Meeting of the Hawke's Bay Regional Council
Date: Wednesday 25 March 2015
Time: 9.00 am
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Venue:
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Council Chamber
Hawke's Bay Regional Council
159 Dalton Street
NAPIER
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Attachments
Excluded From Agenda
Provided to Councillors only in Hard Copy
form
item subject page
8. Adoption
of the Supporting Accountability Documents and Consultation Document for the
2015-25 Long Term Plan
Attachment 1: HBRC's
2015-25 Financial Strategy 2
Attachment 2: HBRC's
2015-45 30 Year Infrastructure Strategy 20
Attachment 3: HBRC's
Activities 40
Attachment 4: HBRC's
Financial Information 169
Attachment 5: HBRC's
2015-25 Policies 221
Attachment 6: HBRC's
Council Controlled Organisations Information 285
Attachment 7: Our
Plan - HBRC's Consultation Document 287
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HBRC's
2015-25 Financial Strategy
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Attachment 1
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HBRC's 2015-45 30 Year
Infrastructure Strategy
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Attachment 2
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HBRC's Activities
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Attachment 3
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HBRC’s Activities
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HBRC's
Activities
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Attachment 3
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Table of Contents
pg
HBRC’s Groups of
Activities
Introduction......................................................................... 1
HBRC’s Strategic Planning
Activities...................................................... 2
Introduction......................................................................... 2
Links to Strategic Outcomes.................................................. 2
Assumptions and Future Demand
Incorporated in this Plan... 2
Activity 1 Economic Development......................................... 6
Activity 2 Strategy and
Planning............................................. 9
Activity 3 Policy
Implementation.......................................... 14
Activity 4 State of the
Environment Reporting...................... 17
HBRC’s Land Drainage
& River Control Activities.................................. 19
Introduction....................................................................... 19
Links to Strategic Outcomes................................................ 19
Assumptions and Future Demand
Incorporated in this Plan.. 19
Activity 1 Flood Protection
& Drainage Schemes................... 21
Activity 2 Investigations &
Enquiries..................................... 27
Activity 3 Sundry Works....................................................... 29
pg
HBRC’s Regional Resources
Activities.................................................. 31
Introduction....................................................................... 31
Links to Strategic Outcomes................................................ 31
Assumptions and Future Demand
Incorporated in this Plan.. 31
Activity 1 Land Management............................................... 35
Activity 2 Air Management.................................................. 42
Activity 3 Water Management............................................. 45
Activity 4 Coastal Management........................................... 53
Activity 5 Gravel Management............................................ 57
Activity 6 Open Spaces........................................................ 60
HBRC’s Regulation
Activities............................................................... 63
Introduction....................................................................... 63
Links to Strategic Outcomes................................................ 63
Assumptions and Future Demand
Incorporated in this Plan.. 63
Activity 1 Resource Consent
Processing............................... 66
Activity 2 Compliance
Monitoring........................................ 68
Activity 3 Maritime Safety
& Navigation............................... 70
Activity 4 Building Act
Implementation................................. 72
pg
HBRC’s Biosecurity and
Biodiversity Activities..................................... 74
Introduction....................................................................... 74
Links to Strategic Outcomes................................................ 74
Assumptions and Future Demand
Incorporated in this Plan.. 74
Activity 1 Regional Biosecurity
Programmes......................... 77
Activity 2 Regional
Biodiversity............................................ 82
HBRC’s Emergency
Management Activities......................................... 84
Introduction....................................................................... 84
Links to Strategic Outcomes................................................ 84
Assumptions and Future Demand
Incorporated in this Plan.. 84
Activity 1 HB Civil Defence
Emergency Management Group. 87
Activity 2 Hazard Assessment
& HBRC Response.................. 94
HBRC’s Transport
Activities................................................................. 98
Introduction....................................................................... 98
Links to Strategic Outcomes................................................ 98
Assumptions and Future Demand
Incorporated in this Plan.. 98
Activity 1 Regional Road Safety.......................................... 101
Activity 2 Regional Land
Transport Strategy........................ 103
Activity 3 Subsidised Passenger
Transport.......................... 105
pg
HBRC’s Governance,
Community Engagement & Services Activities... 109
Introduction...................................................................... 1109
Links to Strategic Outcomes................................................. 109
Assumptions and Future Demand
Incorporated in this Plan.. 109
Activity 1 Community
Partnerships....................................... 112
Activity 2 Community Engagement
& Communications......... 114
Activity 3 Community
Representation & Regional Leadership 117
Activity 4 Investment Company
Support.............................. 121
Acronyms Defined............................................................................. 123
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HBRC's
Activities
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Attachment 3
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Introduction
This supporting document to
the Long Term Plan 2015-25 outlines the activities HBRC intends to carry out
over the next ten years and how they are linked to the strategic outcomes that
HBRC aims to achieve in meeting the current and future needs of communities for
good quality infrastructure, local public services, and performance of
regulatory functions.
HBRC’s strategic
outcomes or aims have evolved from the 2011 Strategic Plan and through the
development of the Long Term Plan 2015-25.
The table below sets out the
Strategic Goals, the Outcome/Aim statements and the key activities that
contribute to achieving them.
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Strategic Goals
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Resilient Communities
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Resilient Ecosystems
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Resilient Economy
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Resilient Organisation
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Our Aims
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Quality
services for a healthy, well-connected community
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Local
leadership, good relationships and affordable, well-considered solutions
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Our
people and businesses feel safe from natural hazards
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Smart
management links biodiversity, land, fresh water and our coastal marine
areas
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Balanced
water use for a healthy natural environment that also supports growth
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Profitable
farming systems that adapt to pest threats, greater weather extremes and take
advantage of new opportunities
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A
reliable, well-organised water supply that helps us to grow sustainably
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Quality
future-focused infrastructure
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Using
foresight, strategy, smart investment, strategic alliances and a
fit-for-purpose approach to lead our region
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Key Activities
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Passenger
Transport
Total
Mobility
Road
Safety
Heat
Smart
Community
Engagement
Open
Spaces
Navigation
and Safety
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Governance
and Leadership
Heat
Smart
Community
Engagement
HB
Local Authority Shared Services company
Community
Partnerships
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Hazard
Assessment and Response
Emergency
Management
Land
Drainage and River Control
Gravel
Management
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Biodiversity
Strategy
and Planning
Land
Management
Air
Management
Water
Management
Coastal
Management
Regulation
State
of the Environment Reporting
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Land
Management
Economic
Development
Biosecurity
Strategy
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Water
Management
State
of the Environment Reporting
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Land
Drainage and River Control
Transport
Planning
Investment
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Strategy
and Planning
Investment
Governance
and Leadership
Economic
Development
Emergency
Management
Community
Partnerships
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The Structure of the Groups of Activities Summaries
HBRC’s activities are arranged into eight groups
· Strategic
Planning
· Land
Drainage and River Control
· Regional
Resources
· Regulation
· Biosecurity
and Biodiversity
· Emergency
Management
· Transport
· Governance,
Community Engagement and Services.
The first section for each group provides:
· An
Introduction
· How
the Activities link to the Council’s Strategic Outcomes
· Assumptions
and Future Demand incorporated in this Plan
· Estimated
expenses for each activity and how it will be funded. It is important to note
that funding sources and the reason it was selected, is covered in detail in
the Revenue and Financing Policy.
· An
analysis of the forecast expenditure and income for the 10 years covered by
this Plan.
The second section is based on Activities
within each group and provides:
· The
significant issues addressed by each activity
· The
reason for HBRC involvement and the level of service that it expects deliver to
the community
· Any
Significant Negative Effects arising from its implementation
· How
HBRC will measure delivery of each service
· Current
performance
· Performance
targets for the next 10 years. These targets are the same for each year of the
Long Term Plan unless otherwise specified.
· Specific
work or projects that help ensure services can be delivered.
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HBRC's
Activities
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Attachment 3
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Introduction
These activities pull
together Hawke’s Bay Regional Council’s (HBRC) strategic thinking
initiatives, economic development, investments and resource management policy
development. Together with State of the Environment reports, these provide
information for further strategic decisions.
Link to
Strategic Outcomes
This group of activities
contributes to HBRC’s strategic outcomes in the following ways.
Resilient communities
Local leadership, strong
relationships and affordable, well considered solutions –
by funding and undertaking activities which support economic development,
particularly those reliant on the region’s natural resources; maximising
the sustainable input of natural and physical resources into economic
activities, engaging the community in making decisions about the future of
their region.
Resilient ecosystems
- Active
management linking biodiversity, land, freshwater and our coastal marine areas –
by the development of catchment based regional plans, managing the
region’s natural and physical resources to ensure they are used
efficiently and effectively; and the State of the
Environment (SOE) project that will inform the community of environmental
change and the effectiveness of HBRC programmes.
- Balanced
water use for a healthy natural environment that also supports growth –
by setting water quantity allocation limits based on an understanding the
relationship between aquatic habitat requirements, river flows and economic
impacts.
Resilient Economy
Profitable farming systems
that can adapt to greater weather extremes, pest threats and take advantage of
new opportunities – by funding
and undertaking activities which support economic development, particularly
those reliant on the region’s hill country.
Resilient organisation
Using foresight, strategy,
smart investment, strategic alliances and a fit-for-purpose approach to lead
our region – by providing a mechanism to
coordinate regional initiatives through the Regional Economic Development
Strategy, and promoting integrated strategy and planning processes.
Assumptions
and Future Demand Incorporated in this Plan
The planning assumptions for
the following activities are:
- HBRC’s
economic development activity in Hawke’s Bay will be based on the
Regional Economic Development Strategy (REDS).
- Changes
to resource management legislation are expected by Central Government.
- There
will be sufficient funding from Year 4 to enable the resource management
planning activities to be delivered.
- Implementation
of the National Policy Statement for Freshwater Management is a priority.
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HBRC's
Activities
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Attachment 3
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Net Funding Requirement – Strategic Planning
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HBRC's
Activities
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Attachment 3
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Activity 1 – Economic Development
Significant
Issues
- The
future, in international, national and regional terms, remains complex and
uncertain. New ways of thinking about and planning for the future will be
required in order to understand the different social, economic, environmental
and political environments that might arise, and to develop strategies in
response.
- Key
primary production and manufacturing sectors which drive Hawke’s
Bay’s economy are high value and high volume industries, however they
have a low growth profile. A regional focus on productivity and innovation is
essential to lift the regional economic performance across these sectors.
- Post
Treaty Settlement Groups are also looking for ways to gain economic benefits
from their land and other assets.
- Each
territorial authority has its own economic objectives for its district. There
continues to be a need to maintain a co-ordinated approach to maximise direct
and indirect regional benefits through the Regional Economic Development
Strategy.
Rationale
A number of factors which
have the potential to impact on the region can be more efficiently addressed at
a regional level via a regional agency.
The Regional Economic
Development Strategy, which was initially developed jointly by HBRC,
territorial authorities and business agencies, articulates four key strategic
themes for the region and is currently being reviewed. HBRC plays a lead
role in the Resilient Primary Sector Growth theme, in recognition of its
function in natural resource knowledge and management, water security, and
provision of regional scale infrastructure, upon which the primary sector
relies. Via its targeted economic development rate, HBRC also supports Business
Growth and Visitor Growth for the region by funding Business Hawke’s Bay
and Tourism Hawke’s Bay respectively.
Significant
Negative Effects
No significant negative
effects will occur as a result of HBRC’s delivery of these activities.
Contributing projects include: 179
Economic Development and 185 Investment Strategies
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HBRC's
Activities
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Attachment 3
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Service Levels and Performance Targets
Activity 1 – Economic Development
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Level
of Service Statement
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Level of Service Measure
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Current Performance
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Performance
Targets
2015-18 in detail; 2019-25 outline
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Required Actions to Achieve
Performance
Targets
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Regional Economic Development Strategy mission
statement: “To make Hawke’s Bay the best location in which to
visit, work, invest, live and grow”
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Funding
contract with approved performance targets and reporting requirements
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Funding
agreement in place for Hawke’s Bay Tourism Ltd with approved
performance targets and reporting requirements. Expires 30 June 2015
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Yearly
Continue
quarterly reporting to Council on key performance indicators
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Maintain
funding of Hawke’s Bay Tourism Ltd and review KPIs as part of funding
contract agreement
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Long
term Regional Economic Development Strategy (REDS) and three year Action Plan
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Being
reviewed 2014-15
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Yearly
Annual report on Action Plan
2017-2018
Review the Regional Economic Development Strategy
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Key
Performance Indicator (KPI) in Business Hawke’s Bay contract to monitor
and report on the Action Plan and review the Regional Economic Development
Strategy
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Investment for research and development and business
development
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In 2013
-14, a total of $1,1 million of grants came into the region via Ministry of
Science and Innovation
Underway in partnership with
Callaghan Innovation (Regional Partner Network)
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2015-16 ongoing
At
least $800,000 per annum achieved for Research and Development investment
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Implement Regional
Business Partner programme in partnership with Chamber of Commerce locally,
and New Zealand Trade & Enterprise and Callaghan Innovation nationally.
Remain proactive in
RFP process for next Regional Business Partner program which commences in
January 2016.
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Implementation of HBRC led Initiatives to implement
REDS Action Plan – with a focus on primary sector resilience
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Partnership
with Massey University for business growth
- Key
strategies and actions contained in Regional Economic Development Strategy -
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Initiate and
progress initiatives as per the yearly REDS Action Plan – including
programmes associated with :
- Maori
Economic Development
- Wairoa
primary sector opportunities
- Supporting
the resilience of the region’s primary sector
Continue to engage
on Oil and Gas exploration / development with stakeholders
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Implement REDS action plan as it relates to HBRC led
initiatives
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HBRC's
Activities
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Attachment 3
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Activity 2
– Strategy and Planning
Significant Issues
- An
increasingly complex and uncertain future. It is essential to develop and
refine tools for new ways of thinking and planning to understand new social,
economic, environmental and political environments that might arise.
- The
need for high-level planning for infrastructure which enhances the
region’s economic and social potential.
- Integration
of economic development with the accessibility and capacity of natural
resources. Water is essential for the production of crops on the
Ruataniwha and Heretaunga Plains, which is an important part of the
region’s rural economy. Water also has intrinsic, recreational and
habitat values.
- The
implementation of the National Policy Statement for Freshwater Management
(NPSFM). This is a significant national driver and requires management
objectives to be set for freshwater bodies and associated ecosystems, water
quality and allocation limits. Land management practices will need to
continually improve to reduce impacts on water quality.
- A
new chapter into the Regional Policy Statement sets out the process for
integrating land and freshwater management at a catchment level.
- Establishing
freshwater objectives which require different and often competing values to be
identified. Collaborative processes with multiple stakeholders require
significant commitment of time and resources by all parties at the front end of
the process. It is hoped that this will result in fewer areas of contention at
the formal part of the plan development process.
- Better
integration of tangata whenua values and interests into planning documents and
enhancing the involvement of iwi/hapu into management and governance
arrangements.
Rationale
Strategy and Planning brings
together strategic thinking, strategy development and resource management
planning activities. The development of regional strategies can provide a
platform to develop resource management plans.
The management of the
region’s natural and physical resources is a key function of
Hawke’s Bay Regional Council (HBRC). Appropriate resource
management allows the region to maximise the economic and social benefits of
its resources while minimising detrimental environmental impacts.
Under the Resource
Management Act, HBRC is required to provide an overview of significant resource
management issues in the region and to provide guidance on the management of
these issues through the regional policy statement. Such issues may include
land, water, and air management, climate change, and energy. HBRC carries out
this role because it is able to provide an integrated overview of the entire
region. Territorial authorities are then required to implement the Regional
Policy Statement (RPS) through district plans.
The Regional Resource
Management Plan (which includes the RPS) became operative in August 2006. A
number of changes will be required to the Regional Resource Management Plan to
give effect to the National Policy Statement for Freshwater Management. HBRC is
required to implement the National Policy Statement for Freshwater Management
by 2025. HBRC will also need to commence its ten yearly review of the
Regional Resource Management Plan during this LTP period.
The Resource Management Act
requires HBRC to have a Regional Coastal Plan. HBRC has integrated management
of the land adjacent to the sea and the coastal marine area in a Regional
Coastal Environment Plan (RCEP). This Plan became operative in November 2014.
Significant
Negative Effects
Creating plans to implement
the National Policy Statement for Freshwater Management will be lengthy and
will involve significant costs. Implementing those plans will also involve
significant costs, particularly for rural land owners whose land use and land
management activities are being managed through the integrated land and
freshwater planning processes.
Contributing projects include: 191
Regional Coastal Plan and 192 Strategy & Planning.
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HBRC's
Activities
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Attachment 3
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Service Levels and Performance Targets
Activity 2 –Strategy and Planning
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Level
of Service Statement
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Level of Service Measure
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Current Performance
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Performance
Targets
2015-18 in detail; 2019-25 outline
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Required Actions to Achieve
Performance
Targets
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HBRC
will help the community prepare for the future and increase community
resilience to climate change
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Energy
Strategy prepared
Hawke’s
Bay Energy Initiative launched
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Initial
studies undertaken to review other regional ‘energy future’
studies and to profile HB energy profile
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2015-16
Develop
a Hawke’s Bay Energy Strategy with a Draft Strategy adopted by Council
by March 2016
Complete
report on the effectiveness of the Regional Resource Management Plan (RRMP)
and Regional Coastal Environment Plan (RCEP) in relation to managing the
effects of oil and gas exploration and development.
Community
Engagement Plan for potential Oil and Gas Exploration and Development in
Hawke’s Bay adopted by Council in August 2015.
2017-18
Investigate
potential energy efficiency initiatives for Council to consider.
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Project
manage the development of the strategy, and report
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East Coast Hill
Country Strategy
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Initial
discussions have been held with the many central government, local
government, and industry sector groups.
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2015-18
Develop and complete a strategy by July
2018 in preparation for policy development within the RRMP. Strategy
adopted by Council by July 2018.
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Project
manage the development of the strategy
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Number of sectors
through which HBRC promotes/influences reduction in carbon emissions and
adaptation to climate change
Number of Council
activities that contribute to climate change adaptation and reduction
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HBRC
works with:
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the primary production sector on sustainable farming and research initiatives
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the urban community to reduce energy use, improve air quality and human
health through the ‘Heatsmart’ programme
A
Solar Hot Water Scheme initiative based on providing loan funding is pending
a viable business case
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2015-18
Funding for an Approved Solar Hot Water
Scheme or an alternative Solar Initiative is available.
2016-17
Complete a report on the contribution of
Council activities make towards climate change adaption and mitigation, and
number of sectors that Council supports to promote or influence reductions in
carbon emissions and climate change adaptation.
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Review
the business case for the Solar Hot Water Scheme as part of the Energy
Strategy initiative.
Proactively
seek initiatives through which HBRC is able to influence or promote a
reduction in regional carbon emissions.
Proactively
seek opportunities to make investments that provide a satisfactory return for
HBRC’s investment portfolio and result in sustainable use of the
region’s resources.
Project
manage the preparation of the Contribution to Climate Change Adaption.
Mitigation and Reduction report
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HBRC
will integrate land and water and biodiversity management to deliver
environmental, economic, social and cultural outcomes
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Progressive
Implementation Plan for 2014 National Policy Statement for Freshwater
Management (NPSFM)
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NPSFM
Implementation Plan based on 2011 NPSFM
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2015-16
Adopt
and notify Progressive Implementation Plan for 2014 NPSFM
Each Year
Prepare
report on implementation of National Policy Statement for Freshwater
Management
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Report
on NPSFM Implementation Plan progress through the Annual Report
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HBRC
will establish and maintain clear and appropriate policy in a responsive and
timely manner that will enable sustainable management of the region’s
natural and physical resources
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Status of Resource
Management Plans and Policy Statements
No more than 2 years elapse from
notification of a plan change to decisions on submissions being issued
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Policy under
development in following catchments
Taharua
and Mohaka
Heretaunga
Zone (Clive/Karamu, Ngaruroro, Tutaekuri, Ahuriri, Heretaunga Plains aquifer)
Policy recently completed
RPS
Change 5 Land and Freshwater Management
RRMP
Tukituki Plan Change 6
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2015-16
Plan change for outstanding freshwater
bodies publicly notified July 2016
2017-18
- Plan change for Taharua /Upper Mohaka
adopted for public notification December 2017
- Plan change for Heretaunga Zone adopted for
public notification December 2017
(NB: Other freshwater-related plan changes
undertaken in accordance with the Implementation Plan for NPSFM).
2020-21
- Commence review of RRMP including RPS
- Commence policy development for remaining
catchment areas in the region to give effect to the NPSFM
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Project manage the development of policy
for inclusion in the RRMP and RPS including:
Coordinate and integrate all the necessary
inputs into the planning processes
Coordinate and undertake the required
stakeholder community engagement before notification
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Policy
recently completed |
Change 4 of RPS -
Built Environment gives effect to Heretaunga Plains Urban Development
Strategy
2015-2018
Participate in the implementation and
review of the Heretaunga Plains Urban Development Strategy
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Participate in Technical Advisory Group
Support the Heretaunga Plains Urban
Development Strategy (HPUDS) Implementation Working Group
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Operative Regional
Coastal Environment Plan
At all times there
is a regional plan in force for the HB coastal marine area
New Zealand Coastal
Policy Statement (NZCPS) put into action in accordance with statutory
requirements
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Regional Coastal
Environment Plan and Plan Change 1- Geographical Coverage of Regional
Resource Management Plan became operative on 8 November 2014
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2015-17
Prepare
and complete Coastal Hazard Management Strategy and Implementation Plans for
coastline between Tangoio and Clifton (see project 322)
Coastal
Hazard Management Strategy (Phase 1) to be adopted by Council by June 2016
2017-18
Commence
preparation of plan change(s) to give effect to Tangoio to Clifton coastal
hazard management strategy (if necessary)
2020-21
Commence
development of plan change(s) to give effect to 2010 NZCPS
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Support and
participate in the development of the strategy through the Joint Coastal
Hazard Committee (refer Regional Resources, Activity 4, Coastal Management)
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HBRC's
Activities
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Attachment 3
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Activity 3 – Policy Implementation
Significant Issues
- Ensuring
HBRC regional plans are implemented and then monitored and evaluated for
effectiveness.
- Ensuring
Hawke’s Bay Regional Council’s (HBRC) policies and responsibilities
are integrated into district planning decisions.
- Ensuring
HBRC’s activities and interests are provided for in Central
Government’s planning proposals and legislative reviews.
- Increasing
expectations that any contaminated land is dealt with promptly and efficiently,
particularly in relation to any identified high risk areas such as unused
timber treatment sites within the region.
- Implementation
of national policy statements and national environmental standards and the
costs associated with them.
Rationale
HBRC sets out the objectives
to achieve the desired environmental outcomes for the region through its
regional planning documents. Advocating these objectives and associated
policies to territorial authorities and key resource users is an important
element of implementing the plans.
Plan effectiveness
monitoring and reporting is also essential to evaluate whether the objectives
are being achieved.
Investigation of
contaminated land is HBRC’s responsibility under the Resource Management
Act, although both regional councils and territorial authorities have functions
in relation to how it is managed. Contaminated land requires specialised
knowledge and expertise and, given the potential environmental harm to water,
air, soil and people, it is a requirement that councils co-ordinate any
necessary investigations.
HBRC’s grants and
loans to homeowners for healthy homes/ clean air, sustainable land management
and community engagement initiatives are not required by legislation but are
important complementary methods for achieving the environmental objectives.
Significant
Negative Effects
As mentioned in Activity 2 -
Strategy and Planning, the implementation of those plans will also involve
significant costs, particularly for rural land owners whose land use and land
management activities are being managed through the integrated land and
freshwater planning processes. Advocating for the implementation of
Regional Policy Statement provisions may restrict some activities. Any
requirements for contaminated site clean-up will come at a cost to either the
landowner or the person or organisation who caused the contamination, the
clean-up how will be a positive effect.
Contributing projects include: 151 Hazardous
Waste/Substances Management, 192 Strategy & Planning and
196 Statutory Advocacy.
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HBRC's
Activities
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Attachment 3
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Service Levels and Performance Targets
Activity 3 –Policy Implementation
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Level of Service Statement
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Level of Service Measure
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Current Performance
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Performance
Targets
2015-18 in detail; 2019-25 outline
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Required Actions to Achieve
Performance
Targets
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HBRC will promote integrated management and benefits of
collaboration by proactively communicating its policies and responsibilities
through dialogue and submissions on district plans, consent applications and
central government initiatives
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Lodging
of submissions on district plans, district planning applications and central
government initiatives where there are relevant Regional Council policies
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A report on
statutory advocacy activities:
Prepared
and presented at HBRC’s Environment & Services and Maori Committee
meetings
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2015-25
Submissions made on
district plans, district planning applications and central government
initiatives reported to HBRC’s Environment and Services Committee.
Staff of HBRC and
territorial local authorities to meet at least twice a year to discuss
integration issues and steps to improve the regional and district plan are
identified and acted upon.
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Continue to
receive, review and report on consent applications and plan development
activities
Facilitate the Hawke’s Bay Councils
Planners’ group
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HBRC
will ensure resource management plans are implemented, monitored and
evaluated
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Implementation
Plans in place for newly operative Plan Changes or Plan Reviews
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Implementation Plan for Change 6 in preparation (at
time of writing)
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Yearly
Annual Report on Implementation Plan for
Tukituki Catchment Plan Change 6)
2016-17
RRMP effectiveness
reporting
2018-19
RCEP effectiveness
reporting
2019-20
Tukituki
Plan Change effectiveness reporting
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Project manage reporting on Implementation
Plan
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HBRC
will investigate and manage contaminated sites to ensure public health and
safety and environmental protection
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Maintain a database of potentially and confirmed contaminated
sites
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Upgrading
of database to enable both public and territorial authority access
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2015-25
To administer and maintain the database,
including checking of record details, site visits to GPS areas of
contamination, transfers to Territorial Local Authorities (TLA) as per agreed
protocol and advising landowners of the contaminated sites status of their
property.
To respond to queries and complaints
regarding potentially contaminated sites.
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Review
database
Verification
of sites listed on database
Transfer protocols with TLAs
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HBRC's
Activities
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Attachment 3
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Activity 4 – State of the Environment Reporting
Significant Issues
- Ensuring
people have access to and confidence in the environmental data collected to
assess the state of the region’s environment and the impacts of community
activities.
- Ensuring
environmental data is readily available in a relevant and easy to read format,
so that people can understand the state of the region’s environment and
the effectiveness of regional plans or policy.
Rationale
HBRC has a statutory
responsibility to monitor the State of the Environment. This is reported on
every 5 years, with annual updates. HBRC is also required to monitor the
suitability and effectiveness of policy statements and plans. This provides
important information that is of benefit to the region’s social,
cultural, environmental and economic wellbeing. Such information should
be easily accessible and available in a form that is meaningful and
understandable.
The research project
provides HBRC with the ability to leverage external investigations and research
funding and to undertake small research projects to fill unforeseen gaps in
knowledge.
The National Environmental
Monitoring Standards project is coordinated on behalf of other councils, NIWA
and power companies. The project aims to develop and standardise environmental
monitoring procedures in New Zealand. This project is funded externally by
grants and contributions from regions.
Significant
Negative Effects
No significant negative
effects will occur as a result of HBRC’s delivery of these activities.
Contributing projects include: 153
State of the Environment Reporting, 155 National Environmental Monitoring
Standards (NEMS) and 182 Unspecified Research & Grants
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 4 –State of the Environment
Reporting
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve Performance Targets
|
|
HBRC
will monitor and provide accurate information to the community so that it
understands the State of the Environment (SOE) for Hawke’s Bay
|
Data quality as assessed against HBRC’s quality
assurance system
Amount of State of the Environment monitoring data
available through HBRC’s website
|
HBRC’s
quality assurance system is based on nationally recognised standards and
guidelines. The Quality Management System that guides activities in the
Environmental Science sections was accredited in December 2012 in terms of
ISO9001:2008
Some
data for limited sites is available on HBRC’s website:
- Recreational
water quality
- Groundwater
quality
- Groundwater
levels
- River
flows
- Rainfall
- Air
quality
|
2015-25
Maintain
the current level of SOE data on HBRC’s website.
Continue
to make information from the following monitoring sites available through
HBRC’s website:
· All
telemetered river flow sites
· All
telemetered rainfall sites
· All
telemetered climate stations
- All
data collected, processed, analysed and stored in accordance with ISO requirements
- Maintain
ISO accreditation
|
- Update
quality assurance system requirements to maintain ISO accreditation
- Regular
auditing of the quality assurance system
- Take
corrective action as identified by internal and external audits
- Respond
to “areas of concern” and “opportunities for
improvement” identified by internal and external audits
- Maintain
monthly SoE reports on HBRC’s website
|
|
State of the Environment Monitoring Report
|
Five Yearly State of the Environment Report published
March 2015
|
2015-25
Annual Update State
of the Environment (SOE) Reports available by June each year
2019-20
Five yearly State
of the Environment Monitoring Report available by December 2019
|
Prepare annual update and five yearly reports
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Historically, where frequent
flooding or poor drainage have been an issue for local land owners, the
Hawke’s Bay Regional Council (HBRC) or its predecessor organisation, the
Hawke’s Bay Catchment Board, have worked with them to establish a flood
control and/or drainage scheme to enable them to use their land with reduced
risk of flooding and associated improvements to drainage, provided they have
been willing to meet a significant portion of both the capital and ongoing
maintenance and operating cost. HBRC now administers 25 flood control and
drainage schemes throughout the region. The estimated replacement value
of these assets is $153,000,000.
This activity covers the
following inter-related programmes:
- Maintenance
and improvement of flood protection and drainage schemes
- Investigations
and enquiries associated with flood control and/or drainage issues.
- Sundry
works.
The empowering legislation
for this function of the Hawke’s Bay Regional Council (HBRC), is the Soil
Conservation and Rivers Control Act 1941, the Land Drainage Act 1908, the Local
Government Act 2002 and the Civil Defence Emergency Act 2002.
Link to
Strategic Outcomes
HBRC’s Land Drainage
and River Control activities contribute to Council’s strategic outcomes
in the following ways.
Resilient
Communities
- Our
people and businesses feel safe from natural hazards - by reducing the risk
of flooding to the community, our homes and productive land, and providing safe
waterway environments.
- Quality
services for a healthy, connected community – by providing for public
access to HBRC managed waterway environments for recreation and enjoyment and
enhancing amenity values where appropriate.
Resilient
Ecosystems
Active management linking biodiversity,
land, freshwater and our coastal marine area – by managing and enhancing
the river environment by mechanically opening river mouths; active river
control; enhancement of the waterways with a holistic management philosophy;
implementation of an environmental strategy and compliance with a code of
practice; and by ensuring activities are sustainable.
Resilient
Economy
Quality, future focused
infrastructure – by providing first class asset
management principles to the design, construction and maintenance of the flood
control and drainage schemes.
Assumptions
and Future Demand Incorporated in this Plan
The
planning assumptions for HBRC’s Land Drainage and River Control
activities are:
- Budgets
have been prepared on the basis that no flood events in the next 10 years that
could cause major damage to HBRC’s flood protection and drainage
assets. Should such an event occur, maintenance and improvement
programmes may be reviewed and budgets revised.
- Current
arrangements for gravel extraction will continue, with sufficient gravel
extraction by commercial extractors to maintain river bed levels at an ideal
grade. This is not currently the case for some Upper Tukituki rivers and
investigations are underway to determine options for addressing this.
- There
will be no changes to legislation that impact on the role of the Regional Council
in land drainage and river control.
- HBRC
maintains its current policy with regard to responsibility for funding of
existing and new flood protection and drainage works.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Land Drainage & River
Control
|
HBRC's
Activities
|
Attachment 3
|
Activity 1a,b,c – Flood Protection and Drainage Schemes
Significant Issues
- The
predicted impact of climate change is that Hawke’s Bay will become dryer
but with the potential for increased storminess. Severe storms are
predicted to bring greater rainfall which will result in increased flood
flows. Sea level rise will also have an impact
in the vicinity of the coast. These changes will result in increased
flood risk. HBRC will review all flood control and drainage
Schemes over time and investigate options for mitigating this impact.
- In
addition to climate change, the value of improvements on flood protected land
has increased significantly since construction of flood protection and drainage
schemes. The need for an increased level of service (ie protection) will be
explored as part of the programme of Scheme reviews.
- The
sustainable management of sediment within river systems is vital to the
scheme’s integrity, but there may be adverse impacts on river and coastal
areas. Research is underway to better understand the impacts of river sediment
management on sediment supplies; findings from this research may result in
changes to the way rivers are managed.
- The
Local Government Act 2002 requires that major flood protection and control
works are maintained, repaired, and renewed to the key standards defined in the
local authority’s relevant asset management plan and long term
plan. Performance targets for all Schemes in this Long term plan are
consistent with their respective asset management plans.
Rationale
Land drainage and river
control reduces the likelihood of damage from flooding on people and property.
The Heretaunga Plains and
Upper Tukituki Flood Control Schemes, as well as 14 other smaller schemes,
protect Hawke’s Bay communities from frequent flooding, allowing
landowners to optimise the productivity of their land.
HBRC carries out this role
under its legislative mandate and responsibility. It has the necessary skills,
historical understanding and regional overview required to integrate and manage
all land drainage and river control elements that make up the schemes.
Significant
Negative Effects
The construction of flood
protection and drainage systems has resulted in significant changes to the
natural hydrology of their associated catchments. These changes have
included a reduction in areas frequently flooded, diversion and straightening
of waterway reaches, removal of streamside vegetation, and the use of
structures to control flows and erosion.
These changes and the
ongoing methods used to maintain the schemes have resulted in adverse effects
on river and stream ecology and habitats, as well as affecting the social and
cultural values of the waterways. HBRC has initiated an enhancement programme,
including alternative management of riparian areas, which will promote
improvements in water quality and aquatic and terrestrial habitats.
|
HBRC's
Activities
|
Attachment 3
|
1a
– Heretaunga Plains Scheme
Contributing projects include: 286
Rivers Maintenance, 287 Rivers - Capital Projects, 288 Rivers - Special
Projects, 289 Sawfly Remediation loan repayments, 290 Maintenance of Drainage
& Pumping Assets, 291 Napier/Meeanee/Puketapu, 292 Brookfields/Awatoto, 293
Pakowhai, 294 Muddy Creek, 295 Haumoana, 296 Karamu, 297 Raupare/Twyford,
298 Tutaekuri/Moteo, 299 Puninga
|
Service Levels and Performance Targets
Activity 1a – Flood Protection
& Drainage Schemes: Heretaunga Plains Scheme
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve
Performance
Targets
|
|
HBRC
will maintain an effective flood control network that provides protection
from frequent river flooding to communities and productive land within the
Heretaunga Plains Scheme.
All
flood protection and river control works associated with the Scheme shall be
maintained, repaired and renewed to the standards defined in the Scheme Asset
Management Plan.
The
level of protection in technical terms is to convey a flood discharge with a
1% probability of being exceeded in any one year (1%AEP) safely to the sea
progressively increasing to 0.2% AEP over the next 20 years
|
Communities
and productive land experience no flooding from rivers up to the design level
of protection
Work
planned through an annual programme of works is completed each year.
|
No land flooded
from the rivers within scheme areas
Modelling indicates
that the current flood control assets are capable of conveying a design flood
event
The
annual programme of works is completed, except where changes are made as a
result of flood damage or other unforeseen events
|
Ongoing
Prepare an annual programme of works prior
to the commencement of each financial year. Complete the annual
programme of work.
2015-18
Complete detailed design philosophy and
priorities for improved level of service
2016-25
Progress
implementation of improved levels of service in accordance with work
programme
|
Ongoing
Prepare
an annual maintenance schedule prior to the commencement of each financial
year.
Maintenance and
gravel extraction to maintain the channel capacity and integrity of the flood
protection assets
Monitoring of flood
events in accordance with the Flood Manual
Sawfly damage monitoring and
alternative species planting
Annual asset audit
by a chartered professional engineer, and full assessment of each of the
major rivers every 12 years
|
|
The
level of service will be reported as kilometres and percentage of floodway
that provide the design level of service
|
Audits
in past year indicate the following levels of service:
Tutaekuri 100% (23.6km
of river channel)
Ngaruroro 100%
(39km of river channel)
Lower Tukituki 100% (10.2km of river
channel)
|
2015-25
Tutaekuri, Ngaruroro & Lower Tukituki
Audits: No change
|
|
HBRC
will maintain an effective drainage network that provides drainage outlet for
rainfall runoff of 32mm in 24 hours from smaller watercourses to communities
and productive land within the Heretaunga Plains Scheme
|
Frequent
out of channel flooding lasting more than 24 hours does not occur for the
design rainfall runoff and lesser events.
|
The
drainage network coped with the design runoff with no flooding.
|
2015-21
Complete reviews of the level of service
provided within the nine scheme areas covering the drainage network across
the Heretaunga Plains and determine new level of service measures and
targets.
2019-onwards
Implement
outcome of reviews.
|
2015-18
Commence review of individual catchment
areas and complete at least 3 per year.
Ongoing
Monitoring,
operation and maintenance of the drainage network.
Annual asset audit by a chartered
professional engineer
|
|
HBRC
will protect and enhance the scheme’s riparian land and associated
waterways administered by the Regional Council for public enjoyment and
increased biodiversity
|
Stream
Ecological Valuations.
Ecological
Enhancement Plans
|
Stream ecological valuations (SEV) have
been completed for Napier urban streams. Hastings urban streams are in
progress
River ecological management plans completed
for the Ngaruroro River, practically complete for the Tutaekuri River and
begun on the Tukituki River
|
2017-18
Stream
Ecological Valuations show no decline and/or show an increase in ecological
function of urban streams
Rolling review
On the rivers, increased native planting as
measured six yearly based on the River Ecological Enhancement Plans
|
2015-18
Complete the Hastings urban streams SEV.
Complete River Ecological Management and Enhancement Plans (EMEP) for
enhancement of ecological values for the Scheme rivers
Ongoing
- Continue riparian
planting and waterway enhancement
- Implement an annual
enhancement programme from the EMEP.
- Re-evaluate EMEP
every 6 years to confirm implementation approach
|
1b – Upper
Tukituki Scheme
Contributing projects include: 265
Upper Tukituki Scheme
|
Service Levels and Performance Targets
Activity 1b – Flood Protection
& Drainage Schemes: Upper Tukituki Scheme
|
|
Level
of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
will maintain an effective flood control network that provides protection
from frequent river flooding to communities and productive land within the
Upper Tukituki Scheme area.
All
flood protection and river control works associated with the Scheme shall be
maintained, repaired and renewed to the standards defined in the Scheme Asset
Management Plan.
The
level of protection in technical terms is to convey a flood discharge with a
1% probability of being exceeded in any one year (1%AEP) safely to the sea.
|
Communities
and productive land experience no flooding from rivers up to the design level
of protection
Rates
fairly reflect the degree of benefit received by the flood protection
provided.
Work
planned through an annual programme of works is completed each year.
The
level of service will be reported as kilometres and percentage of floodway
that provide the design level of service
|
Flooding was
experienced in Onga Onga from a flood greater than the design flood in
November 2013
River bed levels are rising as a result of
reduced gravel extraction. This is resulting in more frequent flooding
on some land and elevated ground water levels in some areas
Ratepayers have advised that they do not
believe that the method of allocation of targeted rates for Scheme works is
fair
The annual programme of works is completed,
except where changes are made as a result of flood damage or other unforeseen
events
|
2015-16
Complete review of
river bed gravel resource (ref gravel management) and identify most cost
effective approach to sustainable gravel management within scheme area
2015-18
Complete a review
of the method of allocating to ratepayers the cost of maintaining and
improving the flood protection scheme
Ongoing
Prepare an annual programme of works prior
to the commencement of each financial year. Complete the annual
programme of work.
|
2015-16
Complete a review
of the rate allocation system and implement a new system if the existing one
is deemed to be unfair
Ongoing
Prepare
an annual maintenance schedule prior to the commencement of each financial
year.
Continue
maintenance and gravel extraction to maintain the channel capacity and
integrity of the flood protection assets
Monitoring of flood
events in accordance with the Flood Manual
Annual asset audit
by a chartered professional engineer, and full assessment of each of the
major rivers every 12 years
|
|
|
Past
audits indicate levels of service of:
Upper Tukituki
34.4km, 95%
Waipawa 26.5km, 95%
|
2019-25
Review
the level of protection provided by the Scheme (including allowing for the
impacts of climate change) and develop a long term improvement plan to
implement outcomes from the review
|
|
HBRC
will protect and enhance the scheme’s riparian land and associated
waterways administered by the Regional Council for public enjoyment and
increased biodiversity
|
Ecological
Management and Enhancement Plans
|
The
development of a River
Ecological Management and Enhancement Plans (EMEP) has commenced for
the Tukituki River
|
2015-18
- Complete Rivers Ecological Management and Enhancement
Plans for enhancement of ecological values for the Scheme rivers
- On the rivers increased native planting as
measured six yearly based on the river Ecological Management and Enhancement
Plans (EMEP)
|
Ongoing
- Continue riparian planting
and waterway enhancement
- Implement annual programme from the EMEP
- Re-evaluate EMEP every 6 years to confirm
implementation approach
|
1c –
Other Schemes
Contributing projects include: 240
Makara Flood Control Scheme, 241 Paeroa Drainage Scheme, 242 Porangahau Flood
Control Scheme, 243 Poukawa Drainage Scheme, 244 Ohuia – Whakaki Drainage
Scheme, 245 Esk River Control Scheme, 246 Whirinaki Drainage Scheme, 247
Maraetotara River Control Scheme, 248 Te Ngarue River Control Scheme, 249
Kopuawhara River Control Scheme, 276 Kairakau Community Scheme, 277 Wairoa
Rivers & Streams Scheme, 278 Central & Southern Area Rivers &
Streams Scheme
|
Service Levels and Performance Targets
Activity 1c – Flood Protection
& Drainage Schemes: Other Schemes
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
will maintain an effective flood control and drainage network that provides
protection from frequent flooding to communities and productive land within
designated Scheme areas, including:
Makara Flood
Control
Paeroa Drainage
Porangahau Flood
Control
Ohuia –
Whakaki Drainage
Esk River
Whirinaki Drainage
Maraetotara
Te Ngarue
Kopuawhara Flood
Control
Poukawa Drainage
Kairakau
Waimarama
(proposed)
|
A
full assessment of the capacity and integrity of flood control works is
completed every 12 years by a chartered professional engineer with interim
audits undertaken annually
The
level of service will be reported as percentage of assets that provide the
design level of service
|
Estimated
at 95% for all Schemes other than Waimarama. No Scheme currently in place for
Waimarama
|
2015-18
Waimarama Flood Protection Scheme accepted
by community and operation phase begun
Develop a programme of Scheme reviews and
commence review process with at least 2 Schemes
Ongoing
Continue with review process and quantify
level of service provided by Schemes where this in unknown
|
Ongoing
Maintenance to
preserve channel capacity and integrity of flood protection and drainage
assets
Monitoring of flood
events in accordance with the Flood Manual
Complete annual
asset audit by a chartered professional engineer of selected areas of
Schemes, and a full assessment of each of the scheme areas every 12 years
2015-18
Consult with
Waimarama community regarding the possibility of establishing a flood control
scheme to fund improved management of the waterways and flood channels
flowing through the community
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 2 – Investigations and Enquiries
Significant Issues
- The
assessment of flood risk requires expert judgement and understanding of
hydrology and hydraulics. Simplifying flood risk information for easy
communication is difficult.
- River
engineering expertise and experience is difficult to find on the employment
market. An arrangement to provide river engineering advice to Gisborne
District Council helps HBRC to recruit more full-time engineers with relevant
knowledge and skills
Rationale
HBRC responds to many
enquiries about coastal erosion, flood risk and drainage related issues.
Depending on the issue, HBRC is able to help through:
- Provision
of flooding and drainage advice
- Provision
of advice relating to riverbed land and other HBRC administered land
- Provision
of advice on coastal erosion and flood risk
- Technical
and financial assistance for approved ‘public good’ projects
- A
consultancy service that is fully cost recoverable.
In addition, HBRC provides
consultancy services to other councils. It currently has an agreement to
provide one full time equivalent of engineering input to Gisborne District
Council. HBRC does this because it has the skills, historical understanding and
regional overview required to understand and provide advice on these issues.
Significant
Negative Effects
There are no significant
negative effects arising from the delivery of these activities.
Contributing projects include: 250
Investigations & Enquiries, 251 Subsidised Investigations & Minor
Projects, 255 Consultancy Services
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 2 –Investigations and
Enquiries
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
staff will provide expert advice on drainage, flooding, and coastal erosion
issues.
|
All
queries are dealt with by appropriate qualified and experienced staff
|
HBRC
employs two chartered professional engineers with experience in flood
management, river control and coastal issues
|
Ongoing
HBRC
retains two chartered professional engineers with experience in flood
management, river control and coastal issues on staff
|
Ongoing
Manage and provide for succession of key
staff
Recruit graduates and promote of Local
Government careers to ensure staffing capacity for the future
|
|
HBRC will provide up to a 30% subsidy for river control
and flood protection where the criteria set out in the Regional
Council’s guidelines for technical and financial assistance are met
|
Value of subsidies provided annually
|
Subsidies valued at $40,000
|
Ongoing
$40,000 plus inflation of subsidy money is
provided each year at a subsidy rate of 30%
|
Ongoing
Continue to promote
the HBRC subsidy programme
|
|
HBRC will provide a consultancy service for drainage,
flooding, and coastal erosion issues according to individual project
agreements on a full cost recovery basis
|
- Cost
recovery
- Satisfaction
with Service
|
- Costs
are recovered
- Not
specifically measured
|
Ongoing
Full
costs of any consultancy work are recovered
Major
clients are satisfied with service provided
|
Ongoing
Effectively and
efficiently complete consultancy projects
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 3 –Sundry Works
Significant
Issues
- Identifying
a sustainable, easily accessible and affordable source of material for coastal
erosion protection at Westshore Beach to continue.
- The
effects of climate change and rises in sea level on this works.
- The
impact of river mouths naturally closing and the effect of climate change and
rises in sea level on their frequency.
Rationale
Land Drainage and River
Control provides for protection of property at risk from erosion or flooding
by:
- Management
of river mouths to reduce unnecessary flooding
- Gravel
renourishment of Westshore Beach so that erosion is managed seaward of the 1986
erosion line.
Hawke’s Bay Regional
Council (HBRC) carries out this role because it has the necessary skills,
historical understanding and regional overview required to integrate and manage
all land drainage and river control elements that make up the schemes, and
balance conflicts between river users and flood protection requirements.
Significant
Negative Effects
There are no significant
negative effects arising from the delivery of these activities.
Contributing projects include: 261
River & Lagoon Opening, 264 Westshore Coastal Works
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 3–Sundry Works
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC will ensure that the beach at Westshore has
erosion checked to 1986 erosion line
(The 1986 line was the extent of erosion
before beach renourishment began, and is identified on a series of posts
along the foreshore)
|
The comparison of annual beach cross section surveys to
the 1986 erosion
|
The erosion remains seaward of the 1986 line
The resource consent for extraction of gravel from
Pacific beach expires in 2017. A renewal of this consent will not be
sought
|
Ongoing
Erosion does not extend landward of the 1986 line by
more than 10% of the beach length in any 12 month period
2015-18
- An alternative source of gravel or
sand for renourishment will be sought
- The current approach to erosion
mitigation at Westshore will be reviewed as part of the Coastal Hazard
Management Strategy
|
Ongoing
Regular monitoring and renourishment is completed
annually
2015-18
Review to be completed. New source of
renourishment material to be found
|
|
HBRC will maintain river mouths so that they do not
flood private land above a specified contour subject to suitable river, sea
and weather conditions that will allow a safe and successful opening to be
made
|
Incidences of flooding of private land above levels as
specified in the River Opening Protocol
|
No incidences. Some properties in Te Awanga at
risk of flooding in moderate events
|
Ongoing
Private land above a specified contour is not flooded
as a result of a river mouth being closed
|
Ongoing
River mouths and lagoon outlets are inspected regularly
and opened when required, and when river, sea and weather conditions allow
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Regional Resources addresses
the region’s public shared resources (air, water, coast, gravel), its
land resource (in private ownership) and Hawke’s Bay Regional Council
(HBRC) owned property managed as a regional resource.
In relation to public shared
resources, these activities include the gathering of information about them to
improve their sustainable management, and efficient use.
In relation to the land
resource, HBRC promotes sustainable land management and enhanced economic and
environmental performance. HBRC also leverages government funding to support
these initiatives.
In relation to Council-owned
land, all activities aim to improve public access to these areas.
Link to
Strategic Outcomes
This group of activities
contributes to Council’s strategic outcomes in the following ways.
Resilient
Communities
- Quality
services for a healthy, connected community - by providing access to the
coast, open space and safe off road pathways/cycleway opportunities for
recreational enjoyment, protecting sites of cultural significance within open
space areas and, where appropriate, identifying and valuing them for public
education and interest, protecting the natural environment particularly fresh
and coastal swimming water quality, improving air quality and reducing
respiratory disease through the Heat Smart and home insulation programme.
- Local
leadership, strong relationships and affordable, well-considered solutions
– by enabling community-led water user groups to develop ways to
efficiently use the region’s water allocations, through actions such as
audited self management.
Resilient
Ecosystems
Active management linking
biodiversity, land, freshwater and our coastal marine areas
–by understanding that the region’s natural and physical resources
are being managed to ensure they are used efficiently and sustainably;
identifying and promoting sustainable land management practices; improving air
quality; sustainably managing rivers, coast and the gravel resource; and
providing opportunities for access to open space areas.
Resilient
Economy
Profitable farming systems
that can adapt to greater weather extremes, pest threats and take advantage of
new opportunities – by working closely
on-farm with the regions land holders to understand their needs, working with
the primary sector in joint research and extension initiatives and facilitating
collaborative approaches to adaptive governance and management that consider
holistically the impact of decision making in the landscape on social,
cultural, environmental and economic objectives, for example as proposed in the
East Coast Hill Country Resilience Proposal.
Assumptions
and Future Demand Incorporated in this Plan
The
planning assumptions for the following activities are:
- Science
investigations will not be delayed as a result of unsuitable climatic
conditions.
- Funding
policies for water management reflect more targeted cost recovery, improving
the alignment of costs to those who benefit.
- The
funding policies applied to most of these activities will remain constant over
the life of the plan. However new funding sources will be evaluated and
utilised, as appropriate, for resource investigations and monitoring relating
to land, air and the coast.
- HBRC
will continue to own and manage Tutira Country Park, Pakowhai Country Park, and
Pekapeka Wetland. HBRC will also continue to manage the Tangoio Soil
Conservation Reserve and operate the Soil Conservation Nursery.
- Open
Space projects that have been approved by the Council (and therefore comply
with HBRC’s Open Space Policy and Evaluation criteria) are to be financed
through loan funding of up to $7.5 million. The servicing of any drawdown against
this loan will be funded from the Council’s Sale of Land (non investment)
Reserve.
Significant
Negative Effects
There are no significant
negative impacts relating to the collection of information about regional
resources, unless the information raises more questions than answers and
results in delays in decision-making.
In relation to sustainable
land management, the Ministry for Primary Industries also has a role to meet
New Zealand’s Kyoto Protocol obligations. Therefore there is a risk of
landowners being confused by having two agencies engaging with them on the same
issue. It is important that HBRC and MAF work together to avoid duplication.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Regional Resources
|
HBRC's
Activities
|
Attachment 3
|
Activity 1 – Land Management
Significant
Issues
- 64%
(about 900,000 ha) of the region’s rural land is classed as erodible to
highly erodible hill country; of that about 150,000 ha is in land use that is
likely to exceed the sustainable capacity of the soil.
- Climate
change is predicted to result in more intensive rain events and increased
temperatures, leading to increased risk of erosion and droughts.
- There
is a trend toward more intensive land uses that rely on increasing inputs of
water, energy and fertilisers. Without the use of good farming practices,
this intensification could lead to the degradation of soil quality, soil
quantity, water quality, and terrestrial and aquatic ecosystems.
- High
quality soils are a limited resource in Hawke’s Bay and represent one of
our most vital natural assets. Preserving both the availability and quality of
these soils into the future is critical to our primary sector based provincial
economy.
- Our
regions biodiversity is critical to a resilient landscape. In order to
make productive use of the land 75% of the regions indigenous vegetation has
been cleared and only 2% of our original wetlands remain. A bio-diverse
ecosystem plays a critical role in the provision of ecosystems services and
what remains of our taonga requires our considered support and management.
Background
Our landscape provides a
range of ecosystem services that benefit everyone including, storing water that
helps mitigate flooding, the decomposition of wastes and pollutants, the
filtering and cycling of nutrients, the provision of food, fuel and fibre, the
regulation of pests and diseases and the regulation of greenhouse gases to name
a few. The landscape also provides a wide array of nonmaterial benefits
including cultural and aesthetic values, recreational opportunities and for
many our unique Hawke’s Bay sense of place.
Rationale
The role of Hawke’s
Bay Regional Council (HBRC) is to inform and encourage the optimal use of land
for social and economic benefits while maintaining and or enhancing
environmental sustainability. Land use changes and intensification can result
in social or community costs in the form of adverse environmental effects and a
reduction in the delivery of ecosystem services. HBRC programmes will be
targeted and timely to minimise and or affect these impacts.
HBRC recognises that the
work to achieve this is immense. The traditional approach of one-on-one
education and encouragement, while achieving positive results, will only make
slow progress across the whole region. Current projects are designed to
enable HBRC to influence a greater number of land owners to move towards good
farming practice and sustainable land use.
Significant
Negative Effects
There are no significant
negative regional impacts relating to Land Management programs, however it is
acknowledged that land use change may result in localised positive and or
negative effects on specific aspects of the environment and or productive
farming systems.
Contributing projects include: 339
Regional Land Research & Investigations, 340 Land Monitoring, 380 Sustainable
Land Management, 381 Soil Conservation Nursery.
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity
1–Land Management
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve
Performance
Targets
|
|
Viable and resilient farming systems are being achieved through
the adoption of good land use practice
|
Annual Land Management Operational Plan
This will outline the strategic focus and alignment of land
management programs and projects to regional priorities
|
Land Management programs currently include:
reducing
hill country erosion, mitigating the impacts of land use intensification on
water quality, and protecting the significant natural assets of the region
A
targeted research program currently investigating cropping rotations for
improved environmental performance, alternative forage options for dryland
farming, greater irrigation precision and efficiency, best practice
management in deer farming, quantifying the impacts of hill country erosion
on ecosystem services
|
Yearly
Proposed activities for
each coming financial year will be presented to council via the Operational
Plan by 30 June each year.
Reporting of performance
to the Operational Plan objectives for the previous year will occur by the
end of November
Continue a programme of
research and extension to investigate and field trial issues relevant to land
management in Hawke’s Bay
2015-16
Develop an integrated
monitoring, evaluation, reporting framework for the Operational Plan
|
Prepare annual
Operational Plan for Council prior to the commencement of each financial year
and annual report following completion of each financial year.
Draft Land Management
MERI (Monitoring, Evaluation, Review, Improvement) plan produced
|
|
|
Preparation and Implementation of Sub-catchment Plans in
priority “hotspots” catchments to address significant resource
management issues
|
Collaborative approaches to localised water quality problems
occurring in sub-catchments (Papanui, Taharua, Whakaki & Whangawehi)
|
2015-2018
Sub-catchment plans
implemented for 2 priority sub-catchments in the Tukituki by 2018
2015-2025
Sub-catchment plans to
be developed for Tukipo, Kahahakuri, Upper Tukituki Corridor, Whakaki and
potential hotspots in the TANK & Mohaka catchments
60% of the RLS grant
will be targeted to priority sub-catchments
|
Sub-catchment plan
developed for the Porangahau Stream & Maharakeke sub-catchment
Develop guidelines for
the development of Farm Environmental Management Plans
Utilise RLS funding in
accordance with priorities and processes established
Encourage the early
preparation of Farm Environmental Management Plans in the priority
sub-catchments of Papanui, Porangahau Stream & Maharakeke
Reporting as part of the
Tukituki Plan Change 6 Implementation Plan (refer Strategic Planning,
Activity 3, Policy Implementation)
|
|
Collaborative initiatives undertaken to realise regional
resource management objectives
|
Strategic stakeholder
alliances developed and actively maintained through groups such as the
Primary sector Pan-Sector group, Nature Central and Dairy Liaison Group
Industry Good Practice
MoU for improved Phosphorus Management agreed to by Primary Sector groups
Social survey undertaken
in Tukituki catchment in 2013
Initial discussions /
workshops with primary sector over potential East Coast Hill Country
Resilience Strategy
|
2015-2018
Development
of a strategy based on an adaptive governance approach to building resilience
in East Coast Hill Country
2016-17
Development
of non-regulatory implementation plans to support Catchment Plan changes
(TANK & Mohaka)
2017-18
5
yearly social survey of targeted catchments to monitor the implementation of
industry good practice
Yearly
At least bi-annual meetings with the Pan
Primary Sector Group
At least 5 targeted capacity building
events held to improve understanding and uptake of good practices
- Workshops provided and materials developed
to assist landholder adapt their land use practices to meet PC6 rules and
regulations
|
- East Coast Hill Country strategic
stakeholder group formed to develop resilience framework
- Continue to support research to improve the
potential for High UMF manuka plantings as a viable alternative for hill
country pastoral farming via the Primary Growth Partnership for High
performance manuka.
- Mohaka stakeholder group formed to consider
program objectives
|
|
HBRC
will increase its knowledge of the region’s land, soil, wetland and
terrestrial habitats so it is aware of any current and likely future issues
that may arise. This knowledge will allow for a timely and effective
response that enables land to be managed sustainably for future generations
|
State
of the Environment monitoring programme for soil quality
|
State
of the Environment monitoring analysis and reporting for soil quality
completed
|
2015-25
Monitor
soil quality on an annual basis across the region
|
Complete
the State of the Environment reporting in compliance with statutory
requirements
|
|
Modelling
of hill country erosion to inform the Council and affected stakeholders
|
Erosion
/ sediment loss model for the Tukituki Catchment completed
|
2015-18
Evaluate
and quantify erosion/sediment loss for Tutaekuri, Ahuriri, Ngaruroro and
Karamu catchments (TANK) using SedNet model
2019-25
Model
remaining areas of the region using same methodology as used for previous
catchments
|
Complete
erosion / sediment loss modelling for TANK catchments.
Complete
erosion / sediment loss modelling for the remaining parts of the region
|
|
Regional
Wetland Inventory
|
Wetland
inventory for the Tukituki Catchment completed
|
2015-18
Develop
wetland inventory for the remaining catchments
2019-25
Develop
a wetland monitoring strategy
|
Complete
aerial survey and high-level classification and delineation of wetlands
Align
the wetland work programmes with National Policy Statement for Freshwater
Management (NPS-FM) requirements and the Hawke’s Bay Biodiversity
Strategy
|
|
Integrated
catchment management including staged computer modelling and monitoring of
the:
Mohaka catchment
Heretaunga/Ahuriri
catchments
Tukituki catchment
|
Assessing modelling
options for the TANK catchments model(s)
NIWA model for Taharua / Mohaka in
progress
|
2015-18
- Catchment model developed for Taharua and
the entire Mohaka catchment
- Catchment model for TANK catchments
developed
|
Complete
NIWA nutrient transport model for Mohaka catchment
Evaluate
several existing models and decide most appropriate for the TANK catchment
and develop model
|
|
|
Regional
soil map
|
South
east coastal area, Ruataniwha and Heretaunga plains have been mapped
|
2015-2018
Complete
soil mapping of the TANK catchment area
2019-2025
Complete
soil mapping of the rest of the region
|
Continues
with current soil mapping methodology (S map)
|
|
Hawke’s
Bay’s land and soil resources are maintained for future generations
|
- Area of highly
erodible hill country protected
- Length of riparian
margin enhanced
- Number of
significant wetlands protected
|
RLS
project investments have included:
- Soil conservation
works on highly erodible hill country
- Protection of
wetlands
- Riparian strip
protection
- Coastal dune works
and protection
- Native vegetation
protection and covenanting
|
Ongoing
- Promote riparian
planting as part of regulatory stock exclusion requirements
- Identify and promote
the protection and or enhancement of wetlands that achieve multiple benefits
in the landscape
- Maintain poplar and
willow planting soil conservation programme
- Work with the
forest industry in Hawke’s Bay to mitigate the risks of upcoming
forestry harvest
|
- Continue to
encourage- through subsidy and education- appropriate riparian planting and
wetland protection.
- Participate in the
Poplar and Willow Trust and NZ Dryland Forests Initiative to provide other
options for hill country erosion control
- Align activities
with the HB Forestry Group
|
|
|
Wise
investment to encourage erosion reduction and water quality enhancement
through the Regional Landcare Scheme and targeted research
|
|
Ongoing
New
Regional Landcare Scheme investment is approved only where there is alignment
with the Land Management Operational Plan
|
Apply
appropriate criteria when assessing RLS funding applications
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 2
– Air Management
Significant Issues
- The National Environmental Standard (NES) for Air
Quality in relation to PM10 (very fine particulates). The NES
requires Hawke’s Bay Regional Council (HBRC) to monitor and identify
those areas of Hawke’s Bay which currently exceed the PM10
standard and by 2016 (Napier) or 2020 (Hastings), improve air quality to
a compliant standard. Any breaches that exceed acceptable levels are to
be reported.
- HBRC has good information about air quality, pollutants and
sources in the region. This information indicates that the main contribution to
PM10 concentration in the Napier and Hastings Airsheds is domestic
heating, while industry is the main source of anthropogenic PM10
emissions in the Awatoto and Whirinaki Airsheds. HBRC has used these findings
to support its Plan Changes. This is particularly important as, from 1
September 2012, any new and significant discharges of PM10 within
Napier and Hastings must be offset by permanently reducing PM10 emissions
from another source. If an offset is unable to occur, a resource consent to
discharge to air must be declined.
- The costs of upgrading domestic fires to meet the National
Environmental Standards could be a significant burden on some households within
the Napier and Hastings airsheds, particularly because it is lower
social-economic groups that tend to rely on open fires and wood burners as their
primary source of heating.
Rationale
This activity
covers Air Quality Monitoring as well as HBRC’s non regulatory response
to the National Environmental Standard for PM10 (very fine
particulate).
Monitoring
This activity
covers monitoring of the region’s air quality and reports on it against
relevant health standards and guidelines.
The background
air quality of Hawke’s Bay is very good in most places for most of the
time. HBRC has responsibilities to monitor air quality and control
discharges of contaminants into the air.
There are
activities which may result in discharges of air pollutants over extended
periods of time or at levels that result in localised air quality problems.
These are generally controlled and monitored through resource consents.
The National
Environmental Standard places significant monitoring and investigation
responsibilities on HBRC, particularly in relation to PM10.
Heat
Smart Financial Assistance Programme (Napier and Hastings airshed households)
The desired target is for
Hawke’s Bay homes to be insulated with efficient heating. When this
target is met, clean air outcomes will also be achieved. HBRC has estimated
that in the Napier and Hastings airsheds there may be up to 10,000 households
that will need assistance to upgrade their heating method. HBRC’s clean
heat financial assistance programme will be providing assistance to all
households in the form of either grants for clean heat replacement, or a loan
facility for clean heat subsidized by 50%, or a loan at cost for insulation.
Repayment of loans including interest and fees (where applicable) will be
through a voluntary differential targeted rate on the household where the
insulation was installed.
Significant
Negative Effects
There are no
significant negative impacts relating to the collection of information about
regional resources, unless the information raises more questions than answers
and results in delays in decision-making.
Contributing projects
include: 341 Air Quality, 342 Heat Smart
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity
2–Air Management
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve
Performance
Targets
|
|
HBRC
will have adequate knowledge about the level of air pollutants that may
impact on public health and aesthetic values so that it can manage air
quality for human health needs and aesthetic values
|
State
of the Environment monitoring programme for:
Air quality
Climate
|
Regional
Air Quality Monitoring Strategy revised in 2011
|
2015-25
Monitoring undertaken in accordance with
the Regional Air Quality Monitoring Strategy
2015-25
Report on breaches of the National
Environmental Standards in accordance with the standard
|
Monitor PM10 concentrations
continuously in the Napier, Hastings and Awatoto airsheds
Data collected complies with performance
targets of less than 5% of data missing and 75% valid data (less than 25% of
measured and archived values affected by calibration or instrument fault
events)
Source apportionment monitoring in the
region’s airsheds as needed to identify pollution sources
5 yearly traffic surveillance monitoring
and emissions inventory updating.
|
|
HBRC
will provide financial assistance for those who qualify for insulation and
clean heat support
|
Number
of clean heat systems installed under financial assistance programme
|
Following
a slow start, the number of clean heat installations is now meeting agreed
targets
|
2015-25
Provide
loan assistance to homeowners region wide for home insulation, and clean heat
in the airsheds under HBRC’s financial assistance programme
|
Manage
and maintain a communication strategy to promote the programme
|
|
Hawke’s
Bay’s air is suitable to breathe
|
Compliance
with National Environmental Standard (NES) for Air Quality
|
In
2014, Napier and Awatoto airsheds exceeded the standard once and Hastings
airshed exceeded the standard 5 times.
|
Napier Airshed meets NES: No more than 1
exceedance by 2016
Hastings Airshed meets NES: No more than 3
exceedances by 2016 and no more than 1 exceedance by 2020
|
Annual
reporting against NES for Air Quality
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 3 – Water Management
Significant
Issues
- World
markets that influence land values (debt servicing) and commodity prices
leading to changing land uses which have higher water needs and potentially
higher off-site risks to water quality.
- The
risk of more frequent droughts and higher temperatures as a result of climate
change that lead to higher water demand, and more frequent and intense rain
events that lead to increased soil erosion and compromised water quality.
- The
risk of the region’s economic development being unnecessarily limited by
regulatory frameworks based on an incomplete scientific understanding and
applied science knowledge that is, in some cases, more than 10 years old.
- The
complex consent processes surrounding the recent renewals of the Ngaruroro,
Tukituki, Ruataniwha and Karamu water take applications and the need to have
rules in place that are well supported scientifically, in time for the next
round of major water take renewals over the 2013-2029 period.
- Increasing
community awareness of water quality issues and a desire of the community for
better water quality in Hawke’s Bay rivers and waterways.
Rationale
Background
Water is critical to the
region’s economic, social, cultural, and environmental wellbeing. There
is, however, increasing pressure on water resources in Hawke’s Bay due to
the growing demand for water for irrigation, industrial and urban uses. The community
is increasingly concerned about water quality (e.g. concerns with the extent of
algae in the Lower Tukituki catchment detracting from recreational use) and are
seeking higher in-stream flows and quality to meet these needs. There are
also concerns about freshwater bodies and their ability to provide for
customary uses under the Treaty of Waitangi. There are also national and
regional concerns about water related ecosystems which, in some areas, are not
in a desired state.
Hawke’s Bay Regional
Council (HBRC) has responsibilities under the Resource Management Act to manage
the region’s water resources including rivers, streams, lakes, wetlands
and groundwater in a way that promotes sustainable management. HBRC also
has responsibilities under the Local Government Act to promote the
region’s social, cultural, environmental and economic wellbeing.
HBRC’s recent Strategic
Plan outlines a direction that identifies resilient ecosystems, resilient
economy and resilient communities as the strategic goals. The Land and Water
Management Strategy also reinforces HBRC’s direction and encourages a
holistic approach to resource management including biodiversity.
Nationally the release of
the National Policy Statement (NPS) for Freshwater Management requires
limits to be set for quantity and quality, and for both in-stream and
associated ecosystem values. The significance of the NPS and how that may
reflect in the current water management programme will be determined by 2013
and any required changes will be incorporated.
Activities
This group of activities
includes HBRCs existing water management programmes (and integrated land and
water management), including the State of the Environment monitoring, as well
as a continued commitment to new initiatives in science investigations and
water demand management areas.
The issues that have driven
the need for continued activity in determining allocation have arisen from the
consent processes for the Ruataniwha Plains surface and groundwater consents,
and for the Ngaruroro and Karamu stream consents. There are complex
ground and surface water interactions which mean groundwater takes have the
potential to deplete already fully allocated rivers and streams.
The minimum flows that are
set out in the Regional Resource Management Plan are also based on
science information that might no longer be appropriate for the particular
catchment because of increased environmental awareness (i.e. new values) of the
community; there are concerns that the minimum flow levels might be too low for
some reaches of the rivers.
Science investigations are
required to support a review of the water management framework in the Regional
Resource Management Plan and to help water users to develop sustainable
solutions for water management.
In some areas, rivers are
already fully allocated but there is pressure from increasing demand. In
these cases and where it can be identified that the actual water take is
considerably less than the volume that has been allocated, there is potential
to share the resource differently, i.e. water that is not required by one user
in one year could be used by another user that same year. This requires
knowledge of the actual takes within a catchment and mechanisms to monitor and
enable transfers of water within existing allocations.
The Resource Management
Regulations (Measurement and Reporting of Water Takes) released in November
2010 requires all takes of 5 litres/second or greater to have a water meter.
This regulation is to be phased in over 5 years and provide good quality water
use information that is important to water management in Hawke’s Bay.
Telemetry and web/text options provide an economical and efficient method to
access and remotely enter water use data, saving time and costs by eliminating
manual data collection, and assisting with reporting of water use to HBRC.
The establishment and
facilitation of water user groups is a way to improve water use efficiencies,
as well as improving certainty of supply to users. These groups will
provide the forum for water users to pool resources,
knowledge and skills, and to act as a cohesive group, rather than as
individuals, when dealing with common water related matters. The groups
will also allow for more efficient and effective information flow between water
users and HBRC, and provide the opportunity for members to identify water
issues and come up with solutions i.e. rostering and rationing water during low
flow periods.
Significant
Negative Effects
There are no significant
negative impacts relating to the collection of information about regional
resources, unless the information raises more questions than answers and
results in delays in decision-making.
Contributing projects include: 310
Regional Groundwater Research, 311 Regional Surface Water Research &
Investigations, 312 Regional Surface Water Ecological Research &
Investigations, 314 Water Demand Management, 315 Surface Water Quality, 320
Surface Water Quantity, 325 Groundwater Quality, 330 Groundwater Quantity, 395
Water Information Services
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity
3–Water Management
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve
Performance
Targets
|
|
HBRC
will increase its knowledge of the region’s water resources in terms of
quantity, quality and habitats so that a policy framework can be developed to
sustainably manage the water and land resources within Hawke’s Bay
|
State
of the Environment monitoring programme for:
Climate
River flows
Groundwater levels
Surface water quality and ecology
(freshwater and coastal)
Groundwater water quality
|
State
of the Environment monitoring analysis and reporting completed:
- Climate - 2008
- River flows - 2009
- Groundwater levels
- 2008
- Surface water
quality and ecology (freshwater and coastal – 2014)
- Groundwater water
quality - 2008
Gaps
were identified in climate and rainfall
|
2015-18
Establish 1 climate
station a year in response to identified requirement
Monitoring undertaken in accordance with
national monitoring and reporting requirements where appropriate
Monitor surface water quality on a monthly
basis across regional SoE monitoring sites
Upgrade rainfall sites as required to
maintain level of service
Evaluate and upgrade groundwater/surface
water monitoring networks as necessary
|
- Annual Monitoring
Performance Reports
- Achieve Quality
Management System targets
- Maintain International
Organisation for Standardisation (ISO) 9001-2008 accreditation for data
collection and analysis
- Timely completion
of data quality assurance and provision of data to the Land and Water
Aotearoa (LAWA) website
- Complete SOE
monitoring and reporting in compliance with statutory requirements and
Council’s agreed approach
|
|
Knowledge
available to inform environmental flow and allocable volume review of the
following river catchments and groundwater basins:
Tukituki
River; Ngaruroro River; Karamu Stream; Tutaekuri River; Ruataniwha Plains;
Heretaunga Plains
|
Information used to
determine minimum flows needs updating to ensure habitat protection as single
factor assessments to determine environmental flows are no longer appropriate
Groundwater allocation regime proposed for
Ruataniwha basin
Minimum flows required to maintain
identified values, including aquatic habitat, proposed for Tukituki
Groundwater use estimated for Ruataniwha
basin
Draft groundwater use report prepared for
Karamu Stream catchment
|
2015-18
Groundwater
Abstraction and Allocation report prepared for Heretaunga Plains
Environmental flow, and Allocation Reports
for the:
· Karamu Stream,
Tutaekuri River, Ngaruroro River and inflows to the Ahuriri Estuary
- Coupled
surface-groundwater model built and running scenarios for Heretaunga Plains
- Update coupled
surface-groundwater model built for Ruataniwha Basin/Tukituki.
- Undertake Catchment
Sensitivity Analysis
|
Increase
Instream Flow Incremental Methodology (IFIM) surveys
Increase
gauging
Groundwater/surface
water interaction gauging
Determine
methodology for in-stream assessment
Groundwater
model development for Heretaunga Plains
Begin
development of geologic model for Ruataniwha Basin
|
|
Knowledge
available to inform review of water quality objectives and setting of water
quality limits
|
- Regional water
quality objectives and guidelines are contained in the Regional Resource
Management Plan (RRMP)
- Water quality
limits required to maintain identified values, including aquatic habitat,
established for Plan Change 6 (Tukituki River catchment)
|
2015-18
- Review
of water quality objectives, guidelines and limits to maintain identified
values, including aquatic habitat, completed and reported for the TANK (Tutaekuri,
Ahuriri, Ngaruroro and Karamu) catchments and the Mohaka River
catchment
- Undertake
catchment sensitivity analysis in focus river catchments to align with plan
change requirements
2019-25
Review of water quality objectives, guidelines and limits to
maintain identified values, including aquatic habitat, completed and reported
for remaining parts of the region
|
Review and update existing plan guidelines
Align water quality limits setting process
with NPSFW (2014) requirements
Provide appropriate information on
catchment surface water quality and ecology to inform consultation processes
|
|
Knowledge
available to inform Council and stakeholders of ‘pressures’ on
the health of aquatic ecosystems
|
- State of
Environment reporting detailing water quality trends from 2004 to 2013 and
current state of water quality from 2009 to 2013 completed
- Effects of nutrient
inputs on the Tukituki, TANK and Mohaka catchments investigated and reported
- Targeted
investigations on the life supporting capacity of the Papanui and Karamu
streams completed
|
2015-25
Provide
technical information and advice to Council and stakeholders on
‘pressures’ on the health and habitat of aquatic ecosystems
|
Develop catchment
characterisation programs for priority catchments to support Council and
stakeholder requirements as and when required
Analyse and report on catchment
characterisation programs in a manner that is satisfactory to the Council and
priority catchment stakeholders
|
|
HBRC will encourage efficient and effective water use to
maximise the benefits of the water allocated
|
Number of active water user groups
Implementation of water efficiency tools by Water User Groups
|
Water User Groups:
3 formally established
and facilitated
1 potential group under
development
Ngaruroro, Ruataniwha
and Twyford Water User Groups engaged in efficiency projects
Knowledge transfer
through meetings, Council presentations, and one on one assistance
|
2015-25
Continue
to establish and facilitate Water User Groups on a catchment priority basis
In conjunction with
Water User Groups, investigate and apply for research grants relating to
water use and resource allocation efficiency
Continue to transfer
latest water efficiency and allocation information to Water User Groups
|
Establish and facilitate
Water User Groups
Investigate and apply
for water efficiency and allocation research grants
Water user Group
facilitators to:
keep up to date with latest
water related information from science and other council departments and
forward onto water user groups
Ensure meetings are held
to transfer knowledge
|
|
Number
of consent holders with water meters operating using telemetry or web/text
systems
|
Water Information Unit Established
Water metering web/text water use web page
developed
749 consents using web entry system
507 consents reporting water use via
telemetry
|
2015-2018
Cumulative total of
1500 consents using telemetry or a web entry system
2019-2025
Continue
to progress consents away from manual paper reporting to direct electronic
reporting methods
|
Coordinate the implementation of water
metering across Hawke’s Bay
Establish and maintain web entry and
telemetry systems that encourage consent holders to accurately report their
water use
Carry out communication with the
Hawke’s Bay irrigators to ensure a high level of understanding of water
metering requirements
Continue rollout of verification programme
of water meters in accordance with government regulations
|
|
Hawke’s
Bay’s water resource is available for future generations
|
Allocation
limits and water quality limits
Implementation
of National Policy Statement for Freshwater Management (NPSFM)
|
- Regional Resource
Management Plan contains limits for some catchments
- Water quality
limits required to maintain identified values, including aquatic habitat,
established for Plan Change 6 (Tukituki River catchment)
- Limits in
catchments under resource pressure are currently being reviewed
- Some catchments are
over allocated and some parts of the region have degraded water quality and
habitats
|
2015-18
Review
of water quality objectives, guidelines and limits to maintain identified
values, including aquatic habitat, completed and reported for the TANK (Tutaekuri,
Ahuriri, Ngaruroro and Karamu) catchments and the Mohaka River
catchment
2019-25
Review of water
quality objectives, guidelines and limits to maintain identified values,
including aquatic habitat, completed and reported for remaining parts of the
region
Refer to other
performance targets listed within this table
|
Annual
Reporting against NPSFM and Implementation Plan
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 4 – Coastal Management
Significant Issues
- The
naturally changing coastline processes. These are not well understood,
but cause a great deal of community disruption and concern.
- Storms,
earthquakes, tsunami and other natural hazards affect coastal communities.
- Climate
change and associated sea level rise are altering the risks and the occurrence
of coastal hazards (flooding, coastal erosion) and having an uncertain effect
on coastal ecology.
- The
impact of contaminants and sediment from stormwater on the region’s main
estuaries, including Ahuriri.
- The
impact of contaminants and sediments on the coastal ecology and recreational
areas from general land run off and discharges.
- Better
understanding the potential effects of these issues on the coastal environment
will enable more effective planning to reduce their impact.
Rationale
Improving
the understanding of Hawke’s Bay coastal processes and coastal water
quality through collecting, monitoring and analysis of relevant data will
enable effective and efficient assessment of coastal trends and coastal marine
environment health.
This
activity is undertaken by Hawke’s Bay Regional Council (HBRC) because the
effects of changes to the coast and coastal water quality are likely to impact
on a wide area, so a consistent approach across the region to their management
will benefit all communities.
HBRC
also has the necessary scientific and engineering skills, historical
understanding and regional overview required to integrate and manage the
coastal environment.
Significant
Negative Effects
There
are no negative effects from this activity, however the implementation of
policies that are developed to effectively manage the impact of a changing
coast may have a negative impact on property owned by individual members of the
public.
Contributing
projects include: 313 Coastal Water Quality Research &
Investigations, 322 Coastal Processes Investigations, 331 Coastal Quality
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity
4–Coastal Management
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve Performance Targets (from 14-15 AP)
|
|
HBRC
will measure water quality at key recreation sites and make the results
available to promote public health and safety
|
Recreational
water quality monitoring programme and website management
|
Weekly sampling
undertaken at over 30 recreational water sites, information available on
website within 2 days of results being available
Faecal source tracking at bathing sites
that regularly exceed guidelines when conditions allow
|
2015-2025
Weekly monitoring
of key recreational sites as per recreational water quality monitoring plan
from early November to mid-March annually
Recreational water information
available on website and social network site within 2 days of results being
available
Identification of pollution sources for
sites that regularly exceed guidelines
Reporting to LAWA during bathing season
|
Recreational water
quality monitoring undertaken in accordance with monitoring plan and national
guidelines
Undertake faecal source tracking when sites
regularly exceed guideline values and conditions allow – and
communication of results to Biosecurity, Land Management, TLA and Public
Health teams when results are obtained
Annual reporting on recreational water
quality collected during the preceding season
|
|
HBRC
will continue to monitor, research and investigate coastal processes to
inform coastal planning including climate change and coastal hazards
|
Annual
coastal monitoring and investigation programme including:
Beach profiling
Storm monitoring
Sediment transport
and processes investigation and modelling
Hazard prediction
including tsunami, inundation, erosion, storm surge
|
Coastal monitoring
is undertaken annually
The development of a Coastal Hazards
Strategy for the coast between Clifton and Tangoio has commenced
|
2015-16
Complete Coastal Hazards Strategy for the coast between
Clifton and Tangoio to guide decision making on the mitigation and management
of hazards.
Support territorial authorities in their decision
making regarding future management of specific parts of the coast, and
determine long term plans for coastal hazard protection assets administered
by HBRC.
Ongoing
Annual
monitoring and investigation programme completed and reported each year
|
Complete
the strategy in conjunction with Napier City Council and Hastings District
Council
Prepare,
implement and report on coastal monitoring and investigation programme
|
|
HBRC
will provide long term, relevant and specific information on Hawke’s
Bay’s coastal ecosystems, so that Council and the community can remain
engaged with, and informed of, the current state and potential threats to the
health of coastal environments
|
Identify
the state and health of selected regional beaches, reefs and estuaries
Identify
the state and health of near-shore coastal environments
Maintain
an operative and relevant Coastal Monitoring Strategy
|
Coastal ecosystem
monitoring undertaken according to the HBRC Coastal Monitoring Strategy
(2006)
Reporting on the state of regional
near-shore coastal environment, reefs, estuaries and sandy beaches completed
6-weekly monitoring of near-shore coastal
water quality
|
2015-2025
Monitoring
undertaken in accordance with the relevant Coastal Monitoring Strategy
Comprehensive
State of the Environment reports
|
Complete
State of the Environment monitoring and reporting in compliance with
statutory requirements and Council’s agreed approach
|
|
HBRC
will increase its knowledge of coastal ecosystems through targeted research
and investigations so that it is better able to understand and respond to the
effects of activities on the coastal environment
|
Undertake
specific investigation and/or research, and report on these outcomes where
appropriate
|
Maximum extent of saline transition zones determined
for Porangahau, Tukituki, Mohaka rivers and the Ahuriri, Waitangi, Waikari
and Nuhaka estuaries
|
Targeted
investigations into coastal receiving environments receiving stormwater
discharges as and when required
Maximum extent and seasonal movement of
saline transition zones in priority estuaries will continue to be
investigated (weather dependent)
Mapping of key sub-tidal habitat throughout
Hawke’s Bay
|
Develop a work programme to assess the
effects of stormwater on coastal ecosystems
Describe the seasonal movement of the
saline wedge at a variety of HB rivers/estuaries
Develop methodology for mapping sub-tidal
habitats
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 5 – Gravel Management
Significant Issues
- Hawke’s
Bay Regional Council (HBRC) has undertaken a scoping study to determine the key
issues related to gravel management and
has initiated work to investigate the issues identified. This programme
is being undertaken over 7 years and is programmed for completion by the end of
2017. The issues include: river hydrology; gravel supply and transport;
the implications of gravel management for flood protection; forecasting gravel
demand; monitoring gravel and determining the available resource. It will also
consider the effects on the ecology of water bodies, riverbed birds and
vegetation; the effectiveness of beach-raking; consideration of the Resource
Management Act directives on gravel management; allocation and financial
mechanisms that influence gravel management; and the values and management
options for the Tangata Whenua.
- To
maintain flood capacity within stopbanked reaches of our rivers it is necessary
to manage sediment build up. Currently this is done through the
extraction of silt and gravel from the rivers by extractors who meet the costs
of administering that activity. The downturn in the national economy
around 2008 has resulted in a significant reduction in the extraction of gravel
throughout the region and particularly in Central Hawke’s Bay.
Insufficient gravel is currently extracted by commercial extractors from Central
Hawke’s Bay rivers and flood capacity may be being compromised.
- There
is a risk that commercial extractors seek to source gravel and silt from land
based extraction sites. This could result in ratepayers needing to fund
the extraction of sediment to maintain flood capacity.
Rationale
There is an ongoing demand
from industry for gravel and aggregate resources for many activities. The major
source of gravel is from river beds throughout Hawke’s Bay.
Allocation of resources from riverbeds is undertaken by HBRC in response to
this demand, balancing the need to maintain the capacity of specific flood
protection schemes while taking into account the potential environmental
effects of gravel extraction.
HBRC is reviewing the way in
which it manages riverbed and coastal gravel resources within Hawke’s
Bay. The review aims to:
- Improve
HBRC’s understanding of riverbed gravel movement and the impact of gravel
extraction on flood protection works and coastal processes
- Review
HBRC’s management regime to assessing the gravel resource and allocating
its extraction.
HBRC has the following
responsibilities that have a direct bearing on the management of gravel
resources in Hawke’s Bay:
- The
jurisdiction to manage and authorise activities in riverbeds
- The
desire to work with Iwi / hapu on river management issues
- The
jurisdiction to manage and authorise activities in the coastal marine area
- The
responsibility for flood control and protection of assets.
Significant Negative Effects
The management of sediment
in rivers has both positive and negative impacts. All impacts need to be
understood and considered when determining how the resource should be managed.
Contributing projects include: 369
Gravel Management, 370 River Cross Sections
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity
5–Gravel Management
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve
Performance
Targets
|
|
HBRC will monitor and manage river-bed sediment to
ensure flood protection schemes work as expected
|
River surveys (3-6 yearly) show all scheme rivers have
sufficient capacity
|
Refer to Heretaunga Plains Scheme and Upper Tukituki
Scheme sections.
Key issue is current build-up of gravel in rivers
crossing Ruataniwha Plains
|
Ongoing
No decline in river flood capacity
|
Ongoing
Undertake gravel monitoring, assessment and extraction
programmes in accordance with Regional Resource Management Plan, and to meet
agreed levels of service.
|
|
In rivers where gravel is extracted the riverbed is
managed to a design grade based on the design channel flow capacity.
|
The average riverbed level is within the design grade.
|
Ongoing
Average riverbed within design grade
|
Ongoing
Undertake river surveys every 3-6 years
|
|
No incidences of erosion or flooding as a result of
undesirable gravel levels
|
Increased river bed levels on Ruataniwha Plains are
above design level and resulting in flooding in small storm events.
|
2015-18
Solution to current issues on Ruataniwha Plains rivers
to be found
Ongoing
No incidences
|
2015-18
As part of investigation and research work
recommended in riverbed gravel scoping study 2010 investigate
options for increased sustainable gravel extraction for rivers crossing
Ruataniwha Plains.
Ongoing
Implement outcome of gravel review and continue to
monitor sustainability of gravel extraction.
|
|
River-bed gravel is equitably allocated to gravel
extractors
|
The gravel allocation process complies with the
Regional Resource Management Plan
|
No compliance issues
|
Ongoing
No compliance issues with gravel extraction
|
Ongoing
Undertake gravel allocation process as proposed in the
Regional Resource Management Plan
|
|
River
gravel management activities have no significant adverse effects on river
ecology and water quality
|
No
reported incidences of adverse impacts following gravel extraction or beach
raking activities
|
No
reported incidences
|
Ongoing
No
reported incidences of adverse impacts following gravel extraction or beach
raking activities
|
Ongoing
Undertake
gravel management activities in compliance with the RRMP, Ecological
Management plans and the River Environment Code of Practice
|
|
Knowledge necessary for sustainable management of
riverbed gravel is improved
|
Completion of investigation and research work recommended
in riverbed gravel scoping study 2010
|
Scoping study recommended investigation and research
programmes.
|
2015-18
Annual Programme of work completed
|
2015-18
Complete investigation and research work recommended
in riverbed gravel scoping study 2010 by 2017 as programmed.
Ongoing
Continue to review knowledge needs and seek to fill any
knowledge gaps
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 6 – Open Spaces
Significant
Issues
- The
provision of adequate opportunities for the public to experience and enjoy a
range of open space experiences in Hawke’s Bay within reasonable travel
distance.
- Effective
use of publicly accessible open space areas for people to enjoy and learn about
their environment.
- Protection
or enhancement of areas of significant ecological values.
Rationale
Hawke’s Bay Regional
Council (HBRC) owns land at Lake Tutira (Country Park), Pakowhai (Country Park)
and Pekapeka (wetland) plus river berm areas, which have multi-purpose
functions including flood control, biodiversity, soil conservation and water
quality enhancement, as well as having cultural significance and providing
recreational opportunities.
Over the past 6 years HBRC,
in conjunction with district and city councils, local groups and central
government, has invested in the network of about 180km of pathway/cycleway
within Hawke’s Bay, mainly focussed on the Heretaunga Plains.
HBRC continues to seek ways
to provide the regional community with recreational opportunities and
facilities, including bush or rural environments which have multiple benefits.
Such ways include partnerships with land owners, land purchase, or negotiating
access rights in accordance with HBRC’s Open Space policy.
HBRC will continue to review
of the supply of public open space in Hawke’s Bay and where appropriate
consider further opportunities for enhancement.
Significant
Negative Effects
There are no significant
negative effects from this activity.
Contributing projects include: 362
Regional Park Network, 364 HBRC Pathways, 363 Public Access to Rivers, 385
Regional Park Reserves
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity
6–Open Spaces
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current
Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required
Actions to Achieve
Performance
Targets
|
|
HBRC will maintain, develop, and provide
public access to existing Council owned regional parks for multi-purpose
benefits
|
Levels of service associated with all
regional parks are set out in Individual Park Plans (IPPs) where present and
/ or the HBRC Regional Park Network Plan
|
Maintenance schedules and
maintenance contracts in place for:
Tutira Regional park
Waitangi Regional Park
Pakowhai Regional Park
Pekapeka Regional park
Draft Individual Park Plans
completed for:
Waitangi Regional Park
Pakowhai Regional Park
Pekapeka Regional park
|
2015-16
Adopt and commence implementation of an IPP for Tutira Regional
Park
Ongoing
- Work towards realisation of the Regional Park Network Plan
- Work towards achieving objectives specified in IPPs
- Deliver levels of service established in IPPs
- Secure funding for development of regional park assets
|
Ongoing
Implementation of Individual Park Plans (IPPs) for Waitangi,
Pakowhai and Pekapeka regional parks
Maintain regional parks to levels of service established in IPPs
Develop regional park assets in accordance with adopted IPPs as
funding allows
|
|
HBRC will maintain, develop, and provide public access
to existing HBRC pathways for multi-purpose benefits
|
Maintain and develop HBRC pathways network on HBRC land
in accordance with the NZ Cycle Trail Design Guide
|
Maintenance schedules and maintenance
contracts in place for approx. 95km of pathways managed by HBRC
|
Ongoing
HBRC Pathways
integrated as part of the overall HB Pathways network
Coordinated
approach by all agencies to pathway maintenance and development
HBRC Pathways
maintained and developed to levels of service in accordance with New Zealand
Cycle Trails Inc. guidance and consistent with pathways throughout HB
Funding secured for
maintenance and development of HBRC Pathways asset
|
2015-18
Develop
a plan for all pathways maintained by HBRC setting out:
Strategic vision
and development objectives
Framework for
coordination of all relevant agencies
HBRC Pathways
maintenance and development standards
Ongoing
Maintain pathways
to provide ongoing levels of service agreed by the Cycle Governance Group
Provide
administrative services to the Regional cycle governance group
|
|
HBRC will seek affordable ways to increase public
enjoyment opportunities of open space through:
Expansion of the
Regional Park Network through partnerships, development of HBRC land or land
acquisition
Expansion of HBRC
Pathways through partnerships and collaboration
Continuing to
assess open space opportunities in accordance with HBRC Open Space
policy and evaluation criteria
|
Open space policy and evaluation criteria
Regional Park Network Plan policy
Note Approx. $600,000 loan
provision remaining in HBRC open space and community facilities to provide
for new opportunities
|
Community facility and open space policy and evaluation
criteria in place
Regional Network Plan in place
|
Ongoing
Continue to assess
affordable open space opportunities in accordance with the Regional Park
Network Vision
Action any
opportunities approved by Council
Investigate open
space development opportunities with the region’s territorial
authorities that align with visitor facilities and attractions and meet
policy and evaluation criteria
|
- Establish levels of service and management
plans for all additional open space facilities
- Development opportunities considered as
part of individual regional park reviews
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Regulation activities cover
the Hawke’s Bay Regional Council’s (HBRC) regulatory functions for
resource use and management, building dams and safe navigation of the
region’s navigable waters.
The empowering legislation
for HBRC functions include the Resource Management Act 1991, the Local
Government Act 2002, the Soil Conservation and Rivers Control Act 1941, the
Building Act 2004, the Marine and Coastal Area
Takutai Moana) Act 2011, the Hazardous Substances
and New Organisms Act 1996, and the Maritime Transport Act 1994.
Link to
Strategic Outcomes
This group of activities
contributes to Council’s strategic outcomes in the following ways.
Resilient
Communities
- Quality
services for a healthy connected community – by advising and
educating the community on resource management requirements and processes,
water safety and safe boating.
- Active
management linking biodiversity, land, freshwater and our coastal marine areas;
and Balanced water use for a healthy, natural environment that
also supports growth – by administering the rules in regional plans
in accordance with the objectives and policy provisions of the plan, the
Regional Policy Statement and relevant NPS, and by monitoring compliance with
rules and resource consents
Assumptions
and Future Demand Incorporated in this Plan
The planning assumptions for
Regulation Activities are:
- Changes
to resource management processes and direction within legislation are
anticipated as a result of Central Government review.
- Changes
to Regional Plans have the potential to alter workloads.
- The
building consent function for dams will continue to be carried out by Waikato
Regional Council through Transfer of Powers procedures.
- Local
leadership, strong relationships and affordable, well-considered solutions
– by working with and helping water users take a collective response to
managing water allocation.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Regulation
|
HBRC's
Activities
|
Attachment 3
|
Activity 1 – Resource Consent Processing
Significant
Issues
- Increased
conflict, complexity and legal action surrounding some consent processes, such
as water allocation and coastal hazards.
- Ground
and surface water consenting likely to become more contentious as demand
reaches or exceeds defined sustainable allocation limits. Consents will expire
across major catchments from 2015 to 2025.
- Land
use rules concerning nutrient management will progressively take effect over
the ten year period. In 2018 the activity status of most farm properties in the
Tukituki catchment will need to be determined. Resource consents will be
required for all those activities which do not comply with the permitted
activity rule.
- Demand
for less costly and faster consent processing. Applicants have been concerned
at the length of time and costs of processing renewal consents.
- More
issues introduced through national policy statements, national environmental
standards and regulations that need to be considered.
- Statutory
acknowledgements arising from Treaty Settlements to be recognised and
considered at the time of consent processing.
Rationale
Resource Consent Processing
is driven by regulation contained in or arising from legislation, and includes
resource consent processing in accordance with Regional Plans and the RMA.
While largely regulatory in
nature, the functions of this section can often have major environmental,
economic and social implications for the Hawke’s Bay region.
Significant
Negative Effects
The functions of the
Resource Management Act for this group of activities seek to balance the
requirement to safeguard the environment while providing for the social,
economic and cultural needs of the wider community.
In some instances, decisions
made on individual resource consents can enable significant economic growth and
social wellbeing, while on other occasions it can limit such benefits.
The costs to HBRC and
individuals of implementing the RMA can be significant, if not kept to actual
and reasonable levels.
Contributing projects include: 402
Resource Consents
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 1–Resource Consent
Processing
|
|
Level
of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC will ensure that accurate information about
resource consent requirements and processes is readily available
|
Application and submission guides are available in
electronic and hard copy form
|
Currently meeting all performance targets
|
No verified reports of inaccurate information being
given in relation to resource consent requirements
Electronic application and submission forms,
application and submission guides are available through HBRC’s website
2019 – 2025
Council will review consents data management systems
|
Maintain up-to-date application forms and information
packs
|
|
HBRC will process resource consent applications in a
timely manner
|
100% of resource consents processed within statutory
timeframes set down in the Resource Management Act 1991
|
100% of non-notified resource consents, 100% of limited
notified resource consents and 100% of notified resource consents processed
within statutory timeframes in the past two financial years
|
100% of resource consents processed within statutory
timeframes
|
Continued
tracking of Resource Management Act timeframes
Ensure
professional competency of staff to provide regulatory services
High
performance ratings achieved in the Ministry for the Environment Survey
on Resource Management Act performance of Local Authorities
Maintain
clear communication with resource consent holders and applicants over
timelines, information requirements and consent processing
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 2
– Compliance Monitoring
Significant
Issues
- Impact
of enforcement actions on resources and time, particularly the diversion of
staff from routine compliance monitoring programmes.
- Impact
of significant pollution incidents diverting staff from routine work.
Rationale
Compliance Monitoring is
driven by regulation contained in or arising from:
- Resource
consents issued as a result of any HBRC Resource Management Act plans.
- Responding
to environmental complaints, incidents and breaches.
Significant
Negative Effects
- The
functions of the Resource Management Act for this group of activities seek to
balance the requirement to safeguard the environment while providing for the
social, economic and cultural needs of the wider community.
- In
some instances, decisions made on individual resource consents can enable
significant economic growth and social wellbeing, while on other occasions it
can limit such benefits.
- The
costs to HBRC and individuals of implementing the RMA can be significant, if
not kept to actual and reasonable levels.
Contributing projects include: 445
Environmental Incident Response, 450 Compliance Programmes
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 2–Compliance Monitoring
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC will check that consent holders comply with the
resource consent conditions imposed to protect the environment
|
Number of consents monitoring in accordance with the
adopted Compliance Monitoring Strategy
|
2013-14
93% of programmed inspections/reports completed
99%
of monitored consents achieved a final overall grading of full compliance
|
2015-25
90% of
programmed inspections/reports completed each year
95% of monitored consents achieve an
overall grading of full compliance
|
Maintain
an up-to-date Compliance Monitoring Strategy which reflects the level of risk
to the environment
Annual Work programmes
|
|
HBRC will provide a 24
hr/7 day a week pollution response service for reporting environmental
problems
|
Duty Management/Pollution Management response system
|
24 hour Duty Management/Pollution Management response
system in place
|
2015-25
24 hour duty management/pollution management response
system maintained
|
Appropriate appointments of staff to operate systems
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 3 – Maritime Safety and Navigation
Significant
Issues
Maintaining
safety management systems and bylaws to adequately manage conflicting water
user needs.
Rationale
Maritime Safety and Navigation
management is driven by regulation contained in or arising from legislation
including the Maritime Transport Act and the Local Government Act.
Significant
Negative Effects
There are no
significant negative effects from this activity, however a fair balance needs
to be found between the safety of all water users and the ability for all to
enjoy our maritime environment.
Contributing projects include: 360
Navigation Aids & Regulations
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 3–Maritime safety and
Navigation
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC will provide local navigation safety control of
shipping and small craft movements and provide navigation aids to
ensure the region’s navigable waters are safe for people to use
|
The Navigation Safety Bylaws and Port and Harbour
Safety Management System
|
Bylaws
came into force on 15 January 2012, with a number of incidents concerning
safety and compliance now requiring that parts of the bylaws be reviewed in
2016
A
Maritime New Zealand accredited Safety Management System for the Napier
Pilotage Area is valid until 2017
|
2015-25
Bylaws
to be reviewed in 2016
Maintain
a Maritime New Zealand accredited Safety Management System for the Napier
Pilotage Area
Marine
accidents and incidents are investigated and acted upon using education and
enforcement as appropriate
Complete
installation of navigation aids at Pourerere
|
Hawke’s
Bay Regional Council provides an appropriately qualified and experienced
Harbourmaster
Review
human resources required to effectively carry out the Harbourmaster role
Maintain Safety Management System,
and monitor and enforce Navigation and Safety Bylaws
Review resources required to enable
effective enforcement of bylaws
Engage with commercial and
recreational users to improve relationships
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 4 – Building Act Implementation
Significant
Issues
Uncertainty of
resourcing requirements, due to Building Act amendments relating to regulatory
timeframes. Regulations are not going to be updated by 1 July 2012 as
previously indicated by government. Tentative timing is now July 2015 but is
expected to be delayed further.
Rationale
Consenting and monitoring of dams is driven by regulation under the
Building Act (2004).
Significant
Negative Effects
The costs to
HBRC and individuals of implementing the Building Act can be significant, if
not kept to actual and reasonable levels.
Contributing projects include: 470
Building Act Implementation
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 4–Building Act
Implementation
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
Process Building Act consent applications within
timeframes
|
Contract with Waikato Regional Council to process dam
consents on behalf of Hawke’s Bay Regional Council (HBRC)
|
Contract in place
|
2015-25
Maintain contract with Waikato Regional Council, for
the processing of dam building consents
|
Maintain contract
Review Council’s preparedness for Building Act
implementation
|
|
Maintain an accurate Dam
Register and help dam owners prepare Dam Safety Assurance programmes in
accordance with Building Act timeframes
|
All known dams have been recorded on the Dam Register,
and dam owners informed of Building Act requirements
|
All known dam owners informed of Building Act
requirements and timeframes
|
2015-25
100% of dams comply with regulation requirements that
come into force in July 2015
|
Maintain staff levels and increase their knowledge of
Building Act requirements
|
|
HBRC will investigate
illegally built dams and will ensure that they are removed or made compliant
|
An illegally built dam is made compliant or removed
within six months of identification
|
Any illegally built dam is made compliant or removed
within six months of identification
|
2015-25
100% of dams comply with regulations
|
Maintain staff levels and increase their knowledge of
Building Act requirements
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Animal and plant pest
control is carried out in accordance with Hawke’s Bay Regional
Council’s (HBRC) Regional Pest Management Strategy.
Biosecurity covers the
following inter-related programmes:
- Regional
animal pest control
- Regional
plant pest control
- Regional
pest management strategies.
The relevant legislation for
this Activity is the Biosecurity Act 1993.
Link to
Strategic Outcomes
This group of activities
contributes to Council’s strategic outcomes in the following ways.
Resilient
Communities
Fostering local leadership,
strong relationships and affordable well-considered solutions –By
working with the community to achieve and maintain the goal of low possum
numbers on all productive land, and by assisting land owners in controlling
pest plants that have the potential to adversely impact on the Hawke’s
Bay environment or economy and on the health of our residents.
Resilient
Ecosystems
Active management linking
biodiversity, land, freshwater and our coastal marine areas - by
reducing the presence of pests that impact, or have the potential to impact, on
Hawke’s Bay’s biodiversity, and restoring native biodiversity
through co-ordinated work programmes across organisations and land owners
Resilient
Economy
Profitable farming systems
that can adapt to greater weather extremes, pest threats and take advantage of
new opportunities - by reducing the economic
impact that pests have on agricultural and horticultural production, and by
ensuring that options for economic growth are not impaired by the presence of
pests.
Assumptions
and Future Demand Incorporated in this Plan
The planning assumptions for
this Group of Activities are:
HBRC will not become
involved to any great extent in the implementation of a possible Biosecurity
Strategy for New Zealand.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Biosecurity and Biodiversity
|
HBRC's
Activities
|
Attachment 3
|
Activity 1 – Regional Biosecurity Programmes
Significant
Issues
- Successful
transition of about 500,000 ha of rateable land from the Animal Health Board
(AHB) vector control operations, over to the Hawke’s Bay Regional Council
(HBRC) Possum Control Area (PCA) programme, while maintaining low possum
numbers.
- The
ability to affordably integrate the control of feral cats, mustellids and
hedgehogs into the PCA programme will be trialled through the Cape to City
project. Control of these predators has the potential to deliver significant
additional economic and environmental outcomes for the region.
- The
transition of specific pest control responsibilities between government
agencies and councils still lacks clarity in some cases. A National
Policy Direction statement will be gazetted during 2015. This policy
direction will establish greater clarity on the context and structure of
Regional Pest Management Plans.
- The
Regional Pest Management Plan review will begin in 2016. This statutory
document under the Biosecurity Act will set the scene for the majority of
Hawkes Bay regional Councils pest management activities for the following ten
years.
Rationale
Animal and plant pests can
have a significant adverse effect on the region’s economic prosperity,
biodiversity, lifestyles and quality of living. Without proper management these
adverse effects would be a lot worse than they are now. Pest management
programmes often require a collaborative effort across multiple properties to
be fully successful, so relying solely on the voluntary efforts of land
occupiers will not achieve the best pest management.
The Biosecurity Act 1993
recognises these issues in two key principles:
1. The
costs of biosecurity should be allocated, where possible, to those benefiting;
and
2. Regional
or national intervention through a pest management strategy is justified when
individual, voluntary control will not successfully manage pests and therefore
has the potential to create adverse effects on the region or nation, and when
the overall benefits of managing pests exceed the costs.
Significant
Negative Effects
- Animal
pest control is undertaken using a range of methods including poisons and
traps. Plant pest control can involve the use of agrichemicals. There is the
potential for a number of non-target animal and plant species to be
killed.
- However,
offsetting these potential negative impacts, HBRC ensures staff and contractors
follow best industry practice for biosecurity activities. There is also
significant biodiversity enhancement from pest control activities including
improved native birdlife and revegetation of native flora. Increased regional
economic returns can also be expected when key pests are well managed. These
economic benefits accrue through increased production and reduced pest control
costs.
- If
adequate pest control is not undertaken, pests can have significant adverse
effects on lifestyles, quality of living and primary productivity.
Contributing projects include: 650
Plan Pest Control, 660 Regional Animal Pest Control, and 689 Pest Management
Strategies
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 1–Regional Biosecurity
Programme
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current Performance
|
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve Performance Targets
|
|
HBRC will implement regional pest management plans that
improve biodiversity and economic prosperity
|
Pest Management Plans
Maintain a current Regional Pest Management Plans
|
Current plan in place until 2018
|
2015-2017
Review
the current Regional Pest Management Plan (RPMP) and complete new plan for
period up to 2025
|
Review
of current Regional Pest Management Plan to be completed by 30 June 2017.
|
|
Undertake research and investigation to quantify and/or
increase the economic, biodiversity or animal/human health benefits of pest
control
|
At least one new initiative undertaken annually
|
Ongoing
Undertake
at least one research/investigation initiative annually
|
Ongoing
Purchase new releases of biological control
agents where appropriate
Implement research/investigation to
quantify the effectiveness of the biosecurity programme, and/or as part of a
programme of work to identify more cost effective ways to implement
biosecurity plans or the biodiversity strategy
|
|
HBRC will provide effective pest management programmes
that improve regional biodiversity and economic prosperity
|
Regional Animal Pest Control and Bovine Tb
Vector Control Programmes
Hectares of rateable land kept at low possum numbers
(means no more than 5 possums caught per 100 traps set out at night)
|
June
2015 Possum
Control Area (PCA) programme: 610,000 ha
2012:
Animal Health Board programme over rateable land: approximately 350,000 ha
Total:
approximately 960,000 ha
Monitoring shows majority of areas under PCAs have trap
catch results at less than 3%
|
2015-18
All rateable land will be reduced to low possum numbers
(total rateable land in Hawke’s Bay = 1,000,000ha)
Rateable land in transition from the Animal Health
Board programme:
2015-16: 50,000 ha
2016-17: unable to
predict
2017-18: unable to
predict
2019-25: unable to predict
Rateable land in Possum Control Area (PCA) Programme:
June 2016: 660,000ha
June 2017: 680,000ha
June 2018: 700,000ha
Of
the PCAs monitored, less than 10% of the monitoring lines exceed 5% trap
catch
|
Ongoing
Transfer all rateable land under
Animal Health Board (AHB) vector control to the PCA programme when AHB vector
control stops
Ensure areas under the PCA programme
are maintained with low possum numbers by education, encouragement and where
necessary, compliance
Provide an effective region wide
possum control product subsidy scheme so materials are readily available to
occupiers undertaking their own control
Undertake possum control along
boundaries where there is a risk of re-infestation
Prepare an annual trend and
education monitoring programme before May 30 each year
Where enforcement
action is required staff will issue “Notices of Direction” and
encourage land occupiers to comply with that Notice
Review the
management of PCA boundaries and the implementation of Good Neighbour rules
under the National Policy Direction
Undertake monitoring to confirm the
compliance of no less than 10% of the area under the PCA programme in any one
year
|
|
The number of active rook nests treated annually across
the region
|
Current performance 30 June 2015
North of
SH5 - 51 active nests treated
South of
SH5 – 390 active nests treated
|
Ongoing
Monitoring indicates a downward trend in active rook
nest numbers in both areas (North and South of SH5)
|
Ongoing
Annually treat every active nest in
all known rookeries within Hawke’s Bay
Ground control
rooks where operational conditions permit
|
|
Response time to rabbit complaints/enquiries
|
An initial response is given within 5 working days of
receipt of each rabbit related complaint/enquiry
|
Ongoing
An initial response is given within 5 working days of
receipt of each rabbit related complaint/enquiry
|
Maintain regional rabbit night count
and Rabbit Haemorrhagic Disease (RHD) monitoring programme
Provide advice and education to
occupiers where they wish to reduce rabbit or hare impacts on their property
Record and respond to property owner
complaints where rabbits are damaging neighbouring properties
For properties where rabbit numbers
have been identified at above McLean Scale 4; identify the cost benefits of
undertaking control measures necessary for effective long term management on
that property and any risks of not undertaking control to reduce numbers
below McLean Scale 4 and where agreement from the land owner is received,
prepare a management plan and undertake control
|
|
Responsiveness to properties identified with rabbit
populations over McLean Scale 4
|
Management Plans prepared within 4 months of
identification
|
Ongoing
A management plan is prepared within 4 months for each
property identified with rabbit numbers above McLean Scale 4
|
|
Plant Pest Control
Routine plant pest inspections of areas infested with
plants controlled under HBRC Regional Pest Management Plan
|
All
known infestations of ‘occupier responsibility’ Total Control
plant pest sites visited annually
All
known ‘service delivery’ Total Control plant pest sites, except
privet sites, are visited annually and plants controlled
The land
around all known infestations of total control plants is inspected at least
every 3 years
All
areas of high potential risk are visited annually and checked for possible
new plant pest incursions
|
Ongoing
All
known infestations of ‘occupier responsibility’ Total Control
plant pest sites are visited annually
All
known ‘service delivery’ Total Control plant pest sites are
visited annually and plants controlled
All
Privet sites identified through health related complaints controlled within 6
months of complaint
The land
around all known infestations of Total Control plants is inspected at least
every 3 years
All
areas of high potential risk are visited annually and checked for possible
new plant pest incursions
|
Ongoing
Undertake at least annual control on
all ‘service delivery’ Total Control plant pests to prevent their
seeding
Undertake monitoring to measure
‘service delivery’ Total Control plant pests
Record outputs for key
‘service delivery’ plant pests (Privet and Pinus Contorta)
Record all visits
to total control plant sites
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 2 – Regional Biodiversity
Significant
Issues
- Like
many regions in New Zealand, Hawke’s Bay’s biodiversity is in
decline. There are many organisations, groups and land owners working on
different projects with improved biodiversity being an outcome.
- A
Regional Biodiversity Strategy has been developed by the many organisations and
groups involved in biodiversity work. The vision is “Working
together, Hawke’s Bay biodiversity is enhanced, healthy and
functioning. It recognises that the many biodiversity programmes need to
align and harmonise to be more efficient and effective.
- An
Implementation Plan needs to be developed to achieve that alignment, prioritise
projects, seek and allocate funding. This will require a co-ordinator to
project manage the development of the Implementation Plan and the structures
needed to support it.
Rationale
While Hawke’s Bay
Regional Council (HBRC) has taken a lead role in project managing the
development of the Biodiversity Strategy, it is a Regional Strategy owned by
all organisations. That is, it is not an HBRC Strategy. However,
HBRC is one of the few organisations that covered the extent of the
Hawke’s Bay region and together with the Department of Conservation hold
much of the information about the state of the region’s biodiversity.
The proposal for an Accord
to be signed by key parties will demonstrate their commitment to give effect to
the Strategy through the implementation plan.
Significant
Negative Effects
There are no significant
negative effects arising from the delivery of these activities.
Contributing projects include: 662
Biodiversity
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 2–Regional Biodiversity
|
|
Level
of Service Statement
|
Level
of Service Measure
|
Current Performance
|
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve Performance Targets
|
|
HBRC will integrate land
and water and biodiversity management to deliver environmental, economic,
social and cultural outcomes
|
Implementation
of the Hawke’s Bay Biodiversity Strategy
|
Multi-agency
Biodiversity Stakeholder Group and Biodiversity Core Working Group developed
the Hawke’s Bay Biodiversity Strategy
The
first report of the Hawke’s Bay Biodiversity Inventory completed
|
2015-18
Establish a biodiversity forum that meets
annually at a Regional Biodiversity Summit
In collaboration with signatories to the
Biodiversity Accord, develop an implementation plan for the Regional
Biodiversity Strategy
In collaboration with signatories to the
Biodiversity Accord, establish and administer a charitable trust (or similar
entity) to secure new funding for projects that support and align with the Regional
Biodiversity Strategy
|
Engage
project manager/administrator (joint funded by Accord partners) HBRC
contribution expected to be in the order of 0.4 FTE
|
|
|
|
|
|
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Emergency Management covers
a range of activities to meet Civil Defence and natural hazard management
responsibilities. These activities aim to: identify potential hazards to the
community and the means of reducing their impact; prepare the community for
potential civil defence emergencies; and assist with the response to and recovery
from any emergencies that occur.
Hawke’s Bay Regional
Council (HBRC) administers both the Hawke’s Bay Civil Defence Emergency
Management Group and the Coordinating Executive Group, both of which have
responsibilities for the implementation of the Hawke’s Bay Group Civil
Defence Emergency Management Plan.
The relevant legislation for
this function of HBRC is the Civil Defence Emergency Management Act 2002 and
the Resource Management Act 1991.
Link to
Strategic Outcomes
The Emergency Management
group of activities contributes to Council’s strategic outcomes in the
following ways.
Resilient
Communities
- Local
leadership, strong relationships and affordable, well-considered
solutions– by co-ordinating groups of organisations, and ensuring
their understanding of and collaborative contribution to community resilience
and emergency response and recovery activities.
- Our
people and businesses feel safe from natural hazards - by providing advice
that enables individuals to make sound decisions on the risk they are willing
to live with and assisting with their effectiveness to respond and recover from
a disaster, providing sound advice on rainfall and water flows during
flood conditions and hazard information for land use planning purposes,
providing flood warning and forecasting and information on how to reduce
hazards to encourage community resilience and preparedness, enhancing community
resilience through the promotion of community response plans and business
continuity planning.
Assumptions
and Future Demand Incorporated in this Plan
The planning assumptions for
Emergency Management are:
Should a major emergency
event occur, resources from across the region will be reallocated from other
activities as necessary. Priorities will be reviewed following each event and
financial resources may also be reallocated. There is no significant budget
provision to respond or recover from a major civil defence emergency.
Expenditure
and Funding
A review of the outcomes
sought in Civic Defence Emergency Management has been undertaken and the
existing resources has identified a funding short fall. This has been
dealt with in part by reallocating existing expenditure but some additional
funding is proposed as part of years 2 and 3 of this LTP.
This activity is funded by
the Civil Defence targeted rate which is rated on a per property basis in the
Hastings, Central Hawke’s Bay and Wairoa District Councils and Napier
City Council areas.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Emergency Management
|
HBRC's
Activities
|
Attachment 3
|
Activity
1 – HB Civil Defence Emergency Management Group
Significant
Issues
- Global
media coverage of earthquakes and tsunami has brought an increased public
awareness of the types of natural disasters that may devastate the community.
People have an expectation that there will be an effective Civil Defence
Emergency Management (CDEM) response during an emergency.
- Reduced
community resilience to large emergency events because New Zealand society has
become more urbanised. Inherently, disadvantaged communities may find it
harder to commit to being prepared. Public understanding of the likely impact
of a major event on them individually is low. Few people would be prepared for
an event that personally affects them and be able to be self-sufficient for at
least 72 hours.
- A
small number of people and resources are dedicated to Civil Defence Emergency
Management activities. However there is high public expectation that a
response and recovery to an event will run smoothly and efficiently.
- The
frequency and nature of events influenced by climate change. It is likely
that extreme weather events will increase and become more localised in nature.
- The
need for a coordinated multi-agency response including better cooperation and
coordination between the regions’ Councils, organisations and agencies.
Rationale
The Hawke’s Bay
community is often reminded of the impact of disasters including earthquakes,
tsunamis & floods and needs to build its resilience to all hazards and
disasters. HBRC can do this through a comprehensive management approach
using the four "Rs" of P
Reduction, P Readiness, P
Response, P Recovery.
This approach starts with
recognising the hazards the region faces and the vulnerability of our
communities and infrastructure to those hazards. By identifying what
these hazards could do, the focus can move to measures to reduce the risks,
manage the impacts, and when they do occur, implementing appropriate response
and recovery action.
Comprehensive emergency
management in Hawke’s Bay requires an all hazard, all risks, multiagency,
integrated and community focused approach to reduce the impact on life and
property and the disruption that will occur within the community following such
an event.
For Hawke’s Bay this
comprehensive approach includes roles and responsibilities for a number of
organisations: local authorities (Central Hawke’s Bay, Hastings, Wairoa
District Councils, Napier City Council and Hawke’s Bay Regional Council);
emergency services (Police, Fire, Ambulance and Hospital); key utility
companies (transportation, energy, civil services and communication
organisations); and welfare and social agencies (Work & Income, Red Cross,
Housing, Salvation Army etc).
Under the Civil Defence
Emergency Management (CDEM) Act 2002, the region’s local authorities must
form a CDEM Group which is governed by a combined Joint Committee (the
region’s Mayors) and a Coordinating Executives Group (Council/District
Health Board Chief Executive Officers, Police District Commander and Fire Area
Manager). The Hawke’s Bay CDEM Group Office coordinates their
activities across the region under the governance of the Joint Committee.
Under the Act, the Hawke’s Bay CDEM Group is required to maintain an
operative CDEM Plan that outlines a strategy to coordinate CDEM activities
within the region.
Hawke’s Bay Regional
Council (HBRC) is the Administrating Authority of the CDEM Group.
The CDEM Group maintains a
Group Emergency Coordination Centre in Hastings to enable the coordination of
its activities during an emergency and recovery. HBRC Staff help to staff
this Centre.
Significant
Negative Effects
There are no significant
negative impacts on the environment as a result of the activity. As a
result of research to date, there are now restrictions on development in some
areas to avoid hazards, such as coastal erosion, flooding and earthquakes,
which have impacts on the cultural and social aspects of the community. However
the positive impacts on long term health, safety and economic sustainability
are considered to outweigh the potential negative social impacts.
Contributing projects include: 711
Reduction – Hazard Identification & Mitigation, 712 Readiness &
Response and 713 Recovery & Coordination
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 1– HB Civil Defence
Emergency Management Group
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC will
reduce the impact of long term natural and man-made hazards to life and
property, eliminating these risks if practicable, and if not seek the
reduction of their impact
|
Assessment of
natural and manmade hazards will be completed for at risk areas in
Hawke’s Bay
|
As part of the Hawke’s Bay Civil Defence Emergency
Management (HBCDEM) Plan:
A
hazardscape, (or landscape of hazards) assessment has been completed
Priorities to reduce the
impact of hazards are identified
A work programme to
identify and reduce the impact of hazards is approved
Hawke’s Bay Joint Hazard Strategy for Local Authority
Land-use Planning completed
|
2015-25
Advocate to Territorial
Authorities for the consideration and inclusion of hazard information as part
of their land use planning functions
In conjunction with TAs,
provide public advice on the impacts of hazards
Complete changes to the
Resource Management Act 1991 statutory plans that reflect the integrated
approach of the Joint Hazard Strategy for Local Authority Land Use Planning
2012
|
Implement
the Hawke’s Bay Civil Defence Emergency Management Plan
Advocate coordination
between the HBRC works programme and the readiness priorities in the HBCDEM
Plan
Become involved in
Territorial Authority planning processes under the RMA
Provide public advice
through a range of media (internet/public forums)
|
|
Number of hazards research projects commissioned each year
|
At least 1 new research project commissioned each year, for
example fault line mapping for CHB Jan 2014 & tsunami inundation
modelling Aug 2014
|
2015-25
At least one new research project commissioned each year
|
Commission research every year based on HBRC Hazard Research
Plan and priorities set out in the Hawke’s Bay Civil Defence Emergency
Management Plan
|
|
Percentage of
surveyed residents that are aware of hazard risks and can identify earthquake,
flooding, and tsunami as major hazards in Hawke’s Bay
|
Survey 2013 asked residents to identify hazard risk to their
livelihood:
93% identified
earthquake
62% identified
flooding/heavy rainfall
51% identified tsunami,
up from 33% in 2008
|
2015-25
Awareness
of earthquake, flooding/heavy rainfall and tsunami hazard risks show an
increase over time
Specific target is at
least 75% of residents can identify tsunami as one of the region’s
major hazards by 2018
As measured in a 3
yearly survey
|
Prepare
and implement a communications plan to target hazards to highlight in a
promotion
Promote hazard awareness
through public displays such as tsunami and 1931 earthquake displays and
produce hazard education material
Community Survey every
three years
|
|
Satisfaction
of Territorial Authorities and professionals involved in land use planning
decision making with the quality, format and relevance of hazard information
supplied
|
Hazard Research Bibliographic Database available online and
several research projects commissioned and completed including tsunami, fault
line and flood modelling
Territorial Authorities surveyed 2013 with 100% stating
information was relevant and 75% satisfied quality of information was good,
very good or excellent
|
2015-25
All Territorial Authorities and planning professionals are
satisfied with the quality, format and relevance of hazard information
supplied/available as assessed by an evaluation and feedback form every 3
years
|
Continue
work to identify sources of hazards and ensure this information is collected,
sorted, recorded, and stored in a relevant manner
Actively encourage best
practice on hazard avoidance/mitigation by ensuring territorial authorities
and professionals involved in land use planning decision making are informed
of relevant hazards and risks
|
|
HBRC will
maintain and, where appropriate, increase the readiness of Hawke’s Bay
Civil Defence Emergency Management (HBCDEM) and the community to respond to a
civil defence emergency
|
HBCDEM
response to a Civil Defence emergency is coordinated, appropriate, effective
and efficient
|
A region-wide exercise is held every three years with all HBCDEM
Group agencies
|
2015-25
Complete HBCDEM Group
Training Directive 2015.
Complete major Group
exercise Nov 2015
Maintain three yearly
exercise programmes
Corrective Actions that
the HBCDEM group has responsibility for are implemented in accordance with
the Corrective Action Plan
|
Review
and implement HBCDEM Plan
Exercise programme
maintained and exercise reports completed with Corrective Action Plans
Support the operation
and engagement of the Training Advisory Group
Support Territorial
Authorities in completing Community Response Plans for specific communities
|
|
The level of support given
by the HBCDEM Group in directing and co-ordinating personnel and resources
for response and recovery operations
|
Adopted
HBCDEM Group Plan is in place
|
2015-25
Develop and implement an approved Group
Work Plan based on the HBCDEM Group Plan 2015
An active Welfare Advisory Group which
meets at least 4 times a year
Review of Group Welfare Plan 2015
Group Welfare/Controllers Forums are run in
2105
|
Review and
implement HBCDEM Plan
Maintain and support the HBCDEM Joint
Committee and Chief Executives Group
Maintain and support the HB Welfare
Advisory Group
|
|
The percentage
of surveyed residents prepared to cope for at least three days on their own
|
Civil
Defence Emergency Management (CDEM) Group website is maintained with
information on preparedness
Current advertising programme
90% surveyed residents
said they had enough food stored for three days and had some way of cooking
without electricity
Over 55% had enough
water stored not including water in hot water cylinders
|
2015-25
90% residents have
enough food stored for three days and had some way of cooking without
electricity
75% have enough water
stored
As measured by three
yearly survey
|
Maintain
and develop information and materials that support the Group Website, regular
radio advertising and other promotional opportunities in accordance with
communications strategy
Support the National
“Get ready, Get thru” programme and national “Get
Ready” week
Maintain Interagency
Communication Group who develop and implement a programme of public CDEM
education
Survey the community
every three years
|
|
Through the HBCDEM Group,
HBRC will ensure that appropriate levels of response capabilities are in
place and maintained across the Hawke’s Bay Civil Defence Emergency
Management (HBCDEM) Group
|
Established Emergency
Management Plans including training and procedures
|
HBCDEM Group Plan
and Standard Operating Procedures are implemented
Established Group Emergency Operations
Centre with supported training programme
|
2015-25
Maintain Plans and Standard Operating
Procedures and ensure Group Emergency Coordination Centres can be ready for
operation within 6 hrs of event
Effectively and efficiently manage any
emergency events from initial warning until a safe situation returns
|
Ensure Plans and
procedures confirm agency roles and responsibilities for good coordination
Maintain 2 Group Emergency Coordination
Centres (Hastings & Napier) which are ready for operation, with
supporting Group Standard Operating Procedures
Conduct training for staff assigned to
Group emergency management roles
|
|
Maintain the
CDEM Group’s emergency management and civil defence capacity with the
capability of effectively responding to an emergency event
|
Established Emergency Management Team and training programme in
place
|
2015-25
Maintain established teams, training programmes, Emergency
Operations Centre, Manuals, in accordance with HBCDEM Group Plan
|
HBRC
staff have been assigned emergency management roles and are having training
annually
Effectively and
efficiently manage any emergency event from initial warning until a safe
situation returns
|
|
Through the
HBCDEM Group, HBRC will ensure the recovery from emergencies is
managed in accordance with the scale of the event
|
Facilitate and maintain Lifelines Group who have effective input
into Civil Defence Emergency Management (CDEM) Group plans
Dedicated CDEM Group Recovery Manager appointed
A relevant CDEM Group Recovery Plan is adopted and maintained
|
The
Lifelines Group currently has lost momentum
The CDEM Group has no
appointed Recovery Manager or specific Recovery Plan
|
2015 – 2025
Partner Territorial
Authorities have appointed local recovery managers 2015
A Recovery Exercise is
run in 2015
A Group Lifelines Forum
is run in 2015
|
Provide strategic
guidance for Group Recovery Plan as part of the review of the CDEM Group Plan
Review and support
Lifelines Group
|
|
HBRC's
Activities
|
Attachment 3
|
Activity
2 – Hazard Assessment & Hawke’s Bay Regional Council Response
Significant
Issues
- Improvement of Hawke’s Bay Regional Council’s
(HBRC) ability to forecast flood levels in the region’s major rivers over
the last three years. As this information would be useful to the wider
community, a way of disseminating the information quickly is required.
- The public and media expectations of accurate weather
forecasts. There can be unrealistic expectations. Improved education of
forecasting capability will help this.
- Proactively ensure that the public has a greater awareness
of flooding risk and that they factor this into their decision making,
particularly when buying property.
- Improvement of the understanding of how hazards may impact
on Hawke’s Bay.
Rationale
Flooding is a
significant and frequent hazard; there is emphasis on continually improving
HBRC’s knowledge and understanding of flood risks, runoff patterns,
changes in land use, and climatic conditions. HBRC works with other local
authorities through liaison, provision of floodplain mapping, catchment
management planning, and investigation of specific flooding issues. It operates
a comprehensive network of rainfall and river level recorders across the region
and, together with sophisticated computer models, provide a modern flood
warning and forecasting system for the benefit of the region.
HBRC carries out
this role because it has the necessary skills, historical understanding and
regional overview required to integrate and manage all land drainage and river
control elements.
HBRC maintains
an emergency response capability to support the Hawke’s Bay Civil Defence
Emergency Management (HBCDEM) Group with regional hazard assessments and
warning systems. It also ensures that staff are trained to help
coordinate a response, including management of HBRC assets and ensuring
business continues despite any disaster.
Amongst its
hazard management responsibilities, HBRC is required to respond to oil spills
within the Hawke’s Bay Coastal Marine boundary. HBRC maintains a
Tier 2 oil spill response plan which identifies priority areas in Hawke Ba for
protection.
The empowering
legislation for these functions is the Soil Conservation and Rivers Control Act
1941, the Land Drainage Act 1908, the Maritime Transport Act 1994, the Civil
Defence Emergency Management Act 2002, the Resource Management Act 1991, and
the Local Government Act 2002.
Significant
Negative Effects
There are no
significant negative impacts on the environment as a result of the
activity. As a result of research to date, there are now restrictions on
development in some areas to avoid hazards, such as coastal erosion, flooding
and earthquakes, which have impacts on the cultural and social aspects of the
community. However the positive impacts on long term health, safety and
economic sustainability are considered to outweigh the potential negative
social impacts.
Contributing projects include: 710
Response Management, 715 Flood Risk Assessment, 718 Flood Warning System, 719
Flood Forecasting & Hydrological Flow Management and 720 Marine Oil Spill
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 2– Hazard Assessment &
Hawke’s Bay Regional Council Response
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
will ensure it has an emergency response capability that can provide regional
hazard assessments and warning systems to the Civil Defence Emergency
Management (CDEM) Group and to manage Council assets
|
Effectiveness
of response capacity and capability
|
HBRC
maintains an emergency management and civil defence capacity capable of
responding effectively to an emergency event
|
Ongoing
Maintain
established Teams, training programmes, Emergency Operations Centre, Manuals
and Business Continuance Plan
|
Annual training and
management of teams
Annual maintenance of Emergency Operations
Centre Manual and biennial updates of Business Continuity Plan
|
|
24
hour duty management system is in place
|
24
hour Duty Management warning and response system with capacity to scale up
for emergency response is in place
|
Ongoing
Operate
an effective 24-hour Duty Management Service and respond to urgent public
enquiries and complaints in a timely professional manner
|
Maintain
log of duty calls along with record of warning and watches of severe weather
or other hazardous events managed
|
|
HBRC provides reliable
warning of flooding from the region’s major rivers to at risk
communities in the Wairoa, Tutaekuri, Ngaruroro and Tukituki areas
|
Percentage
of time that priority telemetered rainfall and river level sites are
operational throughout the year
19 priority sites: 98%
Overall: 92%
|
Priority
sites were operational for 2014-15
Priority sites: 97.9%
Overall: 97.8%
|
Ongoing
Percentage
of time that the 19 priority telemetered rainfall and river level sites are
operational throughout the year averages = or > 98%; and 92% overall
|
Regular checking
and maintenance of all rainfall and level recorder stations
Repair of all key sites damaged during
storms within 4 weeks
|
|
A flood forecasting system
is available on the web to advise the community on likely rainfall and flooding
|
Percentage
of the region at risk of flooding from large rivers, covered by a flood
forecasting model
|
60%
of the region’s floodplains are covered with a flood forecasting model
|
Percentage
of the region covered by a flood forecasting model
2015-18 70%
2019-25 100%
|
Continue
to develop and upgrade flood forecast models of flood plain areas
|
|
Computer
models reflect what happens during a flood event and give up to 2 hours
highly reliable forecasting, up to 12 hours moderately reliable forecasting
and 48 hours total forecast
|
Ongoing
No
decrease in model performance
|
Continue to survey
rivers to update models every 6 years
Calibrate models to significant storm
events
|
|
Information
available on HBRC’s website during storm events
|
Web
information is updated every 3 hours during significant (greater than 5 Year)
storm events
|
Ongoing
No
change
|
Programme
for web information during storm events maintained
|
|
Peak
flood forecast river flows agree within 25% of the actual flows
|
Too
few flood events to date to assess this.
|
Ongoing
Increase
in accuracy over time.
|
Calibration
of models to significant storm events
|
|
HBRC will continue to
improve its knowledge and understanding of flood risks from the areas exposed
to severe weather events and the effects of runoff onto low lying land and
into the network of drains, streams and rivers of the region
|
Percentage
of area mapped for flood hazard, including the impact of climate change.
|
Up
to date flood hazard information is available for 97% of high risk community
areas, and 38% of the lower risk community areas
|
2015-18:
100%
To
update flood hazard information for high risk communities
2019-24:
100%
Up
to date flood hazard information available for lower risk communities
|
Identification of high flood risk areas
Programme of collection and distribution of
flood hazard information for high and low risk areas
|
|
HBRC will to respond to
oil spills within the Hawke’s Bay Coastal Marine boundary and maintain
a Tier 2 Oil Spill Response Plan which identifies priority areas in HB for
protection in the event of a major spill
|
Current Tier 2 Oil Spill Plan is in place and training
is being implemented
|
Current Tier 2 Oil Spill Response Plan is in place and
a programme of appropriate training and exercises in accordance with the
provisions of the Plan and the requirements of the Maritime Transport
Act 1994 has
been undertaken over previous years
|
Maintain
trained and qualified personnel.
Operative
Marine Oil Spill Plan is maintained
|
Annual training and
management of teams
Annual maintenance plan
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Transport covers regional
transport planning, provision of passenger transport services and co-ordination
of road safety initiatives across Hawke’s Bay.
The driving force is the
Regional Land Transport Plan and the Regional Public Transport Plan which must
be prepared by the Regional Transport Committee and the Regional Council.
A major part of the
Council’s transport role is to contract bus and Total Mobility taxi
services that provide the community with access to work, education, social and
recreational activities. A recent review aims to make services more
effective and efficient.
Link to
Strategic Outcomes
This group of activities
contributes to Council’s strategic outcomes in the following ways.
Resilient
Communities
- Quality
services for a healthy, connected community – by providing increased
travel options for the workforce, the community and the transport
disadvantaged, increased opportunities for social interaction; road safety
programmes, more access to essential services and amenities, and ensuring
integration with walking and cycling opportunities.
- Local
leadership, strong relationships and affordable well- considered solutions -–
by working with local councils and the New Zealand Transport Agency to develop
and deliver affordable transport solutions that facilitate economic
development, reduce traffic congestion and enable environmentally sustainable
transport options.
Resilient
economy
Quality future focused
infrastructure - by coordinating regional planning for
transport infrastructure and advocating on behalf of the region to central
government.
Assumptions
and Future Demand Incorporated in this Plan
The planning assumptions for
Transport are:
- The
New Zealand Transport Agency Funding Assistance Rates will be at levels set by
a review completed in October 2014.
- There
is a demand for the provision of ongoing public transport services.
- That
there will be no changes to legislation or national policy that will impact on
HBRC’s transport role and that would require changes to the programmes
outlined in this plan.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Transport
|
HBRC's
Activities
|
Attachment 3
|
Activity 1 – Regional Road Safety
Significant
Issues
- Young
drivers and alcohol identified as key issues in Safer Journeys 2020 Strategy
and the Communities at Risk Register for Hawke’s Bay.
- Loss
of control on rural roads, speed, intersections and motorcycle crashes are also
issues in the region.
Rationale
RoadSafe Hawke’s Bay
is responsible for education, raising driver awareness of key road safety issues,
and working with other key stakeholders to reduce the incidence and severity of
road traffic crashes. The key focus is to change road user behaviour, making
roads and pathways safe for people to use.
RoadSafe Hawke’s Bay
works at a community level with other organisations to implement road safety
activities which help to achieve the objectives of the Regional Land Transport
Plan. All activities are targeted at high risk behaviour. RoadSafe
Hawke’s Bay activities are among initiatives that
contribute to the reduction of road fatalities, crashes and hospital
admissions.
Significant
Negative Effects
There are no anticipated
significant negative effects from the delivery of these activities which seek
to provide an effective, efficient and safe land transport network.
Contributing projects include: 786
Regional Road Safety
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 1– Regional Road Safety
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
will coordinate and implement sustainable regional road safety initiatives so
that Hawke’s Bay roads and pathways are safe and accessible, and
the emotional and financial costs of road traffic crashes are reduced
|
Reduce
the incidence of fatal and serious injury crashes in our region (5 year
rolling average)
|
The
average annual number of fatal and serious injury crashes in the
Hawke’s Bay region between 2009 and 2013 ( inclusive) was 85.6
|
2015-25
- Achieve a reduction each year in the five
year rolling average number of fatal and serious injury crashes
- Road Safety Action Plans for Wairoa,
Napier, Hastings and Central Hawke’s Bay up to date and reflecting key
causes of road crashes
|
Undertake
a programme of road safety education activities in partnership with Police
and other road safety stakeholders to address the key causes of road crashes
in our region
Review
Road Safety Action Plans quarterly
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 2 – Regional Land Transport Strategy
Significant Issues
- The
need to better integrate transport infrastructure planning with future land use
strategies.
- Changes
in legislation and government policy statements which alter previously planned
priorities for transport funding.
- The
potential for reduced national funding as a result of reduced fuel usage, as
people change to more efficient or alternative modes of transport.
- The
need to plan for the predicted growth in freight movements throughout the
region and to ensure efficient, safe, reliable access to the Port of Napier
from throughout its catchment.
Rationale
Hawke’s Bay Regional
Council (HBRC) is responsible for the region’s transport planning under
the Land Transport Management Act 2003. The Committee’s key role is
to prepare a regional land transport plan which sets out the
region’s transport objectives, policies and measures and contains
all transport activities for which funding is sought from central government.
The plan must be consistent with the Government Policy Statement on Land
Transport.
The Regional Transport
Committee comprises one representative from each of the four territorial
authorities, one representative from the New Zealand Transport Agency and two
from the Regional Council. It is supported by advisory members from the
community.
Significant
Negative Effects
There are no anticipated
significant negative effects from the delivery of these activities which seek
to provide an effective, efficient and safe land transport system.
Contributing projects include: 797
Regional Land Transport Strategy
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 2– Regional Land Transport
Strategy
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
Through the region’s transport planning
documents HBRC will promote improved integration of all transport
modes, land use and efficient movement of freight
|
Adopted
Regional Land Transport Plan (RLTP) in place
|
Current
RLTP adopted in 2015
|
2015-18
Report on current RLTP as set out in the monitoring and
reporting section of the Plan
three
yearly report to the Regional Transport Committee on outcomes of the RLTP
annual
report to the Regional Transport Committee on activity implementation
2017-18
Complete preparation of RLTP for 2018-28 within
statutory timeframes
|
Monitor
and report on achievements from the RLTP to the Regional Transport Committee
Begin RLTP review process in 2017
|
|
Adopted
Regional Cycle Plan in place
|
Regional
Cycle Plan due to be adopted in mid 2015
|
2015-18
Report
annually to member organisations on the outcomes of the Regional Cycle Plan,
as set out in its monitoring section.
|
Coordinate the preparation, implementation, monitoring
and review of the Regional Cycle Plan through the RCP Governance Group
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 3 – Subsidised Passenger Transport
Significant
Issues
- The
Regional Public Transport Plan focuses on funding to maintain the current level
of service. There are no public bus services outside the Napier and
Hastings urban areas and the Regional Public Transport Plan identifies this as
an issue. The provision of a transport service in Central Hawke’s
Bay will be investigated in the next two years; and demand for services in
Wairoa will be monitored.
- Current
funding constraints for public transport make significant service improvements
unlikely during the next three years. However, efficiency improvements or
increased fare revenue may allow for some minor improvements.
- While
a lot of work has been done over the past few years on signage and marketing
bus services there is still more that can be done, particularly in Napier,
where a lack of signs and timetable information could lose patronage on current
services.
Rationale
The region’s public
transport system forms a key component of the region’s strategic land
transport network. It links the cities of Napier and Hastings and services
cross district boundaries. Given this, the Regional Council is the most appropriate
authority to deliver passenger transport services.
The Regional Public
Transport Plan is currently being reviewed and will be adopted by Council in
April 2015. It sets out HBRC’s plans for public transport in
Hawke’s Bay for the next three years. The Plan specifies service levels
and how HBRC will put into practice the public transport components of the
Regional Land Transport Plan. The Public Transport Plan was developed with key
stakeholders and community input through public and targeted consultation.
HBRC recognises that unless
public transport is available at the times required, it will not be seen as an
alternative to private vehicles. Providing increased services must be
complemented by promotion and education along with patronage and fare revenue
targets to ensure that it is as successful as it can be. The Regional Public
Transport Plan proposes continuing with the status quo in the supply of bus
services; and looks to consolidate and reap the benefits of recent changes and
service improvements made over the past two years; while being mindful of the
level of affordability for Napier and Hastings ratepayers. While 53% of the
cost of public bus services is funded by the NZTA (decreasing to 51% in two
years time), the remainder is met by Napier and Hastings ratepayers.
Significant
Negative Effects
There are no anticipated
significant negative effects from the delivery of these activities which seek
to provide an effective, efficient and safe land transport system.
Contributing projects include: 790
Subsidised Passenger Transport
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 3– Subsidised Passenger
Transport
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC will provide an accessible, integrated bus service
and appropriate service infrastructure within and between the Napier,
Hastings and Havelock North urban areas that will be targeted to best meet
the transport needs of the people of Hawke’s Bay
|
Annual
patronage on the Hawke’s Bay bus services
|
2013-14
799,000 trips taken
|
Yearly
Achieve an annual 1% increase in patronage
|
Continue
to regularly market current services and increase awareness of all services
Review
services regularly to cater for demand
Investigate
and implement cost-effective means of increasing patronage
|
|
Annual passenger kilometres travelled on the
Hawke’s Bay bus services
|
2013-14
8,145,800 passenger-kilometres travelled
|
Yearly
Achieve an annual 1% increase in passenger
–kilometres travelled
|
Continue
to regularly market current services and increase awareness of all services
Review
services regularly to cater for demand
Investigate
and implement cost-effective means of increasing patronage
|
|
Proportion of total service costs that are covered by
fares
|
2013-14
37.5% fare recovery
|
2015-16
40% fare recovery
2016-17
41% fare recovery
2017-18
41% fare recovery
|
- Review
fares annually and fare structures three-yearly
Continue
to regularly market current services and increase awareness of all services
Review
services regularly to better cater for demand and reduce any operational
inefficiencies
|
|
Adopted
Regional Public Transport Plan (RPTP) in place
|
Current
RPTP adopted in 2015
|
2015-18
Report on current RPTP as set out in the monitoring and
reporting section of the Plan
2017-18
Complete preparation of RPTP for 2018-28 within
statutory timeframes
|
Monitor
and report on achievements from the RPTP to the Regional Transport Committee
and Regional Council
Begin RPTP review process in 2017
|
|
Level of signage, infrastructure and information at all
bus stops
|
2013-14
Major improvements have been made in Hastings and
Napier; more work is yet to be done in Napier to provide better timetable information
at bus stops
|
2015-18
Implement bus-stop service level standards (as outlined
in Regional Public Transport Plan)
2015-25
Install 4 additional bus shelters each year (2 in
Hastings and 2 in Napier) until demand is met
|
Work
with the Napier City and Hastings District councils to implement the bus-stop
service level at key bus stops
Work
with Napier City and Hastings District councils to agree on the best
locations for bus shelters each year
|
|
Where bus routes exist, the percentage of
residences and businesses that are in the following walking distances
of a bus stop:
500m
normal conditions
600m low density/outer areas
|
2013-14
About 85% compliance in Hastings and 60% in Napier
|
2015-18
Achieve 90% compliance in Hastings and 75% in Napier
|
Ongoing
survey to ensure appropriate infrastructure at key bus-stops
Work with Napier City and Hastings
District councils to meet targets
|
|
|
Fare payment systems utilise technology to provide a
simple customer experience and provide HBRC with the passenger data needed to
plan and review services
|
2013-14
Smartcards were implemented in 2009. HBRC is part
of a group of councils working to develop a national ticketing system
to replace outdated equipment
|
2015-16
Participate
in the national ticketing system project
2016-18
Implement
the agreed national ticketing system
|
Evaluate ticketing system proposals
and provide useful feedback to the national project group to
ensure a best fit system for Hawke’s Bay
Secure funding
to implement the national ticketing system within the
agreed time period
|
|
Improved integration between public transport and
walking and cycling results in more multi-modal journeys
|
2013-14
Bike racks are installed at some major bus
stops
Bike
racks are installed on all buses apart from the Napier Hastings Express
service
|
2015-25
Investigate
further opportunities for installation of secure bike racks at major bus
stops
Investigate installation of bike racks on Napier
Hastings Express service
|
Investigate
other initiatives around the country
Work
with Napier City and Hastings District councils to improve integration
between public transport and walking and cycling
|
|
HBRC will continue to deliver the Total Mobility
scheme in Napier, Hastings and Waipukurau for those unable to use public
transport due to serious mobility constraints
|
Membership is increased and service delivered in
accordance with New Zealand Transport Agency guidelines
|
2013-14
86,800
trips made using Total Mobility vouchers
|
2015-25
Increase the number of Total Mobility trips taken
by at least 3% a year
|
Actively
promote the Total Mobility Scheme
Work with government and disability
agencies to better understand and try to meet the needs of their clients
|
|
HBRC's
Activities
|
Attachment 3
|
Introduction
Hawke’s Bay Regional
Council’s (HBRC) Governance and Community Engagement role and
responsibilities involve decision-making, keeping regional residents informed,
and ensuring that tangata whenua and the people of Hawke’s Bay have a
meaningful say on the direction of their region.
This group covers the
following activities to deliver these roles and responsibilities.
- Strategic
Alliances - involves HBRC working with
a range of organisations such as central government, university, private sector
groups and councils - to provide valued services
and research that is targeted and efficient.
- Community
Engagement and Communication - encompasses all HBRC
purposes and functions and engagement with a broad range of stakeholders in the
general community through a variety of media.
- Community
Representation and Regional Leadership -
includes Council elections and the role of Councillors in representing their
constituent community, the co-governance arrangement with treaty settlement
groups through the Regional Planning Committee, plus providing opportunities
for individuals and groups to influence decision-making.
- Investment
Company Support - involves the management and
administration support that will be provided to the proposed Hawke’s Bay
Regional Council Investment Company.
Link to
Strategic Outcomes
This group of activities
contributes to Council’s strategic outcomes in the following ways.
Resilient
Communities
Quality services for a
healthy connected community – by the 9
Councillors representing their constituent communities across Hawke’s
Bay; by reflecting community views on policies considered by the Council; by
actively engaging with the community and providing information and knowledge in
regular publications.
Local leadership, strong
relationships and affordable, well considered solutions
– by supporting Tourism Hawke’s Bay and participating in Business
Hawke’s Bay, through funding from the Regional Economic Development
Rate; establishing relationships with Massey University.
Resilient
Ecosystems
Active management linking
biodiversity, land, fresh water and our coastal marine areas –
by working closely with iwi/hapu, primary sector associations, environment
groups and government departments to provide for greater catchment/community
based management of the environment.
Resilient
Organisation
Using foresight, strategy,
smart investment, strategic alliances and a fit-for-purpose approach to lead
our region - by the 9 Councillors representing their
constituent communities across Hawke’s Bay; the effective operation of
the Regional Planning Committee as the co-governance model for cultural redress
in Hawke’s Bay, and the effective operation of the Council organisation
in its delivery of its functions.
Assumptions
and Future Demand Incorporated in this Plan
The planning assumptions for
HBRC’s Governance and Community Engagement are:
- Council
will continue to have a membership of nine although it is acknowledged that a
decision on local government reorganisation proposals may alter the local
government structure in Hawke’s Bay within the first three years of this
Long Term Plan
- The
Regional Planning Committee will become a permanent Committee under the
Hawke’s Bay Regional Planning Committee Act.
- Establishing
alliances with other organisations will be necessary to achieve regional
success.
- Continued
expectation of, and increased requirement for, stakeholder and public
engagement in HBRC activities.
|
HBRC's
Activities
|
Attachment 3
|
Net Funding Requirement – Governance, Community Engagement
& Services
|
HBRC's
Activities
|
Attachment 3
|
Activity 1 – Community Partnerships
Significant
Issues
- The need to review the efficiency and effectiveness of
how we operate ensures that we regularly assess how and with whom we interact
tin order to ensure better public services.
- There is a significant incentive locally for public
authorities to deliver services more efficiently and effectively. HBRC is a
member of the Hawke’s Bay Local Authority Shared Services Company, formed
in late 2012, to investigate and implement shared services across the five
councils in Hawke’s Bay. There can be a range of benefits that arise from
shared services including cost savings, access to skills and expertise,
exchanges of best practice, procurement savings, improved community outcomes
and strategic action and improved legislative compliance.
- The national provision of strategic research and
development services is derived from two major sources – the Crown
Research Institutes and universities. HBRC has developed a Memorandum of
Understanding with Massey University to enhance linkages between Hawke’s
Bay organisations and businesses and research opportunities. A tangible
signal of this relationship is the hosting and joint funding by HBRC of a
Massey University Business Development Manager to liaise with Hawke’s Bay
businesses.
Rationale
Strategic
Alliances are based on mutually dependent relationships that will endure over
the long term. In creating and formalising strategic alliances, HBRC wants to
deliver outcomes that better achieve its vision and purpose.
The rationale
for focusing on strategic alliances is to:
- Enable increased community engagement
- Make better use of resources
- Reduce duplication.
To deliver
outcomes faster, especially those that actively support HBRC’s mission
statement and reinforce progress on the core themes of the Strategic Plan, is
desirable. The impact of strategic alliances should be organisation-wide and
not limited to one area of activity. Such alliances may include joint strategic
planning and funding; resource alignment; and possibly having staff work in the
same place in some circumstances.
Significant
Negative Effects
There are no
anticipated significant negative effects from the delivery of these activities.
Contributing
projects include: 874 Strategic Partnerships, 878 Sister City
Relationships, 889 Interest Group Liaison and 893 Regional Infrastructure
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 1– Community Partnerships
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC engages in strategic relationships that help
better achieve its vision and purposes
|
Formalisation of strategic alliances that are sector
and institutionally based
|
HBRC has a Memorandum of Understanding with Massey
University and operates a Nature Central joint initiative with the Department
of Conservation, Horizons Regional Council and Greater Wellington Regional
Council
|
Yearly
Continue reporting to Council on performance of
strategic relationships
2015-16
HBRC reviews the effectiveness of, and funding for, the
Massey University Memorandum of Understanding (MoU)
|
Provision for required resourcing as per respective
agreements
Participate in bi-lateral review of effectiveness
of Memorandum of Understanding
|
|
HBRC
will contribute to support the development of Regional Public Infrastructure
projects
|
Evaluation
of Regional Public Infrastructure projects and which to support
|
Limited financial assistance has been provided in the
previous LTP 2012-22 for a number of infrastructure projects
|
2015-25
Funding from loans and reserves set aside in the LTP
2012-22 to cover HBRC’s contribution to Regional Public Infrastructure
projects has now been fully spent and committed. This LTP does not
provide for further input into HBRC’s Community Facilities Fund.
|
Requests for funding for Regional Public
Infrastructure are received and evaluated, and funding assigned in 2014-15 to
the following projects:
- $0.5m
provision for Wairoa Community Centre upgrade
- $0.5m
provision for Te Mata Park Visitor and Educational Centre
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 2 – Community Engagement & Communications
Significant
Issues
- The community receives a wide range of services and
activities from Hawke’s Bay Regional Council (HBRC) across a large
geographical area. This includes the management of diverse requirements for
engagement and consultation with the regional community.
- Many people in the region have limited understanding of
the full range of activities that HBRC is involved in, particularly the urban
community.
- HBRC’s communication and engagement with the
community is not always as effective or as good an experience for people as it
should be.
Rationale
- Communication with an emphasis on engagement ensures the
community is kept involved in the activities and processes of HBRC in a proactive
manner. Consultation is carried out with vigour and creativity, recognising the
need for community participation and to meet legislative requirements.
HBRC is continually updating its communication tools, recognising the growing
value of social media, the internet, video and digital portal as additional
ways for people to stay informed.
- Community engagement has been identified in this Long
Term Plan to reflect its importance in all activities and interactions with the
community. HBRC has an evolving role in many areas and it is important that the
community engages with clear expectations for participation and information.
- HBRC’s Strategic Plan (2011) identified a number of
strategic approaches that HBRC thinks are important to focus on and develop
over the next ten years to achieve its strategic goals. Community engagement
and communications enables these approaches to be more effectively delivered.
It is essential that the regional community has regular opportunities to
understand not only what HBRC is doing, but why, and for this to be conveyed in
ways that are relevant, timely and professional.
Significant
Negative Effects
There are no
anticipated significant negative effects from the delivery of these activities.
Contributing projects include: 895
Community Engagement & Communications
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 2– Community Engagement
& Communications
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
We engage the community in activities and
decision-making processes, with clear expectations for participation.
|
Level
of engagement with council plans, major decisions and statutory documents
|
2013-14
Annual Report, State of the Environment report,
Biodiversity Strategy
|
2015-18
Long Term Plan, Annual and SOE reports, policy and plan
change processes
|
Annual review of statutory document timing with
appropriate engagement tools and processes
|
|
Number
of council meetings and workshops
|
2013-14
44
Council and Committee meetings held, of these 11 had a public-excluded
element
|
2015-18
Open reporting of Council and Committee decision items
|
Maintain
focus on trust and confidence
Manage
Council workshop and public exclusion expectations
|
|
Number of public meetings, workshops and public events
(includes awards and field days)
|
2013-14
4 public meetings (Tukituki PC6), 4 pre-LTP public
meetings, 4 Biodiversity strategy workshops
|
2015-18
Develop
meetings, workshops and events for major projects and as required
|
Focus on opportunities for community engagement and
public participation
|
|
We use the most suitable tools to communicate and
engage
|
Number of media releases and other significant outputs
generated; uptake of digital technologies
|
2013-14
>100 HBRC releases
Ongoing technology uptake using web, social
media, video, imagery
|
2015-18
>100 media releases per year
>10 video clips per year; track social media posts
|
Adaptation of engagement tools, including print, radio
and digital
(web, portals, video, social)
|
|
We give relevant information to our diverse audiences
|
Regional
news and digital media coverage averages > 90% positive/ neutral
|
2014-15
>95% positive/ neutral to end 2014
|
2015-18
Not less than an average of 95% positive/ neutral
rating
|
Regular
review of Risk Management profile
Maintain
Engagement Plans for major work programmes
|
|
Delivery of activity updates, actual progress and
perception of performance
|
2014-15
3 region wide newsletters, regular community
newsletters
|
2015-18
Generate relevant local and regional newsletters;
review at least every three years
Awareness
and satisfaction survey
|
Measure
and report on community engagement in major decision items
· Two-yearly
awareness and satisfaction survey
|
|
Facilitation of agreed stakeholder groups
|
2014-15
93 strategic and stakeholder groups
|
2015-18
Audit how many groups we work with; revalidate at least
every three years
|
Measure frequency of engagement with stakeholder groups
|
|
HBRC's
Activities
|
Attachment 3
|
Activity
3 – Community Representation & Regional Leadership
Significant
Issues
- A Representation Review to determine the number of
Councillors and areas they represent was undertaken by Council for the 2013
Local Body Elections.
- A decision on Local Government Reorganisation proposals
is anticipated in 2015, and may alter the Local Government structure in
Hawke’s Bay. If there is a change, then this will be given effect at the
October 2016 Local Body Elections. If there is no change, HBRC’s 2013
representation arrangements will remain in force for the October 2016
elections.
- The Intersectoral Leadership Forum includes central
government and local government leaders from across Hawke’s Bay and the
Chairman of HBRC is a member of the Forum.
- The functions of the Forum are to agree the key strategic
priorities for Hawke’s Bay, oversee performance, create the right
environment to support the vision and priorities, and ensure that obstacles to
progress are addressed
- Treaty of Waitangi settlement negotiations resulting in
cultural redress involving the need for new partnerships around natural and
physical resources. There are a number of Treaty claims under negotiation in
Hawke’s Bay. Management of natural and physical resources is one of
Hawke’s Bay Regional Council’s (HBRC) primary responsibilities. The
establishment of the Regional Planning Committee with elected representatives
and treaty claimant groups in resource management plan development is one key
area.
Rationale
The Local Government
Act 2002 sets out the governance/management of local authorities. The powers
and responsibilities set out in the Act must be carried out by Hawke’s
Bay Regional Council (HBRC) and funded accordingly. The Local Electoral Act
2001 sets out the responsibilities for representation, the reviews of
representation and the appointment of Councillors to represent the region.
The
remuneration of Councillors is prescribed by the Remuneration Authority and by
their own decision on the allocation of the pool of funding to cover positions
of responsibility.
The Local
Government Act 2002 also requires consideration of the view of Maori in all
major decisions made by Council. At the present time HBRC fulfils this
requirement through a number of methods, with the Maori Committee and the
Regional Planning Committee being the major initiatives undertaken by this
Council to encourage Maori representation
Significant
Negative Effects
There are no
anticipated significant negative effects from the delivery of these activities.
Contributing
projects include: 840 Community Representation & Regional Leadership
and 876 Economic Development Support
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 3– Community Representation
& Regional Leadership
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
will provide the community with a channel for representation through elected
members to enable access and influence on decision making
|
Councillors’
attendance at monthly Council and Committee meetings achieving at least 90%
attendance of elected and appointed members
|
2013-14
Attendance
rate for Regional Council meetings was 98% and for other Committees,
attendance rate of 84.5%
|
2015-25
Attendance
rate of at least 90% maintained
|
Monitor
and record meeting attendance
|
|
Long
Term Plan/Annual Plan consultation during April and May with the final Plan
being adopted by HBRC by 30 June
|
2013-14
5
weeks for consultation on the 2014-15 Annual Plan provided to the public and
2 days for Councillors to hear submitters to the Plan which enabled adoption
on 25 June 2014
|
2015-25
Consultation
and submission period of at least 25 working days provided for Long
Term and Annual plan processes
|
The
scheduling of at least 25 working days for consultation during April/May
Scheduling
of up to 3 days in June to hear submissions
Adoption of the Plan by 30 June
|
|
Comply
with the provisions of the Local Electoral Act 2001
|
2013-14
Core provisions of that Act have been met
Elections held on 12 October 2013
|
2015-25
Review
appropriate representation arrangements for the region by December 2018
Meet statutory timetable requirements
leading up to the 2016 Local Government elections
|
Council
has an appointed Electoral Officer and Deputy Electoral Office in place at
all times
Carry
out a representation review by December 2018 to determine the number of
Councillors and constituents they represent
Undertake
the election process for the 2016 election
|
|
HBRC
aims to maximise Local Government effectiveness and efficiency
|
Facilitate
and report on Local Government efficiencies achieved
|
A
number of shared service initiatives covering some Local Government services
have been completed and further initiatives are being investigated.
|
2015-25
HB LASS Ltd (the Hawke’s Bay local authority
shared services company) meets the target specified by its shareholder
councils in the company’s Statement of Intent
|
Support
for and funding of the operation of HBLASS Ltd
Relevant
contribution made to any investigations undertaken by HBLASS in which
HBRC can be part of a shared service
|
|
HBRC works with Hawke’s Bay iwi and hapu in the
spirit of the principles of the Treaty of Waitangi
|
Regional Planning Committee operating successfully
|
HBRC’s Maori Standing Committee is currently
consulted in relation to a range of Council activities
|
Yearly
Annual report on Regional Planning Committee
|
Legislation passed to permanently establish
Hawke’s Bay Regional Planning Committee
|
|
Attendance
at Maori Committee meetings
|
For
2013-14, the attendance rate for the Maori Committee was 83.3%
|
2015-25
Attendance
rate of at least 80% maintained
|
Monitor
and record meeting attendance
|
|
Iwi/hapu engagement plans in place for resource
management plan development and implementation.
|
- Iwi/hapu
engagement plan for Greater Heretaunga/Ahuriri plan change in preparation.
- Iwi/hapu
engagement plan for Tukituki plan change Implementation in preparation
|
2015-16
Iwi/hapu engagement plans completed and endorsed by
Regional Planning Committee
|
Develop engagement plans in liaison with Ngati
Kahungunu Iwi Incorporated (NKII), Taiwhenua and Treaty groups
|
|
Iwi
participation on Council and Committees
|
The
Chair of the Maori Committee is an ex-officio member at Council meetings and
two members of the Maori Committee are on the Council Committees with full
voting rights
|
2016-17
Council Committees are established with at
least two tangata whenua representatives with full voting rights
There is an ex-officio
tangata whenua representative at Council meetings
|
Committees
are established post triennial elections
|
|
No.
of meetings held between HBRC and Ngati Kahungunu Iwi Incorporated (NKII)
Board
|
An
agreed Memorandum of Understanding describes how HBRC and the NKII Board will
work together
|
Two
meetings held per year between HBRC and NKII Board
|
Schedule
meetings and agendas
|
|
HBRC's
Activities
|
Attachment 3
|
Activity 4 – Investment Company Support
Significant
Issues
- Ensuring that statutory obligations for the Investment
Company are met and in line with the Companies Act 1993 and the Local
Government Act 2002.
- Finalising the Statement of Corporate Intent between the
Investment Company and Hawke’s Bay Regional Council (HBRC); also between
any subsidiary companies and the Investment Company.
- Provide support to the Investment Company when it is
assessing investment opportunities.
Rationale
HBRC has
established an Investment Company to deliver on the following strategies.
- Economic growth through strategic investment
- Environmental benefits obtained in conjunction with
economic growth
- Social improvements through job creation
- Limiting the Council’s risk on future investment
opportunities.
Significant
Negative Effects
Where a high
level of support is required from HBRC staff, this may impact on the timing of
the delivery of other HBRC activities.
Contributing projects include: 881
Investment Company Support
|
HBRC's
Activities
|
Attachment 3
|
|
Service Levels and Performance Targets
Activity 4 – Investment Company
Support
|
|
Level of Service Statement
|
Level of Service Measure
|
Current Performance
|
Performance
Targets
2015-18 in detail; 2019-25 outline
|
Required Actions to Achieve
Performance
Targets
|
|
HBRC
will provide support services to the Investment Company and to any associated
subsidiaries of the Investment Company
|
A
number of Board meetings to be supported by HBRC staff providing
administrative and financial services.
|
Appointed the Transitional Board of the Investment
Company
|
2015-25
Provide
support for the Board meetings of the Investment Company and subsidiaries
Confirm the Statement of Corporate Intent
each year
|
Ensure the company’s statutory
requirements are met
Prepare Company Board Agendas
Keep records including Board Minutes
Ratify the Statement of Corporate Intent
submitted by the investment company
|
|
HBRC's
Activities
|
Attachment 3
|
Acronyms Defined
AEE Assessment
of Environmental Effects
AHB Animal
Health Board
AMA Aquaculture
Management Area
AO Audit
Office
AP Annual
Plan
BOI Board
of Inquiry
CAPEX Capital
Expenditure (budget to purchase assets)
CDEM Civil
Defence Emergency Management
CE Chief
Executive
CHBDC Central
Hawke’s Bay District Council
CHI Cultural
Health Index
CHMS Coastal
Hazard Management Strategy
CHZ Coastal
Hazard Zone
CIA Cultural
Impact Assessment
CIMS Coordinated
Incident Management System (used by emergency management services- CDEM,
Police, Fire)
CMA Coastal
Marine Area
CRI Crown
Research Institute
DHB District
Health Board
DIN Dissolved
Inorganic Nitrogen
DOC Department
of Conservation (note also DoC)
DWS Drinking
Water Standards
EE Environmental
Education (or enviro-ed)
EECA Energy
Efficiency and Conservation Authority
EIA Environmental
Impact Assessment
EMIS Emergency
Management Information System, a national system for tracking communications
and resources
EMO Emergency
Management Officer
EOC Emergency
Operations Centre (for CDEM)
EPA Environmental
Protection Authority
ERMA Environmental
Risk Management Authority
EW Environment
Waikato (Waikato Regional Council)
FDE Farm
Dairy Effluent
FPP First
Past the Post (voting system)
FWM Fresh
Water Management
GDC Gisborne
District Council
GE Genetic
engineering
GeoNet Earthquake
monitoring website
GIS Geographic
Information System
GMO Genetically
modified organism
GNS Geological
& Nuclear Sciences (a CRI now GNS Science)
GPS Government
Policy Statement
HASNO Hazardous
Substances and New Organisms Act
HB LASS Ltd Hawke’s
Bay Local Authority Shared Services Company
HBRC Hawke’s
Bay Regional Council
HBRIC Ltd Hawke's
Bay Regional Investment Company Limited
HBT Hawke’s
Bay Tourism
HDC Hastings
District Council
Horizons Manawatu-Wanganui
Regional Council Brand
HPUDS Heretaunga
Plains Urban Development Strategy
HuB Hawke’s
Bay Urban Biodiversity (includes possum control and plantings)
IFIM Instream
Flow Incremental Methodology
IHMP Iwi/Hapu
Management Plan
IPCC Inter-governmental
Panel on Climate Change
IPENZ Institute
of Professional Engineers New Zealand
IPP Individual
Park Plan (for regional parks)
ISO International
Organisation for Standardisation
KPI Key
performance indicator
LAWA Land and Water Aotearoa
LAWMS Hawke's
Bay Land and Water Management Strategy
LGA Local
Government Act 2002
LGNZ Local
Government New Zealand
LGOIMA Local
Government Official Information and Meetings Act 1987
LGOL Local
Government On-Line
LTFS Long
Term Financial Strategy
LTMA Land
Transport Management Act
LTP Long
Term Plan (replaces the LTCCP - Long Term Council Community Plan)
LM Land
Management (team of council)
LUC Land
Use Capability
MA Mana
Ahuriri
MACAA Marine
and Coastal Area (Takutai Moana) Act
MBIE Ministry
of Business, Innovation and Employment
MCDEM Ministry
of Civil Defence and Emergency Management
MCI Macroinvertebrate
Community Index
MEMT Mauri
Environmental Monitoring Tool
MFE Ministry
for the Environment
MHWS Mean
High Water Springs
MNZ Maritime
New Zealand
MOA Memorandum
of Agreement
MOH Ministry
of Health
MOT Ministry
of Transport
MOU Memorandum
of Understanding
MPI Ministry
of Primary Industries (formerly MAF)
MSD Ministry
of Social Development
MSG Mohaka
Stakeholder Group
MTII Maungaharuru-Tangitu
Iwi Incorporated
MTT Maungaharuru-Tangitu
Trust (a PSGE)
NABIS National
Aquatic Biodiversity Information System
NCC Napier
City Council
NCMC National
Crisis Management Centre (CDEM)
NES National
Environmental Standards
NGO Non
Governmental Organisation (e.g. Red Cross)
NIWA National
Institute of Water and Atmospheric Research
NKII Ngati
Kahungunu Iwi Incorporated
NLTF National
Land Transport Fund
NLTP National
Land Transport Programme
NOF National
Objectives Framework (in the NPSFM)
NPS National
Policy Statement
NPSET National
Policy Statement on Electricity Transmission
NPSFM National
Policy Statement for Freshwater Management
NPSREG National
Policy Statement on Renewable Electricity Generation
NZCPS New
Zealand Coastal Policy Statement
NZP&M New
Zealand Petroleum and Minerals (was Crown Minerals)
NPSFM National
Policy Statement for Freshwater Management
NPSREG National
Policy Statement for Renewable Electricity Generation
NZCPS New
Zealand Coastal Policy Statement
NZTA New
Zealand Transport Agency
NZWWA New
Zealand Water and Waste Association
OIA Official
Information Act
OSWW On-site
wastewater
OTS Office
of Treaty Settlements
PC…# Plan
Change …number (refers to amendment to a plan under the RMA)
PCA Pest
Control Area (rural)
PCE Parliamentary
Commissioner for the Environment
PHU Public
Health Unit (of DHB)
PM... Particulate
Matter (then followed by the micron size, e.g. PM10 as a measure of
air quality)
PONL Port
of Napier Ltd (trades as Napier Port)
PPE Personal
protective equipment
PPR Project
Progress Reporting
PSGE Post
[Treaty] Settlement Governance Entity
PT Public
Transport
PTOM Public
Transport Operating Model
RAC Regional
Affairs Committee
RAQP Regional
Air Quality Plan
RCEP Regional
Coastal Environment Plan
RCP Regional
Coastal Plan
RFP Request
for proposal
RiVAS River
Values Assessment System
RLS Regional
Landcare Scheme
RLTP Regional
Land Transport Plan
RMA Resource
Management Act 1991
RMZ Riparian
management zone
ROI Return
on investment
RPC Regional
Planning Committee
RPMS Regional
Pest Management Strategy
RPS Regional
Policy Statement
RPTP Regional
Public Transport Plan
RRMP Regional
Resource Management Plan
RTC Regional
Transport Committee
RTO Regional
Tourism Organisation
RWSS Ruataniwha
Water Storage Scheme
SCA Significant
Conservation Area (in Regional Coastal Environment Plan)
SIG Special
Interest Group
SITREP Situation
report
SLR Sea
level rise
S-map Soil
mapping database from Landcare Research http://smap.landcareresearch.co.nz
SMF Sustainable
Management Fund
SOE State
of the Environment
STV Single
transferable vote
TA Territorial
authority (city & district councils)
TAG Technical
Advisory Group
TANK In
reference to ‘TANK stakeholder Group’ dealing with water management
issues in Heretaunga Zone (Clive/Karamu,
Ngaruroro, Tutaekuri, Ahuriri, Heretaunga Plains aquifer)
Tier 1 Site
level plan / response to an oil spill
Tier 2 Regional
level plan/ response to oil spill
Tier 3 National
level plan/ response to oil spill
TKM Te
Kahui Mangai (an online directory of Iwi and Maori organisations administered
by TPK)
TLA Territorial
Local Authority (city & district councils)
TMS Total
Mobility Scheme
TOR Terms
of Reference
TPK Te
Puni Kōkiri (Ministry of Māori Development)
TSG Taharua
Stakeholder Group
TTOH Te
Taiwhenua o Heretaunga
TTOT Te
Taiwhenua o Tamatea
WCO Water
Conservation Order
WDC Wairoa
District Council
WWTP Waste
Water Treatment Plant
|
HBRC's Financial
Information
|
Attachment 4
|
HBRC’s Financial Information
|
HBRC's
Financial Information
|
Attachment 4
|
Table of
Contents
HBRC’s
Financial Statements
Forecast Financial Statements........................................................... 1
Prospective Statement of Comprehensive Revenue and Expense..... 3
Prospective Statement of Changes in Net Assets / Equity.................. 4
Prospective Statement of Financial Position...................................... 5
Prospective Cash Flow Statement..................................................... 6
Notes
to Financial Statements
Note 1 - Activity Revenue & Expenditure.......................................... 7
Notes 2 & 3 - Rates & Other Revenue................................................ 8
Note 4(a) - External Debt and Interest Expense................................. 9
Note 4(b) - Internal Debt and Interest Expense............................... 11
Note 5 - Depreciation and Amortisation........................................... 12
Notes 6 & 7 - Reserve Movements and Fair Value Gains.................. 13
Note 8 - Reconciliation to Underlying Surplus / (Deficit)................... 14
Note 9 - Council Reserve Funds....................................................... 15
Comparison
of Rates on Example Properties
Comparison of Commercial Property Rates in the District................. 17
Comparison of Rural Rates in the District......................................... 18
Comparison of Urban Rates on Specific Properties in the District...... 19
Funding
Impact Statement
Introduction................................................................................... 21
Explanation of Rating Method......................................................... 22
Details of Targeted Rates Calculated within each District and
City..... 25
Funding Impact Statements for Groups of Activities........................ 31
HBRC’s
Charges
Resource Management Charges..................................................... 41
Building Act Charges....................................................................... 48
Maritime Transport and Navigation Charges.................................... 49
Other Information.......................................................................... 50
|
HBRC's
Financial Information
|
Attachment 4
|
Forecast Financial Statements
Introduction
The following
pages cover the forecast financial statements, notes and other financial
information required by clauses 18-22 of Schedule 10 to the Local Government
Act 2002 (LGA). The significant forecasting assumptions required for the
LTP by clause of 17 of Schedule 10 to the LGA are also included.
These financial
statements, notes and other financial information comply with PBE FRS 42,
“Prospective Financial Statements”.
As required by
section 100(1) of the LGA, HBRC has ensured that each year’s projected
operating revenues are set at a level sufficient to meet that year’s
projected operating expenses.
The Nature of
Prospective Information Presented
The prospective
financial information has been presented to comply with the requirements of
sections 95 of the LGA in relation to the LTP covering the ten consecutive
periods beginning on 1 July 2015. The statements and information may not
be appropriate for purposes other than those disclosed above.
The prospective
information presented is based on the best information that could reasonably be
expected to be available at the time of preparation. While every care has
been taken in the preparation of the prospective financial information
presented, the actual results are likely to vary from the information presented
and the variations may be material.
Authorisation
and Responsibility
The prospective
financial information presented was authorised for issue by HBRC on 25 March
2015.
HBRC Councillors
and management accept responsibility for the prospective financial information
presented including the appropriateness of the assumptions underlying the
information and all other disclosures.
Other
Disclosures
There is no
intention to update the prospective financial information presented after the
approval of the LTP on 24 June 2015.
Actual financial
results have been used for the 2013-14 Annual Report comparatives and as a
basis for the assumption process.
Comparative
Information Linkages
The Prospective
Statement of Changes in Equity and Prospective Cash Flow Statement closing
positions for 2012-13 do not link to opening positions for 2013-14. This
is because the 2013-14 Annual Plan prospective financial statements were
finalised before the 2012-13 Annual Report.
The 2014-15
forecast opening positions are based on the 2012-13 Annual Report closing
positions after adjusting for the 2013-14 Annual Plan forecast results and cash
flows.
|
HBRC's
Financial Information
|
Attachment 4
|
Prospective Statement of Comprehensive Revenue and Expense
Prospective
Statement of Changes in Net Assets / Equity
Prospective Statement of Financial Position
Prospective
Cash Flow Statement
|
HBRC's
Financial Information
|
Attachment 4
|
Note 1 – Activity Revenue and Expenditure
Notes 2 and 3
– Rates and Other Revenue
Note 4(a)
– External Debt and Interest Expense
Note 4(b)
– Internal Debt and Interest Expense
Note 5 – Depreciation and Amortisation
Notes 6 &
7 – Reserve Movements and Fair Value Gains
Note 8 –
Reconciliation to Underlying Surplus / (Deficit)
Note 9 –
Council Reserve Funds
|
HBRC's
Financial Information
|
Attachment 4
|
Comparison of
Commercial Property Rates in the District
Comparison of Rural Rates in the District
Comparison of Urban Rates on Specific Properties in the District
Comparison of Urban Rates on Specific
Properties in the District
|
HBRC's
Financial Information
|
Attachment 4
|
Introduction
This Funding
Impact Statement sets out the impact that the Hawke’s Bay Regional
Council's Revenue and Financing Policy has on ratepayers.
The Revenue and
Financing Policy clearly identifies beneficiaries of HBRC activities paying for
the cost of those activities by target rates or direct charges, whichever is
the most efficient administratively.
Public benefit
is funded through a combination of investment income and general rates. Private
benefit is funded through targeted rates and/or direct charges.
At various
points of the Funding Impact Statement, a level of rates or charges is
specified. These indicative figures are included to give ratepayers an estimate
of what their level of rates is likely to be in the current year. These figures
may not be the actual level of rates that will be assessed in the coming year
because the actual figure will not be known until the Council’s rating
information database is finalised.
All the
estimated rates and levels of rates included in this statement are GST inclusive.
There is no
provision for the payment of rates from lump sum contributions, except for the
early repayment of Clean Heat loans.
Due dates for
payment of rates
The rates are
due and payable on or after 1 October 2015. Pursuant to Section 57 of the Local
Government (Ratine) Act 2002, a penalty charge of 10% will be imposed on the
current rates remaining unpaid as at 1 February 2016.
When a fixed
amount is set for each property, whether it be a Uniform Annual General Charge
(UAGC) for general funding rates or a Uniform Annual Charge (UAC) for Targeted
Rates, then a fixed amount is charged for each separately used or inhabited
part of a rating unit. Therefore, units in a rest home, retail shops in a
shopping complex, and additional farm houses are charged with separate UAGCs or
UACs.
Where two or
more rating units are contiguously joined, owned by the same ratepayer and used
for the same purpose, or a Farm property with separately titled paddocks, then
only one UAGC or UAC will be payable. The only
exception is for the UAC covering the economic development rate which is set on
each rateable property.
HBRC’s
contention is that this mix of rating bases better reflects the benefits
delivered to the general community while addressing some of the rate level
volatility experienced by those ratepayers in the community whose land values
have increased by more than the average.
HBRC directly
collects rates for all rating units contained within its boundaries and where
specific rates are set across District/City boundaries on a value basis, then
the rates are set on Estimate of Projected Valuation (equalisation) which
recognises annual movement of values across the region for each territorial
authority.
Section 21 of the Local
Government (Rating) Act 2002 requires that Uniform Annual General Charges and
targeted rates set on a uniform basis are not to exceed 30% of the total
revenue from all rates sought by Hawke’s Bay Regional Council (HBRC) for
the budgeted year. The rates making up this category amount to 23.68% of
Council’s total rates in 2015-16 and are therefore within the limits
prescribed by the Act. All years of the 10 Year Plan are within the
prescribed limit set down by the Act.
Inspection and objection to HBRC's Rating Information Database
The Rating Information
Database (RID) is available for inspection at HBRC offices at 159 Dalton Street
Napier and on Council’s website www.hbrc.govt.nz. Ratepayers have the
right to inspect the RID records and can object to their rating liability on
the grounds set out in the Local Government (Rating) Act 2002.
|
HBRC's
Financial Information
|
Attachment 4
|
|
Continued: Explanation of Rating
Method
|
|
|
Types
of Rates
|
Groups of Activities Funded
|
Types of land to be Rated
(Local Government (Rating) Act, Schedule 2)
|
Basis of Rating
(Local Govt (Rating) Act, Schedule 3)
|
|
Economic Development Rate
|
To fund economic and tourism development in the region
|
30% of the total rates are funded by the Commercial/Industrial
Rating Units based on the Capital Value.
The remaining 70% is collected from residential and rural Rating
Units as a Uniform Annual Charge.
The Wairoa District ratepayers’ contribution is limited to
5% of the total rate.
|
Capital Value
Fixed Amount (Refer to Note 2)
|
|
Emergency Management
|
Funding of the Hawke’s Bay Civil Defence Emergency
Management (CDEM) Group Office to manage the provision of effective CDEM
consistent with the CDEM Act 2002
|
All Rating
Units in the region with the exception of Rangitikei and Taupo districts
|
Fixed Amount (Refer
to Note 1)
|
Note 1: A Uniform Annual General Charge (UAGC) or Uniform Annual Charge
(UAC) is set on each separately used or inhabited part of a rating unit within
the region.
Note 2: A Uniform Annual Charge (UAC) on each rateable property.
|
HBRC's
Financial Information
|
Attachment 4
|
Details of
Targeted Rates Calculated within each District and City
Details of Targeted Rates Calculated within each District and
City
Details of Targeted Rates Calculated within
each District and City
Details of Targeted Rates Calculated within each District and
City
Details of Targeted Rates Calculated within each District and
City
Details of Targeted Rates Calculated within each District and
City
|
HBRC's
Financial Information
|
Attachment 4
|
Local Government (Financial Reporting) Regulations
The
following information is presented for compliance with Local Government
(Financial Reporting) Regulations 2011. In accordance with the
regulations, the information presented is incomplete (in particular, the
information presented does not include depreciation and internal transactions
such as overheads) and it is not prepared in compliance with generally accepted
accounting practice. It should not be relied upon for any other purpose
than compliance with the Local Government (Financial Reporting) Regulations
2011.
HBRC Funding Impact Statement
Funding Impact Statement: Strategic Planning
Funding Impact Statement: Land Drainage and River Control
Funding Impact Statement: Regional
Resources
Funding Impact Statement: Regulation
Funding Impact Statement: Biosecurity and Biodiversity
Funding Impact Statement: Emergency Management
Funding Impact Statement: Transport
Funding Impact Statement: Governance, Community Engagement
and Services
|
HBRC's
Financial Information
|
Attachment 4
|
Resource Management Charges
Section 36 of
the Resource Management Act (RMA) enables local authorities to allocate fixed
charges for various administrative and monitoring activities to specific
resource users. These fixed charges can either be specific amounts or
determined by charging scales.
There are five
types of resource management charges and they relate to:
· consent applications
· compliance and monitoring
· zone based water management
· gravel extraction
· contaminated sites
1. Charges
Relating to Resource Consent Applications
(Other than
non-notified gravel extraction applications)
Charges for
receiving, processing and deciding on applications for:
• resource
consents
• certificates
of compliance
• changes
to, cancellation of, or review of resource consent conditions
• transfers
of resource consent
and are
comprised of a fixed charge payable in advance (a deposit) and an additional
charge payable once the application has been decided. An additional fixed
charge will be required before notification, and the start of a hearing, if the
application requires these processes.
Fixed Charges for Processing Resource Consent Applications
Tables 1 and 1a
set out the fixed charges payable for processing resource consent applications.
These fees are charged in accordance with Section 36(1)b of the RMA.
Table 1: Fixed charges payable for processing resource consent
applications
(other than Non-notified Gravel Extraction Applications - see Table 3
page 57)
|
|
Item
|
Initial
Fixed Fee - Payable upon Lodgment (excl GST)
|
Additional Charge - Payable subsequent to processing
|
|
Land use application
for bore permit
Other consent
applications (where 3 or more bores are to be drilled for the same purpose on
the same site (or in close proximity) an application can be made for a bore
field consent with a deposit of $1000)2
|
$180
$1000
|
N/A
Based on
actual and reasonable costs1
|
|
Minor administrative changes or
cancellations of consent conditions
|
$200
|
N/A
|
|
Other changes or cancellations of consent
conditions
|
$500
|
Based on actual and reasonable costs1
|
|
Review of conditions as specified in
resource consents
|
$320
|
Based on actual and reasonable
costs1
|
|
Transfer a consent to another site
|
$400
|
Based on actual and reasonable costs 1
|
|
Extensions to lapsed dates for land use
consents and onsite domestic waste water, less than 2m3 a day
|
$100
|
N/A
|
|
Extensions to lapsed dates
|
$200
|
Based on actual and reasonable costs1
|
|
Transfer of resource consent (1 only,
with transfer form completed and signed) to a new owner/occupier
|
$85
|
Based on actual and reasonable costs
for non-standard process1
|
|
Transfer of resource consent (2 or
more, with transfer form completed and signed) to a new owner/occupier, or
change of name
|
$110
|
Based on actual and reasonable
costs for non-standard process1
|
Section 36(7) of
the RMA specifies that where a fixed charge has not been paid, Hawke’s
Bay Regional Council HBRC need not perform the action to which the charge
relates until it has been paid in full. HBRC can suspend processing an
application until a fixed charge has been paid.
Table 1 Continued:
Fixed
charges payable for processing resource consent Applications
(other
than Non-notified Gravel Extraction Applications - see Table 3 page 57)
|
|
Item
|
Initial
Fixed Fee - Payable upon Lodgment (excl GST)
|
Additional Charge - Payable
subsequent to processing
|
|
Certificate of compliance:
Bore sealing
Other
|
no charge
$300
|
N/A
Based on actual
& reasonable costs1
|
|
On-site wastewater system where the
application is made in conjunction with an accredited designer on a low risk
site
|
$260
|
N/A
|
|
Renewal of Category 1 domestic
on-site wastewater consents (with a good compliance history, and a verified
history of complete wastewater system maintenance servicing by an accredited
installer/service agent).
|
$260
|
Based on actual and reasonable costs1
|
|
Renewal of all other (Category 2)
domestic on-site wastewater consents.
|
$260
|
Based on actual and reasonable costs1
|
|
Confirmation of domestic on-site
wastewater Permitted Activity status
|
$131.25
|
N/A
|
|
Table 1a: Fixed Charges for
Resource Consent Applications Requiring Notification or a Hearing
|
|
Application Type
|
Type of Fixed Fee (excl GST)
|
Additional Charge – Payable subsequent to processing
|
|
Initial
Fixed Fee
|
Fixed Fee: Payable upon notification
|
Fixed fee: Payable 5 days before hearing
|
|
Individual resource consent
application (including applications for ancillary activities)
|
$1000
|
$5000
|
$5000
|
Based on actual and reasonable costs1
|
|
Application processed as part of a
catchment wide replacement process
|
$1000
|
$1500
|
$1500
|
Based on actual and reasonable costs3
|
|
Request for Independent
Commissioner under s 100A
|
Fixed fee payable on
requesting a Commissioner
|
Additional Charge -
Payable subsequent to processing
|
|
Fixed fee payable on
requesting an independent commissioner
|
$3000
per commissioner
|
Based on actual and
reasonable costs1 of additional cost incurred as a result of using
an independent commissioner
|
Note
1: Actual and Reasonable Costs include time
spent by staff in receiving, processing and deciding on the applications,
hearing costs and any external disbursements (which shall include any external
expert advice from consultants at cost). Staff costs shall be calculated
by multiplying the actual hours involved in receiving, processing and granting
a consent by the hourly rates for the staff involved and adding any actual
disbursements (as in Table 6); and adding any hearing costs and any costs of
consultants and commissioned reports; and then subtracting the fixed charge
that was paid in advance and any renewal fees that have been paid in
advance. The total calculated amount shall then, if necessary, be
adjusted to reflect HBRC’s actual and reasonable costs having regard to
the factors referred to in section 36(4) of the RMA and any relevant discounts.
(This does not apply to applications which are not subject to additional
charges or refunds).
Note 2:
Where a bore field consent is issued for 3 or more bores, bore
inspection and compliance administration shall be carried out at an hourly $97
per hour.
Note 3:
Where an activity requires multiple ancillary consents, and the application
will be processed in a bundle, HBRC may require payment of only one initial
fixed fee (deposit). The deposit shall be equal to the highest deposit required
for any of the applications required, as per Table 1.
|
HBRC's Financial Information
|
Attachment 4
|
Additional
Resource Consent Charges
In addition to these
fixed charges, in most cases additional charges will be payable subsequent to
processing, in accordance with Section 36(3) of the RMA.
Refunds
Except for
applications for bore permits, minor administrative changes or cancellations,
and certificates of compliance, a portion of the charge as set out in Tables 1
and 1a will be remitted if the actual cost of receiving, processing and
deciding on the application is less than that already paid.
Hearings
HBRC is
conscious of the cost that can be incurred by applicants when a resource
consent application goes to a hearing. Therefore, the HBRC Hearings Committee
will carefully assess the number of members who will participate in each
hearing. The numbers involved in a hearing panel will usually range from three
to a maximum of five. Where a hearing is required, the following charges shall
be payable by the applicant, except for those costs incurred under s100A of the
RMA:
· actual meeting fee allowances at the rate approved by the
Remuneration Authority, which is currently $80.00 an hour for each committee
member other than the chairman who is paid $100.00 an hour, for each of the
elected and tangata whenua appointed Committee members participating in the
hearing (a six hour hearing with a hearing panel of three members would,
therefore, incur meeting fee allowances for the hearing of $1,560);
· actual mileage for committee members travelling to and from the
hearing at the rate approved by the Remuneration Authority which is currently
74¢ a kilometre;
· actual accommodation costs where it is cheaper for a committee
member to stay overnight rather than return home;
· actual meeting fee allowances for each of the committee members
attending and participating in a formal site inspection, or any meeting
subsequent to the hearing for formal deliberations;
· mileage and accommodation costs associated with any formal site
inspection or deliberation meetings;
· actual costs (including disbursements) of any commissioner
appointed by the Minister of Conservation’s representative;
· the actual cost of staff attendance at a hearing (typically the
Reporting Officer, hearings administrator, decision writer, relevant technical
officers, and the Manager Consents or the Group Manager Resource Management);
· the costs associated with the use of an independent hearing
commissioner where the use of a commissioner has been occasioned1 by
the application. The apportionment of costs when an independent hearing
commissioner is requested by an applicant and/or submitters is noted below.
Independent hearing commissioner costs will be calculated on an actual and
reasonable basis and include fees for disbursements, reading the application
material, site visit, hearing attendance, deliberations and drafting the
decision.
· the costs for photocopying, hall hire, catering (for the Panel and
Decision Writer), and any administration services relating to hearings and
deliberations will be recovered from the applicant on a case-by-case basis.
Independent
Hearing Commissioners (s100A)
Applicants
and/or submitters now have the ability to request that independent
commissioners hear and decide publicly or limited notified applications. If an
applicant makes the request, he or she is responsible for paying all costs
associated with the use of the independent commissioner (as noted above). In
accordance with s36(1)(ab), if one or more submitters requests an independent
commissioner (and the applicant does not), those submitters are responsible for
paying the extra costs incurred as a result of an independent commissioner
being used (compared with the cost of using an elected member).
If a request is
made for an independent commissioner, a fixed charge of $3000 a commissioner
shall be paid at the time of the request. The actual and reasonable costs of
the commissioner will also be charged as an additional charge in accordance
with Section 36(3) of the RMA. HBRC decides which accredited independent
commissioner(s) will be appointed to the hearing panel.
Hearing Decision Writers
The following
charges shall be payable by the applicant except for those costs incurred under
s 100A of the RMA:
· The cost of the decision writer to attend the hearing and
deliberations, and the decision writing time.
o Where the decision writer is an independent commissioner sitting
as a panel member, the commissioner’s time to attend the hearing,
deliberate and write the decision will be charged at actual cost.
· Where an independent consultant is engaged as the decision writer
their time to attend the hearing and deliberations, and to write the decision
will be charged at the same rate as if a HBRC senior consent planner were
undertaking the work.
Charging for Consultants
· Where the use of consultants is required to provide particular
technical input to the consent process the applicant will be responsible for
the actual costs charged by the consultant.
Contribution to the costs of Commissioning
Reports in accordance with Section 92(2)
HBRC may, from
time to time, commission reports in accordance with Section 92(2) of the RMA,
to determine the cumulative effects of an activity according to resource
consent applications. Where the activity meets the following criteria, the HBRC
may contribute to the costs of preparing the report to a maximum of 25%, up to
a maximum of $5000.
The HBRC’s
contribution is at the discretion of the Group Manager, Resource Management,
and the following criteria must be met for a discount to be considered:
· The commissioned report must directly inform a plan change that
the HBRC has committed to in the applicable Long Term Council Community Plan,
and/or
· The commissioned report must develop a method, or provide
information that is applicable to sites beyond the immediate scope of the
application, and
· The commissioned report must contain information that is of
benefit to the regional community as a whole.
2. Charges to Holders of
Resource Consents for Compliance and Impact Monitoring
Charges for the
monitoring, administration and supervision of resource consents have been
determined based on an estimate of the time for carrying out the inspection/s,
assessment, reporting and administration associated with that monitoring.
Basic Charge
Consent holders
whose consents require no more than a single annual inspection, and/or
information return, and/or a single sampling undertaken by HBRC staff at the
same time as the inspection will be charged as in Table 2. Table 2 does not
include water takes with a water measuring device. Consent holders should check
the conditions of the consent to determine whether sampling, water use or other
information is required.
These charges
are invoiced after inspection for one-off inspections, or at the end of the
financial year for the consents that either have more than one inspection or
ongoing monitoring throughout the year.
|
Table 2: Monitoring Task (excluding water takes with water measuring
device)
|
Fixed
Basic Annual Charge (Excl GST)
|
|
Inspection and associated reporting and
administration
|
$340
|
|
Inspection and associated reporting and
administration of unmetered water takes
|
$263
|
|
Additional inspection, reporting and
administration charges where a resource consent authorises groundwater takes
from more than two wells
|
$62 - each additional well over 2.
|
|
Additional inspection, reporting and
administration charges where additional consents under the same ownership and
invoiced collectively, within 5km of each other, and able to be inspected on
the same day
|
$206 - each additional consent.
|
|
Sampling time (sampling analysis will be at
cost – see Table 4)
|
$97
|
|
Other information returns
|
$97
|
An additional
charge will only be made to consent holders whose consents fall under the
description for the basic charge, where extra compliance monitoring is required
as a result of non-compliance with consent conditions or where extra time is
spent following up suspected non-compliance where a consent holder has not
supplied sufficient information to demonstrate compliance.
Water Measuring Device Charges
Charges to
holders of resource consents to take water which require a water measuring
device.
|
Table 2a: Monitoring Water Measuring Devices
|
Annual
Charge (Excl GST)
|
|
Sampling time (sampling analysis will be at
cost – see Table 4)
|
$97
|
|
Water use returns
& Audits – Telemetered, Web/Text entry
Each additional
water measuring device
|
$200
$ 30
|
|
Water use returns
& Audits – Fax/Email/Standard Mail
Each additional
water measuring device
|
$242
$ 66
|
|
Where water measuring devices do not meet
HBRC’s approved devices criteria or are not installed by an approved installer,
a full compliance audit will be undertaken.
|
$340
|
|
Non exercised consent
|
$ 92
|
An additional
charge will only be made where extra compliance monitoring is required as a
result of non-compliance with consent conditions or where water takes require
additional monitoring or data returns over and above water use returns.
Actual and Reasonable Charge
Consent holders
whose consents are subject to more than a single inspection a year and/or are
subject to specific conditions, will be subject to the basic charge for the
first inspection plus an additional charge based on the actual and reasonable
costs to undertake the total annual monitoring activity.
For new
consents, the consent holder will be advised of the likely annual monitoring
costs when the consent is issued; thereafter the previous year’s
monitoring costs will act as an indication of monitoring costs.
Additional Charges for Compliance Monitoring
Where an
additional charge is to be made, this shall be calculated by multiplying the
actual hours involved in undertaking monitoring of the consent by the hourly
rate for the staff involved and adding any actual disbursements (as in Table
4). The total calculated shall then, if necessary, be adjusted to reflect
HBRC's actual and reasonable costs having regard to the factors referred to in
section 36(4) of the RMA.
Incentives for Full Compliance
When a consent
holder consistently achieves full compliance (a Grade 1 in two consecutive
years) the frequency of on-site monitoring may be reduced. An annual inspection
may reduce to once every two years or more if the scale of the activity and
continued compliance warrants it. Quarterly inspections may reduce to six
monthly inspections. The reduction in frequency will be at the discretion of
the Manager of Resource Use. Random inspections may be undertaken at no cost to
the consent holder to ensure continued compliance during the intervening
period.
Monitoring of Domestic On-site Wastewater Treatment Systems
Charges
Consent holders
with an on-site wastewater treatment system type that is not on the
HBRC’s Accredited Manufacturer list, and who do not have that system
installed and serviced by a person or company on the Accredited Installer and
Service Agent list will be subject to an annual monitoring cost of $340.
Consent holders
with an on-site wastewater treatment system type that is on the HBRC’s
accredited list and is installed and maintained by an accredited
installer/service person or company will not be subject to routine compliance
inspection fees.
Charges to holders of Resource Consents for
Low Flow Monitoring
For holders of
consents to take water where the abstraction is subject to low flow limits
(directly or via gallery intake or wells), the cost of monitoring the low flows
will be recovered for each water take subject to low flow restrictions:
· A charge of $100 each primary consent (excl GST)
· Where there are zero to nine water measuring devices an additional
charge of $75 (excl GST) for each additional meter
· Should the fixed charges not cover the actual and reasonable costs
associated with the low flow monitoring programme an additional charge can be
added to all consents subject to the low flow charge to recover the actual and
reasonable costs incurred.
3. Charges to holders of
Resource Consents for Freshwater Management Research/Investigations and
Monitoring (Zone Based Water Science Charges)
HBRC policy is
to recover 35% of the total costs of investigation and monitoring of freshwater
resources from holders of resource consents to take or dam water, or to discharge
into water or onto land that may enter water. This recognises that while all
residents of the region receive benefits from the sustainable management of our
freshwater resources, resource users receive greater benefits than other land
owners.
As part of the
2010/11 Annual Plan development the HBRC consulted on the proposed charging
with all current consent holders.
Allocation of Charges
The costs
attributed under this charge are derived from the water investigation and
monitoring projects with a proposed total cost to be recovered from consent
holders of $1,325,000 excl GST in 2014/15. HBRC has agreed to directly
subsidise $87,000 from the HBRC’s Sale of Land (non-investment account).
This subsidy ($87,000) will be available up to 2014/15.
Costs are recovered
from consent holders using a zone based approach. Twenty per cent of the costs
will be charged as a fixed portion and
distributed uniformly among all current consent holders. The remaining
80% of the costs are separately attributed to the five major categories of
relevant consent holders (surface water takes, groundwater takes, (stream
depleting – hybrid SW/GW), hydro water takes, discharges to water, or
discharges to land). Charges are weighted against individual allocated volume m3
for water takes, and a pollution index score for discharge consents.
Charges are
weighted against consented volumes not actual use, non-exercised/partially
exercised consents do not receive dispensation. HBRC will be excluded from
these charges.
The pollution
index score for each discharge subtype will be reviewed yearly and performed by
a suitably qualified scientist.
Charges are
struck against the current consent holder at the time of invoicing, no yearly
apportioning will apply. Charges lie where they fall. Charges are payable by
the date specified on the invoice, the 2 to 5 year payment plan trialled in
2011/12 is not offered due to the low take up rate.
Domestic onsite
wastewater consents from a single domestic dwelling are excluded from the
charging. A 25% discount is struck against the irrigation component of dam fill
consents.
4. Charges for Gravel
Extraction Land Use Consents
Charges for
Non-notified Applications
A charge payable
in advance for receiving, processing and deciding on non-notified land use
consent applications to extract gravel:
· 0-50 cubic metres $20
· 50 cubic metres and over $80
(For charges for
notified gravel extraction land use consents, see Table 1 and associated text.)
Compliance Monitoring, Administration Charges and Financial
Contributions
Compliance
monitoring, administration charges and financial contributions are based on the
volume of gravel extracted; the source of the gravel; and its quality. The
categories include:
· inferior grade material (as determined by HBRC staff)
· material extracted from above the confluence of the Tukipo and
Mangaonuku River tributaries of the Tukituki and Waipawa rivers (Upper Tukituki
catchment)
· all other material.
The financial
contribution is established in the Regional Resource Management Plan under
Section 108 of the Resource Management Act 1991.
Table 3: Gravel
Extraction Charges based on $ per Cubic Metre Extracted per annum (Excluding
GST)
|
|
|
State of Environment Monitoring Charge (S35 of RMA)
|
Compliance / Allocation Charge
(S36 of RMA)
|
Financial Contribution (S108 of RMA)
|
Total
|
|
Upper
Tukituki catchment
|
No
charge
|
$0.20
|
No
charge
|
$0.20
|
|
Inferior
grade
|
$0.12
|
No
charge
|
$0.08
|
$0.20
|
|
All
Other
|
$0.12
|
$0.60
|
$0.08
|
$0.80
|
Resource consent
charges for gravel extraction are due and payable monthly on the same day as
extraction declarations.
5. Charges Relating to
Contaminated Site Management
These charges
are set in accordance with section 150 of the Local Government Act 2002.
|
Where a party
requests information about the ‘contaminated site’ status of a
property
|
A charge of $200
An additional charge
based on actual and reasonable costs may apply if a site inspection is
required
|
|
Where a party
requests HBRC review and comment on contaminated site investigation and
remediation reports
|
Actual and
reasonable charges will apply
|
|
Where a party requests
more extensive involvement of HBRC staff
|
A charge based on
the actual and reasonable costs of staff time incurred
|
|
HBRC's Financial Information
|
Attachment 4
|
Building Act Charges
The processing
of building consents for dams and issuing of project information memoranda
(PIMs) for dams and administering dam safety regulations are new statutory
functions for the HBRC under the Building Act (2004) and its amendments. Dam
safety regulations become operative on 1 July 2010. Amounts stated for Building
Act charges below are exclusive of GST.
PIM costs
A fixed charge
(deposit) is payable in advance, and an additional charge may be payable once
the application has been decided. The fixed charge for this is listed in Table
3a.
Building
Consent Costs
This function
has been transferred to Waikato Regional Council. The transfer agreement
specifies that Building Consent costs will be recovered on an actual and
reasonable basis, with hourly rates and fixed charges from Waikato Regional
Council. These charges are set and recovered directly by Waikato Regional
Council. Any HBRC processing costs not associated with the Building Act will be
charged as specified in Table 1 under Resource Management Charges.
Certificate of
Acceptance Costs
This function is
retained by HBRC, but Waikato Regional Council will provide technical advice
into the process. A fixed charge (deposit) is payable in advance, and an
additional charge may be payable once the application has been decided. The
fixed charge for this is listed in Table 4.
Department of
Building and Housing and Building Research Authority of New Zealand Levies
Department of
Building and Housing (DBH) and Building Research Authority of New Zealand
(BRANZ) levies were required by regulation on 1 March 2008. These levies may
change in accordance with amendments made to regulations. The Hawke’s Bay
Regional Council (HBRC) is required to collect and pay DBH and BRANZ levies as
regulated for all Building Consent Applications and Certificate of Acceptance
Applications.
The following
fees apply to all building work with an estimated value greater than $20,000 -
DBH levy – $1.97 for every $1000 (or part of $1000) of the estimated
value of the building work. BRANZ levy – $1.00 for every $1000 (or part
of $1000) of the estimated value of the building work.
Additional
Building Act Charges
Where an
additional charge is to be made, the charge will be recovered on an actual and
reasonable basis. This shall be calculated by multiplying the actual hours
involved in undertaking monitoring of the application by the hourly rate for
the staff involved and adding any actual disbursements (as in Table 4).
An additional
charge will apply to:
· all PIMs, Certificate of Acceptance Applications, and Amendment to
a Compliance Schedule applications when the fixed charge does not cover the
costs of processing.
· all other unspecified Building Act duties that deal with its
application, processing or compliance, and are attributable directly to a dam.
These charges are payable by the owner of a dam.
|
Table 4: Fixed Charges for Building Act Applications (Excluding
GST)
|
|
Item
|
PIM
|
Certificate of Acceptance
|
Amendment to Compliance Schedule
|
|
Large Dam
(above $100,000 value)
|
$1000
|
$4000
|
$1000
|
|
Medium Dam
($20,000 to <$100,000 value)
|
$750
|
$2000
|
$1000
|
|
Small Dam
($0 to <$20,000 value)
|
$500
|
$500
|
$1000
|
|
HBRC's Financial Information
|
Attachment 4
|
Maritime Transport & Navigation Charges
Standard Charges under the Maritime Transport Act 1994 - Marine
Tier 1 Oil Transfer Sites
Maritime Rule
Part 130B requires that the operator of an oil transfer site obtain the
approval for a site marine oil spill contingency plan from the Director of
Maritime New Zealand. The power to approve these plans has been delegated by
the Director to the Chief Executive (sub-delegated to HBRC regional On Scene
Commanders) of HBRC in an Instrument of Delegation pursuant to Section 444(2)
of the Maritime Transport Act 1994. Section 444(12) of the Maritime Transport
Act 1994 allows HBRC to charge a person a reasonable fee for:
· Approving Tier 1 site marine oil spill contingency plans and any
subsequent amendments
· Inspecting Tier 1 sites and any subsequent action taken thereafter
in respect of preparation of inspection reports or reporting on non-conformance
issues.
Tier 1 Site
operators shall be charged a basic charge of $291 per Tier 1 Marine Oil Spill
Contingency Plan approval. Where the cost incurred by HBRC when approving a
contingency plan is greater than $350, the Tier 1 Site operator will be charged
the actual and reasonable cost.
Inspecting Tier
1 sites, auditing response exercises and subsequent follow up reports and
corrective actions shall be charged the actual and reasonable cost of the
required work.
Actual and
reasonable charges shall be calculated using the hourly rates listed in Charge
Rates section, Table 6 Page 60.
Navigation and
Safety By-laws Charges
The Local
Government Act enables HBRC to charge for various functions it undertakes in
accordance with the Navigation and Safety By-laws.
A fixed charge
of $145 will be charged to all vessels requiring a hot-work permit to be issued
outside the hours of 8am – 4pm on a normal working day.
Internal and external costs incurred responding to breaches of
Navigation and Safety By-laws, securing of vessels, responding to unseaworthy
vessels or sinking vessels, and other tasks required to be undertaken to ensure
safe navigation can be maintained, shall be charged actual and reasonable costs
(Table 5) to the master, owner or person who caused the cost to be incurred.
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Table
5: Navigation and Safety
Charges
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|
Licence
Type
Vessels
not Under Safe Ship Management
|
Annual Charge Payable in Advance (Excluding GST)
|
|
Passenger Vessel Licence
– Passenger Vessel
Owner’s Licence
– Passenger Vessel Licence (per
vessel)
|
$70.00
$40.00
|
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Hireboat Licence
– Hireboat Owner’s
licence
|
$70
|
|
Hireboat Licence (per craft)
– Kayak
– Windsurfer
– Rowing boat
– Sail boat
– Jetski
– Powerboat
|
$6.00
$7.00
$10.00
$20.00
$20.00
$40.00
|
|
Pilot-exemption
Recommendations/Revalidation
– Overall Vessel Length less
than 65 metres
Overall
Vessel Length between 65 and 125 metres
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$200.00
$300.00
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Applications for Suspension or
Exemptions under Bylaw 5.1
Public Notification
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Actual Advertising Costs
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HBRC's
Financial Information
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Attachment 4
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Charges for the Preparation of, or Change to the Regional Policy
Statement or a Regional Plan
Applicants for
the preparation of or change to the Regional Policy Statement or any regional
plan will be subject to the following fixed charge payable in advance: $1000
(excl GST).
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Table 6: Charge rates (excl. GST) for the purpose of calculating
actual costs per hour
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Item
|
Per Hour
|
|
Executive
|
$127
|
|
Asset Management
|
$ 95
|
|
Environmental Science
|
$ 96
|
|
Strategic Direction
|
$ 97
|
|
Environmental Regulation
Resource consent
processing
Resource consent
administration
Compliance/impact
monitoring of consents and Approving, monitoring & auditing of Tier 1
Marine Oil Spill Contingency Plans and monitoring of Resource Management Act
regulations.
Client Services
Water Information
Services
|
$128
$ 87
$110
$ 87
$ 82
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Environmental Information
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$ 75
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Land Management
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$ 87
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Disbursement costs shall be charged
at the rates set out below:
Accommodation
Public notification
Photocopying
External laboratory
testing
Consultant fees
|
$150 a night per
person
Actual advertising
costs
20c per A4 page
B&W
40c per A4
page colour
30c per A3
page B&W
70c per A2
page B&W
actual cost
actual cost
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If the
actual costs incurred by HBRC in preparing, varying or changing the Regional
Policy Statement or any regional plan exceed the charge payable in advance,
then these costs may be recovered by way of an additional charge. The
additional charge shall be based on actual costs as calculated by multiplying
the actual hours involved in preparing or changing the Regional Policy
Statement or any regional plan by the hourly rates for staff involved (see
Table 6), adding any actual disbursements (see Table 6) and subtracting the
charge referred to above. The total calculated amount shall then, if necessary,
be adjusted to reflect HBRC's actual and reasonable costs having regard to the
factors referred to in section 36(4) of the Maritime Transport Act 1994 (MTA).
An additional charge is levied under subsection 36(3) of the MTA. Such charges
are subject to objection and appeal under section 36(6) of the MTA.
Charges for
the Provision of Information
The Regional
Council (HBRC) shall charge for the provision of information in respect of the
Regional Policy Statement, regional plans and resource consents as follows.
· The first hour of time spent actioning a request for information
on each or any occasion relating to the same general matter or issue arising
from the Regional Policy Statement, regional plans or resource consents shall
be provided free of charge.
· HBRC reserves its rights under section 13 of the Local Government
Official Information and Meetings Act 1987 (LGOIMA) to charge for the provision
of information above one hour. HBRC delegates the decision for treating
requests made by the same person and in quick succession as one request, to the
Chief Executive.
· In accordance with the LGOIMA, HBRC does not consider requests for
explanations in its definition of information requests.
· Staff time spent actioning any request over and above the time
provided free of charge shall be charged at the rates set out in Table 4. HBRC
may also choose to require payment in advance.
· The first 20 pages of black and white photocopying on standard A4
or A3 paper shall be provided free of charge.
· Where the total number of pages of photocopying is in excess of 20
then the rates set out in Table 6 will apply.
Other
Information
Charges by the
Crown
HBRC is
responsible for collecting the following Crown fees, rents and royalties in
addition to its charges:
In the Coastal
Marine Area:
· Restricted coastal activity application fees as specified;
· Extraction of sand and gravel - $1.51 excluding GST per cubic
metre royalty;
· Rent for the occupation of land from the Crown;
· Geothermal royalties.
Due Dates for Payment
· Charges payable in advance for consent applications are due on the
filing of an application.
· Charges payable for photocopying of less than $20 are due on
collection of the copies.
· All other charges will be due and payable on the 20th of the month
following date of the invoice.
Cost of Debt
Recovery
All debt collection
costs incurred by HBRC in relation to the activities covered in section 4.7
shall be borne as a debt by the party whose actions caused the initial charge.
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HBRC's 2015-25 Policies
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Attachment 5
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HBRC’s Policies
|
HBRC's
2015-25 Policies
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Attachment 5
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Contents
Summary of Significant
Accounting Policies Page
1
Significant Forecasting
Assumptions Page
8
Investment Policy Page
20
Summary of Amendments to
Previous Policy................................ 19
Liability Management
Policy Page
28
Policies on Rates
Remission & Postponement Page
30
Maori Freehold Land.................................................................... 30
Remission in Special
Circumstances............................................... 31
Remission for Uniform
Annual General Charges (UAGC)................ 33
Postponement in Cases of
Financial Hardship or Natural
Disaster........................................................................................ 34
Revenue
and Financing Policy Page
35
Notes: Revenue and Financing Policy ........................................... 48
Significance
and Engagement Policy Page
55
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HBRC's
2015-25 Policies
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Attachment 5
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General Information
Reporting Entity
The Hawke's Bay
Regional Council (Council) is a regional local authority governed by the Local
Government Act 2002 and is domiciled in New Zealand.
Its primary
objective is to provide services and social benefits for the community rather
than make a financial return. Accordingly, Council has designated itself
as a Tier 1 public benefit entity under PBE IPSAS Accounting Standards.
The financial
statements are for the ten consecutive years beginning on 1 July 2015 and were
authorised for issue on 25 March 2015 by Council.
Basis of
Preparation
The financial
statements have been prepared in accordance with the Local Government Act 2002,
which includes the requirement to comply with New Zealand Generally Accepted
Accounting Practice (NZ GAAP).
Council has not
presented group prospective financial statements because it believes that
parent prospective financial statements are more relevant to users. The
main purpose of prospective financial statements in a Long Term Plan is to
provide users with information about the core services that Council intends to
provide to ratepayers and the expected cost of those services. And
consequentially how much Council needs by way of rates to fund the intended
levels of service. The level of rates funding required is not affected by
subsidiaries except to the extent that Council obtains distributions from, or
further invests in, those subsidiaries. Such effects are included in the
prospective financial statements.
These financial
statements have been prepared in accordance with NZ GAAP as appropriate for
public benefit entities adopting PBE IPSAS Accounting Standards and other
applicable New Zealand Financial Reporting Standards.
These
prospective financial statements comply with all of the requirements of PBE FRS
42.
There have been
no transitional provisions applied to these prospective financial statements
due to the new PBE reporting standards.
The statements
have been prepared under the historic cost convention, as modified by the
revaluation of land and buildings, infrastructure assets, hydrological
equipment, investment property, forestry assets and financial instruments.
The
Council’s functional currency is New Zealand dollars and the statements
have been presented in thousands of dollars ($’000) exclusive of New
Zealand Goods and Services Tax (GST) except for trade accounts payable and
receivable, which are stated at GST inclusive amounts.
Summary of
Significant Accounting Policies
The principal
accounting policies applied in the preparation of these prospective financial
statements are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated. There have
been no changes in accounting policies from the previous Annual Plan
1. Inventories
Inventories are
stated at the lower of cost (using the weighted average cost method) and net
realisable value.
2. Trade
Receivables
Trade
receivables are recognised initially at fair value and subsequently remeasured
each balance sheet date at amortised cost using the effective interest method
less provision for impairment.
3. Plant,
Property and Equipment
3.1
Operational Assets
Council land and
buildings are shown at fair value less subsequent accumulated depreciation,
based on periodic, but at least triennial, valuations by independent,
professionally qualified valuers.
Hydrological
equipment is shown at fair value less subsequent accumulated depreciation,
based on periodic, but at least triennial, valuations by suitably experienced
Council employees, on the basis of depreciated replacement cost.
Independent, professionally qualified valuers review all such valuations.
All other
operational assets are stated at historical cost less accumulated
depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
The costs of
assets constructed by Council include the cost of all materials used in
construction, direct labour on the project and an appropriate amount of
directly attributed costs. Costs cease to be capitalised as soon as the
asset is ready for productive use.
3.2 Infrastructure Assets
Infrastructure
assets are tangible assets that are necessary to fulfil the Council’s
obligations in respect of the Soil Conservation and Rivers Control Act 1941 and
the Drainage Act 1908. Such assets usually show some or all of the
following characteristics.
· They are part of a system or network that could not provide the
required level of service if one component was removed.
· They enable the Council to fulfil its obligations to the
region’s communities in respect of flood control and drainage
legislation.
· They are specialised in nature and do not have alternative uses.
· They are subject to constraints on removal.
Infrastructure
assets are shown at fair value less subsequent accumulated depreciation, based
on periodic, but at least triennial, valuations by suitably experienced Council
employees, on the basis of depreciated replacement cost. Independent,
professionally qualified valuers review all such valuations.
3.3 Subsequent Costs
Subsequent costs
are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Council or group and the cost can be
measured reliably. All other repairs and maintenance are charged to the
statement of comprehensive revenue and expense during the financial period in
which they are incurred.
3.4 Revaluation Adjustments
Increases in
carrying amounts arising from revalued assets are credited to revaluation
reserves in equity. Decreases that offset previous increases of the same
asset category are charged against revaluation reserves in equity. All
other decreases are charged to the statement of comprehensive revenue and
expense.
Any accumulated
depreciation at the date of revaluation is eliminated against the gross
carrying amount of the asset and the net amount is restated to the revalued
amount of the asset.
3.5 Other Adjustments
Gains and losses
on disposals are determined by comparing proceeds with the carrying
amount. These are included in the comprehensive income statement.
When revalued assets are sold, the amounts included in revaluation reserves are
transferred to the accumulated balance in equity.
4. Investment
Property
Investment
property is leasehold land in Napier and Wellington held to earn rental income
and for capital appreciation. Such property is initially recognised at
cost. At each balance sheet date investment property is measured at fair
value, representing open market value determined annually by independent,
professionally qualified valuers. A gain or loss in value is recorded in
the statement of comprehensive revenue and expense for the period in which it
arises.
5. Forestry
Crops
Forestry crops
are measured at their fair value less estimated point-of-sale costs each
balance sheet date by independent, professionally qualified valuers. Fair
value is determined by the present value of expected net cash flows discounted
by the current market-determined pre-tax rate. A gain or loss in value is
recorded in the statement of comprehensive revenue and expense for the period
in which it arises.
6. Financial
Assets
Financial assets
are designated at initial recognition into one of the four following categories
set out below depending on the purpose for which the financial asset was
acquired. At each balance date, all financial asset designations are
re-evaluated.
6.1 Financial Assets at Fair Value through Profit or Loss
Financial assets
are classified in this category if acquired principally for the purpose of
selling in the short term or are so designated by management. The
category includes derivatives and has two sub-categories: financial assets held
for trading, and those designated at fair value through the revenue and expense
at inception. Assets held in this category are classified as current
assets if they are either held for trading, or are expected to be realised
within 12 months of balance date.
Financial assets
in this category, including derivatives, are initially recognised at fair value
and are measured at each balance date at fair value. Realised and
unrealised gains or losses in value are recorded in statement of comprehensive
revenue and expense for the period in which they arise.
6.2 Loans and Receivables
Loans and
receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They are included in
non-current assets except when maturities are shorter than 12 months from
balance sheet date.
Financial assets
in this category are initially recognised at fair value plus transaction costs
that are directly attributable to their acquisition or use. At each
balance date these financial assets are measured at amortised cost using the
effective interest method. Realised and unrealised gains or losses in
value are recorded in the statement of comprehensive revenue and expense for
the period in which they arise.
6.3 Held-to-Maturity Investments
Held-to-maturity
investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities that management have a positive intention and
ability to hold to maturity.
Financial assets
in this category are initially recognised at fair value plus transaction costs
that are directly attributable to their acquisition or use. At each
balance date these financial assets are measured at amortised cost using the
effective interest method. Realised and unrealised gains or losses in
value are recorded in the statement of comprehensive revenue and expense for
the period in which they arise.
6.4 Available-for-Sale Assets
Available-for-sale
financial assets are non-derivative financial assets that are either designated
in this category or are not classified in any of the other categories.
They are included in non-current assets unless there is an intention to dispose
of the investment within 12 months of balance sheet date.
Available-for-sale
financial assets are carried at fair value using a quoted price if an active
market exists or using discounted valuation techniques if no active market
exists. Where the discounted valuation technique is used, valuations are
carried out at triennially. In the intervening years an impairment
exercise is carried out. Any gain or loss in value is recognised directly in
equity through the statement of changes in net assets / equity for the period
in which it arises.
When an
available-for-sale financial asset is sold, the accumulated fair value
adjustments are included in the statement of comprehensive revenue and expense.
At each balance
sheet date, an assessment is made whether there is any objective evidence that
a financial asset or group of financial assets is impaired. If objective
evidence of impairment exists for available-for-sale financial assets, then any
cumulative loss is transferred from equity to the statement of comprehensive
revenue and expense. Such a transfer is not reversible.
7. Intangible
Assets
Intangible
assets comprise acquired computer software licences and development
expenditure. All intangible assets with finite lives are carried at the
historical cost incurred to acquire and bring into use the specific software
less accumulated amortisation.
8. Impairment
of Non-Financial Assets
Assets that have
an indefinite useful life are not subject to amortisation and are tested for
impairment at each balance sheet date. Assets that are subject to
amortisation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised in the statement of comprehensive revenue and
expense for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows.
9. Depreciation
and Amortisation
Land and hard
dredging are not depreciated. Depreciation on other assets is calculated
using the straight-line method to allocate their cost or revalued amounts to
their residual values over their estimated useful lives. Assets’
residual values and useful lives are reviewed, and adjusted if appropriate, at
each balance date. Major depreciation and amortisation periods are as
follows.
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Major
Depreciation and Amortisation Periods
|
|
Asset Category
|
Years
|
|
Buildings
|
10 - 100
|
|
Site
Improvements
|
10 - 40
|
|
Vehicles
|
3 - 10
|
|
Plant
& Equipment
|
3 - 25
|
|
Computer
Equipment
|
3 - 5
|
|
Computer
Software & Licences
|
3 - 10
|
|
Infrastructure
Assets
|
25 - 70
|
|
Dredging
|
6 - 8
|
No depreciation
is provided for stop banks, berm edge protection, sea or river groynes,
drainage works or unsealed roads. These assets are not considered to
deteriorate over time and, therefore, will provide a constant level of service
unless subjected to a significant flood event.
10. Cash
and Cash Equivalents
Cash and cash
equivalents include cash in hand, deposits held at call with banks, other
short-term highly liquid investments with original maturities of three months
or less, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities in the statement of financial position.
11. Borrowings
Borrowings are
recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently stated at amortised cost. Any difference
between the proceeds (net of transaction costs) and the redemption value is
recognised in the statement of comprehensive revenue and expense over the
period of the borrowings using the effective interest method.
Borrowings are
classified as current liabilities unless the group has an unconditional right
to defer settlement of the liability for at least 12 months after the balance
date.
Borrowing costs
are recognised as an expense when incurred except to the extent that they are
capitalised. Borrowing costs that are directly attributable to the
acquisition, construction or production of an asset are capitalised as a part
of the cost of that asset.
12. Income
Tax
Income tax
expense charged to the statement of comprehensive revenue and expense includes
both current and deferred tax and is calculated after allowing for
non-assessable income and non-deductible costs.
Deferred income
tax is provided using the balance sheet liability method, providing for
temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation
purposes. Temporary differences are not provided for where the initial
recognition of assets and liabilities does not affect either accounting or
taxable profit. The amount of deferred tax provided is based on tax rates
enacted or substantively enacted at the balance sheet date and are expected to
apply when the related deferred tax liability is settled.
A deferred tax
asset is recognised only to the extent that it is probable that future taxable
profits will be available against which the asset can be utilised.
Deferred tax assets are reduced to the extent that it is no longer probable
that the related tax benefit will be realised.
13. Employee
Benefits
Short-term
employee benefits including salaries and wages, annual leave and contributions
to superannuation schemes are recognised when they accrue to employees and are
measured at undiscounted cost.
The liability
for accumulating sick leave is stated as the cost of sick leave that is
expected to be used.
Long-term
employee benefits including long service leave and retirement gratuities are recognised
at the present value of the Group’s obligation at balance date.
14. Provisions
Provisions are
recognised when:
- Council has a present legal
or constructive obligation as a result of past events, and
- it is more likely than not
that an outflow of resources will be required to settle the obligation, and
- the amount has been reliably
estimated.
Provisions are
measured at the present value of the expenditures expected to be required to
settle the obligation using a pre-tax rate that reflects the current market
assessments of the time value of money and risks specific to the
obligation. The increase in the provision due to the passage of time is
recognised as interest expense
Provisions are
not recognised for future operating losses.
15. Revenue Recognition
Revenue
comprises the fair value for the sale of goods and services, net of GST,
rebates and discounts and after elimination of sales within the Group.
Revenue is recognised as follows.
- Sales of goods are
recognised when a product is sold to a customer. The recorded revenue is
the gross amount of the sales.
- Sales of services are
recognised in the accounting period in which the services are rendered, by
reference to the completion of the specific transaction assessed on the basis
of the actual service provided as a proportion of the total service provided.
- Interest income is
recognised on a time proportion basis using the effective interest method.
- Dividend income is
recognised when the right to receive payment is established.
- Government grants are
recognised as income when eligibility has been established by the grantor
agency.
- Rates are recognised as
income in the accounting period in which they are set and assessed.
16. Leases
Finance leases,
which transfer to Council substantially all the risks and benefits incidental
to ownership of the leased item, are capitalised at the inception of the lease
at the fair value of the leased property or, if lower, at the present value of
the minimum lease payments.
Lease payments
are apportioned between the finance charges and reduction of the lease
liability so as to achieve a constant rate of interest on the remaining balance
of the liability. Finance charges are included in the statement of
comprehensive revenue and expense as finance costs.
Capitalised
leased assets are depreciated over the shorter of the estimated useful life of
the asset and the lease term.
Leases in which
a significant proportion of the risks and benefits of ownership are retained by
the lessor are classified as operating leases. Payments made under
operating leases are charged to the statement of comprehensive revenue and
expense on a straight-line basis over the period of the lease.
17. Financial
Risk Management
Council’s
activities expose it to a variety of financial risks including:
- Market risk, including
currency risk, fair value interest rate risk and price risk
- Credit risk
- Liquidity risk
- Cash flow interest-rate
risk.
Council’s
overall risk management programme focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on Council’s
financial performance. Council uses derivative financial instruments such
as foreign exchange contracts and interest rate swaps to hedge certain
exposures.
Council enters
into foreign currency forward exchange contracts to hedge foreign currency
transactions, when purchasing major property, plant and equipment and when
payment is denominated in foreign currency.
Interest rate
swaps are entered into to manage interest rate risk exposure.
Council has no
significant concentrations of credit risk. It has policies in place to
ensure that services are provided to customers with an appropriate credit
history.
Collateral or
other security is not required for financial instruments subject to credit risk.
18. Accounting for Derivative Financial Instruments and
Hedging Activities
Derivatives are
initially recognised at fair value on the date a derivative contract is entered
into and are subsequently remeasured at the fair value at each balance date.
Where the Group
determines that it will hedge a transaction it documents the relationship
between hedging instruments and hedged items, as well as the risk management
objective and strategy for undertaking various hedge transactions at the
inception of the transaction.
The Group also
documents its assessment, both at inception and on an ongoing basis, of whether
the derivatives that are used in hedging transactions are highly effective in
offsetting changes in fair values of hedged items.
18.1 Cash Flow Hedge
The effective
portion of changes in the fair value of derivatives that are designated and
qualify as cash flow hedges are recognised in equity. The gain or loss
relating to the ineffective portion is recognised immediately in the statement
of comprehensive revenue and expense. The Group accounts for hedges of
foreign currency risk of a firm commitment as cash flow hedges.
18.2 Derivatives that Do Not Qualify for Hedge Accounting
Certain
derivative instruments do not qualify for hedge accounting and changes in the
fair value of these instruments are recognised immediately in the comprehensive
income statement. Any changes in the fair value of interest rate swaps due to
changes in interest rates are recognised in the statement of comprehensive
revenue and expense in the period in which they occur.
19. Foreign Currencies
Transactions in
foreign currencies are translated at the New Zealand rate of exchange ruling at
the date of the transaction. At balance date foreign monetary assets and
liabilities are translated at the closing rate and exchange variations arising
from these are included in the statement of comprehensive revenue and expense.
20. Basis
of Allocation of Council’s Indirect Costs
Clearly
identifiable costs are directly charged against each activity. Indirect
costs are allocated to cost centres in the first instance under a variety of
methods including:
- Floor area occupied
- Number of full time
equivalent employees
- Assessed use of various
services provided.
These costs are
then charged to projects on a labour standard costing basis. The
allocation unit is each working hour charged by employees at a pre-determined
rate. Variances arising from this method will be allocated on the same
basis as for costs of a fixed nature referred to above. Project costs are
then summarised for each activity and group of activities.
|
HBRC's
2015-25 Policies
|
Attachment 5
|
Introduction
In preparing the
Long Term Plan for 2015-25 a number of assumptions and predictions about the
future have been made. There are always inherent risks with such forecasting,
therefore it is important that the main assumptions used in these forecasts are
identified. This section has been designed to identify these assumptions,
and explain the risks associated with such assumptions.
A number of
additional assumptions are highlighted in the significant activity section of
this plan.
HBRC
Activities and Functions
HBRC will
continue to perform our existing functions in accordance with current
legislation and current Council policies. These functions will be primarily
carried out to meet our statutory role and responsibilities and to help meet
the community outcomes for the region. This plan links community outcomes
to HBRC activities within each group of activities.
Financial
Presentation
Council has not
presented group prospective financial statements because it believes that
parent prospective financial statements are more relevant to users. The
main purpose of prospective financial statements in a Long Term Plan is to
provide users with information about the core services that Council intends to
provide to ratepayers and the expected cost of those services. And
consequentially how much Council needs by way of rates to fund the intended
levels of service. The level of rates funding required is not affected by
subsidiaries except to the extent that Council obtains distributions from, or
further invests in, those subsidiaries. Such effects are included in the
prospective financial statements
General
Assumption
HBRC has not
taken into account forecast changes in population, economic activity or climate
change. It is considered that the impact of any changes in these statistics
will have a minimal or very low effect on the plan’s projections.
A significant
disaster event, particularly a flood, may have a major impact on the work
programmes set out in this Long Term Plan. Following such an event, HBRC
will focus on response to community needs that arise as a result of the event
and community recovery following the event.
Interest Rates
Information
received from HBRC’s bankers, the Bank of New Zealand, in December 2014
indicated that the interest rate assumptions below for borrowing would be
appropriate for inclusion on the plan:
· The interest rate on future term borrowing is estimated to be 6.5%
(2015-16), 7% (2016-17) and 7.5% for the remaining years of this plan.
Information
received in December 2014 from a number of NZ trading banks indicated that the
official cash rate may gradually rise from its current low level of 3.5% to
5.25% by December 2017. HBRC cash investments and term deposits
accomplish an average margin of 1.50% over the official cash rate. The
following rates of interest on deposits have been used in this plan:
· For the 2015-16 financial year – 5%
· For the 2016-17 financial year – 6%
· For the remainder of the plan until 30 June 2025 – 6.5%.
Cost Adjusters
All expenditure
projections in the Income Statements and assets in the Balance Sheet are stated
in 2015-16 dollar values; however, for the year 2016-17 and subsequent years of
the plan, the following adjustments (Table 1) have been made to allow for the
effect of inflationary pressures on costs.
|
Table 1: Cost Adjusters
|
|
Year
|
Wages, Salaries &
other Salary Related Costs
|
External Expenditure
|
Assets
|
|
Annual (%)
|
Cumulative
(%)
|
Annual (%)
|
Cumulative
(%)
|
Annual (%)
|
Cumulative
(%)
|
|
2016-17
|
1.8
|
1.8
|
2.3
|
2.3
|
2.3
|
2.3
|
|
2017-18
|
1.9
|
3.7
|
2.5
|
4.8
|
2.6
|
4.9
|
|
2018-19
|
2.0
|
5.7
|
2.6
|
7.4
|
2.6
|
7.5
|
|
2019-20
|
2.1
|
7.8
|
2.7
|
10.1
|
2.7
|
10.2
|
|
2020-21
|
2.2
|
10.0
|
2.9
|
13.0
|
2.8
|
13.0
|
|
2021-22
|
2.3
|
12.3
|
3.0
|
16.0
|
3.0
|
16.0
|
|
2022-23
|
2.4
|
14.7
|
3.1
|
19.1
|
3.1
|
19.1
|
|
2023-24
|
2.5
|
17.2
|
3.3
|
22.4
|
3.3
|
22.4
|
|
2024-25
|
2.6
|
19.8
|
3.4
|
25.8
|
3.5
|
25.9
|
|
*These
assets include infrastructure, land, buildings, hydrological assets and
Hawke’s Bay Regional Investment Company Limited equity and are derived
using an average price change from each of the asset categories.
|
The above rates have been
taken from the BERL forecasts of price level adjustors, dated October 2014.
It is not anticipated that
there will be any significant variations over the inflation provisions when
HBRC re-tenders for maintenance and other contracts during the term of the
plan.
Investments
Investment Activities
It is proposed
to invest around $85M during the period of the Long Term Plan in new and
existing investments in water storage (Ruataniwha Plains and Ngaruroro), rail
transport (Napier Gisborne Railway) and forestry. HBRIC will continue to
invest in the Ruataniwha Water Storage Scheme (RWSS) using funding provided by
HBRC and may also invest in the Ngaruroro Water Storage Scheme (NWS) if it is
established as viable as a result of a feasibility study. Investment in
Napier Gisborne Railway (NGR) and forestry is expected to remain on
HBRC’s own balance sheet.
|
Table 2: Major Proposed Investments
|
|
Proposed Investment
|
Expected Rate of Return
|
Next Step
|
|
Ruataniwha Plains
Water Storage
|
6%
|
Financial Close
March 2015
|
|
Ngaruroro River
Water Storage
|
6%
|
Feasibility Study
2015-18
|
|
Napier Gisborne
Railway
|
6%
|
Reinstatement of
line 2015-18
|
|
Forestry
|
6%
|
Ongoing
|
The following
Table 2 shows the estimated returns on these investments over the course of
this LTP.
While these
projects are expected to yield cash income after they become operational, they
will accrue holding costs on funds advanced by HBRC to fund them (either
directly or through HBRIC) at the expected rates of return (refer to table 2
above), until they are generating positive cash flows from operations.
Napier-Gisborne Railway (NGR)
HBRC is currently considering
investing in reinstatement of the Napier-Gisborne Railway (NGR) to fully
operational status. A business case for this investment is being developed
during the first quarter of 2015 and HBRC has yet to make a final decision on
whether to invest and on what terms investment would be made.
However for planning
purposes this LTP assumes HBRC will lease the rail line from KiwiRail on a long
term basis, repair the track and surrounds to a “fit for purpose”
state, and sub-lease the line to an independent NGR operating company of users
and investors to undertake rail operations.
|
Table 3: NGR
|
|
Investment
|
Significant Assumptions
|
|
NGR
|
KiwiRail and HBRC will
enter into a lease agreement for Napier-Gisborne rail line on terms
satisfactory to HBRC.
|
|
A well founded operating
consortium of users and investors will be established to sub-lease the line
from HBRC, acquire suitable staffing, locomotives and rolling stock and
operate rail services along the line.
|
|
Council will invest up to
$5.5M to reinstate the rail line to a fit for purpose condition.
|
NGR will be retained on
HBRC’s balance sheet in the initial phases of development of the business
case. When the project moves to the operational and commercial phase,
HBRC will consider transferring this investment to HBRIC thus utilising the
commercial expertise held in this company.
Forestry
During
the course of the LTP, HBRC will manage the following forestry assets.
|
Table 4: Forestry Assets -
Carbon Forestry Investments
|
|
Site Name
|
Area (ha)
|
Significant Assumptions
|
|
CHB
|
 180
|
Average carbon price
over LTP of $3.80/tonne.
|
|
Mahia
|
35
|
Return on use of
funds based of 6% this being at a discounted rate to HBRC's borrowing rates
as set out in this policy.
|
|
Waihapua
|
250
|
No material new
investment.
|
|
Table 5: Forestry Assets – Forestry Investments
|
|
Site Name
|
Area (ha)
|
Significant
Assumptions
|
|
Tangoio
|
320
|
20-30 ha to be
harvested over 2021-2023 period.
|
|
Tutira
|
140
|
140 ha to be
progressively harvested starting in 2018-2019 and ending in 2020-2021.
The plan provides for
capital funding to cover roading infrastructure for harvesting and for
re-establishing of forests.
|
|
Tutira: Manuka Honey
|
150
|
Actual investment
returns from UMF honey, starting in 2015-2016, will not fall significantly
over the life of the investment.
|
HBRC’s
forestry investments are restated to fair value each year in accordance with
Council policy, however for the purposes of this LTP the ‘property’
price adjusters as determined by BERL have not been used because they are not
considered to be relevant to HBRC’s particular portfolio of forestry
land.
This LTP
therefore assumes that changes in the value of the forestry assets is a
function of additional investment made in the properties (if any) and the
returns realised (if any) from the land through harvesting or sale of
carbon. The scale of these effects is assumed to be 3% growth in value
per annum except in years were harvesting takes place when the assumption is a
fall in value of Tutira Forest is equivalent to a fall of 2% pa across the
whole portfolio.
HBRIC Ltd
|
Table 6: HBRIC
|
|
Investment
|
Significant Assumptions
|
|
PONL
|
Return
on investment through dividends based on Napier Port's financial performance.
|
|
RWSS
|
Total
project cost estimated to be $275M.
HBRIC
will invest up to $80M in equity in a limited partnership to own and operate
the scheme.
|
|
NWS
|
HBRIC
to invest up to $25M (net of a feasibility study estimated to cost $5M) as
its share of construction of a scheme for the Ngaruroro River.
|
HBRIC Ltd, the
Council’s investment company, commenced activities in February 2012 and
has been operating successfully since then. Its principal investments now
are 100% ownership of Port of Napier Limited (PONL), which owns and operates
Napier Port, and capitalised development expenditure in relation to the
Ruataniwha Water Storage Scheme (RWSS). During 2015-2017 it is proposed that
HBRIC Ltd will increase this investment by providing funds to implement the
RWSS (design, construction and operation).
This Plan
assumes that HBRIC Ltd’s proposed investment in the RWSS project ($71.5M)
will be completed by 1 July 2016 and will be financed by HBRC subscribing the
full amount required for investment in the form of new capital in HBRIC.
Upon financial
close HBRIC Ltd will issue 71.5 million new $1 ordinary shares to HBRC and
simultaneously make a call of up to 20 cents per share to repay all outstanding
advances (estimated to be around $12M) made by HBRC to HBRIC Ltd for RWSS to
that date. The remaining 80 cents per share will be called in instalments
over the 2015-16 financial year to meet HBRIC Ltd’s share of the
drawdowns required for completion of the RWSS project.
In the future it
is possible HBRIC Ltd will undertake any investment to be made by HBRC in the
proposed Ngaruroro Water Storage Scheme (NWSS) if its feasibility is
established. HBRIC Ltd will continue to hold and develop its existing
investments as well as identifying, evaluating, and where appropriate,
investing in, new investments.
Currently
governance of HBRIC Ltd is by a Transition Board of Directors who will be
replaced by a full board following completion of financial close of the RWSS
project on or after 30 June 2015.
Dividends
payable to HBRC will be 100% of HBRIC Ltd’s Net Profit after Tax (NPAT)
as stated in its Statement of Intent (SOI) for the year ending 30 June
2015. HBRIC Ltd’s dividends are based on PONL’s financial
performance and are set at a level to also provide HBRC a return of 6% on its
funding of investment in RWSS throughout the LTP. This requirement for a
return on RWSS funding was included in the Council resolutions of 25 June 2014
which set out the conditions precedent for approval of funding for RWSS.
Dividend
projections from HBRIC Ltd are available up to 2021-22. For the remaining
years of the Plan, it is assumed dividends will increase by 10% in 2022-23 and
5% in each of the years 2023/24 and 2024/25. The higher increase in
2022-23 is supported by the anticipated boost in Napier Port income due to the
completion of a high level of capital development.
The following
Table 6 summarises the significant forecasting assumptions in respect of HBRIC
Ltd.
Funding of
Investments
These
investments will be funded by:
· Drawing down on existing cash reserves
· Selling HBRC’s existing portfolio of Wellington leasehold
properties during the 2016-17 financial year
· Securing contributions from Central Government and its agencies to
specific investment projects
· Additional borrowings.
Where HBRC borrows to fund proposed
investments it is assumed these borrowings will be on an interest-only basis.
When these investments yield a commercial return on funds invested, loans will
be renegotiated to reflect some capital repayments.
Future
investments (excluding investment in RWSS), made by HBRIC will be funded from a
mixture of equity and advances provided by HBRC to HBRIC at no less than the
Council’s cost of funds for external borrowing.
Assets
Infrastructure
Assets
All
infrastructure assets (river, flood control and drainage schemes) will be
operated, maintained and improved as set out in the asset management plans that
have been prepared for each of the river, flood control and drainage schemes.
Schemes are
funded to a level that ensures levels of service set for each scheme in the
relevant asset management plan are achieved and maintained over the life of the
assets.
For the purposes
of projecting annual movement in the values of this asset category to fair
value, the property price adjusters covering projected movement in asset
construction (Local Government cost index, capex) as set out by BERL have been
used.
Plant, Property and Equipment including Intangible Assets
It is assumed
that HBRC’s other fixed assets continue to be provided at the level
required to carry out its activities. Depreciation on operating assets
will continue to be fully funded. Combined with the proceeds of asset sales and
loan funding, where appropriate, that will be sufficient to fund the ongoing
programme of capital expenditure on operating assets.
The useful life
of each category of asset is shown in the Statement of Significant Accounting
Policies included in this plan.
For the purposes
of projecting annual movement in the values of this asset category to fair
value, the Local Government cost index, capex as set out by BERL have been
used.
Insurance of
Infrastructure Assets
HBRC currently
provides cover for its infrastructure assets through a hierarchy of insurance
and other available funding as follows.
1. Local Authority Protection
Programme (LAPP) which covers 40% of infrastructure value above an excess of
$2M applies for the 2014-15 year and may change in subsequent years.
2. Central Government, under the
National Civil Defence Recovery Plan, will meet 60% of the value of
infrastructure assets critical to the functioning of the community, above
0.002% of regional capital value and provided HBRC has taken demonstrable steps
to meet the remainder of the cost.
3. Each flood control and drainage
scheme has access to a disaster reserve account. The scheme disaster
reserves are designed to meet the costs of damage that may occur in any
relatively minor flood event.
4. A Regional Disaster Damage
Reserve which has been set up to provide “last resort” funding for:
· Cost of responding to and managing an event
· Any difference between the deductible (excess on the LAPP) and the
threshold for eligibility for Central Government assistance
· Cost of reinstatement of any uninsured assets (e.g. pathways on
top of stopbanks)
· Contribution towards the cost of reinstatement of infrastructure
assets to an equivalent standard to that in place before the damage was
incurred
· The possibility of contributing to the cost of reinstating the
level of service provided by an asset being considerably more than the
optimised replacement value.
The Regional
Disaster Reserve is required to be maintained with between $2.75M and $3.75M of
investments. The Reserve as at 31 June 2014 holds $3M.
The budgets
established for the 2015-25 LTP were prepared on the basis that this reserve
would not be drawn on within the 10 Year Plan period.
Dividend
Equalisation Reserve
The Dividend
Equalisation Reserve was established by HBRC with the intention of having funds
available to provide additional regional income in years where the payment of a
dividend from Napier Port or other regional income was substantially less than
the levels forecast. The purpose of this reserve was therefore to
insulate HBRC from needing to temporarily increase general rates to make up any
shortfall in regional income.
The use of this
reserve is programmed for years 1 and 5-8 of this Plan when income from
investments is projected at levels below that required to fund HBRC’s
operational services. In the latter years of the Plan regional income
will have strengthened through forest harvesting in HBRC’s Tutira
forestry block and, in the latter years of the LTP, from strengthening dividend
income from HBRIC Ltd.
The Dividend
Equalisation Reserve is estimated to be $1.2M at the beginning of the LTP (1
July 2015).
Funding of
Open Space Initiatives and Community Facility Assistance
HBRC has adopted
a policy to approve expenditure on capital related open space items and a
further policy to provide assistance to community facilities within the region.
This plan assumes that the majority of the initiatives as approved by these two
policies will be funded by the loan facility of $7.5M. This loan facility is
repayable over a 10 year period and is funded by the transfer of about $1M per
annum from Council’s Sale of Land Investment account.
Subsidy Rates
Funding
assistance will be provided by Crown agencies, primarily the New Zealand
Transport Agency at the following levels.
NZTA - Operations funding assistance rates
· Bus Services (including infrastructure, operations 53%
(2015-16
and maintenance) 52%
(2016-17)
51%
(2017-18 forward)
· Total Mobility Scheme 60%
|
HBRC's
2015-25 Policies
|
Attachment 5
|
Risks to Assumptions
The following
tables (7-10) outline the risks to significant forecasting assumptions. If
these assumptions prove to be incorrect, there could be a significant effect on
the level of rates that HBRC plans to collect from the community. In this
situation, it will re-examine its work programmes and determine if it’s
appropriate to rate the community or change the scope of those programmes.
Council Investment Risks
|
Table 7: Council Investment Risks
|
|
Investment
|
Assumptions
|
Risk to Assumption
|
Level of Uncertainty
|
Reasons and Financial Effects of Uncertainty
|
|
HBRIC
Ltd
|
Dividends
will be paid to HBRC as scheduled.
|
Napier
Port financial performance falls short of its forecasts.
|
Low
|
A
substantial part of HBRC's regional income comes from HBRIC as the majority
of HBRC's investment assets are held by HBRIC. Any diminution of
dividends paid by HBRIC to HBRC will have a direct negative effect on HBRC's
operating position. HBRIC's ability to pay dividends relies in the first
instance on the profitability and dividend payments of Napier Port, as RWSS
is not likely to generate positive cash flows for HBRIC before the end of the
LTP.
|
|
Funds
drawdowns for RWSS will not exceed $80M in total.
|
Calls
for increased funding for new investments
|
Low
|
Delays
in financial close and design and construction phases could lead to higher
costs and consequently increased calls for funding by HBRIC potentially
adversely impacting HBRC's cash flows for operations and other investments.
This LTP provides funding for RWSS up to $71.5M as stated in the RWSS
Statement of Proposal. Any increase on this figure would also need to meet
HBRC's requirement for 6% return. HBRIC's funding structure can mitigate any
risk in this regard.
|
|
Forestry
Harvesting
|
Log
prices are Ministry of Primary Industries (MPI) 5 year average CPI adjusted
as at 30 June 2014.
|
Price
for logs at harvesting is lower than forecast.
|
Low
|
Like
all commodity markets timber is cyclical, however this risk can be managed by
bringing forward or deferring harvesting.
|
|
Stumpages
as forecast by independent valuer as at 30 June 2014.
|
Stumpages
fall short of forecast.
|
Low
|
Stumpage
rates as forecast are considered to be conservative and actual performance of
the forest should be better than forecast.
|
|
Table 7: Council Investment Risks
|
|
Investment
|
Assumptions
|
Risk to Assumption
|
Level of Uncertainty
|
Reasons and Financial Effects of Uncertainty
|
|
Forestry
Carbon Investments
|
Carbon
is sold at an average price of $3.80 per tonne.
|
Price
falls below assumed average of $3.80/tonne.
|
Medium
|
Carbon
prices are strongly influenced by global politics and economic performance.
Prices have fallen considerably since 2012, however Council can hold carbon
accumulated from forestry for long periods (i.e. 5-10 years), so can manage
its selling strategy to maximise returns over the period of the plan.
|
|
Forestry
Manuka Honey
|
Honey
yield is specified by agreement with Comvita.
|
Honey
yield per hectare is lower than forecast.
|
Low
|
Projected
returns are based on MPI apiary data, which has been reliable to date.
Manuka revenue in this LTP is relatively low and lower yields are unlikely to
have a material impact on the LTP.
|
|
NG
|
Lease
is agreed between KiwiRail & HBRC.
|
Project
does not proceed.
|
High
|
KiwiRail's
Offer dated 17 November 2014 to lease the line to HBRC was received but work
on the KiwiRail/HBRC lease has yet to commence, however HBRC has asked for
and agreed to fund development of a business case. In the event the business
case finds the proposal unviable it will not proceed. Net loss in this
event around $0.25M.
|
|
Costs
of reinstatement of line is no more than $5.5M.
|
Costs
exceed $5.5M.
|
Medium
|
Cost
overruns may adversely impact HBRC's cashflows for operations and investment
elsewhere.
|
|
Establishment
of viable operating business.
|
Operating
business is unable to be formed or becomes unviable.
|
Medium
|
A
viable operating business funded by stakeholders other than HBRC is required.
If this cannot be achieved then either HBRC will have to operate the business
or the proposal will not proceed. If the project does not proceed at
this stage (i.e. subsequent to restoration of the track) then Council would
be exposed to estimated losses of up to $920,000 per annum.
|
|
Return to HBRC is not less
than its cost of funds (assumed to be 6.5% Year 1; 7.0% Year 2; and
7.5%
for subsequent years).
|
Operating
company is unable to pay lease payments to HBRC (including return of 6.5%
Year 1; 7.0% Year 2; and 7.5% for subsequent years).
|
Medium
|
Lower
returns may adversely impact HBRC's cashflows for operations or investment
elsewhere.
|
Investment Company Risks
Table 8 summarises the
principal investment risks in respect of the proposed projects of HBRIC Ltd.
|
Table 8: Investment Company (HBRIC Ltd) Risks
|
|
Investment
|
Assumptions
|
Risk to Assumption
|
Level of Uncertainty
|
Reasons and Financial Effects of Uncertainty
|
|
Water
Storage and Harvesting (Ruataniwha Plains - RWSS)
|
Farmer
uptake
|
Uptake
is lower than planned
|
Medium
|
Farmer
uptake of distributed water of at least 40M m3 in the first years of
operations is critical for RWSS viability. Unless this threshold is met the
project will not proceed. The HBRIC Ltd Board is proactively managing this
risk through an extensive relationship building programme with the Central
Hawke’s Bay farming community and other stakeholders.
|
|
Investment
by co-investors
|
Low
investment interest
|
Medium
|
Negotiations
are ongoing with several parties. Unless investor commitment meets
financial close requirements the project will not proceed.
|
|
Project
cost
|
Project
cost rises
|
Low
|
Significant
risk however is being mitigated against by strong project management by the
HBRIC Ltd Board.
|
|
Project
proceeds
|
Project
does not proceed
|
Low
|
Net
after tax cost to HBRIC Ltd in this event estimated to be around $10M and
funding previously earmarked for RWSS will be held for alternative investment
yielding at least 6%pa. As HBRIC Ltd will be able to at least maintain
dividends at a rate of 6% on the funds lost as a result of termination, there
will be no impact on this LTPs regional income.
|
|
Water
Storage (Ngaruroro – NWS)
|
Feasibility
has yet to be established
|
Feasibility
is not established
|
Medium
|
Feasibility
will not be commissioned until 2015-16. If not feasible, then the project
will be re-evaluated.
|
|
HBRIC
Ltd funding commitment is $30M
|
Funding
requirement exceeds $30M
|
Medium
|
Co-investors
may not be sufficient to fund project and/or costs may be higher than
indicated.
|
|
Port
of Napier
|
Dividends
to HBRIC will be paid as scheduled
|
Port
of Napier Dividends are higher or lower than forecast
|
Low
|
PONL
financial performance has been improving for some years, and current dividend
payments now only require around 51% of NPAT. This allows considerable
reinvestment in the business to date and leaves room for a higher share of
NPAT to be paid as dividends in the future.
|
Funding Risks
|
Table
9: Funding Risks
|
|
Funding Type
|
Assumption
|
Risk to Assumption
|
Level of Uncertainty
|
Reasons and Financial Effects of Uncertainty
|
|
Sale
of Wellington leasehold properties
|
Net
value of $13M will be received on the sale.
|
Demand
by the market is insufficient to achieve a sale at a level acceptable to HBRC
|
Low
|
HBRC
would lose around $60,000 pa in interest for every $1M of reduced sale
realisation value.
|
Other Risks
|
Table
10: Other Risks
|
|
Assumption
|
Risk to Assumption
|
Level of Uncertainty
|
Reasons and Financial Effects of Uncertainty
|
|
Inflation
|
Inflation
is higher or lower than forecast
|
Medium
|
Inflation
is affected by external economic factors, most of which are outside of
HBRC’s control and influence. The estimate of the potential effects of
the uncertainty is best illustrated by stating that for 2015-16 a move in the
cost adjustors provided by BERL and used in this plan by plus or minus 0.5%
would result in either an under or over provision for external expenditure of
$108,000 and for employment costs of $65,000 .
|
|
Interest
Rates on Borrowings
|
Interest
rates are higher or lower than forecast
|
High
– especially in later years of the plan
|
The
majority of the borrowing programme proposed in this plan is to provide
funding to cover loans to homeowners for clean heat installations and for the
proposed activities of HBRIC. As the borrowing programme for HBRC is
expected to increase in the later years of the plan, any movement in interest
rates would have a greater effect on HBRC’s interest expense towards
the end of the plan. This plan assumes that, with the exception of RWSS,
HBRIC will pay for advances at HBRC’s borrowing rate. The effect of any
interest rate movements on the borrowing programme can best be illustrated by
stating that a 0.5% movement either up or down from the assumed levels of
interest rates in this plan would result in an annual exposure of plus or
minus $23,000 for 2015-16 (on borrowings of $4.7M) and for the peak year of
borrowing $144,000 for 2019-20 (on borrowings of $28.7M.
|
|
Interest
Rates on Deposits held for Investment
|
Interest
rates are higher or lower than forecast
|
Medium
|
Short
and long term HBRC cash deposits held for investment are estimated to be in
the order of $53M at the start of this plan and will be reduced to nil by
year 5 of the plan. Therefore a 0.5% movement either up or down from
the assumed levels of interest rates in this plan would result in an annual
exposure of plus or minus $191,000 for 2015-16 and $23,000 in 2018-19.
|
|
Occurrence
of Natural Disaster
|
A
natural disaster/flood event occurs which damages Council’s property,
plant and equipment
|
Medium
|
Call
on commercial insurance, Local Authority Protection Programme and Government
funding through the National Civil Defence Recovery Plan. The use of reserves
is also available to HBRC as required.
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HBRC's
2015-25 Policies
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Attachment 5
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Reporting on Significant Changes
The Local Government Act 2002,
Section 95 (5)(b) requires that subsequent Annual Plans identify any variation
from the financial statements and funding impact statement which are included
in the Council's Long Term Plan for the year of that plan.
For the purposes of this
reporting, the following material and significance levels will apply:
- Where the financial impact
of any change exceeds 1.5% of total budgeted expenditure in that year
- Other items of change where
it is considered to be of interest to the public as the principal users of the
plan. These items would include establishing new land drainage and flood
control schemes, new projects, changes in future direction, etc.
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HBRC's
2015-25 Policies
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Attachment 5
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Summary of Amendments to Previous Investment Policy
This is a
summary of the substantive changes proposed in the Investment Policy 2015-25
from the current operating Investment Policy 2012-22. The summary below is set
out by reference to the section headings of the Investment Policy 2015-25.
Section 7
Investment Classes
Investment
Instruments – the quantum of investment with any one institution at any
time has been changed from 25% of this investment class to 40% of this
investment class. This amendment was approved by Council on 28 May 2014.
Section 8
Specific Investments
Investment
Company – the performance targets have been updated to reflect those
adopted by Council as part of the Hawke’s Bay Regional Investment Company
Ltd (HBRIC Ltd) Statement of Intent for year ending 30 June 2015.
Napier Leasehold
Land – has been updated to reflect the capitalisation of cash flows for
50 years with ACC and the responsibilities under the “lease receivables
purchase agreement”.
All figures in
section 8 have been updated to reflect the position as at 30 June 2014.
Investment
Policy
1. General Policy Context
HBRC’s
investment policy is established in accordance with Sections 102(2)(c) and 105
of the Local Government Act 2002, and is consistent with its objectives and its
Long Term Plan (LTP), and Annual Plans.
2. Purpose
The purpose of
the Investment Policy is to:
- provide a framework and set
of guidelines for the ongoing management of the HBRC’s financial
investments to achieve its strategic and financial objectives over time
- comply with the requirements
of the Local Government Act 2002
- record the monitoring and
reporting regime for ongoing measurement of the performance of the investment
portfolio and the exercise of investment management responsibilities in pursuit
of strategic and financial objectives.
3. Scope
“Investments”
bound by this policy are defined as:
HBRC’s
financial assets and reserves which are held to produce a financial return
within accepted risk parameters, and help achieve its strategic economic
objectives, while collectively retaining their capital value over the period of
their ownership. Capital value is the greater of historical cost of each
investment or the current balance sheet value (based on market or independent
valuation) of the investment for the purposes of this definition.
Investments to
which this investment policy applies include:
- financial assets held by
HBRC that are not restricted in any way
- restricted reserves or funds
established by HBRC for specific purposes and separately invested and accounted
for, such as the Disaster Damage Reserve
- financial assets restricted
in terms of the Hawke’s Bay Endowment Land Empowering Act 2002 (the
Endowment Act).
4. Objectives
The objectives
of this investment policy are to:
- optimise long term gains in
capital value of its investments for the benefit of future as well as current
generations
- obtain an acceptable ongoing
annual cash income from the investment portfolio as a whole
- ensure sufficient cash is
available (liquidity) as needed to assist with the funding of HBRC’s
ongoing operations
- invest in assets that
generate both financial returns (income and capital), and support the
HBRC’s s strategic economic development policies
- give first preference to
investment in the Hawke’s Bay Region, provided any such investment
satisfies all other conditions of this investment policy, and subject to the
availability of suitable strategic economic and financial investment
opportunities in the region.
5. Responsible
Investment
Investments will
be made with judgment and care, under circumstances prevailing at the time
which people of prudence, discretion and intelligence exercise in the
professional management of financial assets.
It is not
HBRC’s intention to make speculative investments (such as contracts for
difference in prices over time of any commodity or asset and other financial
derivatives).
Its economic and
financial objectives should be achieved by balancing potential risks to capital
values with the potential gains to capital values and incomes that could be
derived from any investment.
Prudent
investment management requires managing investment risk and return by
consideration of the mix of investments by investment class, and location.
In its financial
investment activity, HBRC’s primary objective is to protect the value of
its assets. Accordingly investment may only be made in creditworthy
counterparties having acceptable standing and credit ratings.
6. Specific
Investment Policies
6.1 Mix
of Investments
The current mix
of HBRC investments largely reflects the assets transferred to HBRC at the time
of Local Government reform in 1989, supplemented by investment of its cash
surpluses generated since that time in property and bank cash instruments (term
deposits).
As a result of a
review of the mix of investments in September 2008, HBRC adopted a more active
investment policy to improve financial and economic returns from its investment
portfolio in its 2009/2019 Investment Policy. HBRC has since examined the
advantages and disadvantages of managing the investment portfolio through an
investment company, and consulted the community on its proposal to establish an
investment company through a Special Consultative Process used for this
purpose.
The outcome of
this process led HBRC to establish a 100% owned investment company (HBRIC) to
manage existing corporate investment of its shareholding in PONL and new
investments made in companies in future.
HBRIC was
established on 1 February 2012. A key requirement of HBRC is that HBRIC
adopt an investment policy for the management of the investments that is
consistent with, and reflects the purpose, objectives and requirements of this
investment policy, which will remain the overriding policy document for all
HBRC’s investments, including any investment company and its assets.
6.2 Acquisition of
Investments
New investments
will be acquired from time to time within the investment classes specified in
Section 7 below and in accordance with the policies and objectives recorded in
Sections 2, 3, 4 and 5 above.
New investments
will be made by HBRC, HBRIC and its officers in accordance with the management authorities
and delegations summarised in Section 9 below.
Acquisition of
new investments will be made after assessment of their benefits, costs and
risks in accordance with the assessment procedures approved by HBRC from time
to time.
6.3 Disposal of Investments
Sale or
liquidation of investments held for special purpose reserves may only occur
when the funds are required for the particular purpose each reserve was
established for by HBRC.
Any disposal of
unrestricted assets requires the approval of HBRC, other than those made within
delegated authority granted by HBRC.
HBRC regards
PONL as a strategic asset and will retain beneficial control of it through its
wholly owned investment company. In the event it contemplates reducing its
interest in PONL from its present 100% shareholding to not less than 51% (i.e.
still retaining control) by selling shares to a third party (or parties), it
will comply with the provisions of Section 97(1)(b) of the Local Government Act
2002 where “a decision to transfer ownership or control of a strategic
asset” is to be considered. HBRC will use either the Annual or LTP
process, or a separate Special Consultative Process, it deems appropriate at
the time, to obtain the views of ratepayers and stakeholders on its proposed
sale of shares before committing to it.
HBRC also wishes
to retain continuing flexibility in relation to its Napier endowment property
to sell the annual rental cash flows arising from part or all of this endowment
property and other investment property in Wellington and Hawke’s Bay.
HBRC wishes to
retain the right to use a limited amount of funds from the proceeds of the
disposals of leasehold property for purposes other than reinvestment in the
investment classes of Section 7 of this policy, where appropriate. Such
purposes will be restricted to capital related projects, loans (including
interest free loans), and servicing the costs of borrowings by HBRC used for
these purposes and may be initiated by HBRC or other organisations in the
region. When proposing such a course of action, HBRC will, subject to the
exceptions stated below, adopt a special consultative process under the Act
which will ensure a fully inclusive decision making process with the
Hawke’s Bay regional community. This process is intended to extensively
canvass the community’s views and seek their input into any such
proposals.
There will be no
requirement to carry out a special consultative process when:
- no more than $300,000 of
sale proceeds will be used for any one project, or
- HBRC uses the sales proceeds
to acquire land or enters into partnership for the development of further open
space areas, particularly those that are in environments that are of high
ecological or landscape value or extensively used by the public.
HBRC’s
objective will be to indicate in either the LTP or relevant Annual Plan any
proposals not covered by the above exceptions. There may be some occasions when
the special consultative process for such initiatives may not always coincide
with these HBRC planning processes and so may occur as standalone
consultations.
6.4 Disposition of Income
Investment
income other than that to be applied to reserve funds and in compliance with
the provisions of Section 3(b) of the Endowment Act, will be included in the
revenue account and used for the general purposes of HBRC.
6.5 Risk Assessment and Management
The risk profile
of investment portfolio is continuously assessed to ensure adherence to the
following risk management rules:
- HBRC will not invest where
there is a significant known risk of decreased asset value, except where it has
identified potential advantages to the Hawke’s Bay economy in pursuit of
its economic development objectives that may arise from making particular
investments and has assessed whether potential economic gains could more than
offset any potential decreases in asset value.
- For prudent management,
while retaining a flexible approach to future investment opportunities, no more
than 33% of HBRC’s total investment portfolio will be invested in any one
investment, or institution or groups of institutions in the same investment
class, other than in institutions which are Government guaranteed (in which
instance up to 100% of the portfolio may be invested). This rule does not
apply to existing investments in PONL and Napier endowment property and the
investment company established by HBRC.
- HBRC does not use financial
derivatives to “hedge” against fluctuations in interest rates and
equity indexes. In some instances HBRC matches foreign currency
denominated purchases with forward exchange contracts to reduce the risk of
exchange rates increasing the cost of its purchases.
- HBRIC and PONL (and
subsidiary Council Controlled Organisations (CCTO’s) yet to be formed)
will from time to time use interest-rate swaps and forward exchange contracts
to manage interest rate and currency risk, consistant with prudent treasury and
risk management practices.
- HBRC has appointed an
external professional investment adviser to provide an overall assessment of
investment markets using its market intelligence and independent monitoring,
and, specifically, to manage the funds invested in HBRC’s Disaster Damage
Reserve.
7. Investment
Classes
HBRC will invest
in the following investment classes.
7.1 Investment Instruments
Investment
instruments include bonds, fixed interest securities and term deposits.
Investments made
under this investment class are only made with:
- Any bank licensed by the
Reserve Bank of New Zealand which has a minimum credit rating as issued by
Standard & Poors (or other credit rating agencies of similar reputation)
of:
∙ “A” for short term debt (i.e. for up to 12 months)
∙ “A for long term debt (i.e. for longer than 12 months).
- Any institution whose debt
is issued by or guaranteed by the New Zealand Government.
- Local authorities, but
excluding Council controlled organisations and Council controlled trading
organisations.
- Any corporation, State Owned
Enterprise or other legal entities which have minimum credit ratings for their
short and long term debt as set by Standard & Poors (or other credit rating
agencies of similar reputation) of:
∙ “A” for short term debt (i.e. for up to 12 months)
∙ “A+” for long term debt (i.e. for more than 12
months).
- Investments with any one
institution at any time are limited to the greater of:
∙ $5million, or
∙ 40% of this investment class.
7.2 Investment Property
Investment
property includes Napier endowment property and other unrestricted investment
property assets. Where possible, HBRC will own property that supports
achievement of its strategic development objectives.
7.3 Forestry
This includes
physical assets including trees and land for forestry and forest development)
7.4 Equities
This excludes
the Port of Napier, but includes shares in publicly listed New Zealand and
International Companies held directly or through appointed investment managers,
and other equity instruments such as New Zealand carbon units (or emission
units). While returns from equity investment may vary over time, HBRC as
a long-term investor, views capital appreciation and dividend and income growth
in its equity holdings as more valuable to the regional community than dividend
or income yield at any point in time, and will continue its investment in
equities on this basis.
7.5 Equity Investments
Equity
investments in HBRIC, PONL, CCTOs, and other subsidiary companies established
in accordance with this policy, including those established by HBRIC.
7.6 Equity Investments: Joint Ventures
Equity
investments in joint ventures with external partners.
7.7 Loans and Mortgages
This includes
mortgages to buyers of the freehold of Napier endowment property.
7.8 Professionally Managed Portfolios
Professionally
managed (external to HBRC) portfolios of investments of assets classes itemised
in this Section 7, either by direct investment or through unit trusts.
7.9 Internal loans
Internal Loans
for the development of infrastructure and property, plant and equipment assets.
8. Specific
Investments
8.1 Investment
Company
Since its
establishment on 1 February 2012, HBRC beneficially owns 100% of the shares in
HBRIC Ltd, a company established to manage HBRC’s corporate investments.
HBRIC Ltd is
classified as a strategic asset in terms of Section 97 of the Local Government
Act 2002.
HBRC sets a
series of performance and strategic targets for HBRIC Ltd in an annual
Statement of Objectives, which in turn is reflected in the company’s
annual Statement of Intent (SOI). The 2014-15 performance targets as set out in
HBRC’s Statement of Objectives for HBRIC Ltd are outlined in the
following tables.
Hawke’s Bay Regional Investment Company
Initial Performance Targets (subject to annual SOI review)
HBRIC Ltd Parent 2014-15
|
|
Performance Indicator
|
Target
|
|
Net debt to net debt plus Equity
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<10%
|
|
Interest cover (EBIT/Interest paid)
|
>3x
|
|
EBITDA/Total Assets
|
3%
|
|
Return on Shareholder’s Funds
|
3%
|
Hawke’s Bay Regional Investment Company
Initial Performance Targets (subject to annual SOI review)
Consolidated 2014-15
|
|
Performance Indicator
|
Target
|
|
Net debt to net debt plus Equity
|
<40%
|
|
Interest cover (EBIT/Interest paid)
|
>3x
|
|
EBITDA/Total Assets
|
8%
|
|
Return on Shareholder’s Funds
|
5%
|
Notes:
EBIT = Earnings Before Interest and Tax
EBITDA = Earnings Before Interest, Tax,
Depreciation and Amortisation
These
performance targets may change from year to year as a result of HBRC’s
annual review of its Statement of Objectives and the company’s Statement
of Intent and changing economic, market and financial circumstances.
As controlling
shareholder HBRC appoints the directors of HBRIC Ltd and, as controlling
shareholder, HBRC will have an expectation that the company’s policies
will support its strategic objectives.
8.2 Port of Napier Limited
As at 30 June
2012, HBRC beneficially owned 100% of the shares in PONL through HBRIC. These
shares were valued at $177.4million. HBRC’s strategic objective is to
continue to beneficially hold a majority of the shares of PONL as a key means
of assisting economic development of the region. The investment is
expected to be a significant source of non-rate revenue and has long term
prospects for growth and development.
As controlling
shareholder HBRC approves the appointment of the directors of PONL recommended
by HBRIC Ltd.
8.3 Napier Leasehold Land
HBRC owns
leasehold endowment property within and around Napier City. At
30 June 2011, its interest in the endowment property portfolio consisted
of 398 properties independently valued at $45.50 million.
The portfolio
was acquired in 1989 during the reformation of Local Government, and under the
terms of each lease, the properties can only be sold to lessees. This means
HBRC will retain ownership of each lease unless the lessor is willing to buy
the freehold interest in the property at a value acceptable to both lessee and
lessor. Sales of the freehold to lessors have occurred over the last three
years, and the proceeds held for general purposes specified under the LTP in
accordance with the provisions of the Endowment Act. HBRC has established
specific terms and conditions under which lessees can freehold their
properties.
HBRC intends to
continue to sell freehold interests to lessors wherever an acceptable sale
price can be achieved, and reserves the right to sell the annual cash flows
arising from ongoing rents paid by lessors from time to time. With effect
from 1 July 2013, HBRC sold the annual rentals due from this portfolio over the
next 50 years (i.e. until July 2063) to ACC for a lump sum of $37.8
million. The underlying properties continue to be owned by HBRC and sales
to lessors have continued, and may continue in the future, in the same way as
they have done in the past. HBRC has invested these funds in investment
classes specified in section 7 of this investment policy, and will continue to
do so in respect of net proceeds, (after disbursements to ACC), of sales of
freehold interests to lessors.
Ground rents
paid by lessors have been predominantly set at 5% of land value and reviewed
every 21 years. However from 2012, all rents have been reset annually at 5% of
current land value, or “fair annual ground rental”. Rent
revenue received from the leases currently yields around 4% on the independently
valued lessee’s interest.
8.4 Investment
Instruments (Bonds, fixed interest and short term deposits).
As at 30 June
2014, HBRC held $74.1million in bank term deposits and a further $2.8million in
Government Stock.
These
investments are derived from proceeds from the sale of Napier endowment
property freeholds (held in this form until suitable alternative long-term
investments become available for HBRC’s approval), asset replacement
provisions, disaster damage management and land drainage and flood control
schemes together with HBRC’s cash operating surpluses. A
significant proportion of these assets are held as reserve funds of one sort or
another, and need to be readily realisable to meet their particular purposes.
HBRC also needs to maintain a working capital balance to ensure it can meet its
obligations as and when they fall due. It is therefore important to
maintain a continuing “cash reserve” in this form.
8.5 Other equities
HBRC holds New
Zealand Shares and quasi equity instruments (such as convertible notes) listed
on the New Zealand Stock Exchange, as well international shares (held in
diversified global funds which may be investment trusts, investment companies
or unitised funds) as a specific part of its Disaster Damage Reserve.
These assets
amounted to $1million as at 30 June 2014, and are held to generate long term
capital appreciation for the Reserve, while providing ready liquidity in order
to meet any call on the Disaster Damage Reserve funds. Investments in equities
for the reserve are limited to an overall maximum of 30% of the Disaster Damage
Reserve, and further limited to:
- New Zealand shares - up to
10% of the Reserve
- International Shares - up to
22.5% of the Reserve.
8.6 Tangoio Soil Conservation Reserve
HBRC is responsible
for the management of the Crown owned 550ha Tangoio Soil Conservation Reserves
incorporating 325 ha of commercial forest plantings beneficially attributable
to it and valued at $2.3million as at 30 June 2014. This investment will
continue to be managed in terms of HBRC’s undertakings for this purpose.
8.7 Investment Property
HBRC owns other
leasehold property in the suburbs of Kelburn and Thorndon in Wellington, which
are not subject to endowment restrictions. HBRC reserves the right to sell some
or all of these properties and reinvest the proceeds in investment classes
specified in Section 7 of this policy. These assets were independently valued
at $11.9million as at 30 June 2014.
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HBRC's
2015-25 Policies
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Attachment 5
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9 Investment
Management Responsibilities and Delegations
Investment management
responsibilities and powers to delegate are summarised in the following table.
Investment Policy
Investment Management Responsibilities and Delegations
|
|
Responsible Entity
|
Responsibilities
|
|
HBRC
|
1. Approve
the Investment Policy and review it, at least every three years, as part of
the Long Term Plan (LTP) process.
2. Monitor
compliance with the Investment Policy through the receipt of periodic reports
and briefings.
3. Approve
investments (in the instances where funding is required from HBRC) in HBRIC,
PONL and any
Council Controlled Trading Organisations (CCTOs), other
subsidiary companies or trusts, including authorisations of use of investment
funds and the terms and conditions of investment for these purposes.
4. As
controlling shareholder, vote for the appointment of directors in HBRIC, PONL
and any CCTOs or other subsidiary companies established to manage
HBRC’s investments in future.
5. Approve
new investments to facilitate community infrastructure asset creation,
whether by way of direct property ownership or by making loans to non-HBRC
entities for this purpose.
6. Approve
investments made outside this policy.
7. Authorise
the Chief Executive to manage and invest HBRC’s cash
reserves, surpluses, and available working capital balances, in investment
instruments specified in Section 7 “Investment Classes” of this
policy, up to the limit of total cash balances available to the HBRC from
time to time, and in accordance with the requirements of this Investment
Policy.
8. Grant
delegated authority to act on all other investment issues.
|
|
HBRIC Ltd
|
1. Approve
new investments or divestments, including any made by its current and any
future subsidiary companies, joint ventures or other investment vehicles,
except where the new investment or divestment:
(a) Is
inconsistent with delivery of HBRC’s strategic objectives
(b) Significantly
varies performance targets agreed through respective Statements of Intent
(c) Requires
HBRC to assist funding these investments by increasing its equity in its
subsidiary, associate, joint venture or other investment vehicle, or provide
loans or other financial assistance to them
(d) Involves
divestment of a strategic asset as defined under Section 97 of the Local
Government Act 2002.
|
|
Chief Executive
|
1. Ensure
compliance with this policy through the appointment and accountability of
appropriate staff.
2. Exercise
delegated authority to make and implement investment decisions in accordance
with authority delegated by HBRC.
3. Monitor
investment conditions and performance and recommend initiatives and changes
to HBRC as
circumstances require.
4. Grant
delegated authority to implement investment decisions to senior staff as
appropriate.
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HBRC's
2015-25 Policies
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Attachment 5
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10. Reporting
Investment mix
and performance is reported to HBRC for all investments through the following
means.
1. Reporting annually
- For all equities, (including
HBRIC, PONL, CCTOs and other subsidiary companies, and New Zealand and
international shares):
∙ Dividends and other payments received
∙ Sales and acquisitions; gains and losses on disposal (if any)
∙ Changes in capital values of the assets (based on market or
independent valuation)
∙ Financial and operating results
∙ Economic impacts (if any) generated during year.
- For all investment
instruments, (bonds, term deposits, fixed interest investments, loans and
mortgages):
∙ Interest and other income received during the year
∙ Repayments of loan principal
∙ Gains and losses (if any) on disposal
∙ Changes in capital values of the underlying assets (based on
market or independent valuation).
- For property investments
(including the Napier endowment property):
∙ Movements in rental renewals
∙ Sales and acquisitions of leases and property over the year
∙ Any transfers of leasehold properties between lessees
∙ Gains and losses on disposal (if any)
∙ Net income and change in capital values of the underlying assets
(based on market or independent valuation)
∙ Economic impacts (if any) generated during the year.
2.
Periodic Annual Plan progress reports which will show:
- Ongoing income returns from
investments
- Sales and acquisitions of
investments to date
- Gains and losses (if any) on
disposal
- Indicative economic impacts
(if any).
3. Individual issue
papers submitted to HBRC dealing with matters of relevance (including changes in investment
policy) to the investment portfolio that may arise during the year.
4. Additional
requirements on HBRIC, PONL, CCTOs and other subsidiary companies reporting
through HBRIC, including:
- Agreeing financial and other
relevant strategic and performance targets for these businesses through an
annual Statement of Intent
- Confirm appointment of
directors having appropriate expertise to their boards
- Where requested, for
HBRC’s strategic planning purposes, review businesses strategic plans,
annual budgets and financial forecasts for their medium and long term
future operations
- Receiving 6 and 12 month
reports on financial performance and position and operating results of these
businesses
- Being briefed by the
Chairperson of Directors and Chief Executive Officer of the businesses as
required by the HBRC, but no less than twice a year
- Being consulted, and where
necessary, making decisions as shareholders, at any time on new developments or
significant departures from anticipated performance.
11. Review
of Policy
This policy will be reviewed no less
than every three years.
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HBRC's
2015-25 Policies
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Attachment 5
|
Liability Management Policy
Introduction and Scope
The following
Liability Management Policy has been prepared in accordance with the
requirements of sections 102(4)(b) and 104 of the Local Government Act 2002 .
The policy covers Council management of all borrowing, as defined in section
112 of the Act, as well as management of other liabilities. Section 113 of the
Act prohibits Councils’ from borrowing or entering into incidental arrangements
denominated in other than New Zealand currency.
General Policy
In accordance
with the Act, and by resolution, Councils’ may borrow on such terms and
conditions that they consider appropriate.
Councils’ may borrow for any of the following primary purposes:
· Funds for the acquisition of any assets expected to have a useful
economic life of more than 2 years
· Funds for specific one-off projects
· The acquisition of low risk investments
· Short term debt to manage timing differences between cash inflows and
outflows and to maintain Council's liquidity.
In approving new
borrowing, Hawke’s Bay Regional Council (HBRC) will apply the following
principles:
· Borrowings will be repaid over the economic life of the assets
being funded, or such shorter period as determined, at its discretion
· Interest costs and principal repayments will be funded by the
beneficiaries of the borrowings
· The extent of borrowings will be determined by the
beneficiaries’ ability and willingness to pay, as determined by
consultation.
Commentary
HBRC has large
infrastructure assets with long economic lives yielding long term benefits for
the community. The use of debt as a funding option is seen as an appropriate
and efficient mechanism for promoting inter-generational equity between current
and future community members in relation to such assets. In addition, debt may
allow scheme or other projects to progress at an earlier stage than might
otherwise be possible as it reduces the cash flow burden on beneficiaries and
therefore increases affordability.
Interest Rate
Exposure
Interest rate
risk refers to the impact that adverse movements in interest rates may have on
Council's cash flows and interest expense. To avoid this risk, and given the
low level of current and forecast future borrowings, Council's preference is to
borrow long-term on fixed interest rates. From time to time it may be
appropriate (depending on Council's outlook on interest rates at the time of
borrowing and the term of a loan), to choose borrowing mechanisms that have a
floating interest rate. In this case, the level of such borrowings must not
exceed the maximum floating rate exposure allowed; being:
· up to 50% of total external borrowings outstanding at any time may
have a floating interest rate.
Where floating interest
rates are used, interest rate hedging mechanisms may only be used as directed
by HBRC.
Liquidity
Liquidity refers
to the availability of funds to settle Council's financial obligations when
they fall due for payment. Council will maintain liquidity by:
· Matching average expenditure closely to revenue streams and
managing cash flow timing differences to its favour
· Avoiding concentrations of debt maturity dates
· Maintaining operating cash balances (being less than 1 year
investment timeframes) of not less than $3,000,000.
Credit Exposure
HBRC will only
borrow from reputable financial institutions so there are no minimum credit
rating requirements imposed on lenders. Furthermore, there is no limit on the
level of borrowing to which HBRC may commit from any one lender.
Debt Repayment
HBRC will repay
borrowings from rates, surplus funds, proceeds from the sale of assets or
investments or from specific sinking funds.
Specific Borrowing Limits
In managing its
borrowings, HBRC will adhere to the following limits.
· Total interest expense on external public debt (including lease
annuity) will not exceed 25% of total annual operating expenditure. In
addition, HBRC loan funding will not exceed a debt to debt equity ratio of 28%.
Security
HBRC will offer
security for its borrowings by way of a charge over its rates. However, in
special circumstances, and if considered more appropriate, HBRC may offer
security over specific assets.
Internal Debt Management
When considered
appropriate, HBRC uses cash operating balances as internal borrowing sources,
thereby reducing the level of external borrowings. The following guidelines
apply to the use of internal borrowings:
· Interest will normally be charged on the average of opening and
closing loan balances in each financial year
· The interest rate charged is the average rate of return achieved
from short term investments during the financial year.
The reserves
established to cover the funding of replacement operating property, plant and
equipment and renewal of flood and drainage scheme infrastructure are treated
as one reserve balance for the purposes of providing funds for the purchase of
new assets. Therefore for the most part loans are only raised from external
funding sources when the total reserve balance is low.
Currently,
internal debt is only used where scheme rating balances are in deficit.
Review of
Policy
This policy will
be reviewed no less than every 3 years.
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HBRC's
2015-25 Policies
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Attachment 5
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Māori Freehold Land
Introduction
Māori freehold land is defined in the Local Government
(Rating) Act 2002 as land whose beneficial ownership has been determined by a
freehold order issued by the Māori Land Court. Only land that is the
subject of such an order may qualify for remission or postponement under this
policy. Whether rates are remitted or postponed in any individual case will
depend on the individual circumstances of each application.
This policy has been formulated for the purpose of:
- Ensuring
the fair and equitable collection of rates from all sectors of the community by
recognising that certain Māori owned lands have particular conditions,
features, ownership structures or other circumstances that make it appropriate
to provide relief from rates
- Meeting
the requirements of Sections 102(4)(f) and 108 and the matters in Schedule 11
of the Local Government Act 2002 to have a policy on the remission and
postponement of rates on Māori freehold land.
Objectives
The objectives of this policy are:
- To
recognise situations where there is no occupier or person gaining an economic
or financial benefit from the land
- To
set aside land for conservation purposes because of its natural features
- To
recognise and take account of the presence of waahi tapu (sacred areas) that
may affect the use of the land for other purposes
- Where
part only of a block is occupied, to grant remission for the portion of land
not occupied.
Conditions and
criteria
1. Application
for a remission or postponement under this policy must be made by the person(s)
liable for rates for the land (e.g. owners or trustees), or a person appointed
by the Māori Land Court, or other authorised agent of the owners of the
land.
2. The
application is to be made in writing before 30 days of the due date of payment.
Applications made after this cut-off date will apply from the beginning of the
following rating year. Hawke’s Bay Regional Council (HBRC) will review
the appropriateness of remissions on occasion.
3. The
applicant must include the following information in their applications:
- Details
of the rating unit or units involved
- Documentation
that shows that the land qualifies as land whose beneficial ownership has been
determined by a freehold order issued by the Māori Land Court
- Details
supporting the applicant’s eligibility under clause 5 below.
4. Relief
and the extent thereof, is at the sole discretion of Council and may be
cancelled or reduced at any time.
5. HBRC
may grant a remission on Māori freehold land of up to 100% of all rates
for the year to which the application applies, based on the following criteria.
The land is in multiple ownership:
- Where
the level of gross income derived from the land is not sufficient to cover the
cost of rates levied on that land
- Where
it is not possible to identify or locate the owners, or those liable to pay
rates on the land
- The
support for the use of the land by the owners for traditional purposes
- The
support for the relationship of Māori and their culture and traditions
with their ancestral lands
- Recognition
of the presence of sacred areas (waahi tapu) that may affect the use of the
land for other purposes
- Recognition
of the importance of the land for community goals relating to:
∙ the
preservation of the natural character of the coastal environment
∙ the
protection of outstanding natural features
∙ the
protection of significant indigenous vegetation and significant habitats of
indigenous fauna.
6. No
application under this policy will be automatically backdated; however, having
granted a remission on a property under the criteria laid down in clause 5
(above), Council may remit (write-off) outstanding arrears owing on that same
property.
Delegated
Authority
Decisions on the
remission and postponement of rates on Māori freehold land are delegated
to the Group Manager Corporate Services or the Chief Executive.
Review of Policy
This policy will
be reviewed at least every 3 years to ensure that the conditions and criteria
on which the policy is based continue to be relevant and appropriate.
Remission in
Special Circumstances
Introduction
In order to
allow rate relief where it is considered fair and reasonable to do so,
Hawke’s Bay Regional Council (HBRC) has resolved to adopt policies under
Sections 102 (5) (a) and 109 of the Local Government Act 2002 specifying the
circumstances under which rates will be considered for remission. There are
various types of remission, and circumstances under which a remission will be
considered. A remission will not be granted where an entity has qualified under
the Local Government (Rating) Act 2002 (LGRA) for partial non rating under Part
2 of Schedule 1.
The conditions
and criteria relating to remission in special circumstances are set out
following.
Part 1 –
Remission of Rates in Special Circumstances
Policy
objective
To provide for
the possibility of a rates remission in circumstances that have not been
specifically addressed in other parts of HBRC’s rating policy.
Conditions and criteria
1. HBRC may
remit all or part of the rates assessed in relation to a particular rating unit
in special or unforeseen circumstances where it considers it just and equitable
to do so.
2. The
approval of the remission must not set a precedent that unfairly disadvantages
other ratepayers.
3. A
remission under this policy will apply for one year only. Applicants must
reapply annually.
4. No
application under this policy will be backdated. Rates arrears on the land as
at 1 July 2004 will remain outstanding until such time as HBRC is no longer
legally able to pursue the collection of rates.
5. All
applications must be received in writing detailing the rating unit(s) involved
and any other relevant information supporting the applicant’s eligibility
for the remission.
6. The
application for a rates remission must be made before 7 days of the due date of
payment.
Delegation
Decisions
relating to the remission of rates special circumstances are retained by HBRC.
Review of Policy
This policy will
be reviewed at least every 3 years, to ensure that the conditions and criteria
on which the policy is based, continue to be relevant and appropriate.
Part 2 –
Remission of Penalties on Rates
Objective
To enable HBRC
to act fairly and reasonably when rates have not been received by the due date.
Conditions and criteria
Upon receipt of
an application from the ratepayer, or if identified by Council, it may remit a
penalty where:
1. It is
demonstrated that the penalty has been levied because of an error by Council,
or
2. It
considers that it is fair and equitable to do so.
Matters that
will be taken into consideration by Council under (1.) above include:
1. The
ratepayer’s payment history
2. The
ratepayer entering into an agreement with Council for the payment of rates.
Council reserves
the right to impose conditions on the remission of penalties.
Delegation
Decisions
relating to the remission of penalties on rates are delegated to the Group
Manager Corporate Services or Chief Executive.
Review of Policy
This policy will
be reviewed at least every 3 years to ensure that the conditions and criteria
on which the policy is based, continue to be relevant and appropriate.
Part 3 – Remission of Rates on Properties Affected by
Natural Calamity
Objective
To help
ratepayers experiencing extreme financial hardship due to natural calamity
which affects their ability to pay rates.
Conditions and Criteria
1. Applicable
where erosion, subsidence, submersion, or other natural calamity has affected
the use or occupation of any rating unit. Does not apply to erosion, subsidence,
submersion, etc that may have occurred without a recognised major event.
2. HBRC may,
at its discretion, remit all or part of any rate assessed on any rating unit so
affected by natural calamity.
3. HBRC will
set the criteria for remission with each event. Criteria may change depending
on the severity of the event and available funding at the time.
4. HBRC may
require financial or other records to be provided as part of the remission
approval process.
5. Remissions
approved under this policy do not set a precedent and will be applied only for
each specific event and only to properties affected by the event.
Delegation
Decisions
relating to the remission of rates on property affected by natural calamity are
delegated to the Group Manager Corporate Services or the Chief Executive.
Review of Policy
This policy will
be reviewed at the least every 3 years, to ensure that the conditions and
criteria under which the policy is based, continue to be relevant and
appropriate.
Remission for Uniform Annual General Charges (UAGC)
Introduction
In order to
allow rate relief where it is considered fair and reasonable to do so,
Hawke’s Bay Regional Council (HBRC) is required to adopt policies to
specify the circumstances under which rates will be considered for remission.
This policy is prepared under Sections 102 (5) (a) and 109 of the Local
Government Act 2002.
Policy
Objectives
- To provide relief to
ratepayers who occupy several near adjacent rating units, but which do not meet
the criteria for continuity under section 20 of the Local Government Act
(Rating) 2002.
- To provide relief for
developers in the instances of sub-division development in urban areas.
Remissions
under the Local Government (Rating) Act 2002
Section 20 of
the Local Government (Rating) Act 2002, stipulates that there shall be one
property for the purposes of levying the UAGC, where two or more separately
rateable properties are:
- Occupied by the same
ratepayer (owner or person with right to occupy by virtue of lease for more
than 12 months); and
- Used jointly as a single
property (for the same purpose); and
- Contiguous but separated
only by a road, railway-line, drain, water race, river or stream, they shall be
deemed to be one property for the purposes of any Uniform Annual General
Charges.
Where not
already reflected on Council's rating information database, HBRC will allow,
without further enquiry except for clarification, applications made by
ratepayers in the form of a statutory declaration to the effect that two or
more separately rated properties are occupied by the same ratepayer and used
jointly for the same purpose, the Uniform Annual General Charge levied on the
second and subsequent assessments will be cancelled.
Conditions and
Criteria to achieve Policy Objectives
1. Where
farming or horticultural operations conducted on separate blocks of land are so
far apart so as to indicate that there is no possible continuity between them,
all charges may be levied on each; however, factors such as distance, stock
rotation, stock driving, etc., property size and the number of properties
affected, will be taken into account in determining whether remission should
apply.
a. Without dwellings
Where a single
operation is operated over a number of separate rating units, or blocks of
separate rating units within close proximity the 'flagship' (major rating) may
be levied a full charge and the associated rating units may receive a 100%
reduction.
b. With dwellings
Where a single
operation is operated over a number of separate rating units, or blocks of separate
rating units within close proximity a charge may be levied against each rating
unit with a habitable dwelling and the associated units may receive a 100%
reduction.
Where a single
operation is operated over a number of separate blocks of contiguous rating
units that contain dwellings, one full charge may apply to each block of such
rating units.
2. Miscellaneous
If a rating unit
is of a size which would not enable a dwelling to be erected and where no
dwelling exists, a 100% reduction in charge may apply.
Remission of the
charge may apply to a subdivision for the period if the individual lots
continue to be in the ownership of the developer.
3. The
application is to be made in writing 30 days before the due date of payment.
4. All
applications must be received in writing, detailing the rating unit/units
involved and any other relevant information supporting the applicant's
eligibility for the remission.
Delegation
Decisions
relating to the remission of Uniform Annual General Charges are delegated to
the Group Manager Corporate Services and Financial Accountant.
Review of
Policy
This policy will
be reviewed at least every 3 years to ensure the conditions and criteria on
which the policy is based, continue to be relevant and appropriate.
Postponement in Cases of Financial Hardship or Natural Disaster
Introduction
This policy is
prepared under Sections 102(5)(b) and 110 of the Local Government Act 2002.
Objective
- To assist ratepayers
experiencing short term extreme financial hardship that affects their ability
to pay rates.
- To assist ratepayers whose
property has been subject to a natural disaster to the extent that ratepayer is
unable to pay rates.
Conditions and Criteria
The financial
hardship must be caused by circumstances beyond the ratepayer’s control.
The postponement of rates in cases of financial hardship is a last resort to
assist residents who own the property to which the postponement application
applies.
Criteria for the
postponement of rates for ratepayers in cases of hardship are:
1. The
applicant can illustrate a postponement of rates will help them overcome their
short term extreme financial hardship
2. The
applicant has no access to other funds to pay the rates due.
Criteria for the
postponement of rates for ratepayers in cases of natural disaster are:
1. The
applicant is unable to pay their rates bill because of a natural disaster or
severe weather event that has severely impacted on their ability to pay rates
but a postponement will help enable them to pay in the future.
Other Conditions
Approval of
rates postponement is for one year only. The applicant must reapply annually
for the continuation of a rates postponement.
Delegation
Decisions
relating to the postponement of rates in cases of financial hardship are
delegated to the Chief Executive.
Decisions
related to the postponement of rates in cases of natural disaster are retained
by Council.
Review of
Policy
This policy will
be reviewed at least every 3 years, to ensure that the conditions and criteria
on which the policy is based, continue to be relevant and appropriate.
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HBRC's
2015-25 Policies
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Attachment 5
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Introduction
This policy has
been prepared in accordance with Sections 102 (2) (a) and 103 of the Local
Government Act 2002. It identifies the funding sources and mechanisms that will
be used to finance the Council's operating expenses and capital expenditure for
the 10 years beginning 1 July 2015.
Local Government
is required by statute to identify the costs of its functions and fund them
appropriately. This involves the allocation of costs to the functions followed
by a determination of the most appropriate form of funding.
Purpose of the
Policy
The purpose of
the Revenue and Financing Policy is to provide and explain the policy of the
Hawke's Bay Regional Council (HBRC) for the funding of operating and capital
expenditure from the following sources.
· fees and charges
· general rates, including
choice of valuation system
differential rating
uniform annual general charges
· targeted rates
· investment income
· borrowing
· proceeds from asset sales
· development contributions
· financial contributions under the Resource Management Act 1991
· grants and subsidies
· any other source
In determining
the sources to fund operating and capital expenditure Council must consider the
following.
1. In
relation to each activity to be funded:
· the community outcomes to which the activity primarily contributes
· the distribution of benefits between the community as a whole, any
identifiable part of the community, and individuals
· the period in or over which those benefits are expected to occur
· the extent to which the actions or inaction of particular
individuals or a group contribute to the need to undertake the activity
· the costs and benefits, including consequences for transparency
and accountability, of funding the activity distinctly from other activities.
2. The
overall impact of any allocation of liability for revenue needs on the current
and future social, economic, environmental, and cultural well-being of the
community.
Grouping of
Activities
To comply with
statutory responsibilities and for operational management purposes, HBRC groups
its functions in the Long Term Plan into separate groups of activities. The
Council has eight 'groups of activities' which form the Long Term Plan and
Annual Report processes.
Groups of
Activities are further analysed by individual activities within each group.
This framework enables the Council to co-ordinate its various planning and
reporting responsibilities and provides an appropriate base for determining the
Council's revenue and financing policy.
Public/Private
Split: 2 Step Process
HBRC undertakes
a 2 step process when assessing the public/private split for the revenue and
financing policy. An overview of this process is as follows.
Step 1
Allocation on
economic principles.
- Beneficiary pays: An
assessment to determine whether there are any private benefits to be recovered
from identifiable users and if so, what this recovery should be.
- Exacerbator pays: An
assessment to determine whether there are any private exacerbators and if so,
what costs does this represent.
- General benefits: An
assessment is made of the benefits that apply to the general community where
every person in the region benefits equally from that activity.
This analysis is
used to determine the recommended strict economic allocation for the funding of
each activity.
Once an
assessment is made as to the recommended strict economic allocation for the
funding of each activity then the next part of the step is to determine whether
Council’s policies are effectively and appropriately promoted when this
strict economic efficiency allocation is used. Modifications may be required to
economic based funding where it is considered necessary to reflect more
appropriately the impact of any allocation of liability for revenue needs on
the current and future social, economic, environmental and cultural wellbeing
of the community.
From the above
analysis, Council's preferred allocation is derived.
Step 2
After an
analysis of the funding tools available to HBRC for funding the public/private
benefits identified consideration is then give to the following areas.
- Costs and efficiencies of
tools: An assessment is made to determine whether the funding tools
available represent an efficient combination to be used considering the
administration costs to HBRC and compliance costs to ratepayers.
- Intergenerational equity:
Assessment is made to determine whether the expenditure of this activity should
be recovered at the time the benefits accrue. In most cases the benefits accrue
immediately and hence are recovered during the year of expenditure.
- Interests of ratepayers
and residents: Consideration of the ability to pay is undertaken.
- Transitional impact:
An assessment is made to determine whether there would be any significant
adjustment difficulties for ratepayers if the strict economic efficiency
allocation were adopted.
- Fairness and equity:
An assessment is made to determine whether the strict economic efficiency
allocation would be fair and equitable.
From this
analysis, given the funding tools available, the final recommendation to
Council for each activity is then formulated.
Available
Funding Sources
HBRC may
lawfully fund its expenditure needs from the sources listed above. Set out
below is discussion on the most significant of these to the Council.
Fees and Charges
Subject to the
provisions of a number of statutes, the Council may directly charge
beneficiaries for services.
These user pays
charges may be made using a variety of methods from setting fees for certain
activities to charges for actual time and materials based on pre-determined
hourly charge out rates.
Of relevance
also is Section 36 of the Resource Management Act 1991 which enables local
authorities to establish charges for various administrative and monitoring
activities including:
- receiving, processing and
granting resource consents
- implementing requests to
prepare or change plans or policy statements
- monitoring compliance with
conditions on resource consents
- providing information in
respect of consents or plans
- gathering information or
research
- monitoring the state of the
environment
- providing information on
water science.
Administrative
charges made under Section 36 of the Resource Management Act 1991 are required
to be fair and reasonable. Before making charges, the Council is required to
have regard to:
- The sole purpose of any
charge is to recover the reasonable costs incurred by HBRC in respect of the
activity to which the charge relates
- A particular person or
persons should be required to pay a charge only to the extent that either the
benefit of the Council’s actions to which the charge relates is obtained
by those persons as distinct from the community of Hawke's Bay as a whole, or
the need for its actions to which the charge relates is occasioned by the
actions of those persons
- When the charge relates to
monitoring the state of the environment, a particular person or persons should
only be required to pay a charge, either to the extent that the charge relates
to the likely effects on the environment of those persons’ activities, or
to the extent that the likely benefits of the monitoring to those persons
exceeds the likely benefit of the monitoring to the community of the Hawke's
Bay Region as a whole.
Other direct
charges include fees, and sundry charges.
Rates
Rates are a
substantial and traditional source of revenue for local government. Rates are a
form of taxation based on the ownership or occupation of property.
- Rating Basis: Under
the provisions of the Local Government (Rating) Act 2002, there are four bases
upon which rates can be made and levied. In brief, these are:
∙ Land value: The market
value of the land
∙ Capital value: The market
value of the land and improvements
∙ Annual value: The rent for
which a particular property could be let from year to year, less 20% in the
case of buildings and 10% in the case of land, but it shall not be less than 5%
of the market value
∙ Area system: Where rates are
made and levied on the basis of an amount based on the area of each rateable
property.
Capital and land
values are determined independently of local authorities by valuation service
providers. The properties for each city and district are normally revalued
every 3 years. For the Hawke's Bay Region, a certificate is obtained which
equalises the values of each city and district annually to compensate for
timing differences in the valuations between districts.
- General Rates: HBRC
may make and levy a regional general rate, either:
∙ across the Region, or
∙ within each constituent city or district, so that the rate made or
levied may vary from district to district.
A system of
differential rating for the general rate whereby rating levels may be varied
for different categories of property, for example, rural versus commercial, can
also be used.
A General Rate
can be set on either the basis of land value, capital value or annual value.
HBRC has always used land value (equalised) as its base for general rates, and
has not adopted any differentials, for example for commercial property.
- Uniform Annual General
Charge (UAGC): From 1 July 2004 HBRC introduced a UAGC to ensure that
each rating unit in the region contributes a minimum amount of the general rate
to represent the services that each ratepayer benefits from equally.
- Targeted Rates: In
addition to the general rate, HBRC is authorised to make targeted rates for the
purpose of undertaking any specific service or work for the benefit of all or
part of the Region. These rates are normally applied to properties that have a
direct beneficiary or cause/effect relationship with the function or service
being provided (thus reflecting the locality concept).
HBRC has used
targeted rates to fund flood protection and drainage schemes, public transport,
animal and plant pest control, civil defence emergency management, the heat
smart assistance programme, and economic development. A combination of capital
value, land value, area basis and Fixed Annual Charge have been used for these
targeted rates. Detailed information of the rating for each scheme and its
basis is set out in the funding impact statement included in this plan.
Investment Income
HBRC has a range
of property, equity, and cash investments that provide a source of income not
related to any specific function or activity. HBRC's investment assets are its
100% shareholding in the Hawke’s Bay Regional Investment Company Limited
(HBRIC Ltd); leasehold property investments in both Napier and Wellington; and
reserve funds.
Investment income
is principally applied to fund environmental programmes with an emphasis on
natural resource management in the region.
Proceeds from Asset Sales
The proceeds
from any property investment sales, with the exception of Napier leasehold
properties, are credited to the Sale of Land Account. All the funds in this
account, apart from $1 million per annum which, under Council's investment
policy are available for use to fund capital projects within Hawke's Bay that
have social, cultural or economic significance. These funds are initially
invested in fixed deposits until suitable projects that meet the criteria of
Council’s ‘Policy on the evaluation of investment
opportunities’ and comply with its general investment policies are
identified.
Proceeds from
the sales of Napier leasehold properties are paid to Accident Compensation
Commission (ACC) under the Lease Receivables Purchase Agreement. This agreement
covers HBRC’s agreement with ACC for the capitalisation of Napier
leasehold cash flows.
The proceeds
from the sale of all other operating assets are used to fund the replacement
operating asset needs of Council.
Development Contributions
The Local
Government Act 2002 precludes Regional Councils from charging development
contributions.
Financial Contributions under the Resource Management Act 1991
HBRC has
determined that it will impose financial contributions only in relation to
resource consents granted for river bed gravel extraction. These financial
contributions are used to avoid, remedy or mitigate the adverse effects on the
environment of this activity.
Borrowing
Local
authorities may borrow New Zealand currency to finance their lawful functions.
Borrowing is a useful method of funding the costs of a project where the
benefits will accrue into the future, for example, funding the capital costs of
a flood control scheme, or major building project. Council will periodically
borrow for such purposes.
Reserves
Local
authorities have traditionally, and to varying degrees, developed reserve
funds. Reserve funds have been used to allocate funds for special purposes such
as asset replacement, future capital works, flood and drainage schemes, and for
emergencies and contingencies. HBRC has a reasonable level of reserves which
help in the financial management of all activities. Consideration of the
appropriate reserves and reserve levels is addressed as part of the Long Term
Plan and Investment Policy.
Government Grants
The Government
may provide funds to HBRC for specific purposes and projects across a range of
functions on an ongoing basis. The New Zealand Transport Agency provides
funding for subsidised passenger transport.
Capital
Expenditure
The funding of
capital expenditure is addressed in two distinct ways depending upon the nature
of the expenditure.
Financing the purchase of fixed assets
For fixed assets
including buildings, furniture and fittings, plant, equipment etc., it is HBRC
policy to fully fund depreciation from operating revenue for these assets. This
depreciation is placed in an asset replacement reserve which is used to fund
replacement assets. If there is any shortfall HBRC will either borrow, use
other Council reserves, or other general funding revenue sources.
Financing of infrastructure assets
1. Assets with infinite life
These assets
include stopbanks, berm edge protection, sea or river groynes, drainage works,
etc and are considered not to deteriorate over time and are maintained in
accordance with Councils Asset Management plan. No depreciation is
provided on these assets.
The
infrastructure asset strategy provides for continuing yearly maintenance
programmes to ensure the integrity of assets in this class.
For significant
new asset construction under this category, borrowed funds are used as
Council’s preferred method of financing. If sufficient accumulated
funds are held in the Scheme operating reserve and/or the Scheme infrastructure
depreciation reserve, then where provided for in the Asset Management plans for
that Flood and Drainage Scheme, such new asset purchases can be directly funded
from these accumulated reserves or those reserves be used to service a loan
raised to fund such a purchase.
2. Assets with a finite life
These assets
include culverts, detention dams, pump stations, etc and are depreciated over
their useful life. Depreciation is set at a rate that is consistent with
the requirements of the Local Government Act 2002 sections 100-102, and as
provided for in the adopted Asset Management Plan for each scheme. Such
depreciation is placed in an infrastructure depreciation reserve for each Flood
and Drainage Scheme.
Renewal of these
assets will, where it is considered appropriate, be funded from this
depreciation reserve, any accumulated credit balances in the scheme operating
account or through the use of loan funding as set out in the adopted Asset
Management plan.
Where (new)
assets that will result in improved levels of service or additional capacity
are to be purchased or constructed, then it is Council’s preference to
fund this through external loan funding other than where adopted Asset
Management plans provide for such new assets to be funded from accumulated
infrastructure depreciated reserves and/or scheme operating balances for each
flood drainage scheme.
Revenue and Financing Policy by 'Group of Activity'
The following pages
outline funding considerations for each activity within the eight HBRC 'Groups
of Activities'.
The two step
process, as previously outlined in this policy, is used to ensure that the
funding principles as required by the Local Government Act 2002 are adequately
covered. This process results in HBRC work being split between public and
private benefits.
Details of
funding by each activity are provided in the tables that follow. It is
important that the notes to these tables are read along with the figures in the
tables because the notes provide the reasoning applied to each funding split
between public and private.
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HBRC's
2015-25 Policies
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Attachment 5
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Revenue and Financing Policy
Group of Activity: Strategic Planning
|
|
Sub -Activity
|
Further Analysis
|
Previous Policy (c)
Public Private
|
Proposed Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Policy Implementation
|
|
100%
|
Nil
|
100%
|
Nil
|
Investment
Income(b)
|
Nil
|
1
|
|
Strategy and Planning
|
|
100%
|
Nil
|
100%
|
Nil
|
Investment
Income
|
Nil
|
1
|
|
Economic Development
|
|
Nil – 8%
|
92% - 100%
|
Nil
|
100%
|
Nil
|
Targeted Rate(f)
|
2
|
|
State of the Environment Reporting
|
State
of the Environment Reporting
|
96% - 100%
|
Nil – 4%
|
82.5%
|
17.5%
|
Investment
Income
|
Fees/Charges
|
3
|
|
Research and Grants
|
100%
|
Nil
|
100%
|
Nil
|
Investment
Income
|
Nil
|
4
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Investment
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The
notes to these tables provide the logic to support the funding splits between
Public and Private.
f. Targeted
Rate denotes the amount required from targeted rates net of any internal
revenue contributions or other sundry income
|
Revenue and Financing Policy
Group of Activity: Land Drainage and River
Control
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (c)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Heretaunga
Plains Schemes
|
Drainage
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income (b)
|
Targeted
Rate(f)
|
5
|
|
Flood
Control
|
30%
|
70%
|
30%
|
70%
|
Invest.
Income
|
Targeted
Rate
|
6
|
|
Upper
Tukituki Scheme
|
|
17.5%
|
82.5%
|
17.5%
|
82.5%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Other
Schemes
|
Paeroa
|
12.5%
|
87.5%
|
12.5%
|
87.5%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Makara
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Porangahau
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Poukawa
|
5%
|
95%
|
5%
|
95%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Ohuia-Whakaki
|
5%
|
95%
|
5%
|
95%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Esk
|
12.5%
|
87.5%
|
12.5%
|
87.5%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Whirinaki
|
12.5%
|
87.5%
|
12.5%
|
87.5%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Wairoa
|
12.5%
|
87.5%
|
12.5%
|
87.5%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Te
Awanga
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Kopuawhara
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Opoho
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Kairakau
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Te
Ngarue
|
10%
|
90%
|
10%
|
90%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Central
& Southern
|
12.5%
|
87.5%
|
12.5%
|
87.5%
|
Invest.
Income
|
Targeted
Rate
|
7
|
|
Investigations
& Enquiries
|
Investigations
and Enquiries
|
100%
|
Nil
|
100%
|
Nil
|
Invest.
Income
|
Nil
|
8
|
|
Subsidised
Work
|
30%
|
70%
|
30%
|
70%
|
Invest.
Income
|
Fees/Charges
|
9
|
|
Consultancy
Services
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Fees/Charges
|
10
|
|
Sundry
Works
|
River
Openings
|
100%
|
Nil
|
100%
|
Nil
|
Invest.
Income
|
Nil
|
11
|
|
Westshore
|
50%
|
50%
|
50%
|
50%
|
Invest.
Income
|
Contribution from Napier City Council
|
12
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The
notes to these tables provide the logic to support the funding splits between
Public and Private.
f. Targeted
Rate denotes the amount required from targeted rates net of any internal
revenue contributions or other sundry income
|
Revenue and Financing Policy
Group of Activity: Regional Resources
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (c)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Land Management
|
Sustainable Land Management
|
100%
|
Nil
|
75%
|
25%
|
Invest.
Income (b)
|
Targeted
Rate(f)
|
13
|
|
Land Monitoring
|
70%
|
30%
|
75%-100%
|
Nil-25%
|
Invest. Income
|
Targeted Rate
|
14
|
|
Land Research & Investigations
|
65%
|
35%
|
65%
|
35%
|
Invest. Income
|
Targeted Rate & Fees/Charges
|
12
|
|
Soil Conservation Nursery
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Fees/Charges
|
16
|
|
Air Management
|
Air Quality
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income
|
Nil
|
17
|
|
Healthy Homes Initiative
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Targeted Rate &
Fees/Charges
|
18
|
|
Water Management
|
Water Science
|
65%
|
35%
|
65%
|
35%
|
Invest. Income
|
Fees/Charges
|
19
|
|
Water Information Services
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Fees/Charges
|
20
|
|
Water Demand
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income
|
Nil
|
21
|
|
Coastal Management
|
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income
|
Nil
|
22
|
|
Gravel Management
|
Gravel Management
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Fees/Charges
|
23
|
|
River Cross Sections
|
43%
|
57%
|
43%
|
57%
|
Invest. Income
|
Fees/Charges
|
24
|
|
Open Spaces
|
Wetlands - Waitangi, Tukituki & Muddy Creek
|
30%
|
70%
|
30%
|
70%
|
Invest. Income
|
Differential Rate
|
25
|
|
Wetlands – Pekapeka
|
90%
|
10%
|
90%
|
10%
|
Invest. Income
|
Differential Rate
|
26
|
|
Lake Tutira Country Park
|
87%-90%
|
10%-13%
|
87%-90%
|
10%-13%
|
Invest. Income
|
Fees/Charges
|
27
|
|
Public Access to Rivers
|
65%-75%
|
25%-35%
|
65%-75%
|
25%-35%
|
Invest. Income
|
Targeted Rate &
Fees/Charges
|
28
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The notes to these tables provide the logic to support the
funding splits between Public and Private.
f. Targeted Rate denotes the amount required from targeted rates
net of any internal revenue contributions or other sundry income
|
Revenue and Financing Policy
Group of Activity: Regulation
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (c)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Resource
Consent Processing
|
|
40%
|
60%
|
40%
|
60%
|
Invest. Income (b)
|
Fees/Charges
|
29
|
|
Compliance
Monitoring
|
Compliance
Programmes
|
30%
|
70%
|
30%
|
70%
|
General
Funding Rates (a))
|
Fees/Charges
|
30
|
|
Environmental Incident Response
|
100%
|
Nil
|
100%
|
Nil
|
General
Funding Rates
|
Nil
|
31
|
|
Maritime Safety and Navigation
|
|
100%
|
Nil
|
100%
|
Nil
|
General
Funding Rates
|
Nil
|
32
|
|
Building Act Implementation
|
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income
|
Nil
|
33
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The
notes to these tables provide the logic to support the funding splits between
Public and Private.
f. Targeted
Rate denotes the amount required from targeted rates net of any internal
revenue contributions or other sundry income
|
Revenue and Financing Policy
Group of Activity: Biosecurity
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (c)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Animal Pest Control
|
Rabbit Control
|
30%
|
70%
|
30%
|
70%
|
Invest.
Income (b)
|
Targeted
Rate(f)
|
34
|
|
Possum Control
|
30%
|
70%
|
30%
|
70%
|
Invest. Income
|
Targeted Rate
|
35
|
|
Rook Control
|
30%
|
70%
|
30%
|
70%
|
Invest. Income
|
Targeted Rate
|
36
|
|
Research
|
30%
|
70%
|
30%
|
70%
|
Invest. Income
|
Targeted Rate
|
37
|
|
General Advice
|
30%
|
70%
|
30%
|
70%
|
Invest. Income
|
Targeted Rate
|
37
|
|
Plant Pest Control
|
Incentive Scheme
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income
|
Nil
|
38
|
|
Inspections and Service Delivery
|
40%
|
60%
|
40%
|
60%
|
Invest. Income
|
Targeted Rate
|
39
|
|
Monitoring and Surveillance
|
40%
|
60%
|
40%
|
60%
|
Invest. Income
|
Targeted Rate
|
39
|
|
Biological Control
|
40%
|
60%
|
40%
|
60%
|
Invest. Income
|
Targeted Rate
|
40
|
|
Bovine Tb Regional Vector Control Programme
|
Vector Management
|
3%
|
97%
|
N/A
|
N/A
|
N/A
|
N/A
|
41
|
|
Bovine TB Vector Control
|
30%
|
70%
|
Nil
|
100%
|
Nil
|
Reserves
|
41
|
|
Bovine TB National Costs
|
30%
|
70%
|
Nil
|
100%
|
Nil
|
Reserves
|
41
|
|
Administration
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Reserves
|
41
|
|
Pest Management Strategies
|
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income
|
Nil
|
42
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The
notes to these tables provide the logic to support the funding splits between
Public and Private.
f. Targeted
Rate denotes the amount required from targeted rates net of any internal
revenue contributions or other sundry income
|
Revenue and Financing Policy
Group of Activity: Emergency Management
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (c)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Hazard Assessment and Response
|
Response Management
|
100%
|
Nil
|
100%
|
Nil
|
Invest Income (b)
|
Nil
|
43
|
|
Flood Risk Assessment
|
100%
|
Nil
|
100%
|
Nil
|
Invest Income
|
Nil
|
43
|
|
Flood Warning System
|
75%
|
25%
|
67%
|
33%
|
Invest.
Income
|
Targeted
Rate(f)
|
44
|
|
Oil Spill Response
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Govt. Grants
|
45
|
|
HB Civil Defence Emergency Management Group
|
Reduction – Hazard Identification and Mitigation
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Targeted Rate
|
46
|
|
Readiness and Response
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Differential Rate/Local &
Government Grants
|
46
|
|
Recovery and Co-ordination
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Differential Rate/Local &
Government Grants
|
46
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The
notes to these tables provide the logic to support the funding splits between
Public and Private.
f. Targeted
Rate denotes the amount required from targeted rates net of any internal
revenue contributions or other sundry income
|
Revenue and Financing Policy
Group of Activity: Transport
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (c)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Regional Road Safety
|
|
5%
|
95%
|
15%
|
85%
|
Invest. Income (b)
|
Govt. Grants and Territorial Authority Grants
|
47
|
|
Regional Land Transport Strategy
|
|
Nil-28%
|
72% - 100%
|
47%-49%
|
51%-53%
|
Invest. Income
|
Govt. Grants
|
48
|
|
Subsidised Passenger Transport
|
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Govt. Grants/Differential Rate & Fees/Charges
|
49
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The
notes to these tables provide the logic to support the funding splits between
Public and Private.
f. Targeted
Rate denotes the amount required from targeted rates net of any internal
revenue contributions or other sundry income
|
Revenue and Financing
Policy
Group of Activity:
Governance and Community Engagement
|
|
Sub -Activity
|
Further
Analysis
|
Previous
Policy (d)
Public Private
|
Proposed
Policy
Public Private
|
Funding Tools
Public Private
|
Notes
|
|
Community Partnerships
|
|
100%
|
Nil
|
100%
|
Nil
|
Invest. Income (b)
|
Nil
|
50
|
|
Community Engagement and Communications
|
|
92%-93%
|
7%-8%
|
92%-93%
|
7%-8%
|
Invest. Income
|
Territorial Authority Grants
|
51
|
|
Response to Climate Change
|
Response
to Climate Change
|
100%
|
Nil
|
100%
|
Nil
|
General Funding Rates (a)
|
Nil
|
52
|
|
Solar
Saver Scheme Administration
|
100%
|
Nil
|
100%
|
Nil
|
General Funding Rates
|
Nil
|
53
|
|
Community Representation and Regional
Leadership
|
|
100%
|
Nil
|
100%
|
Nil
|
General Funding Rates
|
Nil
|
54
|
|
Investment Company Support
|
|
Nil
|
100%
|
Nil
|
100%
|
Nil
|
Fees/Charges
|
55
|
|
a. General
Funding Rates include General Rates on Land and Uniform Annual General
Charges which will meet 100% of the public good funding needed.
b. Invest.
Income denotes Regional Investment Income which will meet 100% of the public
good funding needed.
c. Previous
Policy reflects the Policy that was adopted in the 2012-22 ten year plan as
well as amendments passed through subsequent Annual Plans.
d. The
cost of targeted rate collection is met directly from targeted ratepayers.
e. The notes to these tables provide the logic to support the
funding splits between Public and Private.
f. Targeted Rate denotes the amount required from targeted rates
net of any internal revenue contributions or other sundry income
|
|
HBRC's
2015-25 Policies
|
Attachment 5
|
Notes: Revenue
and Financing Policy
1. When allocating the benefits between public and private in Step 1
(as previously outlined in the Revenue and Financing Policy page 2) it was
determined that part of the work required on this activity was a result of the
action of users/exacerbators, with this being classified as a private benefit.
However, it is either impractical, not possible, or inefficient to charge these
users/exacerbators with current legislation not allowing a provision for fees
to be levied on the resource users and exacerbators as a result of using
resources in accordance with a permitted activity rule. Consequently HBRC is to
treat these costs as a public cost and fund them through the use of regional
investment income.
2. The development of strategies that promote economic development
for the region may provide a greater and more immediate benefit to the broader
business community. The objective of this project is to fully fund Economic
Development activity throughout the region through the use of an Economic
Development Rate across the region. The basis of the rating is that 30% of the
total Economic Development rate is to be funded by the commercial or industrial
properties and based on capital value. The remaining 70% is to be collected
from residential and rural properties as a Fixed Annual Charge. Wairoa District
ratepayers’ contribution is to be limited to 5% of the total Economic
Development rate.
3. The Step 1 analysis has revealed that there is a private benefit
to consent holders from State of the Environment monitoring. Monitoring
of state and trends in our natural resources is important to demonstrate that
policy is effective in managing consented activities within limits. This
demonstration allows the continued access to those resources. The
assessment has revealed that half of the work in this area relates to work
which attracts Zone Based Water Science Charges, therefore half of the
potential 35%, being 17.5%, of this activity is deemed to be a private benefit
and will be recovered through the charging of fees directly to the consent
holder under s36 of the Resource Management Act.
4. This activity relates to the undertaking of specific one off
research projects on environmental issues in order to meet scientific, regulatory
or policy needs. Where the work undertaken is associated to recoverable
projects, such as zone based water science charges, HBRC will endeavour to
recover a share of these costs. As this is not considered a certain enough
source of income to be used in the funding policy, all of this activity is
treated as a public good and funded through the use of regional investment
income.
5. An analysis of the Heretaunga Plains Drainage Scheme has
identified a 90% private benefit to those ratepayers directly benefiting from
the scheme. The indirect benefits of increased productivity of the Heretaunga
Plains land to the whole region, as a result of increased economic activity
resulting from the productivity, are recognised in the allocation of 10% of the
costs to the region as a whole which is funded through the use of regional
investment income. The 90% private benefit is funded through a targeted rate
based on capital value.
6. An analysis of the Heretaunga Plains Flood Control Scheme has
identified a 70% direct benefit to the landowners within the Hastings District
and Napier City Council areas. Of this, 49% results in a direct benefit to
properties protected from frequent flooding and/or river coarse changes, and
21% being the indirect benefit as a result of increased opportunity arising
from higher population and increased choice and competition among service
industries, and improved opportunities for employment, investment and
recreation. The 70% private benefit is funded through a targeted rate based on
capital value, with the remaining 30% public benefit funded through the use of
investment income.
7. An assessment of the public and private benefits undertaken as
part of the Step 1 analysis has provided for a public contribution to be made
to each of the other schemes which HBRC administers according to the following
principles.
· A
scheme which provides protection to a State Highway will receive a public
contribution of 12.5%.
· A
scheme which provides protection to a local roading network will receive a
public contribution of 10%.
· A
scheme which provides protection only to private land will receive a public
contribution of 5%.
· The
Upper Tukituki Scheme will receive an additional 5% public contribution because
of the additional cost which arises from gravel flows from the upper catchment
land.
The balance,
being the private benefit, is to be funded through targeted rates which are
based on a mix of land value, capital value, and Fixed Annual Charge.
8. The provisions of HBRC internal staff time to respond to public
enquires and provide expert advice on Land Drainage and River Control
activities is considered a public benefit and funded 100% by regional
investment income.
9. Subsidised work including small flood control and stream
improvement works undertaken on private land, but which benefit a wider
community, receives a public contribution of 30% and is funded through the use
of regional investment income. The 70% private benefit is recovered through the
charging of fees to the requesting landowner(s).
10. This activity
relates to the provision of consultancy services by HBRC engineering staff for
drainage, flooding, and coastal erosion issues according to individual project
agreements. The costs of these services are met directly by the beneficiary
through the charging of fees.
11. The Step 1
analysis has identified a 30% private benefit for this activity recognising
that the main beneficiaries from the work are the owners of land and/or
utilities in the areas immediately around the river mouths. However, the costs
associated with the opening of river mouths are relatively small and the cost
of establishing a funding mechanism to recover the private good portion of the
cost could not be justified, therefore this work is treated as a public good
and funded through the use of regional investment income.
12. The final policy
of 50% public / 50% private reflects the fact that HBRC is unable to allocate
costs in accordance with its preference of Westshore renourishment because
there remains uncertainty with regard to the impact of Port of Napier Limited
structures on rates of erosion, and there are no legal means of identifying and
collecting income from exacerbators. Consequently the use of regional
investment income will meet the public benefit share of these costs. The
private benefit costs are met by the Napier City Council.
13. For Sustainable
Land Management the Step 1 strict economic analysis indicates that there is a
50% public benefit and 50% private benefit element for HBRC’s Sustainable
Land Management activities. The private benefit reflects the level of private
landowner and wider sector benefit that is derived through Council providing
advisory and financial services to assist them in meeting Plan Change 6
requirements, in particular the benefit derived in meeting Farm Environmental
Management Plans and other Plan Change 6 requirements where they would
otherwise require resource consent to continue their rural operations. While
recognising this private benefit, HBRC believes that a significant public
benefit can also be applied to reflect the high regional priority on water quantity
and quality, the positive regional flow-on benefits of significantly improved
water management, the public good nature of a number of proposed HBRC Plan
Change 6 services and the difficulty in applying the exacerbator pays factor.
However, taking into account additional important considerations such as the
requirement for the Council to respond to the Government’s National
Policy Statement on Freshwater Management, the major new resource management
approach for the Council which Plan Change 6 represents, and transition costs,
HBRC believes a 25% private benefit strikes a fair balance between HBRC’s
current benefit allocation for Sustainable Land Management and the result of
the strict economic analysis. The 25% private benefit is to be funded by way of
a targeted rate on those properties in the region over 4ha, with the 75% public
funding being met by regional investment income.
14. Council
determined through Step 1, that there is a significant private good resulting
from these activities which is assessed at 25%. This private benefit reflects
that users benefit from Land Monitoring as it enables HBRC to identify and
monitor the impacts of land use intensification on soil and water quality
throughout the region. Given that this project relates directly to work
undertaken as part of the Sustainable Land Management activity, and that
Council has agreed to initiate a regional charge for Sustainable Land
Management activities (see note 13), the 25% private benefit is to be funded as
part of the targeted rate on those properties in the region over 4ha. Part of
the private good element of this activity was previously funded through the charging of fees directly to the consent holder under s36 of
the Resource Management Act. To minimise the impact on rural ratepayers of the
change in the private good funding mechanism, the 25% targeted rate will be
gradually introduced over 3 years with no direct targeted rate charged to rural
ratepayers in Year 1 of the Plan, 12.5% in Year 2, and the full 25% targeted
rate commencing in Year 3 of the Plan.
15. Land Research
& Investigations are integral to the Sustainable Land Management Programme.
The private benefit for this activity has been assessed at 35% which under
previous policy was recovered through s36 zone based water science charging
where the work is related to water quality outcomes. As there is a significant
proportion of the work that directly relates to the Sustainable Land Management
activity it is proposed that the 35% private benefit be split between the s36
charging regime for zone based water science charges (17.5%) and the regional
targeted rate for Sustainable Land Management (17.5%).
16. The HBRC Soil
Conservation Nursery operation has been established to provide for the regional
community a consistent supply of quality poplar and willow poles for erosion
control use in Hawke’s Bay. This operation is set at a break even
position and assessed as a private benefit because the cost of the purchase and
production of poles is offset by the sale of poles to users.
17. When allocating
the benefits between public and private in Step 1 it was determined that part
of the work required on this activity was a result of the action of
users/exacerbators, with this being classified as a private benefit. However,
the ability to charge fees for exacerbators is not legally possible because
HBRC can currently only charge Resource Consent holders. It is also not
practical to charge exacerbators through a targeted rate because it is
impossible, for example, to practically isolate the impact of specific things
such as ambient air quality on geographic areas. Consequently HBRC is to treat
this as a public cost and fund it through the use of regional investment
income.
18. Air quality in
the Napier and Hastings areas does not currently meet the standard that the
Government requires. The aim of this initiative is to reduce particles of
polluting smoke in the affected airsheds by replacing open fires or wood
burners with more efficient forms of heating. This activity is classified as a
private benefit and is funded by way of a targeted rate based on land value for
those in the Napier and Hastings airsheds, and by the charging of fees for
those who take up the offer of Council assistance.
19. HBRC determined
through Step 1, that there is a significant private good that results from
these activities which is assessed at 35%. This private benefit reflects that
users benefit from our knowledge and understanding of the region’s water
resources as it facilitates the expeditious processing of the consent
applications and enables Council to manage the resources in an efficient and
sustainable fashion. The 35% private benefit is funded through the charging of
fees directly to the consent holder under s36 of the Resource Management Act.
20. The Water
Information Services activity provides infrastructure and services to support
the collection and management of water use data and has been established
following the introduction of legislative requirements. This activity has been
assessed as a 100% private benefit on the basis that water consent holders
directly benefit from water metering data. Costs for this activity are
recovered from these consent holders through fees and charges.
21. For Water Demand
Management, the Step 1 analysis indicated that the private good charge should
be in the region of 30% of the total project costs. This reflects the potential
benefit that could be derived by water consent holders/water users. However,
because water demand management projects are new initiatives, HBRC is unsure if
they are going to work, proceed or be successful. It is therefore impractical
and unfair to charge 30% to potential beneficiaries. Consequently the costs are
to be treated as a public good and be funded through the use of regional
investment income.
22. Step 1 of the
analysis indicated that there is a significant private good element in the
coastal management work that Council undertakes. This assessment has been
provided on the basis that the information from monitoring the coastal
environment makes processing of resource consent applications easier, and some
of the monitoring requirement results from the action of exacerbators. Council
recognises that it is currently not practical to attribute a charge to resource
consent holders or legal to charge the exacerbators, therefore all these costs
have been treated as a public good and funded through the use of regional
investment income.
23. The Gravel
Management activity is established to administer the allocation and extraction
of river bed gravel in accordance with the Regional Resources Management Plan
and in the best interest of river management. The private benefit element of
this activity has been assessed at 100% with resource management charges paid
directly by the consent holder, under s36 of the Resource Management Act, based
on the level of gravel extracted.
24. Cross section
costs are based on economic principles and recognise the general community
benefit (43%) that arises from cross section work. This work provides data that
is used for State of the Environment monitoring, and is also used for flood
prediction management and assessment and is funded through the use of regional
investment income. Private good funding (57%) arises from use of the data for
monitoring gravel extraction activities and monitoring performance of the Upper
Tukituki, Heretaunga Plains, and Esk Schemes and is funded by way of fees and
charges.
25. Some of the
Council’s wetlands are located on land owned or managed by the Heretaunga
Plains Flood Control Scheme and are therefore considered an integral part of
the scheme. A considerable amount of work has been done to determine the
public/private split with respect to this scheme which is currently determined
as 70% private, 30% public (refer to note 6).
26. The land owners
in the Karamu Drainage catchment of the Heretaunga Flood Plains Scheme receive
indirect benefits from the water retention capabilities of the Pekapeka
wetlands. These indirect benefits are assessed as representing 10% of the cost
of the scheme and funded directly by these beneficiaries through the use of a
targeted rate based on capital value. The 90% public benefit is funded through
the use of regional investment income.
27. The Lake Tutira
Country Park facilities are considered a public resource which all ratepayers
have access to and can benefit from. This activity is funded 87%-90% from
public funding through regional investment income and 10%-13% from private
funding through the charging of camp fees, rental from Council forestry assets
and through grazing fees.
28. Council’s
analysis indicates that public access to rivers has many characteristics of
both a public and a private good. The public good portion element of this
activity is funded through the use of regional investment income, and the private
good element funded through the charging of a targeted rate as well as through
fees and charges in relation to white bait stands.
29. HBRC determined
through the Step 1 analysis that 60% of the work relating to the processing and
administering of resource consents conferred a private benefit and would be
recovered through fees and charges directly to the consent holder. It is
considered that charging for general advice would be contrary to its policy of
encouraging the public to enquire as to what consents are required before
resource use is initiated so the provision of general advice is treated as a
public good and is funded through the use of regional investment income.
30. For Compliance
Monitoring the Step 1 analysis indicated that the private/public good charge
should be split private (70%) and public (30%). An analysis of staff time
indicates that 70% of time is spent checking compliance with consent conditions
and is to be recovered through the charging of fees directly to users, with 30%
spent on provisional information and advice, investigations, liaising with
industry and external organisations and in-house deliberations over monitoring
and enforcement strategies. The provision of general advice is treated as a
public good and funded through general funding rates.
31. For
Environmental Incident Response the Step 1 analysis indicated that most of the
work should be treated as a private good because it was a consequence of the
actions of individuals or organisations. However, it is not possible, other
than through legal action, to recover any part of these costs. HBRC will
initiate appropriate legal action, but because it is not considered a certain
enough source of income to be used in the funding policy, all of the activity
is treated as a public good and funded through general funding rates.
32. The private
benefit of this activity is estimated to be 75% which relates to costs incurred
in managing navigation safety (70%) and identifiable exacerbators (5%). Current
funding tools available will not allow HBRC to allocate costs in accordance
with its preference. Recoveries could be made through legal action; however,
this is not a certain enough source of income to use in the funding policy.
Consequently the 75% private good element is funded as public cost through
general funding rates.
33. It is estimated
that 95% of the costs arising from this activity cover the responsibilities to
hold and provide information and develop audit systems, these costs not being
recoverable from consent applicants and holders. Other than the occasional
issuance of Project Information Memorandums and the imposition of a fine for
non compliance there is limited income to be earned. Because this is not
considered a certain enough source of income to be used in the funding policy,
it is Council’s preference to treat 100% of the activity as a public good
and funded through the use of regional investment income.
34. Early
identification and reduction of rabbit numbers has benefits to the whole region
by reducing soil erosion and the prevention of the spread of rabbits. Many of
the complaints and requests for advice arise from small rural properties and
properties on the fringe of the urban area. Accordingly, 30% of the costs are
publically funded through the use of regional investment income. The 70%
private benefit is funded through a differential targeted rate on all rural
properties greater than 4ha.
35. HBRC’s
Possum Control programme, involving Council’s subsidy of animal pest
control products and the protection of possum control area boundaries, has spin
off benefits for the environment, biodiversity, public health and the regional
economy. This is assessed at 30% of the cost of the work and is funded from
regional investment income. The private portion of this activity is assessed as
70% because owners of productive land benefit directly from low pest densities
and increased productivity and are therefore charged through a differential
targeted rate on all rural properties greater than 4ha.
36. Rook control is
largely a private good; however, rooks cover a significant range and the
exacerbator is unlikely to be the beneficiary of any control work undertaken.
With significantly reduced rook numbers the reduced public benefit of ongoing
work is recognised by aligning the funding with Council’s possum control
programme which is assessed as 70% private through the charging of a
differential targeted rate, and 30% public which is funded through the use of
regional investment income.
37. HBRC animal pest
control research and general advice plays an integral part in seeking ways for
the animal pest control programme to be more efficient and cost effective. The
70% private and 30% public benefits reflect a funding policy consistent with
the rest of the animal pest control programme.
38. The private
contribution of 50% (up to a maximum of $3,000 each application) of the costs
of total control of Plant Pests (occupier responsibility) specified in the
Regional Pest Management Plan does not appear in HBRC financial statements.
39. The Regional
Pest Management Plan sets out the funding arrangements on the basis of benefit.
The assessment of benefit is as follows: Rural land occupiers 60%; occupiers of
properties less than 4ha 20%; the regional community 20%. HBRC considers it
inefficient to levy a differential targeted rate on properties less than 4ha
and therefore treats this portion as a public cost and funds it through the use
of regional investment income. The 60% private benefit is charged as a targeted
rate to all ratepayers with properties over 4ha in the region. It is noted that
the Regional Pest Management Plan is programmed to be reviewed in the 2015-16
and 2016-17 financial years. This review may result in some changes to this
funding formula.
40. Plant pest
biological control has benefits to the overall region of animal and human
health; the environment; and the region's economy. The private benefit is
assessed at 60% since individual occupiers directly benefit from the biological
control agent on their property and funded through the use of a targeted rate.
41. The Vector
Management project ceased two years ago.
Operational
Solutions for Primary Industries New Zealand (OSPRI), the organisation
responsible for the Bovine Tb Vector Control programme in Hawke’s Bay has
reviewed its funding model and the outcome is that from 2016/17 HBRC will not
be committed to fund this programme. As sufficient funds are held in the
TB Vector and Animal Pest scheme reserves to cover the level of funding
required in 2015/16, rating for the Bovine TB Regional Vector Programme will
cease effective 30 June 2015.
42. Pest management
strategies and plans cover the whole of the Hawke’s Bay region and cover
a wide range of pests. It is not possible to target a particular beneficiary
from any one particular strategy and plan and therefore HBRC policy is for this
activity to be 100% publically funded through the use of regional investment
income.
43. There is a
region wide benefit from being able to plan for emergencies by identifying and
quantifying potential hazards which is funded as a public cost through the use
of regional investment income.
44. There is a
region wide benefit from being able to predict and respond to floods as they
occur and also a direct benefit to the ratepayers of flood and drainage
schemes. The information gathered from the flood warning system is used to
predict flooding events and to input into design work associated with the flood
control and drainage schemes. The public benefit has been assessed at 67% and
funded through the use of regional investment income with the private benefit
of 33% funded through a targeted rate on those ratepayers within the flood and
drainage schemes.
45. Marine oil
spills are caused by the actions or inactions of vessels or port operations.
The costs are met by the exacerbators either through Maritime New Zealand or
directly by the spiller and are therefore assessed as a 100% private benefit.
46. The
Hawke’s Bay Civil Defence Emergency Management Group (CDEMG) is
responsible for providing effective Civil Defence Emergency Management within
its area consistent with the Civil Defence Emergency Management Act 2002. The
CDEMG consists of the Wairoa District Council, Hastings District Council,
Napier City Council, Central Hawke’s Bay District Council and the
Hawke’s Bay Regional Council. The Hawke’s Bay CDEMG area is
reflective of the boundaries of the member TLA Councils. The Hawke’s Bay
Regional Council is the administrating authority for the CDEMG. The CDEMG has
established a Group Office to manage the day to day functions of Civil Defence
Emergency Management. The benefits of the work of the Group Office are spread
across the member Councils and their communities. This programme is funded
through a separate targeted rate which has been set as a Fixed Annual Charge
for properties within the CDEMG area.
47. This activity is
directed at promoting Road Safety education in partnership with Regional
Stakeholders by the promotion of campaigns. These campaigns increase awareness
and lessen the risks associated with road transport. HBRC provides 15% of the
total Regional Road Safety funding. The remaining funding stems from
contractual agreements with the New Zealand Transport Agency (51% - 53%) with
the balance provided by the Hawke’s Bay Local Territorial Authorities and
other Government Agencies. The 15% of funding provided by HBRC is considered to
be a public benefit as all members of the regional community benefit from this
activity, and is funded through the use of regional investment income.
48. The benefits of
this activity is the development of an integrated approach to transport to meet
economic, social and safety needs of the public. The New Zealand Land Transport
Agency makes an annual financial contribution (51% -53%) towards the costs of
undertaking this activity, with this contribution treated as a form of private
user subsidy. The remaining 47% - 49% is treated as a public benefit and funded
through the use of regional investment income.
49. The current
private benefit allocation at 100% includes the amount to be raised through the
subsidised public transport targeted rates, the amount paid directly by private
beneficiaries in the way of fares, and the New Zealand Transport Agency grant.
The private contribution for the overall cost of subsidised public transport,
which is raised through user charges, does not appear in the Council’s
financial statements as this amount is collected and retained by the bus
operator and is offset against Council’s payment for running the bus
service. Over the last few years fare patronage has increased substantially
with this rate of strengthening forecast to slow and level off throughout the
10 years of this plan. Any additional funding received by way of fare patronage
may be reinvested to enhance the provision of the bus services.
50. It is considered
that from a strict economic point of view set out in the Step 1 analysis that
the private benefit of 20% reflects the fact that specific individuals will
benefit by virtue of using outputs of the research or strategic alliances.
However, given the difficulty in establishing the value accruing to the
individual private beneficiaries, particularly when the quantum of support is
taken into account, it is not considered practical or worthwhile to charge
them. Accordingly, the costs of covering the assessed private benefit will be
funded as a public cost through the use of regional investment income.
51. HBRC considers
that the main objective of engagement and communications activities is to
widely inform and assist decision making across the scope of HBRC’s work.
It is considered a disincentive to charge beneficiaries for information
promoting behaviour change which in many cases also requires significant
ratepayer investment. Public benefits are recovered through the use of regional
investment income, after Territorial Authority grants are deducted.
52. HBRC’s
objective for this activity is to set a positive example that encourages other
businesses in the region to support sustainable business practices. The public
benefit is assessed at 100% because this will encourage the whole community to
consider climate change issues as part of their business decisions and everyday
life. This activity is funded through general funding rates.
53. The
Hawke’s Bay Solar Saver scheme is an opportunity to achieve energy
efficiencies using a natural renewable resource available in abundance in
Hawke’s Bay and to reduce community dependence on other forms of
energy. It is proposed that HBRC administers and funds the scheme with
the Hastings and Napier District Councils carrying out their normal regulatory
roles, with the funding of the scheme anticipated to be cost neutral. Where
there will be a cost to HBRC will be through a very small amount of internal
staff time for administering the scheme which is to be publically funded
through general funding rates.
54. This function
relates to the costs of elected political representation (including Iwi
representatives) as well as the costs of reporting to the community, and is
assessed 100% as a public benefit and met by general funding rates.
55. This function
relates to the activities of the Hawke’s Bay Regional Investment Company
Limited (HBRIC Ltd) which is administered through the Council. This activity is
assessed as a 100% private benefit and will be funded by HBRIC Ltd through the
recovery of time and costs incurred by Council on behalf of HBRIC Ltd.
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HBRC's
2015-25 Policies
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Attachment 5
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Purpose and
Scope
Hawke’s
Bay Regional Council (HBRC, Council or ‘we’) has developed this
policy to:
1. Enable Council and our
communities to identify the degree of significance attached to particular
issues, proposals, assets, decisions and activities
2. Provide clarity about how and
when communities can expect to be engaged in decisions made by Council
3. Inform Council from the beginning of a decision-making process
about the extent, form and type of engagement required.
The Local
Government Act 2002 (the Act) has consultation principles to guide HBRC when
making decisions. With this in mind, HBRC commits to:
- Identify and assess options
- Place a value on benefits
and costs
- Consider an appropriate
level of detail
- Show evidence of how we
comply with this Significance and Engagement Policy
- Provide processes to encourage and engage with Māori.
Process
On every issue
requiring a decision, Council will consider the degree of significance and the
most appropriate level of engagement.
HBRC will refer
to the Criteria for significance (page 2) to identify matters, issues or
proposals that require a Council decision. Advice on significance and
options will come from an HBRC officer or other professional. Council
will consider and make decisions, taking into account the degree of
significance of the issue and referring to the Criteria for engagement
(page 3) to identify the appropriate level and type of engagement.
Advice from HBRC
officers normally comes through the Council-approved report format. This format
specifically alerts elected members to significant impacts and engagement
considerations.
Our general
approach to significance
Significance means the degree of importance of the issue, proposal, decision,
or matter – determined by the local authority – relating to its
likely impact on and likely consequences for:
- The district or region
- Any persons who are likely
to be particularly affected by or interested in the issue, proposal, decision
or matter
- The achievement of, or means
to achieve, HBRC’s stated levels of service as set out in the current
Long Term Plan
- The capacity of HBRC to
perform its role and carry out its activities, now and in the future
- The financial, resource and other costs of the decision, or that these are
already included in an approved Long Term Plan.
Council will
exercise its judgement when assessing the degree of significance for each
decision to be made by Council.
Significant means that the issue, proposal, decision or other matter is
judged by Council to have a high degree of importance. This is typically
when the impact is on the regional community, or a large portion of the
community or where the financial consequences of a decision are substantial.
If the issue,
proposal, decision or related matters concerned involve a significant decision
in relation to land or a body of water, Council will take into account the
relationship of Māori and their culture and traditions with their
ancestral land, water, sites, waahi tapu, valued flora and fauna, and other
taonga. Council will also take into account the values of the whole community.
When making
decisions, Council will:
- Identify and assess as many
options as are practical
- Evaluate the costs and
benefits resulting from the decision/s to be made
- Provide detailed
information, which will be accessible to the public
- Maintain clear and complete
records showing how compliance with this Significance and Engagement Policy was
achieved.
As part of the
engagement process for the adoption of this policy, and subsequent reviews,
Council will ask people in the region their engagement preferences and will
review those preferences each three-year term.
Council will
also take into account views already expressed in the community and make
judgements on the level of support for those views, when determining the
significance of a decision.
Criteria for
Significance
When looking at
the significance of a matter, issue, decision or proposal, elected members will
assess:
- The likely level of community interest
- The likely impact or consequences for affected individuals and
groups in the region
- How much a decision or action promotes community outcomes or other
Council priorities
- The impact on levels of service identified in the current Long
Term Plan
- The impact on rates or debt levels
- The cost and financial implications of the decision to ratepayers
- The involvement of a strategic asset.
Strategic
assets
Strategic assets
are owned by Council and defined as ‘an asset or group of assets that the
local authority needs to retain to maintain its capacity to achieve or promote
any outcome that it determines to be important to the current or future
well-being of the community.’ This does not include strategic natural
resources managed by Council. Regionally significant natural resources are
served by the Resource Management Act and Regional Resource Management Plan.
HBRC considers
the following to be strategic assets:
- Napier Port
- Heretaunga Plains Flood
Control Scheme
- Upper Tukituki Catchment
Control Scheme
- Tūtira Regional Park
(excluding commercial forestry)
- Pekapeka Regional Park
- Pākōwhai Regional
Park
- Hawke’s Bay Regional Investment Company Limited.
HBRC owns a
number of assets that, managed as a whole, we consider to be strategic. However
not all trading decisions made regarding these assets are regarded as
significant nor do they affect the asset’s strategic nature, i.e. the
Heretaunga Plains Flood Control Scheme is strategic, but small parcels of land
that make it up may not be, and the purchase or sale of such parcels of land
may not amount to a significant decision.
Our general
approach to engagement
Engagement is a
term used to describe the process of seeking information from the community to
inform and assist decision-making. There is a spectrum of community
involvement, and HBRC follows these general principles:
- We conduct our business in
an open, transparent, democratically accountable manner
- We stay aware of, and have
regard to, the views of all of our communities
- When making a decision, we
consider: the diversity of the community and the community’s interests in
its district or region; the interests of future as well as current communities;
and the likely impact of any decision on these interests
- We provide opportunities for
Māori to contribute to our decision-making processes.
HBRC seeks
authentic engagement with our community and applies a Criteria for
engagement. We acknowledge that “community” may be
‘communities of place’ or ‘communities of issue’ and
will use appropriate tools and techniques to make meaningful and timely
connections that result in feedback. Formal consultation is one of many
approaches that can be used.
Guidance on
obligations and timing to respond to public correspondence is addressed in the
Local Government Official Information and Meetings Act 1987 (LGOIMA or OIA),
which sets a maximum of 20 working days.
HBRC will
prepare an Engagement Plan for each major decision or group of interrelated
decisions. Decisions are not usually delegated to those involved in the
engagement processes, however they are likely to be informed by community and
stakeholder engagement.
An Engagement
Plan will outline:
· Engagement
objectives – the feedback that is sought from communities
· Timeframe
and completion date
· Communities
to be engaged with
· Engagement
tools and techniques to be used
· Resources
needed to complete the engagement
· Communication
planning needed
· Basis
of assessment and feedback to the communities involved
· Project team roles and responsibilities.
Engagement is
not solely about providing information, is not always about reaching an
agreement or consensus and is not always about negotiation. Engagement is
not appropriate when outweighed by commercial sensitivity or when there is a
threat to public health and safety.
Criteria for engagement
Community
engagement is a process. It involves all or some of the public and is
focused on decision-making or problem-solving. HBRC considers the significance
of a decision to be made and uses a table of criteria to assess the approach we
might take to engage the community.
In some
circumstances HBRC is required to use the special consultative procedure, set
out in section 83 of the Act and described in a separate section below.
Decisions will
be “informed” as a minimum standard. Decisions of high significance
will be at the very least informed to wider communities, and will use
engagement tools and techniques beyond “inform” for affected
communities.
While community
and stakeholder engagement improves decision-making, it is not the sole input
into a decision. There are a wide range of information sources and perspectives
that will inform a council decision. All the input gathered is harnessed and
collated to help make a ‘sustainable’ decision (i.e. unlikely to
require re-visiting because it is well-informed and well-considered). Decisions
made by Council may differ from the prevailing public opinion.
The level of
engagement will be agreed on a case-by-case basis. The significance of the decision
will guide the selection of appropriate engagement tools and techniques to be
used. A low level of engagement does not mean that engagement is
diminished, inappropriate or necessarily that a decision is of lesser
significance. Time and money may limit what is possible on some
occasions.
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HBRC's
2015-25 Policies
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Attachment 5
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Engagement
Spectrum[1]
– our approach
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Level
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1. Inform
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2. Consult
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3. Involve
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4. Collaborate
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5. Empower
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What it involves
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One-way communication
- to provide public with balanced, objective information to assist them in
understanding problems, alternatives, opportunities and/ or solutions
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Two-way communication
- to obtain public feedback on analysis, alternatives and/ or
decisions
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A participatory process
- to work with public through the process to ensure that public
concerns and aspirations are consistently understood and considered
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Working together
- to partner with public in each aspect of the decision including the
development of alternatives and identifying the preferred solution
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Public empowerment
- to place final decision-making in public hands
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Types of issues that we might use this for
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- Report adoption
- Algal bloom
- Pest control
- Access issue
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- Annual Plan
- Long Term Plan
- Regional Land Transport
Programme
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- Flood & drain scheme
review
- Regional cycling plan
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- Tukituki plan change
- Taharua/ Mohaka plan
change
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- Election voting systems
(STV or first past the post)
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Tools Council might use
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- Website
- Media release
- Brochure/ flyer
- Public notice/s
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Formal submissions & hearings, social media, email, focus groups, phone
surveys, surveys, video
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- Workshops
- Focus groups
- Citizens panel
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- External working groups
(involving community experts)
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- Binding referendum
- Local body elections (Special
Consultative Procedure)
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When the community can expect to be involved
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Council will generally advise the community when a decision is
made
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Council will advise the community when a draft decision is made
and generally provides the community with up to four (4) weeks to participate
and respond
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Council will generally provide the community with a greater
lead-in time to allow the time to be involved in the process
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Council will generally involve the community at the start to
scope the issue, again after information has been collected and again when
options are being considered
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Council will generally provide the community with a greater
lead-in time to allow them time to be involved in the process
– typically a month or more
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HBRC engages with communities in many
ways, from face-to-face to meetings, forums and surveys. Preferences for
community engagement are periodically evaluated through regional surveys[2].
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HBRC's
2015-25 Policies
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Attachment 5
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Special consultative procedure
In some cases,
and as we are required under the Act, HBRC will use the special consultative
procedure to issue a proposal. When that happens, the proposal will be
open to the community to provide their views for at least a month. The process
we will follow is to:
· Prepare and adopt a statement of proposal, and in some cases a
summary of the statement of proposal which is:
- a
fair representation of the statement of proposal
- in
a form determined by HBRC, i.e. published online, in the newspaper and/ or in
HBRC’s regional newsletter, so long as it is distributed as widely as
reasonably practical
- indicates
where it is available
- states
how long it is open for public submission.
· Make publicly available (at Council offices, through interest
group distribution lists, at Public Libraries, on HBRC’s website):
the
statement of proposal
a
description of how people can present their views
a
statement of the period the proposal is open for comments.
· Make the summary of proposal widely available
· Allow people to present their views to HBRC ensuring that they
have a reasonable opportunity to do so and know how and when this opportunity
will be available to them
· Allow people to present their views by audio link or audio-visual
link, or as agreed.
HBRC may also
request advice or comment from a Council officer or any other person.
Where HBRC is
required to use the special consultative procedure as part of making or
amending bylaws, the statement of proposal must include:
· A draft of the proposed bylaw, or the proposed amendment of the
bylaw
· The reasons for the proposal
· A report on any determinations made under the Act on whether a
bylaw is appropriate.
Where HBRC is
required to or chooses to use the special consultative procedure, the statement
of proposal is a draft of any plan, policy or similar document or in any other
case a detailed statement of the proposal which must include:
· The reasons for the proposal
· An analysis of options
· Any other relevant information.
Review of Policy
This policy will
be reviewed at least once every five years, when it will involve community
engagement. It may also be amended from time to time.
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HBRC's Council Controlled
Organisations Information
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Attachment 6
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Introduction
In February 2012
Hawke’s Bay Regional Council (HBRC) established a Council Controlled
Trading Organisation in the Hawke’s Bay Regional Investment Company
(HBRIC Ltd). HBRC has a 100% shareholding in HBRIC Ltd which has a 100%
shareholding in the subsidiary company, the Port of Napier Limited (PONL).
HBRC has
appointed a Transitional Board of Directors for HBRIC Ltd who will be replaced
by a full board following completion of financial close of the Ruataniwha Water
Storage Scheme (RWSS) project.
The directors of
HBRIC Ltd are:
· Dr Andy Pearce (Chairman)
· Jim Scotland
· Sam Robinson
· Danelle Dinsdale
· David Faulkner
Policy and
Objectives in Relation to Ownership and Control
HBRIC Ltd and
PONL are both strategic assets of HBRC as defined by the Local Government Act
2002 and will therefore require a special consultative process if any of the
shareholding was to be sold down.
HBRC’s
objectives in setting up HBRIC Ltd are to:
· Enhance HBRC’s capability to manage an active investment
policy for its portfolio
· Improve net financial and economic returns from HBRC’s
investment portfolio
· Provide flexibility of operation and access to financial tools not
otherwise available directly to HBRC which would increase returns to HBRC from
its ongoing financial management.
Nature and
Scope of the Activities to be Provided by HBRIC Ltd
The nature and scope of HBRIC Ltd’s activities are to:
· Own and manage the investment assets and liabilities transferred
to it by HBRC from time to time
· Make new investments and dispose of current investments in pursuit
of its objectives
· Ethically invest in and manage a range of financial and physical
assets including, but not limited to, property and infrastructure in the
Hawke’s Bay region and elsewhere in New Zealand, shares and equity
investments in public listed and unlisted companies; equity in, and loans to,
joint ventures; bonds, term deposits, mortgages and other fixed interest
securities; and other financial instruments, in accordance with HBRC’s
investment policy detailed in this LTP 2015-25, section 5
· Raise funds for investment by issuing bonds, mortgages, preference
shares and other debt instruments or by reducing HBRIC’s holdings in
equity investments in its subsidiary or associated companies, but at no time by
selling any of HBRC’s 100% shareholding in the investment company itself
· Comply with LGA provisions requiring a special consultative
process, and with HBRC policies, in regard to any disposal or part-disposal of
shares in any Strategic Asset; for example, by way of part sales of shares in
PONL
· Assist its subsidiary and associated companies to increase
shareholder value in regional prosperity through growth and investment
· Apply best practice governance procedures within HBRIC and its
subsidiaries and other investments
· Enhance HBRC capability to manage an active investment policy
· Provide flexibility of operation and access to financial tools not
otherwise available to HBRC directly
· Help achieve HBRC’s regional strategic economic development
objectives by investing in assets that will benefit the Hawke’s Bay
region as a whole. Where HBRC directs, HBRIC Ltd may accept a lower return or
slower route to profitability to balance achieving this objective with that of
otherwise acceptable returns
· Only borrow for new investment purposes (by way of bonds,
mortgages, preference shares or other debt instruments) with the specific
approval of HBRC
· Advise HBRC of any material capital expenditure projects by HBRIC
Ltd or via its subsidiaries
· Only invest in, or dispose of, investments and use all income
derived from these activities for Regional Council purposes and functions as
defined in statute, i.e. they must generate financial and economic for the
Hawke’s Bay region, consistent with HBRC’s investment policy.
Key Performance Targets for HBRIC
HBRIC Ltd is to
actively manage its allocated investment portfolio and any new investment it
makes to ensure:
· Growth in long term shareholder value
· Increased financial and strategic returns
· Investments are secure and sustainable over the long term
· Investments will assist achievement of HBRC’s regional
strategic development objectives.
Specific
financial performance targets are outlined in the following table
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Consolidated
Performance Targets
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Performance
Indicator
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Target
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Net debt to net debt plus Equity
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<40%
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Interest cover (EBIT/Interest Paid)
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>3x
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EBITDA/Total Assets
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8%
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Return on Shareholders’ Funds
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5%
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Notes: EBIT
= Earnings Before Interest and Tax
EBITDA
= Earnings Before Interest, Tax, Depreciation and Amortisation
Net debt means gross
borrowings from outside the HBRIC “group”, less loans made to
parties outside the HBRIC “group”
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Our Plan - HBRC's
Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our
Plan - HBRC's Consultation Document
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Attachment 7
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Our Plan - HBRC's Consultation
Document
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Attachment 7
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Our Plan - HBRC's Consultation Document
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Attachment 7
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