Meeting of the Hawke's Bay Regional Council
Date: Wednesday 25 March 2015
Time: 9.00 am
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
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
HBRC's Activities |
Attachment 3 |
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
HBRC's Activities |
Attachment 3 |
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.
Strategic Goals |
Resilient Communities |
Resilient Ecosystems |
Resilient Economy |
Resilient Organisation |
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Our Aims |
Quality services for a healthy, well-connected community |
Local leadership, good relationships and affordable, well-considered solutions |
Our people and businesses feel safe from natural hazards |
Smart management links biodiversity, land, fresh water and our coastal marine areas |
Balanced water use for a healthy natural environment that also supports growth |
Profitable farming systems that adapt to pest threats, greater weather extremes and take advantage of new opportunities |
A reliable, well-organised water supply that helps us to grow sustainably |
Quality future-focused infrastructure |
Using foresight, strategy, smart investment, strategic alliances and a fit-for-purpose approach to lead our region |
Key Activities |
Passenger Transport Total Mobility Road Safety Heat Smart Community Engagement Open Spaces Navigation and Safety |
Governance and Leadership Heat Smart Community Engagement HB Local Authority Shared Services company Community Partnerships |
Hazard Assessment and Response Emergency Management Land Drainage and River Control Gravel Management |
Biodiversity Strategy and Planning Land Management Air Management Water Management Coastal Management Regulation State of the Environment Reporting |
Land Management Economic Development Biosecurity Strategy |
Water Management State of the Environment Reporting |
Land Drainage and River Control Transport Planning Investment |
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.
HBRC's Activities |
Attachment 3 |
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.
HBRC's Activities |
Attachment 3 |
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
HBRC's Activities |
Attachment 3 |
Service Levels and Performance Targets Activity 1 – Economic Development |
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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 |
Regional Economic Development Strategy mission statement: “To make Hawke’s Bay the best location in which to visit, work, invest, live and grow” |
Funding contract with approved performance targets and reporting requirements |
Funding agreement in place for Hawke’s Bay Tourism Ltd with approved performance targets and reporting requirements. Expires 30 June 2015 |
Yearly Continue quarterly reporting to Council on key performance indicators |
Maintain funding of Hawke’s Bay Tourism Ltd and review KPIs as part of funding contract agreement |
Long term Regional Economic Development Strategy (REDS) and three year Action Plan |
Being reviewed 2014-15 |
Yearly Annual report on Action Plan
2017-2018 Review the Regional Economic Development Strategy |
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 |
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) |
2015-16 ongoing At least $800,000 per annum achieved for Research and Development investment |
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 |
Partnership with Massey University for business growth - Key strategies and actions contained in Regional Economic Development Strategy - |
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 |
Implement REDS action plan as it relates to HBRC led initiatives |
HBRC's Activities |
Attachment 3 |
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.
HBRC's Activities |
Attachment 3 |
Service Levels and Performance Targets Activity 2 –Strategy and Planning |
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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 help the community prepare for the future and increase community resilience to climate change |
Energy Strategy prepared Hawke’s Bay Energy Initiative launched |
Initial studies undertaken to review other regional ‘energy future’ studies and to profile HB energy profile |
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. |
Project manage the development of the strategy, and report |
East Coast Hill Country Strategy |
Initial discussions have been held with the many central government, local government, and industry sector groups. |
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. |
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 |
HBRC works with: - the primary production sector on sustainable farming and research initiatives - 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 |
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. |
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 |
HBRC will integrate land and water and biodiversity management to deliver environmental, economic, social and cultural outcomes |
Progressive Implementation Plan for 2014 National Policy Statement for Freshwater Management (NPSFM) |
NPSFM Implementation Plan based on 2011 NPSFM |
2015-16 Adopt and notify Progressive Implementation Plan for 2014 NPSFM Each Year Prepare report on implementation of National Policy Statement for Freshwater Management |
Report on NPSFM Implementation Plan progress through the Annual Report |
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 |
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 |
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 |
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 |
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 |
Policy recently completed |
2015-2018 Participate in the implementation and review of the Heretaunga Plains Urban Development Strategy |
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 |
Regional Coastal Environment Plan and Plan Change 1- Geographical Coverage of Regional Resource Management Plan became operative on 8 November 2014 |
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 |
Support and participate in the development of the strategy through the Joint Coastal Hazard Committee (refer Regional Resources, Activity 4, Coastal Management) |
HBRC's Activities |
Attachment 3 |
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.
HBRC's Activities |
Attachment 3 |
Service Levels and Performance Targets Activity 3 –Policy Implementation |
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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 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 |
Lodging of submissions on district plans, district planning applications and central government initiatives where there are relevant Regional Council policies |
A report on statutory advocacy activities: Prepared and presented at HBRC’s Environment & Services and Maori Committee meetings |
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. |
Continue to receive, review and report on consent applications and plan development activities Facilitate the Hawke’s Bay Councils Planners’ group |
HBRC will ensure resource management plans are implemented, monitored and evaluated |
Implementation Plans in place for newly operative Plan Changes or Plan Reviews |
Implementation Plan for Change 6 in preparation (at time of writing) |
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 |
Project manage reporting on Implementation Plan |
HBRC will investigate and manage contaminated sites to ensure public health and safety and environmental protection |
Maintain a database of potentially and confirmed contaminated sites |
Upgrading of database to enable both public and territorial authority access |
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. |
Review database Verification of sites listed on database Transfer protocols with TLAs |
HBRC's Activities |
Attachment 3 |
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 |
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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 |
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 |
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 |
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 |
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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 |
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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 |
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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.
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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.
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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 |
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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 |
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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 |
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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
Service Levels and Performance Targets Activity 2 –Investigations and Enquiries |
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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 |
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 |
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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 |
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 |
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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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Wise investment to encourage erosion reduction and water quality enhancement through the Regional Landcare Scheme and targeted research |
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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 |
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 |
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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 |
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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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 |
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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 |
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 |
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 |
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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 |
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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 |
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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 |
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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 |
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 |
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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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Level of Service Statement |
Level of Service Measure |
Current Performance |
2015-18 in detail; 2019-25 outline |
Required Actions to Achieve Performance Targets |
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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 |
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 |
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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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 |
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 |
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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 |
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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 |
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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 |
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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 |
|
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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 |
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 |
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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 |
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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 |
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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 |
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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 |
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 |
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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 |
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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 |
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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 |
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 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 |
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 |
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 |
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.
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 |
Attachment 4 |
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 |
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.
Table 5: Navigation and Safety Charges |
|
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 |
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
|
$200.00 $300.00 |
Applications for Suspension or Exemptions under Bylaw 5.1 Public Notification |
Actual Advertising Costs |
HBRC's Financial Information |
Attachment 4 |
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).
Table 6: Charge rates (excl. GST) for the purpose of calculating actual costs per hour |
|
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 |
Environmental Information |
$ 75 |
Land Management |
$ 87 |
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 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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
HBRC's 2015-25 Policies |
Attachment 5 |
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.
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 |
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 |
|
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 |
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. |
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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 |
<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.
HBRC's 2015-25 Policies |
Attachment 5 |
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. |
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
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.
HBRC's 2015-25 Policies |
Attachment 5 |
Engagement Spectrum[1] – our approach
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Level |
1. Inform |
2. Consult |
3. Involve |
4. Collaborate |
5. Empower |
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What it involves |
One-way communication |
Two-way communication |
A participatory process |
Working together |
Public empowerment |
Types of issues that we might use this for |
- Report adoption - Algal bloom - Pest control - Access issue |
- Annual Plan - Long Term Plan - Regional Land Transport Programme |
- Flood & drain scheme review - Regional cycling plan |
- Tukituki plan change - Taharua/ Mohaka plan change |
- Election voting systems (STV or first past the post) |
Tools Council might use |
- Website - Media release - Brochure/ flyer - Public notice/s |
Formal submissions & hearings, social media, email, focus groups, phone surveys, surveys, video |
- Workshops - Focus groups - Citizens panel |
- External working groups (involving community experts) |
- Binding referendum - Local body elections (Special Consultative Procedure) |
When the community can expect to be involved |
Council will generally advise the community when a decision is made |
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 |
Council will generally provide the community with a greater lead-in time to allow the time to be involved in the process |
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 |
Council will generally provide the community with a greater
lead-in time to allow them time to be involved in the process |
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].
HBRC's 2015-25 Policies |
Attachment 5 |
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.
Attachment 6 |
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
Consolidated Performance Targets |
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Performance Indicator |
Target |
Net debt to net debt plus Equity |
<40% |
Interest cover (EBIT/Interest Paid) |
>3x |
EBITDA/Total Assets |
8% |
Return on Shareholders’ Funds |
5% |
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” |
Our Plan - HBRC's Consultation Document |
Attachment 7 |