2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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KEKERENGU
CLARENCE (MATARIKI)
RAKAUTARA
HAPUKU
KAIKOURA TOWNSHIP
PEKETA
OMIHI
GOOSE BAY (OTEMAKURA)
OARO
SH1
2017/2018
Consultation Document
for the Draft Annual Plan
Kaikoura District Council
Reimagine Kaikoura
Pōhewatia anō a Kaikōura
A sustainable future for the Kaikoura District 2017/2018 Consultation Document for the Draft Annual Plan
Reach-out
Reconnect
Resilient
Reevaluate
Replenish
Revitalise
Reassess
Repair
Rebuild
Research
Rejuvenate
Rediscover
Review
Rejoice
Reimagine
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 2
RECOVERY
VISION
Kaikōura District
recovers and
moves forward as
a great place to
live – has a strong,
well-connected
community,
is ecologically
exemplary and
economically
prosperous.
Image Andrew Spencer 3
RECOVERY
GOALS
Strengthen community resilience, safety
Community
and wellbeing; ensure everyone in the
community has their essential needs met;
and enhance quality of life for residents
and visitors.
Establish strategic partnerships to attract
investment; develop support structures
Economy to provide certainty around businesses
and employment continuity; and explore
avenues of economic diversification to
enhance economic and social resilience.
Build cost-effective and easily accessible
Built infrastructure, transport networks, housing
and buildings which are able to withstand
Environment extreme weather events, flooding,
tsunamis, earthquakes and landslides.
Natural Restore, protect and enhance Kaikōura’s
unique natural environment and
Environment biodiversity and sustainably manage
disposal of waste.
Looking to
Develop a comprehensive resilience
monitoring and review system, and
the Future
investigate future opportunities presented
by the earthquake for improving
infrastructure and tourism.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 4
INTRODUCTION
Welcome to the Kaikōura District Council’s Consultation Document for the Draft Annual
Plan 2017/2018.
The 14 November 2016 7.8 magnitude earthquake had wide reaching effects on our
District. The damage to Council infrastructure, property and community facilities was
extensive. As a result, Council plans, projects, funding and strategies have had to be
significantly reviewed and updated.
The 2017/2018 financial year is the third year of the current ‘Long Term Plan 2015/2025’
which is the main planning document for the Kaikōura District and where major decisions
are made. The Long Term Plan will be fully reviewed in 2018.
In the meantime this consultation document and the Draft Annual Plan 2017/18 outline
plans for the next 12 months. This is a snap-shot of where we are now, the decisions we
need to make and the work we intend to get done over the next year.
This document focuses on the top matters of interest to our residents and ratepayers and
would like to know what you think.
The full Draft Annual Plan and supporting documents are available through
www.kaikoura.govt.nz
Once you’ve read this draft, please provide us with your feedback – instructions are on the
final pages.
Wakatau (Chief Kaikōura) wearing cloak,
feathers in hair, holding a spear. He was
killed by a fall from his horse in 1868.
Original photo in possession of Mr Rangi
Solomon, Oaro. Image courtesy of Kaikōura
Museum.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 5
TABLE OF
CONTENTS
Message from the Mayor 7
Message from the Chief Executive Officer 8
New Focus – Community Development 11
New Focus – Economic Development 13
Deferral of Long Term Plan Projects 15
Infastructure Rebuild 16
Community Facilities and Buildings 19
Natural Hazards 20
Impact of Earthquake Costs on Financial Strategy,
Rates Remissions and Rates 22
What does all this mean for your Rates? 25
Forecast Financial Statements 26
How to give us your feedback 27
Draft Annual Plan feedback 28
Pou at Takahanga Marae, Kaikōura.
Image courtesy of Fairfax
Media NZ/Marlborough Express.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 6
MESSAGE FROM
THE MAYOR
The earthquake that struck on 14 November 2016 continues to have far reaching impacts
across our District – socially, economically and on our natural environment. For most of us
the ‘third winter’ is very much a reality and the road to recovery is long.
This year’s Annual Plan is a significant reprioritisation of Council workplans.
Why reprioritise? Our infrastructure has been severely impacted so some planned work
will need to be delayed to allow us to focus on the immediate rebuild. Council is facing
an approximate forecast cost of $40M, roughly five times our annual spend. The ongoing
isolation by road has directly affected 50.4% of our workforce and been felt widely by
our businesses. The 1.5 metre uplift in the harbour has dramatically affected commercial
operators who can currently only run 30-40% of scheduled tours.
The isolation and reduction in tourist numbers has led to a marked decline for our
accommodation and retail sectors. Socially we continue to see the after effects of the
earthquake – temporarily displaced residents, the ongoing need for psychosocial support
and financial and insurance advice for homeowners through the personal rebuild process.
I am extremely appreciative of all the financial and other support our District has received
since the quake. Sources of support include: Environment Canterbury, the Ministry for
Primary Industries, the Ministry for Business Innovation and Employment, the Ministry
of Civil Defence & Emergency Management, the Ministry of Health, Lotteries and the
Rata Foundation, the Red Cross, the Rural Support Trust, Te Rūnanga o Ngāi Tahu and Te
Rūnanga o Ngāti Kuri, Te Puni Kōkiri, Whanau Ora Agencies, Sports Tasman, Sports NZ and
JR McKenzie Trust and local organisations and individuals.
This funding and collaborative support is essential to our District’s recovery and ensures
we can continue to sustainably operate into the future.
When residents of our District created the recently launched ‘Re-
imagine Kaikōura’ Recovery Plan they recognised the long term
nature of recovery and the long road ahead. The community’s
passionate contributions to our Recovery Plan are testament to
their resilience.
The Annual Planning process is a critical part of our District’s
recovery and rebuild. Council has to carefully manage its
finances and workload to achieve the best it can for residents
and ratepayers in the long term.
The Recovery Plan, the Annual Plan 2017/18 and the Long Term
Plan 2015-2025 will work together to create a future roadmap
for our District. This consultation document is a chance for you to
have your say about that plan.
Winston Gray
Mayor
At the end of the day it’s not just about recovering what we
had. It’s about enabling us to move into a new future and take
Kaikōura from good to great.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 7
MESSAGE FROM THE
CHIEF EXECUTIVE OFFICER
Welcome, and thank you for taking the time to read the Kaikōura District Council’s
Consultation Document for the Draft Annual Plan 2017/2018. I hope you’ll provide
feedback and let us know your views.
The 14 November quake caused sizeable damage to our infrastructure (water, wastewater,
roads and community facilities and property). The scale of the damage is comparable to
that faced by Christchurch after the Canterbury earthquakes. We have been left shaken, in
some cases a little stirred, and facing significant issues.
Re-imagining our District will take time, commitment and endurance. The Council will do
everything possible to support the District as it recovers. Along the way we’ll face difficult
choices between what must be done now, and what will need to wait and how we manage
our finances to get the best solution for the District.
After the quake the Recovery Team worked with the community to develop the Recovery
Plan ‘Re-imagine Kaikōura’. Together they identified goals to work towards through the
recovery and rebuild work. The Annual Plan for 2017/18 starts working towards these
goals. These goals are;
1. Developing a sustainable economy
2. Rebuilding quality facilities and infrastructure
3. Enabling a strong and healthy community
4. Protecting and enhancing the natural environment
5. Striving for a resilient and positive future
Next year’s review of the Long Term plan will build on this and confirm our future work
programme. Here’s how the Council will work towards them in the next 12 months.
1. Developing a sustainable economy
The isolation from the north, and intermittently
from the south, has had a significant impact on
our local tourism businesses. Other businesses
are prospering from the increased construction
activity. We will continue to work with the
Canterbury Chamber of Commerce to drive
business diversity and to source insurance
and business advisers to help businesses
through the changes. Ongoing business
support is available through the $848k Business
Recovery Grants Programme, funded by central
government. Image Andrew Spencer
Longer term we need to recover and further develop our tourism infrastructure such as the
marina, harbour and airport. Such development takes time but we have identified the first
steps and milestones, putting us on the road for long-term success.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 8
2. Rebuilding quality facilities and infrastructure
Over the next 18-24 months Council needs to spend five times our normal annual
infrastructure budget as part of the rebuild programme. Getting this rebuild programme
done on time, within budget, and to the required standard is our top priority.
Most things that the community takes for granted (clean safe water, operational sewerage
system and safe roads) require extensive rebuild work. This is estimated to cost close to
$40 million.
In the next 18-24 months we will focus on;
• road rehabilitation works down Mt Fyffe, Mill and Red Swamp roads
• repair structural damage to bridges
• re-install the main sewer line and replace pump stations
• replace water reservoirs
• repair sewer and water reticulation systems.
In the short term we do not have the financial resources to replace and restore all existing
community facilities. We are working with Sport Tasman, Sport NZ and the local sporting
groups to assess the District’s needs and the affordability of new sport and recreational
facilities.
Tourist attractions are Kaikōura Districts’ main drawcard. Over 50% of our workforce is
dependent on the tourism industry, so getting the harbour functional again by the next
tourist season will be a significant achievement. We have made significant progress re-
instating the harbour slipways both for recreational and commercial users. We are currently
finalising the dredging and excavation in the South Bay harbour. We are appreciative of
financial support from our operators as part of this restoration.
3. Enabling strong and healthy communities
We are making a long-term commitment to community development, bringing on-board
new staff with a community development focus. Council will continue to walk alongside
our community, identifying needs and seeing how best we can facilitate support and
assistance.
The earthquake and resulting
damage to property, possessions
and people are traumatic events.
For many, a sense of loss and
anxiety is part of our ‘new normal’.
Our staff continue to work with
the CDHB and others to provide
help to those who need it. Council
is providing support for those
navigating the insurance process.
We encourage all residents to seek
Image Andrew Spencer out the help and advice they need.
I believe we have a prudent sustainable budget which enables the Council to restore and
replace the damaged infrastructure and continue to provide the same level of services.
Our debt is well within our cap and our debt servicing costs are affordable. While rates
increases are inevitable, we have smoothed the rates increases over a period of three years
to keep increases affordable for our community.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 9
The Council has also developed a rates relief package for earthquake and aftershock
damaged properties that are;
• damaged to the point of being uninhabitable
• unsafe to occupy
• or where their use has been significantly affected.
Under this package owners of red-stickered and uninhabitable homes on less than one
hectare will receive a 100% rates remission.
Uninhabitable houses and farm buildings on land greater than one hectare, and
commercial businesses which are red-stickered or unsafe to occupy, will receive a rates
remission which has the effect of writing off rates leaving only those rates that would apply
if the property were bare land.
4. Protecting and enhancing the natural environment
One of the strongest themes found in the recovery planning process was how grateful
everyone was to live in such a beautiful place. Protecting Kaikōura’s environment and
natural beauty is a vital part of the rebuild and recovery work.
In the short-term Council has received Government funding to develop a sustainable waste
management plan to deal with quake related waste. This will cover things like asbestos
management, infrastructure repairs and increased recycling support.
We are currently reviewing all the natural hazards caused by the earthquake. This includes
identifying the risks they pose and how these risks can be minimised or managed.
5. Striving for a resilient and positive future
The vision for our District as outlined in the Recovery Plan is:
‘Kaikōura recovers and moves forward as a great place to live – has a strong, well-
connected community, is ecologically exemplary and economically prosperous.’
For now, we are rebuilding our homes, businesses, Council facilities and infrastructure. We
are re-establishing our access to the outside world. We are repositioning our tourism and
economy.
This Annual Plan builds on the Recovery Plan to put in place the structures and systems we
need to achieve the future we have re-imagined together.
Re-Imagine Kaikōura
Pohewatia ano a Kaikōura
Angela Oosthuizen
Chief Executive Officer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 10NEW FOCUS -
COMMUNITY DEVELOPMENT
COMMUNITY
Community development involves co-ordinating local social services and promoting
community-led initiatives. This includes supporting youth, the elderly, people with
disabilities and families by tackling issues such as social isolation, family violence, alcohol
and other drug use. By focusing on community development Council will ensure the
social elements of the District’s recovery are put in place to support residents. We are
working with organisations including Police, Work and Income, Child Youth and Family, Te
Tai o Marokura and Ministry of Social Development.
Community development targets the following outcomes:
• There is a safe environment for all
• The community’s health and social service needs are met
• The community’s cultures, arts and heritage are conserved and celebrated
• People have wide ranging opportunities for learning and being informed
• People are friendly and caring, creating a strong sense of community in our District
• Public effect is given to the spirit of the Treaty of Waitangi
• There are wide ranging opportunities for people to contribute to local, regional and
national organisations’ decisions that affect our District
The Community Development team has;
• identified currently available social services
• identified emerging earthquake related needs and gaps
• increased capacity where possible by working with existing agencies.
We will ensure residents ongoing safety and wellbeing by;
• ensuring that psychosocial support is provided
• ensuring that short term accommodation needs are addressed throughout the
rebuild process
• ensuring residents and ratepayers are supported through the insurance process
• advocating for youth programmes
• supporting the Youth Council.
Image Andrew Spencer Image Andrew Spencer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 11Impact on levels of
New priority Cost and funding Impact on rates
COMMUNITY
service
Total cost increases by
$466k, Council received
New roles support
Eight new roles (mixture of funding of $198k near
the social recovery
Community permanent and 12-month the end of 2016/2017 to
process as a critical
Development fixed term contracts), largely be used for community
part of our District’s
funded by external grants. support coordinators.
recovery.
Impact on rates as per
table on page 25.
Goal:
Strengthen community resilience, safety and
wellbeing; ensure everyone in the community has
their essential needs met; and enhance quality of life
for residents and visitors.
Image Andrew Spencer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 12NEW FOCUS -
ECONOMIC DEVELOPMENT
In the 2016/2017 Annual Plan Council started to broaden our focus from relying on
tourism as the main economic driver for Kaikōura to encouraging wider economic
Development. We realised we needed to build resilience into our economic base,
encourage diversification and attract new business and investment. The lack of road access
and isolation post-earthquake has reinforced that tourism, although vital to our District,
is not enough to ensure our economic success. Broadening the focus for economic
development will result in larger financial and other support for the District, ensuring
Kaikōura has a future with employment opportunities, economic prosperity and new
business opportunities.
ECONOMY
In the short term, economic recovery and development will focus on the recovery. Working
with industry sector groups to meet specific needs and projects. This includes;
• managing hospitality contracts between Compass and local hospitality providers
• working with retailers to reinvigorate the retail space
• working with Tourism on rolling out domestic marketing campaigns
• facilitating the distribution of grants to viable local businesses to help them survive the
winter
• providing advice to businesses that are ineligible for the grant process through the
regional business partnership program
• working closely with the Canterbury Employers Chamber of Commerce, Canterbury
Development Corporation and the Government on continuing support for businesses.
Longer term, an economic development
strategy will be needed. This will include
working with local businesses to provide
effective support and advice, possibly
including formalising the local business
forum and a developing a governance
structure. The strategy will also include
investigating key projects flagged in the
recovery plan such as the commercial
development of the harbour and airport and
the setup of a marine research project. The
first step for these projects is a feasibility Image Andrew Spencer
study.
New priority Cost and funding Impact on rates Impact on levels of service
A new business association,
Three new roles, plus
Total cost of $285k, and a business mentor
establishing a business
Council receives programme, will be
Economic association and a business
subsidies of $253k. established to support
Development mentor programme.
Impact on rates as per local businesses get back
Mosts costs funded by
table on page 25. on their feet and make the
Government grants.
most of new opportunities.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 13Goal:
Establish strategic partnerships to attract investment;
develop support structures to provide certainty
around businesses and employment continuity;
and explore avenues of economic diversification to
enhance economic and social resilience.
ECONOMY
Image Andrew Spencer
Image Dan Kerins
Image Haley Baxter
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 14DEFERRAL OF LONG TERM
PLAN PROJECTS
Earthquake-damage significantly affected
most things that the community takes for
granted (clean safe water, operational
sewerage system and safe roads). These are
critical to the functioning of the District and
as such are the priority for Council funds.
Council cannot fund both the infrastructure
rebuild and all Long Term Plan projects as
planned. In some cases, the projects from the
Long Term Plan will be incorporated into the
rebuild. Image Andrew Spencer
The table below lists Long Term Plan projects affected by the earthquake, their new
anticipated cost, new estimated delivery date and the reason for the change:
Long Term Projects Project Cost Timing Rationale
Old Beach Road Intersection $420k in 2017 to 2021/2022 Reassess in Long Term Plan
BUILT
2018, 2019, 2020,
Bridge Replacements $100k Addressed as part of Rebuild
2021
Re-alignment of SH1 $ 658k 2021 Reassess in Long Term Plan
Planned Roading in 2017/2018, Partially addressed as part of
$80k
Rehabilitation 2018/2019 Rebuild
Replace water main line $ 330k in 2017/2018 Restoration already undertaken
Replace reservoirs $ 55k 2017/2018 Addressed as part of Rebuild
South Bay marina Upgrade $494k 2017/2018 Addressed as part of Rebuild
Community Sports centre $3.4M 2019/2020 To be externally funded
Ludstone Road Drainage $220k 2017/2018 Reassess in Long Term Plan
New priority Cost and funding Impact on rates Impact on levels of service
Rebuild goes ahead, restoring
Reduction in long
Defer Long Term Plan As per table on all core earthquake-affected
term plan capital
projects as outlined. page 25. infrastructure. Long Term Projects
costs for 2017/18.
are delayed.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 15INFRASTRUCTURE
REBUILD
Infrastructure rebuild costs will be shared between the Kaikōura District Council (KDC),
New Zealand Transport Agency (NZTA) and Central Government, represented by the
Ministry of Civil Defence & Emergency Management (MCDEM). NZTA will fund 95% of
the costs of all eligible earthquake related local roading repairs, MCDEM will cover 60%
of eligible water, stormwater and wastewater infrastructure costs, and KDC and its insurers
will fund the balance.
Our new Rebuild Director will work with a Rebuild Steering Group that includes the three
major funders of the rebuild. Together they will provide the experienced advice and
support we need to deliver the rebuild within the funding constraints and timelines.
We’re also bringing on additional building inspectors and upgrading our building
processing and inspection systems to help with the increased number of building consents
being received post-quake.
For most earthquake-damaged infrastructure there are several rebuild options ranging
from do nothing to return to service to restoring it to levels better than pre-earthquake.
Council will carefully consider all options for each aspect of the rebuild and choose the
options that achieve the best outcomes and level of service for the district as a whole.
BUILT
Goal:
Build cost-effective and easily accessible infrastructure,
transport networks, housing and buildings which are
able to withstand extreme weather events, flooding,
tsunamis, earthquakes and landslides.
Image Andrew Spencer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 16Significant Rebuild Projects:
Local Roads Overlays Length (m)
The 2015-25 Long term Plan identified a roading Mt Fyffe Road 2910
rehabilitation programme which had been
deferred until funding was available to complete Hawthorne Road 705
a percentage of the programme economically.
However, the road repairs that are required Mill Road 700
following the earthquake mean that some of our
roading rehabilitation can now be done at the Red Swamp Road 500
emergency subsidy rate of 95%, instead of the
standard subsidy rate of 51%. Total 4815
Bridges
The earthquake damaged five single lane
bridges beyond repair – Gillings Lane,
Hawthorne Road, Rorrisons Road, Evans Bridge
and Scotts Road. These will be replaced as part
of the rebuild.
The seven span 125m long Glen Alton bridge
was substantially damaged. A business case will
be developed discussing all potential options
and ensuring all stakeholders have input into
the final decision. In the meantime Council is
BUILT
upgrading the road on the south bank to a
reasonable four-wheel drive standard, however
due to the requirement to cross the Wharekiri
Stream this is not an all weather access.
Image KDC
Water
Work required as part of the rebuild includes;
• Urban and rural water reticulation repairs in Mill Road, Gillings Lane and
Hawthorne Road
• Replacing tanks in the Kincaid scheme
• Replacing and repairing damage in the Fords 1 and 2 reservoirs
• Repairing minor damage to the Fords 3 reservoir, Peninsula reservoirs and Ocean
Ridge bores
• A replacement bladder and an appropriate holding down system for the Ocean Ridge
timber tank
• Ensuring the quality of the Peketa water supply either by securing a new water supply
or filtering and treating existing supply in perpetuity.
Wastewater
Work required as part of the rebuild includes;
• Repairing or replacing the aeration lagoon
• Replacing the sewer main along Lyell Creek from the Lyell Creek pump station to the
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 17Mill Road pump station. Note: significant planning is required to reach the optimal
solution due to extensive damage to the sewer and surrounding houses and related
issues. It will be some time until the final shape of the land adjacent to Lyell Creek is
known and a decision of the location of the sewer main can be finalised
• 45 manholes requiring repair or replacement
• Repairing various mains including, Mill Road Rising Main , Gravity Mains in Mt Fyffe,
Hawthorne Road, Ocean Ridge and the Esplanade / West End
• Repairing minor damage to the wastewater treatment plant pump station (WWTP), The
Esplanade and Ocean Ridge Pump Stations
• Repairing substantial damage to the Mill Road and Totara Lane Pump Stations and
damage to the Hawthorne Road and Gillings Lane Pump Stations.
Summary of Anticipated Costs and Funding:
Below are the forecast costs and funding for the 2017/2018 financial year, not the total
cost of the earthquake rebuild. Some costs have already been incurred in the period to 30
June 2017, and there are projects that will continue beyond 1 July 2018.
Area Cost 2017/2018 Funding 2017/2018 Comments
Does not include a permanent solution
Local Roads Loan $280,000
$3,705,000 for access to the Clarence Valley; options
& Bridges Subsidies 3,425,000
yet to be agreed
Subsidies $1,242,000
Water $2,070,000 Insurance $202,000
Reserves $626,000
The government will fund 60% of repair
BUILT
Subsidies $2,257,800 of council owned essential infrastructure
Wastewater
$3,763,000 Reserves $266,000 (above a threshold) with the net cost
(sewerage)
Loan $1,239,200 covered by loan until insurance claims are
settled.
Subsidies $498,696
Stormwater $831,160 Insurance $312,464
Reserves $20,000
Image Andrew Spencer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 18COMMUNITY FACILITIES
AND BUILDINGS
The swimming pool, skate park, tennis courts and Jimmy Armers toilet facilities were all
significantly damaged by the quake. Council investigations have shown that it would cost
more to repair these than it would to replace them.
At this stage the Council is not in a position to confirm the replacement or alternative
options, or how these would be funded. Minor work to make the sites safe, tidy, or provide
a bare minimum level of service has been completed. Council is continuing to investigate
options and work with insurers. A solution for each facility will go into the Long Term Plan.
External funding has been sourced by Sport Tasman for a feasibility study for the pool. The
study should be completed by September 2017 and will look at community needs, assess
site and facility options and develop a preferred option for discussion.
Council and staff are currently working with Sport Tasman, Sport NZ and the local sporting
groups to develop sport facilities in our District. In the short term external funding has
been sourced to support sporting events. In the medium to long term we will identify a
network of facilities that can meet our Districts needs both now and in the future.
BUILT
New priority Cost and funding Impact on rates Impact on levels of service
Community facilities
No impact for Temporary swimming pool in
rebuild considered as As per table on
2017/18 financial place, minor repairs undertaken
part of Long Term Plan page 25.
year. to skate park and tennis courts.
review in 2018.
Image Andrew Spencer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 19NATURAL
HAZARDS
There were several localised hazard events triggered by the earthquake including rockfall,
boulder roll, debris flow, slope stability, landslide, and shingle flows. Post-quake, Council
has developed a workstream for each hazard, keeping the community informed through
public meetings or direct contact. Council continues to investigate the risks posed by
natural hazards, and prevent people and property from exposure to these risks, using
legislative powers if required.
Where there is a risk to life, properties have received a yellow or red placard, restricting
access or preventing occupation. The situation is complicated - some affected properties
have limited or no damage to their building, some of the hazards that pose life-risk are
located on other land. In some cases, owners are not eligible for insurance cover or
accommodation help, in others there is a question around who would fund any repair work
or compensation. Residents need a long term solution. Council is working with central
Government to develop this and is working hard to support and inform residents in the
meantime.
Council is working to make sure all geotechnical engineering work is not duplicated and all
knowledge is shared; keeping costs down.
NATURAL
Image KDC
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 20Waste Minimisation
An important part of the earthquake recovery is the careful management of the thousands
of tonnes of additional waste, particularly hazardous materials. The demolition and rebuild
work needs to be done quickly but waste needs to be managed properly so we do not
create environmental and health problems now or in the future.
Our District has received a $670,000 grant to help Council rebuild our waste facilities,
recycle as much as possible of the huge increase in waste and carefully manage hazardous
waste like asbestos.
There is a significant risk to community health and wellbeing from hazardous waste such
as chemicals like bleach or ammonia; herbicides or pesticides like glyphosate; paints,
fuels and oxidisers. These are often left behind during the evacuation or abandonment of
buildings, and can contaminate or complicate the demolition process.
Homeowners will be offered assistance with asbestos and hazardous substance checks
in exchange for providing information in regards to structural engineering, demolition
methods, site information and waste disposal options. This will help us ensure the site
is safe to work on, best practice health and safety methods are followed, a reputable
contractor is used, District and Regional plans and Heritage New Zealand rules are
followed, and a legal disposal method is used.
Proper deconstruction will mean only clean-fill waste with little residual waste. Benefits
to our community will include protecting the health and wellbeing of the Kaikōura
Community, and natural environment, reduced health and safety risks, effective
management of post-earthquake demolition waste and being cost effective or neutral to
Council.
Goal:
Restore, protect and enhance Kaikōura’s unique
natural environment and biodiversity and sustainably
NATURAL
manage disposal of waste.
Image Dan Kerins Image Dan Kerins
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 21IMPACT OF EARTHQUAKE COSTS ON FINANCIAL
STRATEGY, RATES REMISSIONS AND RATES
Council is faced with a significant financial burden to restore our infrastructure to its
pre-earthquake condition, while placing as little stress on our ratepayer and business
community as possible.
Earthquake Cost and Funding
The total cost of the earthquake is currently estimated at $40M, which includes $25M
to replace assets, $6.7M to reinstate the harbour, and $7.8M in response, recovery and
temporary repairs. Funding is currently assumed to come from a variety of sources, in
addition to council loans, reserves and rates. This includes;
• Local Authority Protection Programme (LAPP)
• Material damage insurance
• NZTA subsidies for local roads
• Other government subsidies
• Harbour user contributions
The Council’s Finance Strategy sets a debt limit at $12M, which includes an allowance for
emergency events of $2M. This Draft Annual Plan provides for our loans to reach up to $9
million in 2017/2018 and up to $10 million in the next three years. As a low-growth district,
our loan interest should be no more than 10% of total revenue, and we forecast to achieve
4.63% in 2017/2018 (which is $462,235).
Image Andrew Spencer
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 22Financial Assumptions
• The government will (“frontload”) fund the 3 waters 60% to assist the council with cash
flow and the council can seek additional support to assist the rebuild
• The government has recognised the council’s additional statutory activities as a result
of the earthquake and some additional support from the government is factored into
assumed revenue
• $6m government grant for harbour with external contributions from operators for
shortfall
• NZTA will pay a 51% subsidy rate for normal roading maintenance, and 95% for
earthquake related damage to local roads and bridges
• Loan funding for Council earthquake shortfall will be externally financed at fixed
interest rate over a repayment period of 20 years
• Assumption of full contribution from Material Damage insurers and LAPP, except for
material damage for the harbour (assumed not paid)
• Address smoothing of rates increases over a period of time – by raising cashflow loans
and utilising all available cash reserves
Level of uncertainty
• The timing of projects and receipts from funders are extremely fluid, with some projects
already underway and others expected to carry over to subsequent years. Similarly,
the timing of incoming funds from subsidies and insurance claims are based on best
estimate but are extremely likely to differ from predictions
• Risk of further events which could exacerbate the estimates damage and increase costs
• Further investigations around leak detection and CCTV footage may reveal further
reticulation damage which may lead to escalated costs
• Risk that insurance payments may not eventuate or be at the level predicted
• Risk of price and material increases from contactors as time progresses
• Risk of land impacted by natural hazards resulting in increased costs
• Financial risks due to interest rate increases
• Risk of funding contributions not eventuating at the predicted levels from the Crown or
NZTA
• Associated infrastructure project risks may escalate costs
• Valuations (for rateable values) are yet to be undertaken with regard to damaged land
and buildings; which will affect rates on individual properties as well as require other
(undamaged) properties to take up the shortfall in rates.
Financial position prior to Quake
At the end of October 2016, prior to the earthquake, our financial position was
constrained, but stable. Since the earthquake, the council has received $2 million from the
Canterbury District Health Board to repay debt, $1 million advance from LAPP, and $3.46
million in advances from the government. These advances will be fully spent as at 30 June
2017, with further funding sought.
Rates Sensitivity
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 23With annual rates of less than $5.8M in 2016/2017, our sensitivity to rate increases is
extreme. An increased cost of only $58,000 equates to a 1% rate increase for ourWHAT DOES ALL THIS
MEAN FOR YOUR RATES?
The properties below are examples of the impact on rates for those property locations,
types and rating values based on actual properties Council has been benchmarking for
over 15 years.
Uninhabitable properties would be subject to rates remissions which are not shown.
Rates shown are inclusive of GST, but they exclude Environment Canterbury rates, water
meter charges and rural water charges (if applicable).
New Rates Proposed
Change in Change in
Area capital 2016/2017 rates
Rates (%) Rates ($)
value ($) ($) 2017/2018
Residential – Whitby Place 270,000 1,816.41 1,932.99 6.42% 116.58
Residential – Bayview
255,000 1,781.68 1,895.94 6.41% 114.26
Street
Residential – Esplanade 460,000 2,256.34 2,402.22 6.47% 145.88
Residential – Beach Road 350,000 2,001.64 2,130.56 6.44% 128.92
Residential – South Bay 520,000 2,395.26 2,550.40 6.48% 155.14
Residential – Oaro 255,000 1,326.61 1,386.67 4.53% 60.06
Residential – Ocean Ridge
115,000 1,189.68 1,317.76 10.77% 128.08
(bare land)
Commercial – Beach Road 1,350,000 12,159.72 12,739.51 4.77% 579.79
Commercial – Beach Road 730,000 5,963.85 6,287.52 5.43% 323.67
Commercial – West End 1,150,000 9,648.07 10,186.10 5.58% 538.03
Commercial – Beach Road 760,000 5,408.67 5,783.12 6.92% 374.45
Accommodation –
1,070,000 5,418.24 5,727.31 5.70% 309.07
Scarborough Street
Rural – Inland Kaikōura
8,350,000 14,477.60 15,446.95 6.70% 969.35
Road
Rural – Kekerengu 4,560,000 7,848.53 8,377.63 6.74% 529.10
Semi-rural – Schoolhouse
4,650,000 9,174.08 9,749.22 6.27% 575.14
Road
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 25FORECAST FINANCIAL
STATEMENTS
Forecast Statement of Revenue & Expense
Annual Plan Long Term Plan Draft Annual Plan
2016/2017 2017/2018 2017/2018
$000’s $000’s $000’s
Rates (after remissions) 5,784 5,983 5,876
Water meter charges 130 170 130
User fees & charges 1,285 1,406 2,249
Grants & subsidies 522 771 13,180
Development contrib. 30 80 -
Interest revenue 39 63 12
Other revenue 1,026 1,042 2,238
TOTAL REVENUE 8,816 9,515 23,685
Operating expenses 9,083 9,264 12,875
Net surplus/(deficit) (267) 251 10,810
Gains (asset valuations) - - -
TOTAL REVENUE & EXPENSE (267) 251 10,810
Forecast Statement of Financial Position
Annual Plan Long Term Plan Draft Annual Plan
2015/2016 2017/2018 2017/201
$000’s $000’s $000’s
Current assets 2,602 3,828 4,216
Non- current assets 172,098 173,027 167,409
TOTAL ASSETS 174,700 176,855 171,625
Current liabilities 2,496 3,708 2,998
Non-current liabilities 8,806 8,184 8,025
Total Liabilities 11,302 11,892 11,023
TOTAL NET ASSETS 163,398 164,963 160,602
Ratepayers equity 80,595 81,292 77,181
Special funds 1,546 2,243 2,164
Asset reval. reserve 81,257 81,428 81,257
TOTAL EQUITY 163,398 164,963 160,602
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 26HOW TO GIVE US
YOUR FEEDBACK
WHAT YA
RECKON?
We want to hear
what you think of our
Draft Annual Plan
• Weds 31st May, 5.30pm - 7.30pm,
If you want to Memorial Hall, Kaikoura.
1
hear from us in • Fri 2nd June, 2pm - 4pm,
Kekerengu Hall.
person, attend one • Sat 27th May, 2pm - 4pm,
of the community Goose Bay Fire Shed.
meetings • Tues 6th June 7pm - 9pm,
Lynton Downs Primary School,
Inland Road.
Either detach and
2
Remember to let us know if you
fill out the form wish to speak to Council about your
provided or write feedback at the Hearings on
us a letter or email June 26th.
Send it to Council
3
Kaikōura District Council
PO Box 6
no later than 4pm
34 Esplanade Kaikōura
Tuesday 20th June
2017 P: (03) 319 5026
F: (03) 319-5308
E: kdc@kaikoura.govt.nz
W: www.kaikoura.govt.nz
Council will hear from anyone who wishes to speak at hearings on
June 26th.
THEN Council deliberates on all feedback and hearings on June 27th and
WHAT? decides what changes to make to the Annual Plan.
The Annual plan will be adopted on June 30th.
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 27DRAFT ANNUAL
PLAN FEEDBACK
Name:
Address:
Do you want to speak to Council at the Draft Annual Plan hearing? YES / NO
If yes, please include the following so we can contact you:
Email:
Phone:
Tell us what you think of, community development, WHAT YA
economic development, the earthquake rebuild, the natural
environment and anything else you wish to say about the RECKON?
Draft Annual Plan...
(Attach other pages as necessary if you need to.)
Please detach and return this form to Kaikoura District council no later than no later than 4pm Tuesday 20th
June 2017
2017/2018 Consultation Document for the Draft Annual Plan - Kaikoura District Council 28Keep it Real
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