Our 2009-2019 TEN YEAR PLAN - Gisborne District Council ISBN 0-9582033-1-8
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Gisborne District Council
Our 2009-2019 TEN YEAR PLAN
Adopted by Council on 25 June 2009
ISBN 0-9582033-1-8
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1
TABLE OF CONTENTS
THE TEN YEAR CONSULTATION PROCESS.......................................PAGES 1 - 4 COMMUNITY OUTCOMES.....................................................................PAGES 41 - 48
Includes details on the consultation and Includes the community outcomes that the
submission process. Provides information people of our district developed through the
on major decisions as a result of the Tairāwhiti by Choice process.
hearings process.
MAJOR PROJECTS......................................................................................PAGES 49 - 62
MAYOR and CHIEF EXECUTIVE’S FOREWORD. .............................PAGES 5 - 8 Includes information on the major projects
Includes an introduction to the document for the Gisborne district over the next 10
and a message from the Mayor and Chief years.
Executive.
GROUPS OF ACTIVITIES.............................................................................PAGES 63 - 200
OUR DISTRICT.........................................................................................PAGES 9 - 12 Includes all of Council’s activities and for
Includes facts and general information on each activity outlines the future direction
the Gisborne district. and actions, contribution to community
outcomes, performance measures
OUR COUNCIL..........................................................................................PAGES 13 - 18 and financial and asset management
Includes information on Gisborne District information.
Council including your elected members,
Community Planning and Development
organisational structure, committee
Libraries
structures, and mission, vision and values.
Building Services
Conservation
SIGNIFICANT ASSUMPTIONS..............................................................PAGES 19 - 24 Civil Defence, Emergency Management and Rural Fires
Includes the assumptions the Council has Environmental Health
made that underpin the projected financial and Environmental Planning
non-financial information in this document. Animal Control
Governance
FINANCES AT A GLANCE. .....................................................................PAGES 25 - 30 Land Transport and Parking
Includes the financial summary of the Ten Reserves and Open Spaces
Year Plan. Aquatic and Recreation Facility (Olympic Pool)
Solid Waste Management
MAJOR ISSUES........................................................................................PAGES 31 - 36 Wastewater
Includes key issues facing the district over Stormwater
the next 10 years that may affect what Water Supply
services Council provide or the way in which Community Housing
the service is provided. Flood Control
Enterprise Operations
LINKS TO STRATEGIES and PLANS. ..................................................PAGES 37 - 40 Support Services
Includes the strategic framework that sets Arts and Culture
the parameters in which the Ten Year Plan
is developed.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 
THE FINANCES PAGES 201 - 232 VOLUME 2 - available on line or by request
Includes Council’s Audit Report, Statement
COUNCIL POLICIES
of Financial Position, Statement of
Includes a complete set of Council’s funding
Comprehensive Income, Statement of
and financial policies as well as Council’s
Changes in Equity, Statement of Cashflows,
Significance Policy.
Statement Concerning Balanced Budget
and Significant Accounting Policies.
RATES..........................................................................................................PAGES 233 - 250 VOLUME 3- available on line or by request
Includes Funding Impact Statement and FEES and CHARGES
Rates Examples for Year 1 (2010) and Includes a complete schedule of all
narrative on variations between areas and Council’s fees and charges for relevant
rates. Council activities.
POLICIES.....................................................................................................PAGES 251 - 256
Includes a brief description of Council’s
funding and financial policies as well as
Council’s Significance Policy.
FEES and CHARGES...................................................................................PAGES 257 - 260
Includes significant changes to fees and
charges.
WATER and SANITARY SERVICES ASSESSMENT SUMMARY...............PAGES 261 - 266
Includes a summary of Council’s water and
sanitary services assessment.
WHAT’S NOT IN THE PLAN.........................................................................PAGES 267 - 274
Includes projects that for various reasons
were not included in the Ten Year Plan.
ART COMPETITION.....................................................................................PAGES 275 - 278
Includes the winning artwork from an art
competition in schools held in 2008 with
the theme “Gisborne Growing Up : What will
Gisborne be like in 10 years time”.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 
the ten year plan consultation process GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 1
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 2
The Ten Year Plan Consultation Process The major decisions made at the end of the consultation process were:
The Gisborne District Council undertook a comprehensive consultation process 1. Reduction of wastewater capital rate collected in 2010 and 2011.
that involved general meetings, targeted stakeholder meetings and a variety 2. No inflation on employee benefits (salaries and wages) for 2010.
of promotional activities through the media and website. Consultation for the
draft 2009-2019 Ten Year Plan also involved a number of new initiatives for 3. Deletion of Makaraka wastewater reticulation.
the Gisborne District Council. These were:
4. Deletion of mobile library.
More pre-decision information to submitters.
5. Deletion of universal water metering.
A new submission record and retrieval system.
6. Inclusion of Waipaoa River Flood Control Scheme upgrade.
A ‘rates look-up’ tool online.
7. War Memorial Theatre upgrade brought forward to Year 2011.
Grouping of submissions by subject
8. Redevelopment of Inner Harbour moved forward from 2016 to 2014.
Making available online staff responses to submissions and the summary
9. Learn to Swim Pool deferred from 2010 to 2015.
of submissions.
10. Lawson Field Theatre retractable seating deferred from 2010 to
Copies of the draft Ten Year Plan and its summary document were available 2012.
from Council’s offices, the website and consultation meetings. The summary
document was posted to households across the Gisborne district.
The process for making a submission and meeting times were publicised to
the community through the Council’s website, newsletters and posters and
the media. In total, Council held 21 public meetings in 22 communities and
made presentations at 16 stakeholder meetings. Council also provided a draft
Ten Year Plan information stall at the local Farmers Market. Approximately
400-500 people attended either a public or stakeholder meeting.
Submissions formally closed on 1 May. Submissions were received from
409 groups, of which 61 presented in person.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 3 
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 4
mayor and chief executive’s foreword GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 5
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 6
Mayor and Chief Executive’s So what has our strategy been? We are trying to retain the staff resources in the
organisation to maintain services, especially those
Foreword During the first three years of the plan priority has been
given to capital expenditure that we are committed to
which people rely on day to day and in emergencies.
Thank you for taking the time to read our 2009-2019 Ten (the wastewater treatment plant) and which is essential Some asset sales may occur but the proceeds will be
Year Plan. The comments and feedback from people who to the functioning of the community and the economy. secured in other long-term investments.
made submissions on the draft has helped Council decide
on the priorities for the next three years in particular, then Operational costs have been cut back but we are trying Despite taking these steps, we remain positive and confident
out to 2019. to maintain current levels of service. that the natural attributes of the region, the productive
potential of the land, and resilience of our communities will
Employee benefit costs are not being inflation-indexed help see us all through the challenges of the next year or so.
Preparing these plans is complex and time-consuming. The in the first year of the plan.
period since the last plan was produced in 2006 has been There are opportunities also.
a good one for many of the people and businesses in the Staff have to take $1M of operating cost out of the
community. organisation in 2009-10. The Council has been asked by the Crown to contribute to the
settlement of Treaty claims by Ngati Porou and the Turanga
The world is in economic crisis although there are early Projects which improve community infrastructure (library, claimants. These settlements offer the prospect of settling
indications of a recovery. Council has taken note of the pool, recreation facilities) have been pushed back until longstanding grievances as well as opening up opportunities
challenges that the community faces, especially those the community is better placed to fund them. for tangata whenua and enhancing the economic and social
relating to the level and incidence of rates. While we remain wellbeing in the district.
Some projects such as the mobile library, Makaraka
positive about the future, especially for Gisborne, Council
sewerage reticulation and the water metering proposal Council needs to be prepared for growth and so has already
has adopted some strategies to ensure that the organisation
have been taken out of the budget. invested in providing room for industry and to make our
is sustainable financially and that our services to the
community are affordable. region attractive for you and for visitors. The plans for the
Capital projects which attract external funding have
Inner Harbour, a Civic Space, the Aquatic and Recreation
been given priority which means the rating dollar goes
We began in November last year by considering our approach Centre and the War Memorial Theatre are all projects that
further.
to budgeting in an economic downturn. Some options, like will enhance the district as a place to live, work and play.
a nil rate increase were foreclosed because of the financial We are relying on collaborations with community funders Council’s commitment to the Wastewater Treatment Plant
servicing costs of previous capital works. The ‘Finances at a to deliver some projects in the future. project and past planning will help to ensure future growth
Glance’ section details these. The draft plan proposed that and prosperity. Being prepared is the most important part of
The affordability of rates, backed by a report BDO our business.
rates revenue increase from $41.35M in 2009 to $44.25M
Spicers completed for the wastewater project, is forcing
in 2010. This was to be an overall increase of $2.9M or a 7%
us to consider other revenue sources for that project. The value in forward planning can be seen in the investments
increase in rates. As a result of the hearings of submissions
and further reviews of budgets, this plan contains a $1.4M that Hikurangi Forest Farms, Bunnings, Mitre 10 and Ryman
The capital rate for the wastewater treatment plant
increase in rates revenue, from $41.35M in 2009 to Health Care, among others, are planning to make.
project is being halved over the next two years.
$42.73M in 2010 or a 3.3% increase in rates revenue. Very
few properties will actually have this increase. The actual We are benchmarking our performance against similar Over the next three years further work will occur on several
rates increases will vary throughout the district. The effect Councils. major projects that will enhance our district. Whether or
of the decisions on submissions has been to smooth some not these projects eventuate depends on your support as a
of the variation in rating incidence between different types of Debt levels have been smoothed and we are positioning community and willingness to pay.
properties and locations. for future growth.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 7 With a lot of effort, Gisborne will be New Zealand’s region of choice for lifestyle based on the quality of its environment, the jobs you create, the enterprise of its people and our special identity. This Plan recognises the current difficult times and, we believe, sets the district up for a successful future. We hope that you can see that also. Meng Foon Lindsay McKenzie MAYOR CHIEF EXECUTIVE GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 8
our district GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 9
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 10
Our District - the first to The Climate
Gisborne is renowned for its Mediterranean style climate. The
see the light total sunshine hours are 2200 per annum, with a variation in
rainfall from about 1000mm near the coast to over 2500 in
The People the higher inland country. On average, 65 days a year have a
maximum temperature of over 24°C.
The Māori name for the district is Tairāwhiti which
Source: National Institute of Water and Atmospheric Research Ltd.
means “The coast (Tai) where the new sun (ra) shines
(whiti)”. Kaiti Beach, near the city, was where the
Māori immigrational waka Te Ikaroa-ā-Rauru landed; District and Council Facts
and is also the first landing place of Captain Cook in
New Zealand. District Land Area: 8,360,060 hectares *
Percentage of Total NZ Land Area: 4.9%
Captain Cook first set foot here in 1769. European
settlement was established in 1831 and the town Reserves: 950 hectares **
which developed was named after Hon. William Population: 44,460 (2006 Census)
Gisborne, the Colonial Secretary, in 1870. Prior
to this the settlement was known as Tūranga but Capital Value: $9.2 billion ***
confusion with Tauranga, Bay of Plenty, led to the Land Value: $5.6 billion ***
name change. To pre-European Māori the Poverty
Average Population Density: 5.3 persons per sq km
Bay area was known as Tūranganui-ā-Kiwa “The
waiting place of Kiwa”. Gisborne became a borough Number of Dwellings: 18,956
in 1877 and a city in 1955.
Number of Rateable Properties: 21,702
The Gisborne region has the highest proportion of Council’s Total Asset Value: $1.7 billion
Māori compared with non-Māori in New Zealand, with
44% compared to the national average of 14.3%.
Source: Statistics NZ, Census 2006. * Based on the high water mark.
** Land zoned “reserve”.
The Economy
*** As at 1 September 2008 and subject to change as a
The Gisborne district is predominantly a district of
result of the revaluation objection process.
primary produce with an emphasis on agriculture,
forestry and fishing. Consequently 25% of
employment is related to these activities. The other
main areas of employment are manufacturing (11%),
retail trade (11%), health and community services
(10.6%), and education (9.3%). Tourism has been
targeted as an industry of high potential growth.
Source: Statistics NZ, Business Demography Statistics, February 2007
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 11 GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 12
our council
GISBORNE DISTRICT
GISBORNE DISTRICT COUNCIL
COUNCIL 2009
2009 -- 2019
2019 TEN
TEN YEAR
YEAR PLAN
PLAN VOLUME 11
VOLUME page 13
page 13 GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 14
Meet the Managers
Our Council
GISBORNE (from left) GISBORNE (from left) WAIAPU COMMUNITY
CORPORATE ENGINEERING ENVIRONMENT
CHIEF PLANNING and
Mayor Meng Foon Cr Alan G Davidson Cr William S Burdett (Bill) AFFAIRS and WORKS and PLANNING
EXECUTIVE DEVELOPMENT
p: 867 1870 p: 867 9474 p: 864 8966(H) 864 8341(W) MANAGER MANAGER MANAGER
MANAGER
m: 027 44 84 084 f: 867 9473 f: 864 8967 Lindsay McKenzie Douglas Birt Peter Higgs Hans van Kregten Nedine Thatcher
f: 867 9152 e: alan.davidson@clear.net.nz BSc, FNZIM, MBA, BE, BE (Civil), BA (Geography) MBA, MA,
e: mayor@gdc.govt.nz MNZIC MIPENZ FIPENZ, MTP - Urban BA(Ed).
CPEng, Dip. and Regional
Deputy Mayor Nona Aston (Mrs) Cr Allan J Hall WAIKOHU
Bus. Mgt. Planning
p: 868 9842 p: 868 6269(H) 867 1339 (W) Cr Roger J Haisman MNZPI
f: 868 9879 m: 027 656 3519 p: 867 0922
e: nona.gaskin@gisborne.net.nz e: aphall@xtra.co.nz (home) m: 027 332 8601
GISBORNE DISTRICT COUNCIL - Contact Details
e: allan.h@burnardbull.co.nz (work) f: 867 0918
Cr Craig Bauld (John) Cr Kathrine M Sheldrake (Kathy) PATUTAHI - TARUHERU
T: 06 867 2049 F: 06 867 8076
p: 862 9550 p: 868 9430(H) 868 5200(W) Cr Gary J Hope
E: service@gdc.govt.nz W: www.gdc.govt.nz
f: 862 9551 m: 027 241 5063 p: 867 2257
e: cbauld@xnet.co.nz f: 868 5208 m: 027 463 347
e: kathys@tmssport.co.nz f: 867 3306 Schedule of Agents
e: sabbatical@xtra.co.nz BANKERS INSURANCE BROKERS
Cr Andy W Cranston Cr Brian I Wilson MATAKAOA Westpac Banking Corporation Jardine Lloyd Thompson
p: 868 1160 p: 867 1600(H) 867 4672(W) Cr Atareta N Poananga 101 Gladstone Road
m: 027 27 33 192 m: 027 237 8080 p: 868 7252 Gisborne
f: 868 1161 f: 867 4675 m: 027 493 1051
e: actionsurf@clear.net.nz e: bwilson@paradise.net.nz f: 863 2441 SOLICITORS AUDITORS
Nolans Ernst & Young
Cr Hemi H Hikawai UAWA COOK PO Box 1141 PO Box 490
p: 868 73930 Cr Patricia A Seymour (Pat) OBE Cr Graeme S Thomson
Gisborne Wellington
f: 868 3306 p: 862 2697 p 862 8737
(on behalf of the Auditor-General)
e: jimmyhikawai@xtra.co.nz m: 0274 725 997 f: 862 8197
Brookfields
f: 862 2703 e: thomson230@xtra.co.nz
e: pnseymour@xtra.co.nz PO Box 240
Gisborne
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 15 Council Governance
Group Organisational Structure
* These companies are CCOs (Council Controlled Organisations) as
defined by the Local Government Act 2002.
This company is a CCTO (Council Controlled Trading Organisation) as
defined by the Local Government Act 2002.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 16 OUR MISSION OUR VALUES
What do we hear people asking?
Lead and be advocates with and for our communities.
Lead and support the social, cultural, Enhance the environment so we can provide for the
economic and environmental development People ■ Performance ■ Process needs of our tamariki, mokopuna.
Create a place that looks and feels great and where
of our communities. lifestyle and enterprise thrive together.
► Giving service. Provide us with the guidance and support but allow us
Mō te Tairāwhiti ► Solution focus. the freedom to live our lives.
Protect our assets, not just the pipes and the roads but
► Innovation.
also our heritage, taonga and our social and cultural
► Working together. assets.
► Learning and improving. Be prudent with our finances and resources.
Work with us, value everyone – do it together
► Can-do attitude.
Mō mātou ka tahi
Mō koutou ka rua
Mō tātou ka toru
Mō rātou ka whā
OUR VISION THE VISION STORY
Gisborne/Tairāwhiti needs to be more than a place just for
Ka mau te wehi.
First to see the light. today. Those who follow after us must inherit a place that is Gisborne/Tairāwhiti is New Zealand’s preferred region
First choice for lifestyle and people, better than it is now. for lifestyle based on the quality of our environment, the
enterprise of our people and our special identity.
enterprise and environment.
Council will take responsibility for leading its communities
now and into the future. It will not direct but will help to
Ka mau te wehi shape, collaborating with and listening to its communities
and seeking the best advice.
Tuatahi ka mārama mai nei
Tuatahi ka whiriwhiri mai rā
Mahia
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 17 The Brand Story The seven rays of the sun in this logo parallel each of the
This logo has an intimate connection district’s seven electoral wards and the semi-circle of the
to the Tairāwhiti as a region and sun is Council itself. The shape of the rays recognises the
community. It is steeped in cultural region’s strong ocean-going navigation heritage as boat and
heritage relevance that touches all waka silhouettes.
corners of the cultural diversity that
gives our place to live, work and play THE WATER
its very own unique character. Water, in all its forms, is vital to
life and another primary icon of
Tairāwhiti - meaning - The coast (Tai) where the sun (rā) the region.
shines (whiti).
The water in this logo is active,
THE SUN rolling like a set of waves on the
shore or flowing like a river across the landscape. It has
The sun is the primary icon of the
direction and purpose about it and touches on the themes
region.
inherent in the strategic visioning of Council.
Tairāwhiti – in this case rā is a
As waves, this icon highlights the district’s geographical fame
shortened version of the word rangi,
and lifestyle. As a river it talks of our hinterland bringing its
which can mean day, sky, heavens, heavenly realm, weather,
bounty to the port and the sea, and to the rest of the world.
air, or melody. Rangi is a shortened version of the word
As a river it also gives recognition to the communities that
Ranginui and Ranginui is the traditional Māori creation god
form around each of our district’s great river systems and
the Sky Father.
unites each of them at our shared shore line.
The sun has always made an easy worldwide and cross-
This form also represents land. The top part is a horizon
cultural connection. It is new each day and as such is always
line that curves around to form East Cape and winds down
fresh; reborn; it denotes a new start; a new beginning; and
our coast line forming headlands and bays as it goes. The
the Tairāwhiti, the “first to see the sun”.
stylised koru shapes within these headlands and bays are
our communities that have based themselves between the
The sun also stands for longevity and is forever constant. It is
hill country and the sea.
dependable, energising, life-giving, healthy and clean.
The blue colour used here is a
The burnt orange colour is
green blue based on the ocean
a sunrise colour and makes
colours found on our coast and
reference to ata hāpara or the
here at Gisborne Port.
dawn when the sun first peeps
over the horizon. It is the
colour of the new day.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 18 significant assumptions GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 19
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 20
Significant Forecasting Dwelling units.
Floor area of non-residential activities.
The following Asset Management Plans were prepared during
2008-2009.
Assumptions Population in the Gisborne urban area is projected to increase
Land Transport and Parking.
Reserves and Open Spaces.
by an average of 60 persons per year from 2006 until 2026
This section sets out the key assumptions made in Stormwater.
(33,600 - 34,810) and then remain fairly stable. In the rest
preparing this Ten Year Plan. Water.
of the district, the population is projected to decline by about
1,000 persons from 2006 to 2031 (12,340 - 11,340) and Wastewater.
Assumptions then remain fairly stable. Flood Control.
The following information is provided in accordance with the Property Assets.
New Zealand Institute of Chartered Accountants New Zealand The most notable projected changes to the population by age
Financial Reporting Standing No. 42 (FRS42) Prospective include: The Asset Management Plans have taken into account the
Financial Statements. increase in the population aged 65 years and over from growth model assumptions outlined above.
12% of the population in 2006 to 23% of the population
Cautionary Note in 2031 Activities and Service Delivery Options
The Ten Year Plan contains prospective financial information. decrease during the same period, in population aged It has been assumed that the existing activities, services and
Actual results are likely to vary from the information presented less than 20 years from 34% to 28% of the population methods of delivery will continue except where this has been
and the variations may be material. clearly stated in the Activity Summary section.
decrease in working population aged 20 to 64 from 54%
to 49% of the population.
Significant Forecasting Assumptions and Risks Similarly, significant assumptions that relate to specific
Schedule 10 (Section 11) of the Local Government Act With household size decreasing, the number of households activities are shown in the relevant part of the Activity
2002 contains provisions relating to ‘significant forecasting in the Gisborne urban area is projected to increase by around Summary section.
assumptions’. The Act requires that Council identifies the 100 households per year from 2006 to 2021, (an increase of
significant forecasting assumptions and risks underlying 12.5%). An average annual growth of about nine households Levels of Service
the financial estimates. Where there is a high level of per year is projected for the rest of the district. The financial information in this Ten Year Plan has been
uncertainty, Council is required to state the reason for that
prepared based on the levels of service as outlined in each
level of uncertainty and provide an estimate of the potential Total non-residential floor space in the district is projected to Activity Summary. A level of service review was carried out
effects on the financial assumptions. increase by only 4% from 2006 to 2046. during 2008. In some areas the Council is proposing an
increase in the desired level of service and has increased
Council has made a number of assumptions in preparing Development Contributions Funding funding to achieve this level of service. In other areas the
this Ten Year Plan. These assumptions are necessary as
The income and expenditure estimates related to development increased level of service depends on securing external
the planning term for the Ten Year Plan is 10 years and the
contributions assume that growth occurs as projected and funding.
assumptions ensure that all estimates and forecasts are
growth-related capital projects are implemented as planned.
made on the same basis.
Interest
Asset Management Plans Interest rates on Council net debt is estimated to be between
Population Growth
6.5% and 7.12% over the 10-year term of the plan. Council
The Council’s Growth Model 2008 has informed the Forecast figures in the Ten Year Plan relating to the
covers its interest rate exposure using interest rate swaps.
preparation of the Ten Year Plan, providing the following management and enhancement of significant assets have
The interest rates are based on estimates of the 90-day
projections for the district. been based on Council’s Asset Management Plans.
bank bill rate and include bank margins and the effect of
Usually resident population. continuing use of interest rate swaps.
Age and sex of usually resident population.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 21 Renewability of Funding The lower levels are reflective of the current economy and Tolaga Bay Wharf.
The Council funds its balance sheet from a mixture of bank the expected activity levels in the housing and property Patutahi Hall.
facilities and debentures. Bank facilities are reviewed every markets. If there were to be a further decline or change in
Landfills.
two years. Debentures on issues have a range of maturities activity levels in these areas, the actual income levels may
out to 2015. vary significantly from budget.
Council does not fund depreciation on these assets.
Additional funding will be required to complete major capital Capital Projects Council does not fund depreciation on landfills as it is
works in 2010-2011. The Ten Year Plan assumes that the It is expected that on average, the costs budgeted for major assumed they will not be replaced at the end of their useful
necessary level of funding will continue to be available capital projects will not vary significantly from the costs lives. Council operates a landfill near Ruatōria. Waste
through a mixture of bank facilities and debentures. estimated. The capital project costs have been inflated minimisation and waste strategy policies, both nationally and
based on the BERL inflation indices. There is a risk that costs at district level, should give alternatives to the landfilling of
Inflation rise more than the BERL inflation indices. The Council has solid waste in the future.
The forecast financial information includes provision for a higher level of confidence regarding capital project costs
inflation. Council has used forecasts of price level changes in the short term, but less certainty in the longer term due Council does not fully fund the depreciation on its roading
prepared by Business and Economic Research Limited to changes in the project scope, fluctuations in the economy assets in the Forecast Financial Statements. It is assumed
(BERL) to calculate the inflation rate for each year of the and district growth trends. that a set proportion of the Land Transport and Parking
Plan. The BERL rates were set in September 2008. Council capital expenditure will continue to be funded through NZTA
has not included any inflation on Employee Benefits for the External Funding financial assistance subsidies. It is therefore considered
2010 financial year. Included in the forecast financial statements are a number of appropriate to only collect rates revenue on the portion of
operational and capital projects that are assumed to be either roading depreciation funded from Council reserves.
Income tax significantly or 100% funded by another agency or grant ie, there
will be little or no rates impact to the Gisborne community. Council does not fund depreciation on the Airport assets as
Council has accumulated tax losses available to carry forward it is assumed that the Council lease of the Airport assets
and offset against future taxable income. Given the level of and operations to Eastland Infrastructure Ltd will result in
accumulated losses and the expected tax liability during the There are also a number of major projects to be funded by
a combination of Council and external funding. The funding the assets being returned to Council at the end of the lease
life of the Plan, no income tax is expected to be paid. in the same condition as when the lease began on 1 April
sources of Council’s proposed capital projects are disclosed
in the Groups of Activities section of the 2009-2019 Ten Year 2005.
Forecast Returns on Investments and Strategic Plan. Council has $299M capital projects proposed for the
Assets term of the Plan of which $140M is budgeted to be funded Useful lives of assets are as recorded in Asset Management
from grants, subsidies or donations. NZTA subsidies for Plans or based upon professional advice. Refer to the
Council maintains a range of commercial and strategic
Land Transport and Parking capital projects are included. Accounting Policies Depreciation note.
investments. Council has forecast the return for significant
investments and business units. Council is currently They contribute $75M over the ten years. There is a risk
that sources of funds for some capital projects may not There is a risk that some assets may wear out and fail sooner,
reviewing all its investments and strategic assets to ensure
eventuate. It is assumed that if the external funds budgeted or later than calculated. There is no certainty that asset
it is receiving an adequate rate of return. Due to the level
are not available then the projects will not proceed. components will last exactly their design lives. However,
of uncertainty, the Plan does not include any significant
replacement is budgeted at the expected end of useful life
strategic or investment asset disposals.
and earlier replacement will result in a loss on disposal of
Depreciation
any residual value.
Income Levels All assets, excluding those listed below, are assumed to be
Income levels for building and resource consents and replaced at the end of their useful life. The following assets Earlier replacement may result in deferring other discretionary
related activities (LIMs and PIMs) have been decreased in are assumed not to be replaced at the end of their useful capital projects in order to remain within Council’s borrowing
comparison to the 2008 actual revenue earned. life. limits set out in the Council Liability Management Policy.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 22 Depreciation on Planned Assets Acquisitions 5 % Efficiency Gain Target
The depreciation rates used for planned asset acquisition Council has identified the need to reduce the rates demand
are in line with current policies. by making efficiency gains. These gains will be made through
improved systems and management within the organisation.
Resource Consents The 2009-10 target for these gains is a 5% saving based on
all non-committed expenditure. Non-committed expenditure
All of Council’s works projects require resource consents
covers all costs not already covered by an agreed contract
to be granted before works can commence. It has been
price.
assumed that resource consents can be obtained for all
capital works, and that obtaining those resource consents
The proposed efficiency gains have been set at a level that
will not significantly impact on the timing of capital works
will not adversely impact on the levels of service for each of
shown in the Ten Year Plan.
the Council’s groups of activities.
It is also assumed that the currency and conditions of
existing resource consents held by Council will not be altered Emissions Trading Scheme
significantly during the term of the Ten Year Plan. The most While acknowledging the possibility of the district being
significant resource consents currently held by Council are seen as a carbon sink for the nation, the Council is cautious
for: about the possible negative impacts. In an extreme case
Waiapu Landfill afforestation could mean that other land use options are
foregone and there is the potential for limited local economic
transfer stations
benefit.
existing wastewater treatment (Marine Outfall into
Poverty Bay.
The Council has lodged an application for a variation to a
suite of resource consents held in relation to the proposed
upgrade and renewal of the wastewater treatment project.
These are currently going through the resource consent
process. For the purpose of this Plan it is assumed that the
consents for this will be granted.
Revaluation of Assets
The forecast financial information includes an annual
estimate to reflect the change in asset valuations and
depreciation. The effect of the revaluations is a best
estimate based on historical asset values, forecast
capital expenditure, the BERL inflation indices and recent
revaluation information. The most recent revaluation
of Council’s assets was at 30 June 2008. It is assumed
revaluations will result in an increase in the asset values,
revaluation reserves and the depreciation expense. It is
assumed the revaluations will occur annually.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 23 GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 24
finances at a glance GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 25
The Nature of the Prospective Financial Information - Cautionary Note
The prospective financial information contained in the 2009-2019 Ten Year Plan is a forecast, and has been prepared on
the basis of assumptions as to future events that the Council reasonably expects to occur, associated with the actions it
reasonably expects to take as at the date the forecast was prepared. The forecast relates to events and actions which
have not yet occurred and may not occur. The actual results achieved for the period covered are likely to vary from the
financial information presented and the variations may be material. The uncertainty increases as the number of years
of prospective financial information increases. Uncontrollable external events will significantly affect the forecast.
The Forecast Statement of Financial Position has been reviewed to incorporate the audited Balance Sheet for the year
ended 30 June 2008 and the movements per the 30 June 2009 Annual Plan. This has been adjusted for any material
events during the current financial year.
A number of assumptions need to be made about the economic and financial conditions, which will apply over the
lifetime of the model. The major assumptions underpinning the Plan are set out in the Significant Assumptions section
of the 2009-2019 Ten Year Plan.
The financial information contained within the 2009-2019 Ten Year Plan may not be appropriate for purposes other than
those described.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 26 Finances at a Glance INCOME and EXPENDITURE The financial information presented here is only intended to give a brief overview. For more detailed financial information please refer to the Finances section of the 2009-2019 Ten Year Plan. The Finances section includes the audit report, Council’s forecast financial statements, a full list of capital projects and the accounting policies. Total income exceeds total expenditure in every year of the Plan. This is mainly due to the external grants, subsidies and donations income budgeted to be received to finance capital projects. Included in this capital income are the NZTA funding for roading projects. The Regional Roading Programme is 100% NZTA funded and this will have $6.9M capital revenue over 2010 and 2011. The grants and/or donations estimated for the Olympic pool redevelopment and multi-purpose indoor stadium result in capital income increasing in 2015 and 2017 to 2019. The redevelopment of the pool complex is proposed to be 75% externally funded and the multi-purpose indoor sports stadium is planned to be 90% externally funded. Council has established a Community Funders’ Forum to build closer Council to funder and business relationships, and to establish a means to Income breakdown for 2010 match future projects to funders. Council Income This graph illustrates Council’s varied revenue sources. Gisborne District Council is planning for revenue of $74.3M in 2010 increasing to $109M in 2019. The revenue pie graph illustrates Council’s revenue breakdown for the 2010 year. The percentage of the various income streams may vary slightly from year to year. Rates make up 57.49% of the total revenue in 2010. Grants, subsidies and donations for operating expenditure make up 11.23%. Council also receives 13.92% of capital grants, subsidies and donations. The level of grant and subsidy revenue for both operating and capital is mainly driven by our NZTA roading funding. For a number of services, Council receives fees and charges. This makes up 14.40% of our total revenue. GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 27
Council Expenditure The Support Services group of activities includes finance,
The Council is forecasting that its expenditure will increase human resources, information management, information
from $68M in 2010 to $97M in 2019. The increases are due technology, plant, radios and senior management.
to increases in:
Council’s depreciation for the 2010 year is $16.2M. This
inflation
represents 4% of Council’s forecast rates increase. Council
growth depreciation expense currently represents 24% of the
project costs total expenditure. By 2019 this is forecast to increase to
level of service increases $24M. The increase in forecast depreciation is due to asset
depreciation and interest cost. revaluations, which are currently being performed every year,
and new capital expenditure planned for the Ten Year Plan.
The Council operational spend for 2010 is $68M. The pie Council does not rates fund all of its depreciation expense.
chart shows the breakdown of expenditure by our groups of Specifically, Council will not fund the depreciation on the
activity. The most significant spend is in the Land Transport subsidised portion of the Land Transport and Parking’s
and Parking activity. This expenditure makes up 28% of capital projects. Council expects that the NZTA subsidy for
Council’s annual spend. This activity receives NZTA subsidies, roading capital projects will continue in the future.
which fund about 59% of its operating expenditure.
EXPENDITURE BREAKDOWN BY ACTIVITY GROUP FOR 2010
Aquatic and
Water Supply Building Services Community Development
Recreational Facilities
6% 2% 3%
Solid Waste/Waste 2%
Stormwater
Minimisation Conservation
3%
5% 6%
Sewerage and
Environmental Health
Wastewater
3%
5%
Environment and
Reserves and Planning
Open Space 2%
5%
Other Activities
4%
Support Services Land Transport and
16% Parking
Library Governance Flood Control Enterprise Operations 28%
2% 3% 2% 3%
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 28 WHAT YOU GET FOR YOUR RATES Please Note: A number of activities fund their operations either fully or partially by fees and charges. Therefore the rates will not
Each dollar of rates is spent against the following activities: always match the expenditure as some activities will have fees and charges income which reduces their rates requirement.
The Revenue and Financing Policy describes each activity and how Council intends funding the operating expenses of that
activity. The Revenue and Financing Policy is included in Volume 2 of the 2009-2019 Ten Year Plan.
Rates Levied
The main drivers of the rates increases are:
Depreciation: Council’s depreciation expense in 2010 has increased $1.6M. Council’s assets were valued at $1.7 billion as at 30 June
2008. Council revalues its assets every year.
Inflation: Council has adjusted its income and expenditure for inflation over the term of the LTCCP. Council resolved not to provide for
inflation on employee benefits in 2010.
Interest: Council’s draft debt increases in years 2010 and 2011. This will result in increased interest costs for Council. The increases
in interest costs for 2010 and 2011 result in an increase in rates of 1.3% in 2010 and 1.9% in 2011.
Capital Rates: Council currently has four capital rates. The CBD upgrade/millennium, Wainui Foredune Protection and the solid
waste capital rate are collected to fund principal repayments of specific loans. The wastewater treatment plant (WWTP) capital rate
is collected to help finance the construction of the wastewater treatment plant planned for 2010 and 2011. The WWTP capital rate is
planned to reduce from $1.868M in 2009 to $934k in 2010 and 2011.
Deficit Repayment: Council initiated deficit funding in 2000 to spread the impact of funding depreciation. Council plans to repay $5M
deficit from 2012 to 2018. This has the effect of increasing rates in those years.
Dividend: Council has estimated that it will receive dividends from Tauwhareparae Farms of $1M in 2010 and $0.8M for 2011 to 2019.
The dividend receipt reduces our rates requirements.
Targeted Rates: The Council makes extensive use of targeted rating, to ensure that the cost of services provided are charged to those
who receive the benefit or request the service.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 29 Debt Profile PUBLIC DEBT and INTEREST
Council is planning to spend $299M on capital projects over
the next 10 years. A large proportion of the spending will
be loan funded. Council has estimated the long-term debt
balance at 1 July 2009 to be $22M. Council is estimating
that debt will peak at $53M in 2011 and reduce to $30M
by 2019.
By using debt to fund most capital expenditure Council is
matching the use of capital projects with beneficiaries. The
debt peak in 2011 is caused by the construction of the
wastewater treatment plant.
The planned reduction in Council’s $5M deficit will reduce
debt in the latter years of the Plan.
A list of major projects forecast for our district is listed below.
For more detail on the Council’s major projects, the various
options and financial implications, refer to the Major Projects
section of the Ten Year Plan.
Major Projects (all projects are included at 100% of expected cost)
Total Cost 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Wastewater Treatment Plant 40,331 20,709 19,622
Waiapu Landfill - Stage 3 429 429
Waiapu River Flood Protection at Ruatōria 2,291 78 535 547 560 572
Cycle and Walkways * 4,054 551 1,097 594 632 960 42 43 44 45 46
Library Extension * 1,316 1,316
Civic Space 1,000 1,000
War Memorial Theatre Upgrade * 3,502 3,502
Multi-Purpose Aquatic Centre * 23,605 55 56 114 23,380
Multi-purpose Indoor Sports Stadium * 37,610 12,240 12,530 12,840
Inner Harbour 1,332 26 27 122 125 510 522
* Projects that are partially or fully funded by grant, donation or subsidy.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 30 major issues GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 31
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 32
Major Issues maximising alternative funding opportunities by
prioritising projects which have a significant level of
Council has recognised the economic challenges facing the
region and is working hard to minimise rates rises. This work
grant or external funding. This is combined with an has included, wherever possible, deferring major projects
In preparing the 2009-2019 Ten Year Plan, a scan of the
ongoing emphasis on finding project funding sources beyond Year 2 (2011) of the Ten Year Plan, and other
major issues facing the district and Council over the next ten
other than rates measures identified under ‘Affordability’.
years was undertaken. The following issues may affect what
services Council provides or the way in which those services initiating a series of efficiency gain targets for all areas
are provided. These issues were integral to the development of Council. These efficiency gains are to be achieved Economic Development/Positioning
of the work programmes and funding proposed in the Ten without a significant change in levels of service Council has assisted economic development in the district by
Year Plan. initiating improved business plans and monitoring for ensuring that the planning and regulatory processes enable
Council investments growth while looking after people and the environment.
Affordability a reduced-scope wastewater treatment scheme There has also been investment in land and its servicing to
redesigned to meet the main objectives at a more provide for the industries needed to process the harvest from
Rates affordability is a big issue for our district considering
affordable cost land and sea.
our district’s large, sparsely populated geographical area, low
socio-economic population and modest population growth. deferral of non-essential operational and capital
Through the Tairāwhiti Development Partnership (TDP),
At 30 June 2008 Gisborne District Council assets were expenditure items.
Council has recently contributed to the preparation of a
valued at $1.7 billion. Maintenance, operation, depreciation
regional economic development strategy. The work was
and renewal of these assets are a considerable cost to the As a direct result of the need to keep rates affordable a
funded by NZ Trade and Enterprise (NZTE) and outsourced
ratepayer. number of projects have been excluded from the 2009-2019
to McDermott Miller Strategies to undertake. While the work
Ten Year Plan. A list of the excluded projects can be found in
was commissioned by the TDP, it will guide the Council in
Council’s depreciation expense in 2010 is $16.2M. Council the “What’s not in the Plan” section later in this document.
its decision-making about the actions it will take and the
does not fund the depreciation on the NZTA subsidised
contributions it will make to economic development in the
portion of our Land Transport and Parking assets. Economic Conditions - Recession/Credit Crunch district. The regional economic development strategy is a
Gisborne, along with the rest of New Zealand, is potentially precursor to action plans and further NZTE funds that may
Continuing to provide the essential community services
facing another two years of recession. This is reflected in low be obtained to support business and enterprise in the district
provided by these assets at an affordable level is challenging.
private spending and weak export figures. The recession was for example the further development of the Navigational
Some assets, such as roading, are spread across the district
initiated by the collapse of international financial markets Traditions Project.
(about 8300 sq kms). Others, such as water services, are
in 2008. This in turn flowed through our trading partners
mainly under the ground and some are now almost 100
reducing the demand for our exports. National unemployment One issue that came out strongly in the stakeholder meetings
years old. Flood protection must be maintained to meet the
as at January 2009 was at a five-year high of 4.2%. This is was the need for Gisborne/Tairāwhiti to be an attractive
unknown demands of climate change. Land and buildings
expected to peak at 8% by the end of September 2010. The place to live. Investors and those in the private sector
contribute to all the services provided by Council.
recovery is not expected to commence until late in 2010. industries, whose efforts are underpinning the economy of
the region, say that schooling, health facilities, community
In response to the affordability problem Council has initiated
The government has made the economy a priority and facilities, sports and recreation facilities and the general
a package of measures to assist in keeping rates rises down.
analysts appear to be mostly happy with interest rate (OCR) ‘look and feel’ of the city especially are critical to their ability
These measures include:
cuts (down from 8.25% to 5% in December 2008 and down to attract people and investment capital here. They pointed
an asset review process designed to identify surplus to 2.5% in April 2009), which are expected to soften the blow, to the need for Council (among others) to be leaders in the
assets and ready them for sale at the appropriate time and a fiscal stimulus package of $7 billion over two years (4% provision of the ‘place shaping’ aspects of the community.
of GDP).
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 33 The Urban Development Strategy (see the “Links to Strategies Some parties not close to negotiations may express their Its officers work across functions that are compartmentalised
and Plans” section), and regulating for the provision of land frustration with the settlement process negatively towards and separated across many departments of different councils
zoned for industry and other uses, illustrates Council’s Council as it undertakes its day-to-day work. in other areas. This means that our service delivery is more
recognition of its ‘place shaping’ role in developing and efficient.
sustaining our city. However, claims settlement will significantly assist the whole
community to move forward as a much-strengthened region. Council is very aware of the need for integrated environmental
Housing Affordability To this end, Council continues its work with the Crown to management. Gisborne’s environmental quality is vital for its
acknowledge the negotiation processes in place and see how it economic, social and cultural well-being. The District is relying
While economic expectations have become gloomy and
may help contribute to its satisfactory completion. on agricultural production as a basic industry. Its citizens (most
uncertain, both the value of real estate and interest rates
of who live in the city) require good air and water quality for their
have dropped. The impact on the affordability of housing in
Council’s talks with the Crown about the possible Crown environmental well-being. They wish to live in a convenient,
Gisborne given these recent developments is unclear.
purchase of Tauwhareparae Farms for the East Coast claims safe and accessible city. The District is also home to a large
district have been discontinued. proportion of Māori who want their special relationship with
Traditionally the position of this Council has been that the
their ancestral land and waters recognised and protected. The
promotion of affordable housing in the district is not directly
The initial approach came from the Crown as was the case integrated nature of our environmental policy development and
Council’s responsibility, but that Council has influence
when Council agreed to a valuation process for the possible implementation helps to deliver that objective.
through its community housing planning, lobbying and
purchase of the former AML site and part of Watson Park for
community representation roles.
the Turanga claims district. If sales of the latter two lands Hazardscape
eventuate, an agreement in principle with the Crown about
The recently enacted Affordable Housing Enabling Territorial The Gisborne district’s hazardscape is significant and has
terms and conditions will be needed. Public consultation on
Local Authorities Act 2008 gives councils the statutory means the potential to cause severe disruption to the economic,
the proposals will follow.
to require developers to include a proportion of affordable environmental and social fabric of the community. The Ten
housing in their developments on behalf of the community. Year Plan provides funding for the Emergency Management
The proceeds of any sales will need to be secured. The Council’s
The effectiveness of this new legislation and the need for Activity to comply with legislative requirements, Council policy
Significance Policy has been amended for this purpose.
its application in Gisborne has not been established. The and the Civil Defence Emergency Management Group Plan.
Council has therefore resolved not to increase the functions It does not address how Council will manage the impacts of
of Council to facilitate the delivery of affordable housing Integrated Environmental Management any actual events we may experience.
in the district. However, Council will keep a watching brief Gisborne District is a unitary authority and carries out both
and may consider undertaking research and subsequent the functions of a territorial authority (“district”) and regional Climate Change
interventions in the future if these are warranted. authority (“regional council”).
Climate change brought about by greenhouse gas emissions
is a global issue. It needs to be addressed not only globally but
Treaty Settlements This has benefits in streamlining its environmental management
also locally. The effects and the responses will increasingly
functions under the Resource Management Act 1991.
The actions and omissions of the Crown that impacted impact regionally. Predictions from the International Panel
Council’s environmental policies and rules for both functions
adversely – both real and perceived – on tangata whenua on Climate Change (IPCC) include sea level rises of up to
are well aligned. Most of these are contained in Council’s
communities district-wide 169 years since the signing 50cm by 2100. In Gisborne there is predicted to be an
Combined Regional and District Land Plan. Other plans such
of the Treaty of Waitangi, are very near an agreement of average temperature rise of 2.1 degrees Celsius by 2090 and
as the Coastal Plan, Air Plan and Urban Development Strategy
settlement. 5% less overall rainfall by 2090. There will be more heavy
complement the overall strategies in the combined plan.
rainfall events. This will affect most Council activities, with
While not all claimant groups are unified in settlement, many the obvious impacts being on water supplies, storm damage,
The unitary status also has advantages for Council’s
are. The Crown’s proactive stance to complete its settlement coastal development, drainage and primary production.
stakeholders and customers. Environmental management
process indicates they will settle, and soon.
and regulation can be complicated and appear inaccessible to
many. In Gisborne, the scale of the Council is smaller.
GISBORNE DISTRICT COUNCIL 2009 - 2019 TEN YEAR PLAN VOLUME 1 page 34 You can also read
