2019-2020 Annual Plan - Buller District Council
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Consultation Document
2019-2020 Annual Plan
2019-2020 Annual Plan
Summary of Buller District Council’s 2019-2020 Draft Annual Plan
Introduction From the Mayor &
The Annual Plan Consultation
Document sets out Council’s direction Chief Executive
for the next year. The 2019-2020 Annual Plan is the second year of the Long Term Plan and
continues with the theme ‘Fit for the Future’ and balancing the need for
Any of the matters covered in this Consultation
efficient service delivery, quality infrastructure and amenities with affordable
Document are open to public comment.
Council has identified several key issues and rates.
strategies that we believe are of particular Council staff have worked hard to control vital link in the district.
importance to our community that we want costs and keep rate increases to a minimum, During 2019-2020 we will continue to build
your feedback on. whilst still maintaining the current level of on the district revitalisation plan (economic,
Council has a wide range of activities that it service. Our target in the Long Term Plan social, environmental and Council). Buller
undertakes - many of which it must carry out by was 3.4% and we have achieved 3.4% for this District Council will continue working
law, including: plan. This makes our rates increase one of the with our West Coast Regional Council
Key Infrastructure: roads, footpaths, water, lowest in the country. The local economy is partners to address natural hazards in
sewerage, stormwater, waste and drainage. on the upturn with a substantial investment the district through representation on the
Regulatory responsibilities: Resource
of $120m into the West Coast Region from Westport 2100 group and facilitate ongoing
Management Act, animal control, policies, central government Provincial Growth Fund conversations with communities and the
monitoring and consents, building of which the Buller district has received $84m West Coast Regional Council on coastal
consents, food and liquor. with investment into Tourism, eg, Oparara erosion. Investment in infrastructure will
Arches, Punakaiki’s Dolamite Point Tourism continue with the Westport Water project
Community facilities and support:
Infrastructure and the Kawatiri Cycle trail. being completed and integration of systems
libraries, theatres, cinemas and swimming
pools. Community grants and emergency Freedom camping has been a hot topic and process with WestReef Services to ensure
management. since the implementation of the refreshed best value for money is achieved and to
bylaw. Through 2019-2020 Buller District ensure local businesses and contractors have
Amenities and Reserves, Council
Council will work with local business and the access to opportunities created through our
properties: parks, reserves, housing for the
community to find middle ground around major infrastructure projects.
elderly and Council owned properties.
effective compliance and monitoring of the The 2019-2020 Chief Executive Key
by-law and with central government to secure Performance Indicators are built around
About this funding to keep the relevant infrastructure
and personnel in place.
balancing the need for efficient service
delivery, quality infrastructure and amenities
Consultation It is important for Council to have strong
visibility in the more remote parts of our
district. Council will proceed with the
with affordable rates - but more importantly
the KPI’s have a strong focus on customer
service and key stakeholder engagement
Document intention of investing into these areas as
outlined in the Long Term Plan. You will note
and satisfaction. You can count on the Chief
Executive’s total commitment to complete
This Consultation Document is a we are seeking feedback on the Reefton public transparency and accountability
swimming pool and the Punakaiki Master for performance and that of the entire
condensed version of the financial and
Plan and will continue conversation with the Buller District Council team. That personal
narrative information provided in the New Zealand transport agency about the accountability is the cornerstone of strong
full 2019-2020 draft Annual Plan. Karamea Special Purpose Road, which is a democracy.
Annual Plan documents and the submission
form are available on Council’s website, with
submissions accepted unti 4:30pm Friday 10 May.
Online submissions can be completed at: http://
www.surveymonkey.com/r/19-20AnnualPlan
Garry Howard Sharon Mason
Mayor, Buller District Chief Executive Officer
www.bullerdc.govt.nz
Key issues affecting the Plan
What is going on at Council......these are some of the key
issues that have been identified by Council which cover a Reefton Swimming Pool
The Long Term Plan did not provide for budgeted work on the Reefton
range of projects and opportunities considered to be of
Pool during 2019-2020.
interest to our community. We would like to hear your views. This is an important community facility which is in need of capital
upgrade. The capital upgrade is likely to include:
Westport Harbour A roof replacement with more permanent cladding
A new hydraulic ventilation system
Council operates two functions under ‘Westport Harbour’. Refurbishing and replacing the steel frame structure, also
1. The port’s commercial operations, encompassing wharfage and strengthening the pool building with additional structural steel
berthage for the fishing fleet along with ensuring safe navigation framing
and operation of the port; a legal responsibility of Council as a port Seismic strengthening of the concrete block changing room
operator under the Maritime Transport Act and by agreement with The cost is estimated to be $300,000.
the West Coast Regional Council; and The upgrade involves removal and refitting of electrical and plumbing
2. the dredging business, which encompasses dredging of other NZ services, which will involve shutting down the complex for a period of
ports such as the recent work undertaken at Greymouth and in time during 2019-2020. The pool may need to be closed for a period of
Nelson. normal summer operations as the work requires favourable weather
Council has set out in the 2018-2028 Long Term Plan that the dredge conditions.
‘Kawatiri’ is for sale as it was not economic to keep the dredge after
Holcim ceased cement manufacture at their Cape Foulwind plant
and no longer used the port to ship its product. However a Central
Government Initiative (the Provincial Growth Fund or PGF) and its
approval of funds for a feasibility study on projects associated with the
joint ports of Greymouth and Westport last year may provide further
Freedom Camping
commercial development opportunities for the port. Central Government’s Responsible Camping Fund
A replacement dredge to support any future industries interested in provided Buller District Council with $580,000 during
operating larger vessels through the port might cost in the region 2018-2019. The fund was to provide for:
of $20m. Council should therefore reconsider all ownership options
pending both the outcome of the feasibility study, and that of other Reviewing and amending Council’s Freedom Camping Bylaw
PGF applications (for projects linked to the Port), which are currently in Development and operation of infrastructure for peak season
front of Central Government. 2018-2019, to address issues at known ‘hot spots’
While Council awaits the outcome of these applications and reports, Additional monitoring and compliance staffing costs for peak
the out of port dredging operations are helping to offset the full season 2018-2019
costs of commercial operations of the port itself, reducing the cost to
Education and signage
ratepayers. Overall the increase cost of the operation of the Westport
Harbour from the Long Term Plan is $130,000, this includes the offset Initiatives to encourage responsible camping behaviour
by outport dreding. Assessing all options to determine which is best Around $108,000 was for operating expenses such as toilet
for ratepayers will be required over the term of this plan. cleaning and compliance officers
The main assets of the port are the wharves, jetties and associated During 2018-2019 Council reviewed and amended the freedom
harbour land and buildings along with the dredge Kawatiri and the camping bylaw, increased compliance monitoring by employing
utility vessel Bob Gower. Council could consider divesting these additional staff over the peak season, installed new signage across
assets, however the legal responsibility to provide safe navigation the district, developed a range of tools to communicate, educate
would always remain with Council while it operates commercially and encourage responsible camping behaviour, and installed and
from its land holdings and wharves. Only if these were not in Council
maintained infrastructure in four areas (one of which is in the Grey
ownership could legal responsibility for the regulation of the port,
harbour, waters and maritime related activity be passed back to the district), including installation of four new toilet facilities and large
Regional Council. capacity rubbish bins. This was made possible by the Responsible
Council must reconsider all options of ownership and decide if the best Camping Fund.
option is to continue with direct involvement in a commercial port for Council has not made any provision for more related infrastructure in
both the fishing and any potential new industries. this Annual Plan. There is also no provision for ongoing monitoring
There has been no provision in this Plan for any significant future and compliance staffing costs and infrastructure maintenance in
maintenance of the wharves and jetties at this stage, however, this will the 2019-2020 Annual Plan. A request will be put to the Provincial
need to be carried out in conjunction with evaluation of options for Growth Fund to assist with compliance officer costs. However if this is
future use of the Port. not successful Council must decide if this service will be retained, the
cost of which would fall to the ratepayer.
who have contributed to the
Punakaiki Master Plan.
Proposed work for the 2019-
Master Plan 2020 year includes a water
supply assessment, wastewaster
During 2018-2019 Council compliance checks including
assumed the lead role to deliver a business case, road safety
a Punakaiki ‘Master Plan’ which improvements, developing a
outlines a future proof vision for community facility in Punakaiki
the greater Punakaiki area. and provision of freedom camping
As well as core infrastructure
requirements which are provided
compliance officers.
It is anticipated all partner agencies
Rates Policy Review
by local government, Council is will contribute to the $600,000 cost Council commenced the review of the rating system in 2014 and has
working with other stakeholders of this second part of the project. consulted with the community twice since then to help shape a new model.
including the Department of Council’s proposed share is $10,000 Council planned to consult during the 2019-2020 Annual Plan however
Conservation, West Coast Regional plus $95,000 capital budget carried has decided there is more work to do and now anticipates consulting on
Council, Grey District Council and forward to be used toward the a new way of collecting rates during 2020-2021.
Ministry of Business, Innovation Punakaiki Community Facility. All rating examples in the 2019-2020 Annual Plan are based on the
and Employment and Iwi, all of current system for setting rates.
Roading issues for 2019-2020
In examining the unquantifiable risk
Footpaths Rough River associated with the long term maintenance
of the Karamea Special Purpose Road, the
Council has budgeted to spend $610,000
on district footpaths for the 2019-2020 year.
Footpath maintenance and resurfacing is now
Bridge financial risks associated with this proposal are
considered to be beyond the financial resources
of Buller District Council’s ratepayers to fund.
This Annual Plan includes a provision to loan
funded by NZTA at 66% subsidy, which means fund $1.1m for Buller District Council’s share of For 2019-2020 Council has assumed that
$610,000 value of work will be delivered for the cost of work on the Rough River Bridge. This funding for the Karamea Special Purpose Road
ratepayer contribution of $210,000. A further bridge spans the boundary between the Buller will continue at 100% for the purposes of this
$30,000 has been allocated for new footpaths. In Annual Plan. If this does not eventuate Council
and Grey Districts and half of the net cost to
effect, this means that the district will get nearly has assumed that the Karamea Highway will
ratepayers is shared between each Council. NZTA
three times its annual spend on footpaths with no revert to State Highway.
is subsidising 59% of the bridge work via Grey
extra cost to the ratepayer. All affected road controlling authorities
District Council which is the owner of the asset.
The financial assistance rate subsidy paid by NZTA including Council are now developing a
transition plan to agree the terms for this phase
Karamea Special
toward all of the Council roading work is 66%
out process.
during 2019-2020.
Council’s objective is to deliver a sustainable
Purpose Road transition plan which avoids any additional
Key highlights
burden to Buller district ratepayers. The
The Karamea Highway is currently under transition plan takes into account the expected
Council management, receiving 100% subsidy cost of the forward works programme over the
from the Plan from New Zealand Transport Authority (NZTA)
as a designated ‘Special Purpose Road’ (SPR).
next 20 years.
Short-term constraints including the current
financial assistance rate (66% of district wide
This road provides a vital lifeline to the Karamea
Operating Result community, the Heaphy Track, the Oparara roading cost is funded by NZTA), as well as
Council is budgeting for a loss of $858,000 Basin and agriculture including the dairy long-term objectives and various funding
in the 2019-2020 Annual Plan compared industry. scenarios will be considered.
to a loss of $2.2m proposed for the same The transition plan must:
Of the 61km SPR, 49km from Mokihinui to
year in the 2018-2028 Long Term Plan. Identify benefits and risks (particularly
Karamea (known as the Karamea Bluff ), was
The main drivers are higher subsidies and originally constructed and operated as State financial), to all stakeholders so they are
grants for roading projects which were not Highway SH67. The remaining 12km from known and understood
in the Long Term Plan. Another contributor Karamea to Kohaihai was managed as the Consider a wide range of options including
to the difference in the planned result Heaphy Track access road. In the early 1990’s, future investment scenarios based on
is the higher distribution from Councils the 49km Karamea Bluff section was changed sound evidence and that are appropriate,
holding company. In addition there are to SPR status, as part of a wider state highway affordable and fair
higher expenses for Council related to review. Ensure Council and NZTA are fully engaged
operation of the Westport harbour, internal The power to create SPR’s was repealed in in the process
reorganisation and insurance costs have 2003 and NZTA are currently in the process of Once Council and NZTA reach agreement on
also increased operating expenditure. phasing them out. the financial assistance rate, transition timeline
The Long Term Plan predicted total rates In the 2018-2028 Long Term Plan it was and delivery actions required, the outcomes
collected to increase by 3.4%. This Annual signalled that in 2021-2022 it was expected the will be incorporated into the next Long Term
Plan predicts total rates collected to be the Karamea Special Purpose Road may lose its Plan.
same as the Long Term Plan, at an increase designation and revert from 100% subsidy to Council has assumed that funding for the
of 3.4%. General rates collected are set out the Buller District Council’s financial assistance Karamea SPR will continue at 100% subsidy for
in the Long Term Plan whereas targeted rate of 66%, with a three year phase-in period. the purposes of this Annual Plan.
rates are expected to be higher. This is
mainly due to the increase in the cost of the
Westport water tunnel solution. Overall
Council expected to collect the same
Financial Performance & Measures
amount in rates which was expected in the Financial Performance 2018-2019 2019-2020 2019-2020
Long Term Plan. Long Term Plan Long Term Plan Annual Plan
Operating Revenue $25,456 $24,219 $26,043
Capital Expenditure Operating Expenses $24,943 $26,416 $26,901
Total Capital expenditure is proposed to
be $7.4m in this Annual Plan, with $2.3m Operating Surplus/ (Deficit) $513 ($2,197) ($858)
targeted level of service improvements and Revaluations $0 $11,932 $0
$5.1m replacing existing assets.
Total Comprehensive Revenue & Expense $513 $9,735 ($858)
Capital expenditure was predicted to be
$5.7m in the Long Term Plan which is a
variance of $1.7m. The difference is made Financial Prudence Measures Planned Achieved
up of increased capital expenditure on the
Planned rates income is no more than 65% of
Karamea highway of $900,000, additional
Rates
- Income total income from rates. 60.8%
footpath capital $370,000 and inclusion of Affordability Planned rates increases are no more than the
expenditure on the Reefton pool of $300,000 Benchmarks
which was not included in the Long Term
- Increases long run cost local government cost index
increase (2.4%).
3.4%
Plan. Planned net debt (debt less term deposits) is less
The district revitalisation projects and the
Debt affordability benchmarks than $20m. $17,635,000
upgrade of Brougham House will continue as Planned total revenue less excluded items is
set out in the Long Term Plan. Balanced budget benchmark equal to or greater than operating expenditure
less excluded items.
90.6%
Most of the capital associated with Planned capital expenditure on network services
replacement of assets is infrastructure related Essential services benchmark is equal to or greater than depreciation on 70.3%
and is intended to maintain Councils assets network services.
in an acceptable condition to provide the Planned borrowing costs are equal or less than
agreed service levels to its communities.
Debt servicing benchmark 10% of planned revenue. 5.2% 
Rates & Roadshows
Examples of rate changes Rates and how
These are a sample of some properties to demonstrate how the draft 2019-2020 Annual Plan
changes will affect rates in these areas. they impact
2018-2019 rates are what is currently paid, with the rates for 2019-2020 showing what your rates
would be with the changes shown in the draft Annual Plan accepted. you
Location Land Value
Rates
Variation % Rate Assessments
2018-2019 2019-2020 Rates assessments are made up of two types
Res 101 Karamea $43,000 $752.39 $767.39 1.99% of rates. Broadly speaking there are General
Rates and Target Rates.
Res 103 Litle Wanganui $57,000 $1,797.80 $1,826.84 1.62%
Everybody pays something in the form of
Res 103 Mokihinui $76,000 $1,230.07 $1,252.45 1.82% a general rate which is based in the first
Res 103 Seddonville $32,000 $752.13 $757.08 0.66% instance on the land value of your property.
General rates are value based and the
Res 104 Hector $48,000 $1,168.51 $1,175.26 0.58%
amount payable rises in accordance with the
Res 104 Waimangaroa $40,000 $1,205.92 $1,418.72 (*) 17.65% amount of land value. General rates are also
Res 106 Westport (Brougham) $60,000 $3,212.32 $3,316.39 3.24% affected by the use category defined for each
property. Some categories pay at higher rates
Res 106 Westport (Russell) $54,000 $3,139.59 $3,241.45 3.24% and some pay at lesser rates.
Res 108 Carters Beach $76,000 $3,071.23 $3,171.02 3.25% Target rates are only payable by those
Res 113 Charleston $80,000 $988.38 $1,000.50 1.23% properties in a certain geographical area, or
those deemed to be in receipt of a particular
Res 114 Punakaiki $180,000 $2,613.67 $2,655.71 1.61% benefit. Target rates can be calculated on a
Res 101 Ikamatua $41,000 $778.74 $784.50 0.74% value basis or a uniform basis. All of Council’s
Rur 143 Cape Foulwind $1,750,000 $3,908.94 $3,996.69 2.24% present target rates are calculated on a
uniform or flat basis whereby all ratepayers
Rur 141 Grey Valley $1,870,000 $4,845.40 $4,974.58 2.67% irrespective of the value of their property pay
RR 151 Karamea $118,000 $1,126.94 $1,153.30 2.34% the same amount.
RR 152 Granity $106,000 $1,064.38 $1,078.80 1.36%
Uniform Annual General
RR 151 Fairdown $136,000 $1,243.15 $1,263.00 1.60%
Charge (UAGC)
RR 152 Alma Road $155,000 $1,268.87 $1,289.51 1.63% There is only one target rate that is applicable
Res 115 Reefton $29,000 $2,168.51 $2,222.99 2.51% to all properties and this is known as the
Res 101 Springs Junction $35,000 $721.80 $735.86 1.95% Uniform Annual General Charge or UAGC.
The Uniform Annual General Charge for
Com 131 Karamea $90,000 $2,263.53 $2,324.39 2.69% the 2019-2020 Annual Plan is $500.00 (GST
Com 134 Westport $180,000 $9,991.70 $10,301.53 3.10% inclusive).
Com 140 Reefton $78,000 $3,319.24 $3,408.65 2.69%
Rur 141 Karamea $810,000 $2,417.39 $2,482.91 2.71%
(*) proposed increase in water rate from $426 to $633 (including GST) Roadshows 2019
Monday, 8 April
Rate Movements 7pm @ Ngakawau - (Ngakawau Hall)
2018-2019 2019-2020 2019-2020
Long Term Plan Long Term Plan Annual Plan Tuesday, 9 April
Total Rates $14,245,000 $14,726,000 $14,725,000 7pm @ Punakaiki - (Punakaiki Rocks Cafe)
Rateable properties 7,460 7,470 7,395
Wednesday, 10 April
Average Rates $1,909 $1,971 $1,992
7pm @ Westport - (Club Buller)
Rates Movements +3.00% +3.40% +3.40%
Monday, 15 April
Note:
7pm @ Karamea - (Last Resort)
The Annual Average Rates are the sum of the general and targeted rates, divided by the number of
ratepayers.
There will be properties that pay less and others that pay more, depending on the services they Tuesday, 16 April
receive. 7pm @ Reefton - (St Johns Rooms)
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