2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)

 
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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
2017/2018 Consultation Document for the Draft Annual Plan Kaikoura District Council - KEKERENGU CLARENCE (MATARIKI)
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                    10
NEW 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                       11
Impact 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                                       12
NEW 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                                            13
Goal:
          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             14
DEFERRAL 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                                            15
INFRASTRUCTURE
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                  16
Significant 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                                   17
Mill 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                                                18
COMMUNITY 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                                       19
NATURAL
  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                    20
Waste 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                   21
IMPACT 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                    22
Financial 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                    23
With 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 our
WHAT 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                                         25
FORECAST 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                                                   26
HOW 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                                     27
DRAFT 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                                      28
Keep it Real
You can also read