2,000 $47 $85 $134 $155 $104 $141 $59 $223 $59 $1,000 $ Example of rates payable on different value properties. Applies to all rateable properties. Land Values 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Residential 100,000 $2,063 $2,183 $2,395 $2,436 $2,492 $2,585 $2,678 $2,782 $2,827 $2,970 $3, ,000 $2,799 $2,995 $3,238 $3,296 $3,386 $3,543 $3,645 $3,788 $3,879 $4,072 $4, ,000 $4,027 $4,349 $4,644 $4,729 $4,877 $5,140 $5,258 $5,464 $5,631 $5,907 $6, ,000 $5,255 $5,703 $6,049 $6,163 $6,367 $6,736 $6,871 $7,140 $7,383 $7,742 $8,057 1,000,000 $6,483 $7,057 $7,455 $7,596 $7,858 $8,333 $8,483 $8,816 $9,135 $9,578 $9,976 Rural and Lifestyle 100,000 $1,409 $1,486 $1,592 $1,614 $1,651 $1,709 $1,736 $1,791 $1,828 $1,897 $1, ,000 $2,144 $2,298 $2,435 $2,474 $2,545 $2,667 $2,704 $2,796 $2,879 $2,998 $3, ,000 $3,371 $3,652 $3,841 $3,908 $4,036 $4,263 $4,316 $4,472 $4,631 $4,834 $5, ,000 $4,597 $5,005 $5,246 $5,341 $5,526 $5,860 $5,929 $6,148 $6,383 $6,669 $6,927 1,000,000 $5,824 $6,359 $6,652 $6,774 $7,017 $7,456 $7,542 $7,824 $8,135 $8,504 $8,846 Commercial 100,000 $2,954 $3,163 $3,411 $3,471 $3,567 $3,734 $3,838 $3,986 $4,085 $4,286 $4, ,000 $4,974 $5,391 $5,724 $5,830 $6,021 $6,362 $6,492 $6,745 $6,968 $7,307 $7, ,000 $8,341 $9,105 $9,579 $9,763 $10,110 $10,742 $10,916 $11,343 $11,774 $12,341 $12, ,000 $11,708 $12,819 $13,434 $13,695 $14,199 $15,121 $15,340 $15,941 $16,580 $17,376 $18,124 1,000,000 $15,075 $16,533 $17,290 $17,627 $18,288 $19,501 $19,764 $20,538 $21,386 $22,410 $23,386

13 12 Proposed Targeted Water Rates. Additional rates for those properties in the area of benefit of a Council scheme /18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Kaitaia / Awanui $280 $272 $282 $289 $295 $326 $366 $417 $416 $415 $414 Kawakawa $359 $345 $361 $367 $371 $376 $388 $393 $399 $405 $412 Moerewa $359 $345 $361 $367 $371 $376 $388 $393 $399 $405 $412 Kerikeri $172 $166 $186 $191 $194 $205 $215 $235 $236 $404 $601 Okaihau $375 $366 $392 $455 $450 $447 $452 $448 $449 $450 $630 Paihia / Opua $219 $221 $227 $233 $248 $296 $451 $469 $465 $461 $458 Kaikohe $288 $284 $288 $293 $296 $299 $304 $307 $315 $318 $322 Opononi / Omapere $664 $660 $820 $841 $846 $844 $860 $859 $860 $862 $864 Rawene $460 $417 $520 $532 $532 $532 $546 $547 $548 $550 $553 Potable water rates (per m3) $3.06 $2.68 $2.71 $2.78 $2.82 $2.91 $2.97 $3.05 $3.15 $3.24 $3.35 Proposed Targeted Sewerage Rates. Additional rates for those properties in the area of benefit of a Council scheme /18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Ahipara $288 $303 $308 $314 $359 $394 $403 $411 $416 $421 $426 East Coast $243 $246 $270 $305 $323 $334 $342 $345 $349 $353 $357 Hihi $614 $603 $1,257 $1,257 $1,244 $1,232 $1,258 $1,245 $1,236 $1,227 $1,221 Kaeo $736 $717 $723 $737 $741 $756 $777 $783 $789 $797 $805 Kaikohe $200 $194 $199 $200 $205 $207 $230 $372 $374 $373 $373 Kaitaia / Awanui $274 $271 $275 $297 $349 $395 $411 $448 $452 $620 $615 Kawakawa $549 $521 $530 $526 $516 $510 $508 $505 $503 $510 $517 Kerikeri $484 $983 $1,312 $1,322 $1,303 $1,285 $1,317 $1,297 $1,279 $1,262 $1,246 Kohukohu $809 $693 $707 $720 $731 $878 $897 $908 $919 $931 $945 Opononi $311 $306 $319 $324 $329 $352 $501 $503 $505 $508 $511 Paihia $371 $383 $460 $460 $460 $478 $496 $509 $544 $544 $538 Rangiputa $352 $344 $351 $357 $415 $419 $428 $433 $438 $444 $450 Rawene $569 $533 $580 $608 $611 $615 $626 $631 $679 $684 $690 Russell $481 $498 $516 $513 $506 $518 $529 $558 $557 $562 $569 Whangaroa $743 $695 $706 $719 $730 $742 $758 $771 $785 $1,182 $3,414 Whatuwhiwhi $359 $351 $355 $361 $366 $369 $376 $382 $395 $409 $552 Sewerage Operating Rate $523 $499 $518 $561 $598 $628 $665 $700 $740 $774 $812 Connected Rate (All Schemes) $523 $499 $518 $561 $598 $628 $665 $700 $740 $774 $812 Subsequent Pan Rate (All Schemes) $314 $299 $311 $336 $359 $377 $399 $420 $444 $464 $487 Monitoring and reviewing our Financial Strategy As part of business as usual, we constantly scan both the financial environment and our own performance to monitor: sustainability of our financial performance and position any emerging risks whether the strategy is being implemented as intended any trends in the community s ability to pay. The Strategy will be reviewed triennially as part of the Long Term Plan process. Consideration will also be given to the impacts of any significant changes in local, national or global economic conditions during each year s Annual Plan process. Supporting information Want to know more? To read our full Financial Strategy and to calculate your rates online please click on the icon below or visit our website: - keywords: Financial Strategy or Rates $ Financial Strategy You can calculate your rates online

14 13 Proposed 10 year capital work programme summary Roading 10 year investment Cycle Trail Pou Herenga Tai extension $11,722,447 Pou Herenga Tai - Opua-Taumarere $4,600,000 Cycle trail network renewals $663,718 Drainage $17,756,759 Ferry renewals, Hokianga $1,126,474 Footpaths - BOI-Whangaroa ward $2,291,542 Footpaths - Kaikohe-Hokianga ward $1,051,025 Footpaths - Te Hiku ward $1,659,510 Hupara Road seal extension $256,401 Kerikeri Ring Road construction $1,434,276 Kerikeri South Eastern Bypass construction $20,540,875 Low cost / low risk : Cycle network improvement $2,212,680 Lighting $9,015,508 Road sealing projects $11,063,400 Tourism byway sealing $2,738,762 Bridges $11,063,400 Resilience and strengthening $12,169,740 Minor safety projects $11,063,400 Kerikeri-Waipapa road extensions $4,188,765 Panguru Road raising $208,480 Preventative maintenance $3,486,032 Sealed road pavement rehabilitation $25,593,774 Sealed road resurfacing $40,664,658 Stock effluent disposal stations $306,000 Street lighting $40,780 Structure component replacements $15,468,626 Traffic services $5,531,700 Unsealed road metalling $42,959,181 Waipapa Road to Kapiro Road construction $16,694,409 Total $277,572, year Water Supply investment Bulk water tanker supply $585,297 Consent renewals $109,340 Fire flow upgrades $2,156,507 Hardware and software $81,248 Minor capital works $3,590,044 New treatment plants $17,147,040 Reservoir works $1,807,304 Reticulation renewals $6,560,454 Reticulation upgrades $1,627,210 Scheduled renewals $7,855,452 Telemetry upgrades $225, year Water Supply cont investment Treatment plant renewals $678,888 Treatment plant upgrades $2,740,310 Water sources $13,069,521 Total $58,234, year Wastewater investment Consent renewals $901,265 Consent-related $10,414,008 Disposal field $306,000 Hardware and software $61,248 Minor capital renewals $4,978,530 Minor capital works $23,951 Odour control $195,512 Pump station renewals $2,026,121 Pump station upgrades $1,186,682 Reticulation renewals $2,512,001 Reticulation upgrades $18,524,176 Scheduled renewals $14,512,193 Sludge disposal / management $2,686,216 Storage $532,650 Telemetry upgrades $1,896,500 Treatment plant renewals $2,923,480 Treatment plant upgrades $12,220,389 Total $75,900, year Stormwater investment Floodgates $553,170 Hardware and software $20,000 Minor capital works $6,638,040 Reticulation upgrades and renewals $7,092,801 Stormwater outlets $182,511 Total $14,486, year Solid Waste Management investment Illegal dumping mitigation $6,479 Landfill renewals $252,960 Recycling stations $1,056,173 Transfer station renewals $2,534,875 Transfer stations upgrades $829,761 Weighbridges $156,120 Total $4,836,368

15 14 District Facilities 10 year investment Airport renewals and upgrades $2,250,674 Amenity lighting $1,101,614 Boat ramps $4,066,354 Camping facilities $513,417 Carparks $2,496,277 Cemeteries $416,555 Civil Defence renewals $253,680 Community buildings $15,520,719 Disability access $421,625 Dog park $63,019 Foreshore $1,516,706 Housing for the Elderly $3,862,638 Land purchases - recreation $3,251,686 Maritime renewals and upgrades $15,721,455 Paihia marine facility storm mitigation $4,775,474 Minor capital works $2,250,328 Parks and reserves $16,638,833 Playgrounds and skateparks $345,450 Public toilets $3,631,306 Sport and recreation facilities $14,320,697 Streetscapes and bins $2,180,777 Total $95,953,430 Environmental Management 10 year investment Buildings renewals $595,491 Dog pound $678,263 Equipment renewals $65,382 Total $1,339,136 Governance and Strategic Administration 10 year investment Aerial photography $91,633 Kaikohe Community and Civic Hub $11,758,684 Kaikohe service centre renewals $1,196,946 IT security $75,193 IT upgrades and renewals $16,366,176 Other renewals $4,864,345 Vehicles $5,700,465 Property file digitisation $1,115 Total $40,054,557 TOTAL CAPEX $575,597,571 Customer Services 10 year investment Building renewals $2,127,556 Library books and resources $1,081,494 Library renewals $3,817,200 Kawakawa Library relocation $193,800 Total $7,220,050

16 KOHUKOH 15 Proposed capital works locations TE KAO Te Kao water supply meidan $16,500 for Te Kao households Whatuwhiwhi wastewater $3,029,657 Ea wa impr $3, DISTRICT-WIDE Sealed road resurfacing $40,664,658 Sealed road $25,593,774 Distict-wide low cost roading $64,927,995 Te Hiku Sports Hub $9,191,150 WHATUWHIW Unsealed road metalling $42,959,181 Roading structure replacements $15,468,626 Kaitaia water supply $7,966,618 Kaitaia stormwater $1,179,447 Transfer station renewals $2,534,875 Parks and reserves $16,638,833 Maritime facilities $20,496,929 Community buildings renewals $15,520,719 Kaitaia wastewater $13,251,607 Kaitaia sludge management $1,914,755 AHIPARA KAITAIA Ahipara wastewater $1,264,768 LEGEND Roading Water supply Kohukohu wastewater $978,463 Wastewater OPONO Stormwater Pou Herenga Tai (Twin Coast Cycle Trail) Kohu Ra Tuarua Hokianga Ferry Hokianga Ferry renewals $1,126,474 Kaikohe Community and Civic Hub (Kaikohe Renaissance) Sludge Management Te Hiku Sports Hub Rawene water supply $2,875,637 Rawene wastewater $996,729 Opononi wastewater $1,365,580 Opononi water supply $4,033,826

17 16 st Coast stewater ovements 375,854 Hihi wastewater $2,005,397 Whangaroa wastewater $924,120 Waipapa roading $18,720,774 Kerikeri south eastern bypass $22,703,275 HI Kerikeri ring road $1,434,276 Kerikeri wastewater $12,958,923 Kerikeri water supply $20,730,443 HIHI Paihia wastewater $9,757,589 Paihia water supply $12,182,790 WHANGAROA OKAIHAU WAIPAPA KERIKERI RUSSELL PAIHIA OPUA Russell wastewater $2,816,751 Pou Herenga Tai (Twin Coast Cycle Trail) $16,736,165 Rest areas and short connections Linking up Ngawha Springs West cycle trail to Rawene Kawiti Caves Opua to Waitangi Waitangi to Kerikeri Southern link to Whangarei Pacific Coast to Awanui U RAWENE KAIKOHE MOEREWA KAWAKAWA Kawakawa water supply $1,941,605 Kawakawa wastewater $1,788,132 NI Okaihau water supply $1,082,087 Kaikohe wastewater $6,414,258 Kaikohe water supply $3,341,202 Kaikohe stormwater $2,831,055 Kaikohe Community and Civic Hub $11,758,684 Moerewa stormwater $1,164,866 To find out more about our capital programme budgets please see page 13. To see when these projects are due to start please see page 17.

18 17 Proposed major projects timeline Our proposed work programme KERIKERI SOUTH EASTERN BYPASS MINOR LIGHTING IMPROVEMEN DUST SEALING UNSEALED ROAD MET SEALING OF TOURISM BYWAYS TO MAJOR ATTRACTIONS ROADING TWIN COAST CYCLE TRAIL OPUA TO TAUMARERE DEVELOP THE TWIN COAST CYCLE TRAIL IMPROVE FREIGHT PRODUCT REPLACEMENT OF HOKIANGA FERRY (KOHU RA TUARUA) WATER SUPPLY TE KAO WATER KAITAIA WASTEWATER UPGRADE PAIHIA WATER KERIKERI WASTEWATER UPGRADE KAIKOHE WASTEWATER UPGRADE WASTEWATER HIHI WASTEWATER UPGRADE OPONONI WASTEWATER TREATMENT PLANT UPGRADE WASTEWATER SLUDGE MANAGEMENT INVEST IN CRITICAL URBAN STORMWATER KAIKOHE STORMWATER UPGRADE STORMWATER KAITAIA STORMWATER UPGRADE MINOR STORMWATER UPGRADE IN SMALLER TOWNS FACILITIES AND OPEN SPACE TE HIKU SPORTS HUB & POOL KAIKOHE COMMUNITY AND CIVIC HUB (KAIKOHE REN

19 18 RESPONDING TO GROWTH IN KERIKERI AND SURROUNDS TS ALLING TO SUPPORT TOURISM GROWTH IVITY TO IMPROVE PRODUCTIVITY GROWTH MANAGE PEAK WATER DEMANDS ASSOCIATED WITH GROWTH IN KERIKERI AND SURROUNDS KERIKERI WASTEWATER UPGRADE PHASE 2 YEAR 12 KERIKERI WASTEWATER UPGRADE PHASE 3 YEAR 22 SYSTEMS IN RESPONSE TO CLIMATE CHANGE AISSANCE)

20 19 Our issues Most of what we do on a day-to-day basis is look after the basics - maintaining our roading network, collecting rubbish, treating wastewater and water, processing consents and licenses, managing community property, providing information and distributing community grants. Over the next 10 years we intend to continue this, but there are some key issues we need to explain in terms of how we have developed this plan, how and where the money we raise from rates and other fees and charges will be spent, and how all of this impacts on the rates you pay. On the following pages, we outline these issues with the options, costs and other implications. We welcome your feedback on these. To do this complete the submission form or do it online at 1. A Community and Civic Hub for Kaikohe? Page A permanent cycle trail from Opua to Page 21 Taumarere? 3. Extend the Twin Coast Cycle Trail? Page Who should own Russell Wharf? Page What price for better sewerage in Kaitaia? Page Money for placemaking projects? Page Increase funds for community infrastructure Page 26 projects? 8. What support for events and festivals? Page Rainwater harvesting for Te Kao? Page How should we fund safe drinking water at Page 29 Te Kao? 11. Toilets and showers for the Kawakawa Tourism Page 30 Hub? 12. Funds to create a Kawakawa Square? Page Other items that might affect the plan Page Other items we are consulting on Page 35 Rating impacts All of the rating impacts have been based on a land value of $100,000 unless otherwise stated. To gauge the impact on individual ratepayers you will need to multiply the rate shown by individual land value. For example, an increase in rates of $1.25 on a property with a land value of $250,000 would be $1.25 x 2.5 (land value) and result in a increase of $3.13. Increase per connection, ward or targeted rate do not require any further calculation to determine impact. In all cases rate impacts are calculated for residential ratepayers. The impact for commercial ratepayers will be higher to the differential applied. Photograph: Waitangi Treaty Grounds Meeting House carvings. Photographer: David Kirkland. Courtesy of Northland Inc.

21 1 A Community and Civic Hub for Kaikohe? 20 Kaikohe is the heart of Ngāpuhi and the centre of Council operations. We are committed to retaining a strong presence in Kaikohe, but our offices are old and need modernising. We also want to lift public services and community spaces in the town, so we are proposing a hub and civic centre that meets community needs and brings Council services together in once place. The kind of facility we envisage is similar to Te Ahu in Kaitaia, which includes a library, museum, Council service centre, cinema and café, as well as things the community and our partners value. For Kaikohe, however, a museum and cinema would not be included unless the public wants it. In 2015 we included $6.256m in our Long Term Plan for building this, but this is well short of what we would now need based on the updated vision for Kaikohe. We are investigating funding sources and governance models and plan to work with Ngāpuhi, hapū and the community to develop the business case and implementation plans. If we proceed, we would like to know what you would like to see included. For more information on this issue refer to the FAQs on our website Options 1a. Community Hub for Kaikohe We develop a community hub and civic centre that creates optimal social and economic benefits for the community, uses existing assets and involves private and public investment. This may include land Council doesn t own currently and it could be built in stages. We see Ngāpuhi and hapū as key partners in this project. We also envisage transferring ownership and leadership of the multi-purpose facility to the community, just as we have done with Te Ahu. 1b. Civic centre on our current site We create a civic centre that integrates Council s Kaikohe campus with the adjacent Memorial Hall and includes a new library, public spaces and commercial activities, such as a café. This would provide the community with a one-stop shop for council services, but not provide the benefits of revitalising Kaikohe through a multifunctional hub. Opportunities to partner with Ngāpuhi hapū and community are also limited under this option which is concerned with rationalising and upgrading Council amenities in the town and limits additional community facilities on our current site. 1c. Status quo We maintain and renew the current Council buildings in Kaikohe, but abandon plans to create a community hub and civic centre or integrate Council facilities in the town. This is the least expensive option with minimal costs for ratepayers in the short-term. However, it doesn t provide a long-term solution for the renewal of Council offices and other amenities in Kaikohe, nor does it address community needs or take advantage of opportunities to partner with Ngāpuhi and other community organisations to revitalise Kaikohe. This option would not be sufficient to accommodate all Council staff, so alternative office space would still be required. (i.e. John Butler Centre, Kerikeri) * Operational costs are not included in the capital costs stated * $11.8m * $6.4m * $1.19m 2018/19 $0 2019/20 $0 2020/21 $ $5.61 average per year 2018/19 $0 2019/20 $ /21 $ $4.59 average per year 2018/19 $0 2019/20 $0 2020/21 $ $0 Our proposed option 1a. We don t believe that council offices and public amenities in Kaikohe are fit-for-purpose in their current state. We believe these will eventually fail to deliver the level of service the community expects. At a minimum, we would need to renew these buildings significantly in the future, if not demolish and rebuild them. We consider the people of the Kaikohe area would benefit economically and socially from a Community and Civic Hub. There are opportunities to explore a range of governance, management and operational arrangements (such as a Trust, private / public partnership) and to secure external funding to facilitate the project s completion and deliver value. We will actively pursue these before we commit significant funding as part of the delivery of this Long Term Plan. Our initial estimates of costs (based on our experience with Te Ahu) and the timing of the build may therefore change as the scope, location(s) and the services to be provided in the hub are refined and partners are secured. Impact on debt $11,758,684m. The project will be funded from borrowing over a 20 year term during which time adjustments will be made to rates to accommodate depreciation and interest costs Level of Service Increased amenities and facilities for the Kaikohe community and visitors Do you think our preferred option will create a great place and support our people? What do you think? Tell us your preferred option - please see question 1 on the submission form on page 1 Ngāpuhi refer to Kaikohe as Te Pu o Te Wheke (The Heart of the Octopus) because it is the gateway between the west and the east and the centre of Ngāpuhi s many arms.

22 21 2 A permanent cycle trail from Opua to Taumarere? Council completed the Twin Coast Cycle Trail / Pou Herenga Tai in 2017 and it is already attracting visitors to the District, as well as providing residents with a great recreational amenity. When we first planned the trail, we envisaged this would connect Kawakawa to Horeke. Cyclists wanting to continue from Kawakawa to Opua would have the option of going by train when the Bay of Islands Vintage Railway Trust reinstated the railway from Kawakawa to Opua. Bridge 12 OPUA We later decided to extend the cycle trail to Opua and opened a new section of trail on the rail corridor between Taumarere and Opua in 2014 on the understanding we would remove it when the Trust was ready to complete that section of their railway. The Trust gave Council notice to vacate last September and current plans have shale removal commencing early We now need to decide whether to replace this section of the cycle trail. The options below assume that we will receive subsidy to cover 47% of capital costs. Whether a subsidy is granted is uncertain. Should we fail to secure Government funding, Council will consult further on alternative options with the community. Taumarere Railway Station KAWAKAWA For more information on this issue refer to the FAQs on our website Options 2a. Full replacement alongside We could build a new cycle trail within the rail reserve between Taumarere and Opua. This would provide cyclists with a flat, scenic trail from Taumarere to Opua. This would require us to sublease from the Trust the parts the trail would be on, some of which could be returned to iwi and hapu as part of Treaty of Waitangi settlements. Getting resource consents could be a lengthy process and there is no guarantee we will get government subsidy to meet 47% of capital costs. We have timed this for years 3 and 4. 2b. Some replacement We could build a permanent cycle trail between Taumarere and Bridge 12, which is opposite the Opua Commercial Estate, and not on land reserved for Treaty of Waitangi settlements. This would provide cyclists and walkers with a scenic cycling experience in the Opua / Kawakawa area. However, as with Option 2, building a new embankment in the coastal marine area would be costly and there is no guarantee we would get resource consents or external funding for this work. 2c. Using the State Highway We could build a cycle trail from Taumarere to Opua alongside State Highway 11. This would be safer for cyclists than cycling on the highway and the New Zealand Transport Agency might agree this work. However, many cyclists would find the narrow, winding route through steep hills difficult. This is the most expensive replacement option and we might struggle to get national cycle trail funding because the route is inferior to the existing trail. We might, however, be able to get funding from elsewhere. $4.6m $4.5m $5.5m 2018/19 $0 2019/20 $ /21 $ $5.23 average per year 2018/19 $0 2019/20 $ /21 $ $5.17 average per year 2018/19 $0 2019/20 $ /21 $ $6.41 average per year Our proposed option 2a. We believe the option that best meets the community s needs and fully realises the economic potential of the a coast to coast cycle trail is to build a permanent section within the rail reserve between Taumarere and Opua, although there are some risks. Impact on debt $1,580,578m. The project will be funded from borrowing over a 20 year term during which time adjustments will be made to rates to accommodate depreciation and interest costs Level of Service Maintains the link between Opua and Taumarere Do you think our preferred option will create great places and support our people? What do you think? Tell us your preferred option - please see question 2 on the submission form on page 2

23 22 3 Extend the Twin Coast Cycle Trail? In addition to the Opua to Taumarere issue and necessary minor work that needs to be done, there are lots of opportunities to improve and extend the Twin Coast Cycle Trail so it is a world-class tourist attraction. We have developed a 21 year programme of that might qualify for national cycle trail funding, but we want to know how much you would like us to do and whether you Our proposed option are prepared to pay for this infrastructure either wholly or partly. Please note that the rating impacts are on top of any decision we make about the trail between Opua and Taumarere. For more information on this issue refer to the FAQs on our website Project * Year Create a rest area near the cycle trail at Ngapipito between Kaikohe and Moerewa $63, /19 Create a rest area near the cycle trail at Utakura between Horeke and Okaihau $63, /19 Create a link from the cycle trail terminus at Horeke to Mangungu $550, /20 Remedial works to tunnels on the Okaihau Kaikohe section of the trail $91, /20 Create a link from the cycle trail to Opua s central business district $60, /21 Kawakawa Trail diversion $162, /22 Create a link from the cycle trail to Ngawha Springs $1,585, to 2024 Create a link from the cycle trail to Wairere Boulders geological park near Horeke $555, to 2024 Create a link from the cycle trail to Kaikohe s central business district $127, /23 Develop a West Cycle Trail from Mangungu Mission to Rawene Road $4,602, to 2027 Refurbishment of the Truss Bridge (Tuhipa) $578, /26 Create a link from the cycle trail to Kawiti Caves near Kawakawa $1,225, /28 Develop a cycle trail from Opua to Waitangi $3,584, to 2029 Develop a cycle trail from Waitangi to Kerikeri $4,423, to 2031 Developing a Southern cycle trail to provide a connection to Whangarei District $8,635, to 2033 Develop a Pacific Coast cycle trail along State Highway 10 from Awanui to Kerikeri $22,647, to 2039 * These costs include inflation. In the absence of inflation forecasts beyond 10 years it is assumed inflation for the remaining years to be the same as year 10. The proposed timing of the above projects reflects Councils ability to fund and deliver based on complexity and capacity. Options 3a. No extension Don t extend or improve the cycle trail as proposed above. With this option there would be no impact on the level of service the trail currently provides. However, communities wouldn t reap the economic and social benefits of a network of cycle trails. 3b. 12 years only if subsidy available We could extend and improve the cycle trail over 12 years, but only if we get Government subsidies. This would allow communities to reap the benefits of a network of cycle trails, but ratepayers would have to meet about half (53%) of the costs. 3c. The long game We could extend and improve the cycle trail as proposed over 21 years, and assume Government subsidy to meet nearly half our costs (47%). This would delay the benefits produced by a network of cycle trails, but it provides more time to plan and deliver the and spreads the costs across a longer period of time. No extra capital costs $22.5m from ratepayers and $20.1m subsidy (Including professional fees and maintenance) $25.9m from ratepayers and $23m from subsidy (including professional fees and maintenance) 3c. We believe we should take advantage of Government subsidies and aim to deliver the so communities reap the social and economic benefits of a network of trails but think a slow and steady approach is realistic. Impact on debt $25,947,257m. The project will be funded from borrowing over a 20 year term during which time adjustments will be made to rates to accommodate depreciation and interest costs 2018/19 $0 2019/20 $0 2020/21 $ $0 2018/19 $ /20 $ /21 $ $25.81 average per year 2018/19 $ /20 $ /21 $ $26.32 average per year Level of Service Increased availability of recreational facilities Should council extend the cycle trail over 21 years? Are there projects you particularly support? Tell us your preferred option - please see question 3 on the submission form on page 2

24 23 4 Who should own Russell Wharf? Photograph: Russell Wharf, courtesy of Northland Inc. Council s commercial company Far North Holdings Ltd (FNHL) has asked Council to transfer Russell Wharf to it for $1 so it can develop a café and i-site Visitor Information Centre on the wharf, which it maintains on Council s behalf. FNHL would be responsible for maintaining the wharf and would need to consider community aspirations when planning any. Early consultation has highlighted the benefits of the Council, FNHL, the Russell Wharf and Waterfront Trust and the Russell community continuing to work closely together to develop and agree a 50 year vision and implementation plan that provides for community input into the Wharf s development, future direction, management and governance, and that leverages funding opportunities. For more information on this issue refer to the FAQs on our website Options 4a. Transfer the wharf to FNHL We could transfer the wharf to FNHL for $1 and remove the currently allocated depreciation, maintenance, renewal and improvement funding from our budgets, saving ratepayers from $93,000 in year 1 to $156,000 in year 10. 4b. Council retains ownership of the wharf The alternative is not to transfer ownership of the wharf and FNHL would continue to maintain on behalf of Council. Current depreciation, maintenance, renewal and improvement budgets for the wharf would remain unchanged. Potential annual savings between $93,000 and $156,000 No change to current costs 2018/19 -$ /20 -$ /21 -$ $1.70 average per year No change to rates Our proposed option 4a. We propose to transfer ownership of the wharf to FNHL. We believe this option best balances our desire to provide fit-for-purpose infrastructure while reducing costs to ratepayers. Impact on debt Nil Level of Service Through FNHL visitors and the local community will see better facilities, shelter from the weather, information and refreshments Do you think our preferred option will create a great place and support our people? What do you think? Tell us your preferred option - please see question 4 on the submission form on page 2

25 24 5 What price for better sewerage in Kaitaia? Most of our Kaitaia wastewater (sewage) system was built in the 1950s and early 1960s. The system wasn t designed to cope with current volumes of sewage and stormwater, and some pipes in the sewerage network leak. Because of this, untreated wastewater often spills from the system into streams that run through Kaitaia. During a typical year, there are 30 to 40 untreated wastewater overflow events. In 2015, we asked the community how we should address this problem. We offered three solutions: Spend $13.4m upgrading the system to prevent spills into streams in a typical annual storm Spend $16.6m upgrading the system to prevent spills into streams in a larger one-in-two-year storm Spend $25.95m upgrading the system to prevent spills into streams in a much larger one-in-five-year storm. People who made submissions supported spending $13.4m to prevent spills into streams in a typical annual storm. We have since discovered a more cost-effective option so are seeking community feedback again on the right the level of funding to address this problem. For more information on this issue refer to the FAQs on our website Options 5a. Preventing spills in a one-in-one year storm We could upgrade the system to prevent spills into streams in the sort of storm you get only once a year (a more severe but less frequent storm). We estimate the capital costs of this option would be $13.4m. We don t expect operating costs to change. 5b. Preventing spills in a one-in-three month storm We could upgrade the system to prevent spills into streams in the sort of storm you get every three months (less severe but more frequent storm). We estimate the capital costs of this option would be $5.1m. We don t expect operating costs to change. * $13.4m * $5.1m Per connection charge 2019/20 $ /21 $ $ average per year Per connection charge 2019/20 $ /21 $ $ average per year * Operational costs are not included in the capital costs stated Our proposed option 5b. We believe that Option 5b best supports the community outcomes on page 2 by achieving the greatest reduction in sewage spills for the lowest cost. This option will handle twice as much rainfall before a spill occurs. Impact on debt $5.1m. The project will be funded from borrowing over a 20 year term during which time adjustments will be made to rates to accommodate depreciation and interest costs Level of Service The Level of Service will increase, but not as much as we planned in the Long Term Plan. There will be less untreated spills during weather events. Do you think our preferred option will create a great place and support our people? What do you think? Tell us your preferred option - please see question 5 on the submission form on page 2

26 25 6 Money for placemaking projects? Council has a long history of providing financial support to community, sport and recreational groups that help to make the Far North a great place. The three community boards administer a local community grants scheme and larger grants are available for district-wide, community-led infrastructure projects. The boards have suggested that Council could establish a placemaking fund to provide funds for projects that improve the liveability of places. We are therefore proposing to allocate $33,333 a year to each community board for placemaking projects in their respective wards and would fund this from the General Rate. This would be on top of the $357,176 of General Rates boards currently get to allocate to projects in their wards. We are asking the community if it supports this proposal and, if so, how we should fund this. For more information on this issue refer to the FAQs on our website Options 6a. More for community boards Each community board could be allocated $33,333 for placemaking projects, funded from the General Rate. Community boards would also collectively have $357,176 of General Rates to give to community projects. 6b. More for community boards (but you pay your share) Each community board could have an additional $33,333 a year to allocate for placemaking projects. Council would fund these projects from a targeted rate, either a new rate or the current targeted Ward Rate, to ensure funds were spent on specific projects and properties that benefited from these were rated accordingly. Community boards would also collectively get $357,176 of General Rates each year to allocate to community projects. 6c. Allocation within status quo Each community board could have an additional $33,333 to allocate for placemaking projects. Council could deduct these funds from the $357,176 of General Rates boards currently get each year to allocate to community projects. 6d. Leave to community boards to decide what they fund We could allocate no extra funds for placemaking projects, but community boards would still get $357,176 of General Rates to allocate to community projects and could choose whether or not they allocate it to placemaking. Additional $100,000 bringing the total to $457,176 a year Additional $100,000 bringing the total to $457,176 a year No change to the current cost of $357,176 No change to the current cost of $357,176 An increase of $1.36 An annual ward rate increase of: Bay of Islands / Whangaroa ratepayers $1.98 Kaikohe / Hokianga ratepayers $4.09 Te Hiku ratepayers $2.66 No change No change Our proposed option 6a. We propose allocating a total of $100,000 ($33,333 to each community board) for placemaking projects on top of current community grant funds. We would fund this from the General Rate. We believe this option best meets the needs of our communities and supports our mission to create great places and support our people. Impact on debt Nil Level of Service Increased amenities for those communities receiving the funds Do you think our preferred option will create great places and support our people? What do you think? Tell us your preferred option - please see question 6 on the submission form on page 2

27 26 7 Increase funds for community infrastructure projects? In 2014, Council established a $200,000 district-wide Community Assistance Fund to support the development of cultural, sporting and recreational initiatives. Projects supported with money from this fund include the Waitangi Mountain Bike Park, new sailing clubrooms and boat storage at Rawene and new floodlights at Arnold Rae Park in Kaitaia. Council suspended the fund in 2015/16 to free up money for core infrastructure renewals then introduced it at a lower level of a $100,000 district-wide Infrastructure Grants Fund this year (2017/18). Community projects that benefited from the fund were a cultural resource and education centre at Motuti, the Bay of Islands Recreation Centre and the Kerikeri Southside River Track. We propose keeping the fund at $100,000 in 2018/19 instead of restoring it to $200,000 as planned, and would like to know if the community supports this proposal. We also want to know if the community thinks councillors or community boards should decide which projects receive grants under this fund. Decisions currently made by Council. For more information on this issue refer to the FAQs on our website Options 7a. Status quo - $100,000 We could make $100,000 available for district-wide community infrastructure grants each year. This would allow Council to provide a modest level of support for community infrastructure projects and funding decisions would be made by people elected to represent the district. We would also like to know who should make the decision - councillors or community boards? status quo - $100,000 councillors decide or status quo - $100,000 community boards decide. Funding decisions may reflect local rather than district-wide interests. 7b. Doubling the grant - $200,000 We could make $200,000 available for community infrastructure grants each year. This would allow Council to provide a higher level of support for community infrastructure projects, but this would mean higher costs for ratepayers and it may not be warranted if there is a shortage of eligible projects. We would also like to know who should make the decision - councillors or community boards? doubling the grant and councillors decide or doubling the grant and community boards decide. Funding decisions may reflect local rather than district-wide interests. $100,000 a year $200,000 a year No change to rates An increase of $2.72 Our proposed option 7a. We propose allocating $100,000 a year for community infrastructure projects. We believe this option best meets the needs of our communities and supports our mission to create great places and support our people. We also believe councillors, rather than community boards, should decide which projects benefit from these grants, because they are elected to represent the interests of the district and this is a district-wide fund. Impact on debt Nil Level of Service No change Do you think our preferred option will create great places and support our people? Who should decide? Tell us your preferred option - please see question 7 on the submission form on page 3

28 27 8 What support for events and festivals? For the past three years, Council has made $80,000 available each year for events and festivals that celebrate our communities, bring people together and showcase our great District. Events that have received financial support include the Bay of Islands Classic Ocean Swim Series, the Snapper Bonanza, Kerikeri Half Marathon, Far North s Got Talent, Kerikeri International Piano Competition, the Bay of Islands Arts Festival, a UB40 concert, Pa Wars (Kaikohe), the Ngāpuhi Festival, Sanitarium Weet-Bix Kids TRYathlon, and Russell Birdman. No events are guaranteed funding beyond 30 June 2018, so we need to decide whether to continue the fund. Also, community board chairs have asked Council to allow boards to decide which events receive investment funds. They want to ensure that the funds are allocated evenly across the three wards. Photograph: Russell Birdman competition For more information on this issue refer to the FAQs on our website Options 8a. Status quo - $80,000 We could continue to make a contestable Events Investment Fund of $80,000 available each year for events and festivals. This ensures a source of investment funds for events and festivals that have the potential to deliver an economic return for the district, and decisions would be made by people elected to represent the interests of the district. Who should decide how to allocate the fund? councillors decide (current situation ensures District-wide focus). community boards decide. Funding decisions may reflect local rather than district-wide interests. 8b. Invest less or more? An alternative is to invest either less or more. Investing less reduces costs for ratepayers but means that events with the potential to deliver an economic return for the district may not get the support needed to be successful. On the other hand, investing more increases costs for ratepayers but will result in more quality events and festivals. Every year our funding is oversubscribed (illustrating there is a need for increased funding). Who should decide how to allocate the fund? councillors decide (current situation ensures District-wide focus). community boards decide. Funding decisions may reflect local rather than district-wide interests. $80,000 a year Will depend on the amount agreed No change to rates Impact will depend on the amount. For example, an increase to raise the fund to $180,000 would be an increase of $2.44 Our proposed option 8a. We propose allocating $80,000 a year for a contestable Events Investment Fund. We believe this option is affordable and supports our mission - to create great places and support our people. We also believe councillors, rather than community boards, should decide which projects benefit from these grants. Existing criteria already provides for the even allocation of funds across the three wards and the purpose of the fund is to create an economic return for the district. Also, boards can use the local grants scheme to support smaller events. Impact on debt Nil Level of Service No change Do you think our preferred option will create great places and support our people? Who should make the decision? Tell us your preferred option - please see question 8 on the submission form on page 3

29 28 9 Rainwater harvesting for Te Kao? Safe drinking water is a basic necessity for the health and wellbeing of a community. The community of Te Kao relies on a private water supply that fails to meet NZ Drinking Water Standards. The community has been asking Council for years to improve the water supply which Council owned and operated until 2002 when it was divested to a private operator. In 2015, we planned to reacquire the supply and included $2.2m in our Long Term Plan to upgrade it and build a treatment plant. We were hoping to get a subsidy to do the work, unfortunately we were not successful. Since then, a working group of Council, community representatives, Te Runanga Nui o te Aupouri and the Northland District Health Board has been investigating affordable, safe drinking water options. The group asked Te Kao residents for feedback on three options in a survey last year. The community s preferred option is to install rainwater harvesting systems with ultraviolet treatment at properties. Therefore, we are proposing to not reacquire and improve the private water supply as planned in We also want to know if the community thinks Council should help the Te Kao community make rainwater systems more affordable and are proposing options for communities to provide feedback on. For more information on this issue refer to the FAQs on our website Options 9a. Rainwater harvesting to two tanks With this option households would no longer rely on the private water supply. Instead, each household could collect rainwater from roofs and store it in two 25,000 litre tanks. This is common practice for rural households, except that rainwater harvested at Te Kao would be sterilised using an ultraviolet light treatment. This is the preferred option of Te Kao residents and could be implemented quickly. We estimate the median cost for each household is $16,500 (including GST) to install a rainwater harvesting system, which they would own and be responsible for maintaining at a cost of about $350 a year. s could be as high as $32,000 for properties that needed extensive roof and gutter repairs. 9b. Bore supply with one tank Council could develop a bore and use the privately-owned pipe network to supply untreated water to households where it could be sterilised using ultraviolet light treatment. Each household could also have one 25,000 litre water tank, so the bore would act as a top-up supply. We estimate it would cost each household, on average, $13,500 (including GST) to buy and install a rainwater harvesting system. Council would also need to spend $260,000 developing a bore and water storage and it would need to buy the privately-owned pipe network from the existing owner. s and timing would need to be negotiated. 9c. Treatment plant Council could develop a bore, new pipe network and a water treatment plant designed to treat water to NZ Drinking Water Standards. This could provide Te Kao with a reliable supply of safe drinking water. We originally estimated this would cost $2.2m (excluding GST) it could be more. About 70 households are connected to the private supply. If they agreed to connect to the new supply, they would face annual capital and operating costs of about $3,000 a year per household, well above the affordability target of $1,200 the working group has been aiming for. Potable water would not be supplied for a number of years. Median cost of $16,500 for Te Kao households $13,500 for each household for a rainwater harvesting system $260,000 for bore and water storage for 70 homes. of reticulation purchase unknown $2.2m Annual ratepayer impact No rates increase, but private investment by ratepayer required Annual ratepayer impact An increase of $3.53 in addition to the private investment by the ratepayer Annual ratepayer impact About $3,000 for the average household connected to the supply Our proposed option 9a. Option 9a is the fastest and most affordable way of providing Te Kao with safe drinking water. While there would be no costs for Council or ratepayers, funding the purchase and installation of rainwater systems is beyond the reach of the Te Kao community where nearly a third of households earn less than $20,000 a year. We are therefore also proposing four funding options to make this option more affordable for the Te Kao community. Go to page 29 for details. Impact on debt Nil Level of Service No change. Council does not currently provide a level of service to Te Kao residents for water supply Do you think our preferred option will create a great place and support our people? What do you think? Tell us your preferred option - please see question 9 on the submission form on page 3

30 29 10 How should we fund safe drinking water at Te Kao? The Te Kao community and Council s want to improve the quality of drinking water at Te Kao by installing rainwater harvesting systems. This is the cheapest and quickest way of providing this community with a safe drinking water supply. However, we estimate it will cost, median, $16,500 to install these systems and double this amount at properties that need extensive roof and gutter repairs. These costs are beyond the reach of this community, where one quarter of households earn less than $20,000 a year and the average residential rate is already more than $1,000 a year. Given that Council divested its Te Kao Water Supply to a private company, and there has been a significant effort to find an affordable solution, we want your feedback on four potential funding options to make these systems more affordable. Depending on the feedback we get on these proposals and how we decide to proceed we may be able to support other small rural communities to improve the quality of their drinking water in a similar way. Under all options, there may be opportunities for the community to secure funding from other sources, but success is not guaranteed. For more information on this issue refer to the FAQs on our website Options 10a. Targeted rate Council could raise a loan to pay for the cost of buying and installing rainwater harvesting systems at properties and set a voluntary targeted rate to recover costs from Te Kao households. We estimate this rate would be about $2,343 in the first year for a household with a $16,500 rainwater system if the loan was repayable over 10 years. This rate would fall to about $1,719 in year 10 of the loan (or we could smooth the rates over the loan term). Households would be responsible for meeting annual maintenance costs of about $350 themselves. This rate is well above the working group s $1,200 affordability target. Households would pay less if we raised a loan with a 20 year repayment period with costs of $1,578 reducing to $ b. Loan Council could provide the Te Kao community with a 10-year or 20-year loan, via a Trust or similar entity, to pay for the cost of buying and installing rainwater harvesting systems. The cost of this to Council would depend on whether the loan was for water tanks only ($371,000), complete rainwater harvesting systems or harvesting systems and all necessary home, include roof and gutter repairs ($1,155,000). of providing the loan would be approximately $100,000 and the Trust would repay the principle and interest. Council would absorb administration costs. 10c. Grant for tanks only Council could provide the Te Kao community with a one-off grant, via a Trust or similar entity, to fund the cost of buying two water tanks for each household at Te Kao (Estimated cost $371,000 for 70 households). This would increase 2018/19 residential rates in the district by $5.04 for each $100,000 of land value. A farm with a land value of $2.5m would face a rate increase of $125.93, while a commercial property with a land value of $250,000 would pay an extra $ This option recognises that homeowners are responsible for maintaining their own homes. 10d. Grant for all work Council could provide the Te Kao community with a one-off grant of $1m, via a Trust or similar entity, to fund the cost of buying rainwater harvest systems for each household at Te Kao. This would cover the cost of providing tanks, plumbing, pumps and water treatment for 70 households and most roof and gutter repairs. Providing a $1m grant to Te Kao would increase 2018/19 residential rates in the district by $13.58 for each $100,000 of land value. A farm with a land value of $2.5m would face a rate increase of $339.54, while a commercial property with a land value of $250,000 would pay an extra $ Up to $1.15m depending on how many households took up the voluntary rate or $106,260 a year Up to $1.15m or $106,260 a year $371,000 $1m Annual ratepayer impact $2,343 for the average Te Kao household reducing over 10 years. Nil for all other ratepayers Annual ratepayer impact Nil. However, the borrower would have to repay the principal and interest Annual ratepayer impact Variable (see text left) Annual ratepayer impact Variable (see text left) Our proposed option Council doesn t have a preferred option at this stage. We recognise that the proposed options would have implications for Te Kao residents and all ratepayers if adopted. We therefore want to consider feedback from the community before making any decision. If we established a good model for small rural communities, we might be able to use it elsewhere. Our financial forecasts do not include any grant or loan to the Te Kao community. What option do you think will support Te Kao and small rural communities best? Let us know your preferred choice - please see question 10 on the submission form on page 3

31 30 11 Toilets and showers for the Kawakawa Tourism Hub? The world-famous Hundertwasser Toilets in Kawakawa are one of the Far North s great success stories, attracting people from around New Zealand and the world to Kawakawa. The Hundertwasser Park Charitable Trust plans to build a Hundertwasser Park Centre called Te Hononga ( The Joining of Cultures ) in Hundertwasser Park next to the toilets by 2019/20. The centre will celebrate the life and work of the late artist Friedensrich Hundertwasser and include an art gallery and community workshop space. Council is supporting the project by relocating its Kawakawa Library and service centre to Te Hononga when it opens, making a public carpark available for the centre. We now propose to give the Trust a grant for public toilets and a pay shower in the new centre, which will be near a designated freedom camping site. This will enable the famous toilets to become a show piece and maintain the Levels of Service. We want to know if ratepayers in the Bay of Islands area or the whole ward are willing to pay for these facilities and, if so, how much. We will apply for external funding with the Trust to enhance the facilities provided. If we receive a Government grant, this will enable them to build extra public toilets and pay showers, hopefully securing 12 toilets and two showers for the town. For more information on this issue refer to the FAQs on our website Options 11a. Four toilets, one pay shower - ward rated We could give the Hundertwasser Park Charitable Trust a $230,000 grant to include four public toilets and one pay shower in Te Hononga. This money would include $30,000 of funds we have already budgeted to renew the Hundertwasser Toilets and we would fund this by increasing the Bay of Islands-Whangaroa Ward Rate by $11.87 a year. This would allow us to respond to the demand for toilets and showers in one of our most visited towns. Ratepayers in this ward would bear the cost of the grant for these facilities. 11b. Four toilets, one pay shower - Kawakawa targeted rate We could give the Hundertwasser Park Charitable Trust a $230,000 grant to include four public toilets and one pay shower in Te Hononga as in Option 1 and fund the new facilities by setting an annual targeted rate of $39.19 that would be payable by businesses and households on the Kawakawa Roll (roll numbers ), which includes properties in Kawakawa, Moerewa, Opua and Russell. This option would also improve visitor facilities in one of our main tourist towns. Ratepayers in the Kawakawa area would bear the costs of the grant for these facilities. 11c. Six toilets, one pay shower We expect more people to visit Kawakawa in future, so believe there is a need for extra visitor facilities. We want to know if the community supports us giving $347,613 to the Trust for six public toilets and one pay shower at Te Hononga. We would fund this investment by increasing the Ward Rate by $18.85 a year or by setting a targeted rate of $62.24 for businesses and households on the Kawakawa Roll (roll numbers ), which includes properties in Kawakawa, Moerewa, Opua and Russell. How should we fund it? Ward rate or Kawakawa targeted rate 11d. Twelve toilets, two pay showers We could give the Trust a grant of $695,227 for 12 toilets and 2 pay showers at Te Hononga. This would cater for expected visitor growth and remove the need for Government subsidies. We would fund this investment by increasing the Bay of Islands-Whangaroa Ward Rate by $39.48 a year or by setting an annual targeted rate of $ that would be payable by businesses and households on the Kawakawa Roll (roll numbers ), which includes properties in Kawakawa, Moerewa, Opua and Russell. How should we fund it? Ward rate or Kawakawa targeted rate $230,000 $230,000 $347,613 $695,227 Annual ratepayer impact Increase Bay of Islands / Whangaroa Ward Rate by $11.87 Annual ratepayer impact Targeted rate of $39.19 a year Annual ratepayer impact See text left Annual ratepayer impact See text left Our proposed option 11a. We need to cater for expected visitor growth in Kawakawa, so we propose to give the Trust a grant of $230,000 for four toilets and one pay shower at Te Hononga. We recognise that Kawakawa is a gateway town to the District, especially the Bay of Islands, and propose to fund this grant by increasing the Bay of Islands-Whangaroa Ward Rate by $11.87 this will ensure that Kawakawa ratepayers don t have to bear the cost of this investment alone. We will assist the Trust to find external funding. Impact on debt Nil Level of Service FNHL will increase the Levels of Service through improved facilities Do you think our preferred option will create a great place for Kawakawa people and visitors? What do you think? Tell us your preferred option - please see question 11 on the submission form on page 3

32 31 12 Funds to create a Kawakawa Square? An exciting feature of the Hundertwasser Park Centre Project is a proposal to create a Hundertwasser Square next to the Hundertwasser Toilets. This will provide the people of Kawakawa with an attractive meeting place and offer a pedestrian link between Te Hononga and Kawakawa s main street. Creating the square will require the demolition of the 30-year-old Northland Regional Council-owned building that houses Council s Kawakawa Service Centre and library, as well as a Post Shop. A wall the toilets share with the 982-square-metre building will also need to be strengthened and the Trust will need to undertake works at Hundertwasser Park behind the toilets. The Trust estimates the total cost of the demolition and development works will be about $290,000. We want to know if the community is in favour of Council providing financial support to the Trust so it can undertake this work. Options 12a. Helping out Council could give the Trust a grant of $160,000 in 2018/19 to offset $290,000 costs associated with this work. The Trust, which cleans the Hundertwasser Toilets under a service contract ($40,000) with Council, would no longer receive the $40,000 from 2019/20, effectively offsetting the grant. This option facilitates the development of a Hundertwasser Square in Kawakawa without imposing additional costs on ratepayers. It is also a good fit with the Tai Tokerau Regional Economic Action Plan and community and business development initiatives. 12b. Leaving it to the Trust The alternative is that Council does not give the Trust a grant of $160,000 to offset $290,000 costs associated with this work, forcing the Trust to secure all of the $290,000 from other funders. This could put this important part of the Hundertwasser Park Centre Project at risk and make it more difficult for the Trust and the Kawakawa community to fully realise the economic and social benefits of this project. Our proposed option Photograph: Kawakawa Toilets, courtesy of Northland Inc. For more information on this issue refer to the FAQs on our website $160,000 Nil neutral Nil 12a. We propose to grant the Trust $160,000 because this will facilitate the creation of a vibrant public space in Kawakawa, without imposing costs on ratepayers. This option also supports the aspirations of the Trust and partner organisations promoting Te Hononga. These include Te Runanga o Ngati Hine, the Kawakawa Business and Community Association and the Northland Regional Council. Impact on debt Nil Level of Service FNHL will increase the Levels of Service through improved facilities Do you think our preferred option will create a great place and support our people? What do you think? Tell us your preferred option - please see question 12 on the submission form on page 4

33 32 13 Other items that we are consulting on Libraries for the future New technologies are changing the way we access information and are redefining the role of the public library. We want to develop a way forward that preserves traditional library services (loaning out books), but responds to the demand for new information and communication services, such as access to the Web. We want our libraries to be places where people can meet and learn new skills. We also think libraries can be more active in their communities, playing a role in supporting youth and adult literacy. We have developed a 10-year Library Strategy that proposes: An outreach service that provides mobile library services to people who are unable to physically access our libraries. People who would benefit from an outreach service include rest home residents and students at schools in remote areas. Literacy and other learning programmes that will provide skills to adults and young people, allowing them to make a positive contribution to the social and economic wellbeing of the District. These programmes may include fostering educational achievement among children and providing language development support to preschoolers to prepare them for reading. A digital platform and technology to allow Far North residents to record their stories, knowledge and skills, so that the culture, heritage and personalities of our District are preserved. To make it easier and quicker for people to use our libraries. Initiatives may include self-service book return and checkout service. This would free up library staff to provide other services. To provide multi-purpose spaces in libraries so they cater for a range of activities, including study, meetings and workshops. The proposals in the strategy will increase the level of service Council provides to library services. With that comes an increase in costs in the first three years of the Long Term Plan. Extra operating costs* 18/19 19/20 20/21 21/22 22/23 23/24 24/25 + $110,000 $158,652 $156,632 $234,061 $186,416 $252,957 $1,072,168 *Includes outreach staff and development, technology, depreciation and interest Extra capital costs (includes technology, facilities and eresources) 18/19 19/20 20/21 21/22 22/23 23/24 24/25 + $118,914 $240,720 $131,342 $70,310 $175,281 $62,367 $123,066 Annual ratapayer impact Year 1 Year 2 Year 3 Years 4 to 10 $1.72 $2.60 $2.86 $4.84 Impact on debt $617,411. The project will be funded from borrowing over a 20 year term during which time adjustments will be made to rates to accommodate depreciation and interest costs Level of Service The Levels of Service will increase through improved facilities and services We believe that people in the Far North value their libraries and want these to meet current and future needs of communities. To find out more, see our website to download a copy of the Library Strategy. Are you in favour of modernising our libraries and making them more accessible? See the question on page 4 of the submission form to have your say. Fees and charges Every year we review and adjust our fees and charges for the following year. When we are developing a Long Term Plan, we adjust them only for the first year. In most cases, any increases are limited to the Local Government Index, the inflation factor used by councils. Exceptions are highlighted in the full schedule of Fees and Charges here. Do you agree with our proposed changes? Is there anything you don t agree with? Let us know. See the question on page 4 of the submission form to have your say. To find more information on our Rating Polices, please visit our website.

34 33 Rating Policies Council must review its rating policies on a regular basis. This includes the policies that provide rates relief under certain circumstances. The 19 rating relief policies have been reviewed, with some new policies proposed and some that we are suggesting we get rid of. What has changed? We ve replaced 19 separate rating relief policies with one rating relief suite - 17 issues-based policies. Our focus has been on removing confusing language and making the policies clearer so that everyone can understand them. We ve tried to develop the policies in a way that provides equity and reasonableness, at the same time as contributing towards our desired community outcomes. We ve recognised the unique history and nature of Māori Freehold Land ownership. What are we proposing? We re proposing a suite of policies with 11 remission, four postponement and two combined remission and postponement policies, including: Two new policies to incentivise Māori economic development on Māori Freehold and Treaty Settlement Lands An annual remission policy for extreme financial hardship and continuation of the postponement policy for senior citizens. Lastly, we re proposing to revoke four policies that are not required anymore. Do you agree with our proposed changes? Are there any changes don t you agree with? See the question on page 4 of the submission form to have your say. To find more information on our Rating Polices, please visit our website. Significance and Engagement Policy For every decision that Council makes, we need to determine how important, or significant, it is to our community. We look at a number of factors, including who is affected by or interested in the decision, how the decision may impact Levels of Service, and what the costs will be. These factors help us to work out how to engage with the community, i.e. whether to involve the community in making the decision, ask for community feedback on the decision, or simply tell the community what is happening. We are proposing a new policy that reduces the financial thresholds for consultation and engagement and is simpler to read and understand. If adopted it will affect how we engage with you in the future, so we would like to know what you think. Do you agree with our proposed changes? Are there any changes don t you agree with? See the question on page 4 of the submission form to have your say. To find more information on our Significance and Engagement Policy, please visit our website. Wastewater Drainage Bylaw Last year we consulted on changes to our Wastewater Drainage Bylaw. We are extending consultation further so we can provide those affected with a further opportunity to have their say. We have already incorporated some changes into the proposed bylaw based on the first round of feedback we received. The aim of the Wastewater Drainage Bylaw is to protect the environment and the health of the community through management of the public sewer system. The major changes to the proposed bylaw are: subdivision criteria have been removed because this is already in the District Plan sections about approved PWC installers have been removed, as we only use one installer the application form has been removed to be developed and published separately duplication with primary legislation has been removed minor wording and layout changes have been made for readability.

35 34 14 Other items that might affect the plan Securing a future for our halls and civic buildings Community halls and civic centres are a vital part of the infrastructure that contributes to the social wellbeing and economic progress of the District. These facilities need to be affordable and sustainably managed if they are to meet the needs of current and future communities. Council signalled in its Long Term Plan that it would develop a sustainable approach to managing and providing community halls and buildings. We consulted community boards, hall committees and the general public in 2015, receiving strong support for continuing the current management approach, but people also wanted us to consider alternative ownership and management arrangements for halls on a case by case basis. Our 2015 Halls and Facilities Strategy established a hierarchy of district and local halls and facilities and encourages alternative management and ownership arrangements to make more efficient use of existing facilities. It provides for Council to consult with communities to determine the level of support for funding upgrades of Council-owned facilities. We are therefore not proposing to do any major works in the early years of our Long Term Plan unless the condition of the building warrants this or we already know what the local community s aspirations are. In 2018, our community boards will be talking to communities about their aspirations, whether they are prepared to pay for, and whether they would like Council to transfer their hall into community ownership. Conditional assessments of halls will let communities know what options will cost. Go to our website to download a copy of our Halls and Facilities Strategy. New contracts We are currently in the market for new contractors to perform operations and maintenance on our roads, water and wastewater treatment plants. There may be opportunities to include stormwater too. We are also negotiating new electricity supply contracts. Our aim is to get the best value we can for the service delivered. We have included savings in this plan for electricity based on what we know now, and have used historic roading, water and wastewater operations and maintenance estimates for the period ahead. Shared services While the Local Government Commission announced in November 2017 that it would end the Northland (local government) reorganisation, Council is still committed to Northland Forward Together and sharing services and working collaboratively with the other Northland councils (and beyond) where this benefits the district and wider Northland region. During 2017, a number of service delivery reviews were completed. Real opportunities for enhanced collaboration and shared services for civil defence and economic development within the region were identified. In both cases there is opportunity to improve Levels of Service through enhanced delivery arrangements at the same or similar cost. He Whenua Rangatira District Strategy and Spatial Plan Council will be consulting during 2018 on the draft Sustainable District Strategy and Spatial Plan, which will give effect to the District Vision by identifying the major challenges and opportunities for our district as Photograph: Gathering kai moana, Northland. Courtesy of Northland Inc.

36 35 well as the key strategies and actions to address them. It is likely that as the strategy and spatial plan evolve with community feedback and sub-district plans or blueprints emerge alongside the district wide spatial plan for the future that we will need to review the delivery of our services, regulation and infrastructure over the medium to long term. We do not think there will need to be major changes before we develop our next long term plan, but if major changes are required we will come back to the community with proposals for feedback. Drinking water Council has not fully assessed the impacts of the Havelock North drinking water inquiry and has not made any financial provision in its forecasts to respond to these recommendations. NZTA funding Subsidies for the roading capital programme have not yet been approved. The final decision from NZTA may impact this plan. 15 Updates from previous consultations Targeted rate to meet Hupara Road sealing costs A number of residents of Hupara Road near Pakaraka have asked Council to seal 1.9 km of the road under its Community Initiated Infrastructure Roading Contribution Policy. This policy provides for residents and Council to share the costs of sealing metal roads, but only if at least 75% of the affected ratepayers agree to contribute the equivalent of a New Zealand Transport Agency subsidy to the project. This is currently 60% of project costs. We have surveyed Hupara Road residents and a sufficient number of ratepayers have agreed to share the costs of a seal extension project. We have therefore budgeted Council s $256,000 share of these costs in year one (2018/19) of the Long Term Plan to allow this project to go ahead. When we have completed the project, we will set a targeted rate on Hupara Road properties in the area of benefit. This targeted rate will be $ a year and be payable over five years starting in 2019/20. Alternatively, Hupara Road ratepayers can pay a one-off payment of $2, in 2018/19. Funding new sportsfields in Kerikeri Because facilities for some sports codes in the Kerikeri area weren t adequate, we included $1.08m in our Long Term Plan to buy 10 hectares of land in the Kerikeri / Waipapa area primarily to develop as soccer fields. We have assessed a number of sites but not purchased any land yet for a number of reasons, including affordability, zoning constraints, flood risks and traffic and access issues. As land values in the Kerikeri area have risen since, we want to find a good site and we are allowing an extra $2m in our Long Term Plan to allow us to acquire land and meet the demand for sports facilities in Kerikeri.

37 What you will get for your rates dollar in 2018/19 This is based on the proposed options in this document ROADING 14 WASTEWATER SERVICES 10 COMMUNITY SERVICES Cemeteries, town maintenance etc. $ 10 9 CUSTOMER SERVICES Libraries, information / service centres REGULATORY SERVICES 8 Building, animal control etc. FOWARD PLANNING Policy, community assistance etc. 7 RECREATION FACILITIES 4 Parks and reserves, maritime, pools REFUSE 4 Transfer stations STORMWATER AND FLOOD PROTECTION 4 GOVERNANCE 3 SUSTAINABLE ENVIRONMENT 3 District Plan, Māori engagement etc. WATER SUPPLY 2 PUBLIC SAFETY Civil Defence 1 HOUSING FOR THE ELDERLY 1 FOOTPATHS

38 37 Audit Opinion Independent auditor s report on Far North District Council s Consultation Document for its proposed Long-Term Plan I am the Auditor-General s appointed auditor for Far North District Council (the Council). Section 93C of the Local Government Act 2002 (the Act) requires an audit report on the Council s consultation document. We have done the work for this report using the staff and resources of Audit New Zealand. We completed our report on 28 February Opinion In my opinion: the consultation document provides an effective basis for public participation in the Council s decisions about the proposed content of its long-term plan, because it: fairly represents the matters proposed for inclusion in the long-term plan; and identifies and explains the main issues and choices facing the Council and district, and the consequences of those choices; and the information and assumptions underlying the information in the consultation document are reasonable. Basis of opinion We carried out our work in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In meeting the requirements of this standard, we took into account particular elements of the Auditor-General s Auditing Standards and the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information that were consistent with those requirements. We assessed the evidence the Council has to support the information and disclosures in the consultation document. To select appropriate procedures, we assessed the risk of material misstatement and the Council s systems and processes applying to the preparation of the consultation document. We did not evaluate the security and controls over the publication of the consultation document. Responsibilities of the Council and auditor The Council is responsible for: meeting all legal requirements relating to its procedures, decisions, consultation, disclosures, and other actions associated with preparing and publishing the consultation document and long-term plan, whether in printed or electronic form; having systems and processes in place to provide the supporting information and analysis the Council needs to be able to prepare a consultation document and longterm plan that meet the purposes set out in the Act; and ensuring that any forecast financial information being presented has been prepared in accordance with generally accepted accounting practice in New Zealand. I am responsible for reporting on the consultation document, as required by section 93C of the Act. I do not express an opinion on the merits of any policy content of the consultation document. Independence In carrying out our work, we complied with the Auditor- General s: independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 (Revised); and quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended). In addition to this report on the Council s consultation document and all legally required external audits, we have provided an assurance report on certain matters in respect of the Council s Debenture Trust Deed. These assignments are compatible with those independence requirements. Other than these assignments, we have no relationship with or interests in the Council or any of its subsidiaries. Karen MacKenzie Audit New Zealand On behalf of the Auditor-General, Auckland, New Zealand

39 Need more information? 38 More details on the issues that we ve raised in this document, and the options to address them, can be found on our website, or follow the links provided in each section of this Consultation Document. Detailed information about all of our activities, revenue and policies can also be found on our website: Activity Management Plans Capital Works Programme Community Outcomes Disclosure Statement for Financial Prudence Benchmarks Fees and Charges Financial Strategy Forecast Financial Statements Forecast Funding Impact Statements Infrastructure Strategy Policies (Revenue and Finance, Rating Relief, Significance and Engagement, Treasury ) Significant Forecast Assumptions How to have your say Visit our roadshow During March, we will be doing a roadshow around the District to answer questions and we welcome your feedback in person. Details about when we ll be in an area near you can be found on our website: Complete your feedback online Post it LTP submissions, Far North District Council, Private Bag 752, Kaikohe it submissions@fndc.govt.nz Deliver it Drop it in to any one of our services centres, libraries, or Kaikohe head office Your feedback must be received by 4.30 pm on Wednesday 4 April 2018 Key dates 5 MARCH 4 APRIL APRIL 16 MAY 21 JUNE PUBLIC CONSULTATION FOR THE LONG TERM PLAN OPENS PUBLIC CONSULTATION FOR THE LONG TERM PLAN CLOSES AT 4.30 PM COUNCIL HEARS SUBMISSIONS AT PUBLIC HEARINGS COUNCIL DELIBERATE OVER SUBMISSIONS COUNCIL ADOPTS LONG TERM PLAN

40 39 FNDC 2018