Far Nor th District Council - Our Draft 10 Year Plan - Summary of Statement of Proposal for the Draft Long Term Plan 2012-22
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Far Nor th District Council
Our Draft 10 Year Plan
Summary of Statement of Proposal
for the Draft Long Term Plan 2012-22
What do
you think?
This is a draft plan and we welcome
your views on what is proposed. Key
consultation questions are listed in the
submission form and highlighted in the
summary under ‘What do you think?’
You may find it easier to remove the
submission form from the booklet
before you start reading, so you can
answer the questions as you work your
way through the summary.
Kia ora koutou
Councils are required by law to publish to shift the burden of costs to those who
a draft long term plan every 3 years benefit most from services. For example,
setting out activities they will engage Council collects about $200,000 in rates
in during the next 10 years. Our Draft from the forestry sector per year. Yet
Long Term Plan 2012-22 keeps a tight it spends $2.5 million annually repairing
lid on expenditure growth and limits roads damaged by logging trucks. Most
spending to ‘must do’ works. We make of these costs are met by the residen- evenly across the district will expose
no apologies for taking a cautious tial sector, despite the negligible damage people to their scheme’s true costs. This
approach. The world financial crisis that urban ratepayers’ motor vehicles should result in resource consent sub-
and weak local economy have reduced do to roads. This plan proposes to fund mitters evaluating proposed upgrades
income from development contribu- roads from a new targeted rate and use of schemes more carefully and balancing
tions and put pressure on ratepayers’ rating differentials to spread road main- the affordability of schemes with their
budgets. Because of this, we propose tenance costs across rating sectors that environmental performance.
no significant capital projects, apart from rely on heavy vehicles. These are bold
These are just some of the things we
those Council has consulted on in pre- new proposals and I urge you to find
are proposing in our plan. Please read
vious plans. We have focused instead out how you will be affected.
this summary for a fuller understanding
on what is affordable and plan to limit
The user pays principle is also behind of the plan and tell us what you think via
capital spending to maintaining existing
Council’s proposal to change the way the submissions process.
assets and current service levels.
it funds capital costs of its sewerage
Council regularly receives requests and water schemes. At present, some
to make the rating system fairer. We towns subsidise the capital costs of
recognise that some ratepayer sectors providing sewerage and water in other
pay a disproportionate share of the areas. Asking those whose properties
costs of providing some Council serv- are connected to the schemes to pay Ka kite ano
ices. We propose to use targeted rates these costs and charging operating costs Wayne Brown - Far North Mayor
2 The top place where talent wants to live, work and invest
Fund B
a
Airport y of Islands
upgrad
The Ke
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asked ri Airp
Counc ort Wo
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year fo ntribu Party
r five y te $16 has
costs o ears to 5 ,0 0 0
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Ideally t h is cont o n al Cou
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proposa nd
a gene
ral rat l would the $3.3
e incre r
ase of 0 esult in
.28% if
adopted
.
The ceiling of the new Kaitaia library in Te Ahu Centre is designed to symbolise sand dunes.
Key decisions in this plan
Law changes, the weak economy and lower growth in the district have led to a number of significant
changes to the last Long Term Plan.
How should Council Change the rating system?
fund a development Council has found disparities between benefits different ratepayer sectors receive
contributions deficit? from Council services and how much sectors pay towards the costs of providing
those services. New rating proposals in this plan charge sectors in proportion to
A number of projects were under- how much they use Council services.
taken from 2005 to 2008 on the basis
that future growth would occur. That Increase rates to pay for storm costs?
growth has not happened and the Earthquakes in Christchurch have forced the insurance sector to reassess its risk.
development contributions deficit is Council now has to pay the first $500,000 of any insurance claim for infrastructure
$21 million. Council proposes to fund damaged by storms, which in the past has been up to 3 a year. Council plans to add
part of this deficit from water and 1% to the general rate to help create a fund to meet potential insurance shortfalls.
wastewater charges.
Waive Uniform Annual General Charges on 2 or
more adjoining properties?
Council proposes to allow ratepayers with 2 or more adjoining properties to apply
Standardise road for a remission of Uniform Annual General Charges. Waiving charges on the 4,000-
maintenance? 5,000 properties that would qualify may increase rates for all ratepayers by 6-7%.
A hierarchy specifying the uniform level
of service for roads in the district should A voice for Mˉaori?
give road users a better understanding Council indicated in its last Long Term Plan that it would look for ways to better
of the maintenance Council will under- involve Māori in its decision-making. Council’s priority is to pursue the creation of
take on any given road. Traffic volumes a Far North Unitary Authority with direct Māori representation. Council recently
and a road’s importance in the network resolved to hold a poll before the 2013 local elections on whether to introduce
determine its place in the hierarchy. Māori wards. Council has also agreed to investigate the appropriate delegations for
a Māori standing committee which could be created.
3
New rating system
at a glance
• Roading, which has a big budget, will
be funded separately.
• Services that provide benefits to all
ratepayers (e.g. strategic planning)
will be funded wholly or partly from
the general rate or uniform annual
general charge.
• Differentials will be used to charge
ratepayer sectors in proportion to
how much they benefit from or use
those services.
• The capital costs of water and sew-
erage schemes will be paid for by
ratepayers with properties in those
A Chris Booth sculpture towers over a Council-hosted Investec SupeRugby match at the Kerikeri Domain. schemes.
• Operating costs of sewerage and
Blueprint for a fairer water will be funded on a district-
wide basis, paid by those who are
connected to the scheme.
rating system • Services will be funded by a land
value-based rate where different
land uses create different levels of
The story so far demand for those services.
Ratepayers have been telling Council for years that the rating system isn’t fair.
Council proposed a change to a capital value-based rating system in its 2009-19
10 year plan. The community opposed this, so councillors promised to look again at
how Council set rates to see if it was possible to develop a system the community
saw as being fairer to all ratepayers. Changes to the general rate were proposed
in the 2010/11 Annual Plan, but submitters rejected these too. Council said in its
2011/12 Annual Plan that it would prepare options for a new way of rating in the
next Long Term Plan. These options are described in the next 3 pages. They are
profoundly different to systems Council has looked at in the past so will need consid-
erable thought and discussion if they are to be implemented.
We’ve rethought rating
Council has analysed its main service areas and quantified the benefits different cat-
egories of ratepayers receive from these. This involved putting every property in the
district into one of 9 categories (residential, lifestyle, commercial, industrial, general
farming, horticulture, dairy, forestry and other) based on valuation land use codes or
actual use as identified by Council. Council then asked whether each service benefit-
ted every ratepayer equally or whether different land uses created different levels of
demand for services. The objective in preparing the new rating proposals has been
to try to match the benefits that different ratepayer categories receive from Council
services with the level of rates they are asked to pay.
4 The top place where talent wants to live, work and invest
A targeted road rate?
Road maintenance costs will account for 51% of Council’s rate on very low-value properties will be minimal, so it also
planned expenditure of $365 million in the next 10 years. proposes to fund 10% of total road costs from a separate
Nearly half Council’s spending on roads is funded by the uniform charge.
general rate and most of this revenue comes from residen-
WHO BENEFITS FROM ROADS?
tial ratepayers. Yet the motor vehicles of people who live in
towns cause negligible damage to roads. By contrast, logging
trucks cause more than $2.5 million worth of damage to
Horticulture
Commercial
Residential
Industrial
roads each year. Yet the forestry sector is only liable for
Forestry
Lifestyle
Farming
Other
Dairy
about $200,000 in rates. Council believes it would be fairer
and more sustainable to fund road maintenance and general
% of funding
traffic costs from a targeted differential rate. This would
allow it to charge rating sectors according to how much 23.5% 17.9% 7.7% 2.5% 15.5% 1.3% 9.84% 20.3% 1.36%
they benefit from these services and contribute to road DIFFERENTIALS (TIMES)
costs. Council recognises that in some cases the level of the 1 1 2.9 4.1 1.2 1.57 2.8 16.2 1
Classic cars line up for a motorcade on Kerikeri’s Heritage Bypass.
What do
you think?
Should Council introduce a targeted
differential rate to fund road costs?
5
Differentials for different
demands?
Council’s Hokiang
a Ferry provides a
transport link acro vital
ss the Hokianga H
arbour.
Council plans to build new public toilets at tourist hot-spots Matauri Bay and Tokerau Beach.
The user pays principle that guided receives. For instance, Council sees cem- evenly across sectors - as is the case with
Council’s thinking when it developed the eteries as mainly providing benefits to strategic planning - Council proposes to
differential roading rate is also behind residential and lifestyle sectors. Because set differentials at one for all sectors. A
new rating proposals for other services of this, it would like these sectors to con- complete list of services and Council’s
funded by the general rate. Council has tribute the most money towards funding analysis of which sectors benefit from
analysed the benefits different rating these services. The commercial, industrial these can be found in the Revenue and
sectors receive from services. It has and forestry sectors would not have to Financing Policy in Volume II of the Draft
decided that where these benefits differ contribute. However, the farming sector Long Term Plan. The General Rate table
significantly between sectors, differentials would have to because farming proper- shows how the total rate is allocated
should be applied to the general rate to ties usually have households. Where ben- across the different categories.
reflect the level of benefits each sector efits received from services are spread
WHO BENEFITS FROM CEMETERIES? GENERAL RATE - WHO PAYS?
Horticulture
Horticulture
Commercial
Commercial
Residential
Residential
Industrial
Industrial
Forestry
Forestry
Lifestyle
Lifestyle
Farming
Farming
Other
Other
Dairy
Dairy
% of funding % of funding
60% 26% 0% 0% 10% 1% 3% 0% 0% 42.2% 24.9% 10.2% 1.5% 14.4% 1.1% 3.3% 1.1% 0.9%
NOMINAL DIFFERENTIALS (TIMES) DIFFERENTIALS (TIMES)
1 0.57 0 0 0.3 0.47 0.34 0 0 1 0.77 2.19 1.43 0.62 0.77 0.52 0.53 0.37
6 The top place where talent wants to live, work and invest
e for Ka itaia?
Bus iness rat iation ha
s
B u s in ess Assoc im p rove-
aia ess
The Kait v y a b u s in
uncil to le usinesses
to raise
asked Co a ia b
on K a it in the
ment rate es s d ev elopment
for bus in
$57,000 business
o s t to th e average
e c
town. Th t $200 a
year.
b e a b o u
would
Cyclists at the opening of the first finished section of the Twin Coast Cycle Trail (Pou Herenga Tai) which Council is developing to attract visitors to the district.
Other rating proposals…
Get rid of ward rates? Remove exemptions for
What do Town maintenance, reserves, public Uniform Annual General
you think? toilets, swimming pools, cemeteries,
halls and playgrounds are currently
funded from a ward services rate.
Charge
Some separately-used or inhabited
Council proposes to remove this rate parts of a rating unit are exempt
1. Should Council use differentials and use an increased general rate to from the Uniform Annual General
to charge ratepayer sectors in pay for most of these services. This Charge. Council proposes to simplify
proportion to how much they would allow it to set district-wide the definition of a separately-used or
benefit from or use services? standards for community services. inhabited rating unit, so that any
Communities would have the option property that contains 2 or more
2. Should Council levy the Uni
of requesting additional facilities if dwellings or businesses is liable for
form Annual General Charge on
they agreed to pay for these via 2 or more charges.
all separately-used or inhabited
rating units? targeted rates.
3. Should community services be
funded from the general rate Increase the general rate to pay for storm costs?
instead of a ward services rate?
Earthquakes in Canterbury have forced the insurance sector to assess its risk in New
4. Should ratepayers with adjoin- Zealand. Council now has to pay an excess of $500,000 on each claim for storm
ing properties have their uniform damage to above-ground assets instead of $2,500. Council plans to add 1% to the
annual general charges waived? general rate to provide a contingency if and when needed.
5. Should Kaitaia businesses have to
pay a targeted rate to raise funds
for business development?
Waive Uniform Annual General Charges on 2 or more
6. Should 1% be added to the
general rate to help meet the
adjoining properties?
reduced level of insurance cover? Council proposes to alter its Remission of Charges on Contiguous Properties Policy
so ratepayers with 2 or more adjoining properties may apply for a remission of
those charges for the period they own the properties. Waiving the charges on the
estimated 4,000-5,000 properties that would qualify for the remission could increase
rates for all ratepayers by 6-7%.
7
What is the problem?
Water is becoming a scarce resource.
How should
The Far North has difficulties finding
new sources of water to supply its
water schemes and to meet rising
demand.
we pay for
Significant water supply problems are
developing in the Hokianga and water
sources in the Bay of Islands are under
increasing pressure.
water? The investment Council has to make
to maintain supplies and develop new
sources will result in water costs rising
from $8.8 million in 2012-13 to $12.2
million in 2021-22.
What does Council propose to do about this?
Council has reviewed the way it funds operating costs of the district’s water
its water schemes. schemes.
What would the changes
mean for you?
At present, ratepayers whose proper- It would fund the remaining 20% of
ties are connected to a Council water costs from a targeted capital rate that If Council adopted this funding
supply pay a uniform connection charge varied from scheme to scheme and also policy, ratepayers whose properties
and a meter charge based on how much applied to properties that aren’t con- are connected to the Rawene and
water they use. nected to a scheme but are able to be Omapere/Opononi water schemes
connected. would pay MORE for water in 2012-13.
Council believes it would be fairer and
more sustainable to ask these ratepay- Increasing the meter charge for water Ratepayers whose properties are
ers to pay some of the capital costs of would force people to use it more spar- connected to the Kaikohe, Kaitaia,
their water schemes, instead of charging ingly and reduce the need for new infra- Kawakawa, Kerikeri, Okaihau and
this uniformly. structure. Paihia schemes would pay LESS for
Council would retain a uniform meter Only requiring ratepayers to pay some water.
charge, but raise this from $2.82 per of the capital costs of their water The table shows how much ratepay-
cubic metre to $3 per cubic metre. schemes would help to even out cost ers with properties connected to
differences between schemes. Council’s bigger water schemes would
It would use revenue from the meter
charge to fund 80% of the capital and pay under the new funding policy.
PROPOSED WATER RATES FOR 2012/13
What do
Current System Proposed System Pay More
Fixed *Meter Total Capital *Meter Total or Less
Scheme Under
you think?
Rate Rate Water Rate Rate Water
Rates Rates Proposed
System?
Rawene $209 $620 $829 $385 $660 $1045 $216 more
Omapere/ $209 $620 $829 $367 $660 $1027 $198 more 1. Should ratepayers with properties
Opononi connected (or capable of being con-
Kerikeri $209 $620 $829 $101 $660 $761 $68 less nected) to Council water schemes
Paihia $209 $620 $829 $126 $660 $786 $43 less pay the capital costs of those
Kaikohe $209 $620 $829 $149 $660 $809 $20 less schemes?
Kaitaia $209 $620 $829 $154 $660 $814 $15 less
2. Should ratepayers with proper-
Kawakawa $209 $620 $829 $160 $660 $820 $9 less ties connected (or capable of being
Okaihau $209 $620 $829 $163 $660 $823 $6 less connected) to Council sewerage
*The meter rate is based on the average family consumption of 220 cubic metres of water a year. schemes pay the capital costs of
those schemes?
8 The top place where talent wants to live, work and invest
We encourage you to make a submission to the Far North District Council’s Draft
Tell the Long Term Plan 2012-22 online at www.fndc.govt.nz or by filling in this form and:
Mayor and 1. Folding it as shown, securing it with 3. Handing the form to staff at a
Councillors
staples or sticky tape and posting Far North District Council
it to the Far North District Council, service centre or library
whatyou Private Bag 752, Memorial Avenue,
Kaikohe 0440
4. Scanning and emailing an
electronic copy of the form
think of 2. Faxing the form to (09) 401 2137 to submissions@fndc.govt.nz
their plan! Council must receive your submission by 5pm on April 19.
re
he
F ol d
New Zealand
Permit No. 6124
Draft Long Term Plan 2012-22 Submissions
Far North District Council
Private Bag 752
Memorial Avenue
KAIKOHE 0440
re
he
Fold
HHeellppffuul l 1. Read the summary and refer to
the full version of the plan if you
4. Summarise your main points early
if you are writing a submission.
hhi ninttss for
need more information.
5. Consider speaking about your
2. Use simple language, be as clear submission at a hearing.
making an
as possible and keep to the point.
effective
3. Short sentences or bullet points
work really well.
submission This form and any other documents you send us will NOT be returned to you.
Please keep copies if you have asked to speak about your submission at a hearing.
What do Draft Long Term-Plan 2012-22
you think? Submission Form
Do you want to speak about your submission at a hearing?
☐ Yes ☐ No
This is your chance to
tell us what you think Do you need a Mˉaori translator?
about the proposals in ☐ Yes ☐ No
this summary of the
Draft Long Term Plan. Which day would you prefer to attend a hearing? Please tick first and second choices.
Monday 14 May, Kaikohe Chambers ☐ First choice ☐ Second choice
Tuesday 15 May, Kaikohe Chambers ☐ First choice ☐ Second choice
This is not a complete
Wednesday 16 May, Kaitaia, Te Ahu Centre ☐ First choice ☐ Second choice
list of proposals. Thursday 17 May Kaitaia, Te Ahu Centre ☐ First choice ☐ Second choice
Friday 18 May, Kerikeri, BOI sports complex ☐ First choice ☐ Second choice
We urge you to look Monday 21 May, Kerikeri, BOI sports complex ☐ First choice ☐ Second choice
through the plan for a
Your contact details:
fuller picture of what
Please print your contact details clearly so Council staff can send an acknowledge-
we are planning in the ment and outcome letter to you.
next 10 years. Title (please tick a box) ☐ Dr ☐ Mr ☐ Mrs ☐ Ms ☐ Miss
First name ________________________________________________
The two volumes of
Surname ________________________________________________
the plan can be read
Organisation/group _____________________ ___________________________
on Council’s website
Only name an organisation/group if you are making a submission on behalf of one
at www.fndc.govt.nz or
Postal address ________________________________________________
browsed at its service
centres and libraries. ________________________________________________
________________________________________________
Post code ________________________________________________
Email address ________________________________________________
Phone(daytime) _____________________ Phone (evening)______________
Mobile phone _____________________ Fax ________________________
Age group (optional) ☐ 15-24 ☐ 25-34 ☐ 35-44
☐ 45-54 ☐ 55-64 ☐ 65+
Ethnicity (optional) ☐ Pakeha ☐ Mˉaori
☐ Other (please specify) _________________________OFFICE USE ONLY:
SUBMITTER NUMBER
Should Council:
1. Introduce the proposed alternative rating system as proposed on pages 4-9? ☐ Yes ☐ Don’t Know ☐ No
2. Implement the alternative rating system from 1 July 2012? ☐ Yes ☐ Don’t Know ☐ No
3. Phase the alternative rating system in over a period of years? ☐ Yes ☐ Don’t Know ☐ No
4. Introduce a targeted differential rate for roading as proposed on page 5? ☐ Yes ☐ Don’t Know ☐ No
5. Increase the number of rates differential categories as proposed on page 6? ☐ Yes ☐ Don’t Know ☐ No
6. Remove the ward rate as proposed on page 7? ☐ Yes ☐ Don’t Know ☐ No
7. Levy the Uniform Annual General Charge on all separately-used or inhabited
rating units as proposed on page 7? ☐ Yes ☐ Don’t Know ☐ No
8. Increase the general rate to pay for storm costs as proposed on page 7? ☐ Yes ☐ Don’t Know ☐ No
9. Levy a business improvement rate on Kaitaia businesses as proposed on page 7? ☐ Yes ☐ Don’t Know ☐ No
10. Waive Uniform Annual General Charges on 2 or more adjoining properties
as proposed on page 7? ☐ Yes ☐ Don’t Know ☐ No
11. Charge $3 per cubic metre for water and fund water supply
capital costs on a scheme-by-scheme basis as proposed on page 8? ☐ Yes ☐ Don’t Know ☐ No
12. Charge sewerage capital costs on a scheme basis and operational costs
district-wide as proposed on page 9? ☐ Yes ☐ Don’t Know ☐ No
13. Reduce the level of development contributions as proposed on page 10? ☐ Yes ☐ Don’t Know ☐ No
14. Change the way it calculates contributions from commercial and industrial
developments as proposed on page 10? ☐ Yes ☐ Don’t Know ☐ No
15. Raise the threshold for development contribution discounts as proposed on page 11? ☐ Yes ☐ Don’t Know ☐ No
16. Reduce development contributions charged for smaller residential and retirement
dwellings as proposed on page 11? ☐ Yes ☐ Don’t Know ☐ No
17. Waive development contributions on first dwellings built on lots created
before 1 July 2003 as proposed on page 11? ☐ Yes ☐ Don’t Know ☐ No
18. Charge contributions for water and sewerage on lots created after 1 July 2003
and offset availability charges developers have paid as proposed on page 11? ☐ Yes ☐ Don’t Know ☐ No
19. Invest in the Local Government Funding Agency as proposed on page 12? ☐ Yes ☐ Don’t Know ☐ No
20. Fund Kerikeri and Paihia parking wardens from a business rate as proposed on page 12? ☐ Yes ☐ Don’t Know ☐ No
21. Upgrade community halls to make them more user friendly for disabled ☐ Yes
☐ Don’t Know ☐ No
people as proposed on page 12?
22. Sell its pensioner flats at Kohukohu to a social housing provider as proposed
on page 12? ☐ Yes ☐ Don’t Know ☐ No
23. Install tsunami sirens in coastal communities with a local response plan as
proposed on page 12? ☐ Yes ☐ Don’t Know ☐ No24. Offer a 3% discount to ratepayers who pay their rates in full by the first
instalment due date as proposed on page 12? ☐ Yes ☐ Don’t Know ☐ No
25. Spend $30,000 on park and walkway improvements in the Eastern Ward as
proposed on page 12? ☐ Yes ☐ Don’t Know ☐ No
26. Spend an extra $70,000 on boat ramp and wharf maintenance as proposed
on page12? ☐ Yes ☐ Don’t Know ☐ No
27. Urge the Northland Regional Council to relax rules banning the use of oil sprays
to suppress dust on metal roads as proposed on page 13? ☐ Yes ☐ Don’t Know ☐ No
28. Reduce the hours that libraries are open at weekends as proposed on page 13? ☐ Yes ☐ Don’t Know ☐ No
29. Contribute $165,000 a year for five years towards $5 million costs of upgrading
Bay of Islands Airport as proposed on page 3? ☐ Yes ☐ Don’t Know ☐ No
30. Provide a higher level of service at Council service centres and libraries in Kaitaia,
Kerikeri and Kaikohe, but review services in smaller towns as proposed on page 13? ☐ Yes ☐ Don’t Know ☐ No
31. Replace Council libraries in smaller centres with community libraries run by
volunteers as proposed on page 13? ☐ Yes ☐ Don’t Know ☐ No
Have your say
Items in the Draft Long Term Plan I support and my reasons for supporting them _____________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
Items in the Draft Long Term Plan I oppose and my reasons for opposing them_ ______________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
Items I would like added to the Draft Long Term Plan and my reasons for wanting them in the plan _______________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
Continue on a separate sheet if necessary and enclose this with your submission form.
Council must receive your submission by 5pm on April 19.How should we pay for sewerage?
What is the problem? What does Council propose to do about this?
Rising environmental standards and Council has reviewed the way it funds ing costs of schemes on a district-wide
community demand for increasingly sewerage. basis, because many of these costs are
expensive sewage treatment schemes not incurred at a scheme level.
It believes it would be fairer and more
are driving up the cost of sewerage
sustainable to go back to a funding It is also more economic for the
services.
system that operated in the district Council to manage schemes collec-
Council currently funds sewerage on some years ago. tively.
a district-wide basis via a uniform rate. Under this system, ratepayers would The proposed system would result in
This means ratepayers with proper- only be liable for the capital costs of different sewerage costs across the
ties connected to a Council sewer- the sewerage schemes their proper- district.
age scheme (or with properties that ties were connected to or able to be
But it would encourage communities
are able to connect to a scheme) pay connected to.
to balance affordability with environ-
the same rate per connection towards Council would collect this money via a mental performance when making
the capital and operating costs of all targeted rate. submissions to resource consents for
schemes in the district. scheme upgrades.
It would continue to fund the operat-
Under this funding system, economic
schemes subsidise less economic
schemes. PROPOSED SEWERAGE RATES FOR 2012-13
The true costs of inefficient or expen- Current Proposed
System System Pay More or Less
sive schemes are effectively hidden Scheme
2012-2013 Capital Operating Total Under Proposed
from ratepayers whose properties are System?
Uniform rate Rate Rate Payment
connected to those schemes.
Hihi $813.30 $1467 $444 $1910 $1096.70 more
Russell $813.30 $943 $444 $1387 $573.70 more
Kaeo $813.30 $828 $444 $1272 $458.70 more
Rawene $813.30 $548 $444 $992 $178.70 more
changes Kohukohu $813.30 $527 $444 $971 $157.70 more
What would the Kawakawa $813.30 $483 $444 $927 $113.70 more
mean for you? Paihia $813.30 $431 $444 $875 $61.70 more
ing Kerikeri $813.30 $403 $444 $846 $32.70 more
to adopt this fund
If Council decided are
whose proper ties
Kaitaia $813.30 $184 $444 $628 $185.30 less
system, ratepayers w ak aw a, Kaikohe $813.30 $265 $444 $709 $104.30 less
Hihi, Kaeo, Ka
connected to the e an d
, Paihia, Rawen East Coast $813.30 $271 $444 $715 $98.30 less
Kerikeri, Kohukohu pay
schemes would Opononi $813.30 $290 $444 $733 $80.30 less
Russell sewerage
e in 2012-13. Rangiputa $813.30 $299 $444 $743 $70.30 less
MORE for sewerag
n- Whangaroa $813.30 $339 $444 $783 $30.30 less
proper ties are co
Ratepayers whose C oa st, Ahipara $813.30 $344 $444 $788 $25.30 less
Ahipara, East
nected to the ut a, Whatuwhiwhi $813.30 $367 $444 $811 $2.30 less
Opononi, Rangip
Kaikohe, Kaitaia, wer-
Whatuwhiwhi se
Whangaroa and for What is the alternative?
ould pay LESS
age schemes w
sewerage. Council could keep the current funding system. But ratepayers would still face
yers
how much ratepa higher charges for sewerage in the next financial year, thanks to higher environ-
The table shows il’s
nnected to Counc mental standards and operating costs and the need to replace aging infrastructure.
with proper ties co pay
schemes would
bigger sewerage Council proposes to raise the current uniform rate of $669.28 per connection to
nding policy.
under the new fu $813.30 in 2012-13 if it is retained.
9Council is upgrading Russell Wharf in a partnership with the Russell Wharf and Waterfront Trust.
Development contributions
Time for a change? Council proposes a number of
significant changes to its
Development Contributions
Policy to align contributions
Reduce development contributions? with infrastructure needs
The recessionary climate and reduced (see table). Keeping these at current and to encourage
need for growth-related infrastructure levels could result in revenue exceed- new developments.
has prompted Council to consider ing growth-related infrastructure needs
lowering development contributions which the law does not allow.
TOTAL CONTRIBUTIONS (EXCLUDING GST)
2011-12 Annual Plan 2012-22 LTP
Bay of Islands/ Te Hiku Kaikohe/ Bay of Islands/ Te Hiku Kaikohe/
Contribution Class
Whangaroa Hokianga Whangaroa Hokianga
Roading $2,077 $2,077 $2,077 $2,525 $4,442 $1,318
Water Services $2,589 $2,589 $2,589 $1,825 $2,023 $1,756
Wastewater Services $5,580 $5,474 $5,416 $5,143 $2,737 $2,650
Stormwater Services $1,535 $1,368 $1,037 $1,285 $1,504 $1,092
Community Infrastructure $1,575 $989 $128 $2,684 $1,075 $573
Reserves $4,016 $1,106 $619 $1,680 $400 $300
Total $17,372 $13,603 $11,866 $15,142 $12,181 $7,689
Change the way contributions are calculated for commercial and industrial projects?
Council currently bases contributions for of equivalent household units of demand would also mean Council wouldn’t have
commercial and industrial developments created by the project. This would make to cap road fees at 6% of the develop-
on floor area and traffic intensity factors. it easier for developers to estimate the ment’s value.
It now plans to base these on the number contributions they would have to pay. It
10 The top place where talent wants to live, work and investWhat do Exempt first dwellings on lots subdivided before
you think? 1 July 2003?
Council is considering whether to exempt developers from paying development
contributions for the first dwelling on lots created before 1 July 2003. This would
1. Should development contributions encourage them to develop subdivisions that have not been built on.
be reduced?
2. Should the method of calculating
development contributions for Raise threshold for low-cost housing discounts?
commercial and industrial develop-
Council offers graduated discounts for contributions payable on residential subdivi-
ments be changed?
sions worth less than $122,000 per lot. It proposes to reduce the land value eligible
3. Should Council reduce the value for a discount to $100,000. Keeping the eligibility threshold at the current level may
of residential lots that are eligible increase the number of lots eligible for the discount and reduce revenue by up to 15%.
for discounts?
4. Should smaller residential and
retirement dwellings pay reduced Reduce development contributions for small
contributions? residential and retirement dwellings?
5. Should lots created before 1 July Council proposes to reduce contributions for small residential and retirement dwell-
2003 be exempt from contribu- ings in line with the lower infrastructure costs these developments create.
tions for the first dwelling?
6. Should Council charge contribu-
tions for water and sewerage on Charge contributions for water and sewerage on lots
lots created after 1 July 2003? created after 1 July 2003?
Council is considering whether to charge contributions for water and sewerage on
lots created after 1 July 2003. Any availability charges paid by the developer would
be deducted from the sum payable. Charging developers for these services would
ensure they paid a reasonable contribution towards water and sewerage schemes.
11Other key
proposals
Disabled access for community halls?
t Totara N orth Hall
Disabled access a Council plans to add wheelchair ramps to its community halls, where it is prac-
tical to do so, so they meet building standards for disability access. This would
cost $30,000 a year per ward and mean an increase in rates of less than 0.2%.
The alternative is to only install ramps when they are a requirement of building
consents for new building works.
Sell pensioner flats in
Kohukohu?
Invest to get cheaper credit?
Council struggles to find tenants for its
pensioner flats at Kohukohu. This may Council may invest in the Local Government Funding Agency, which is a Council
mean there is too much accommodation controlled trading organisation, to access cheaper loans. The Authority has
for the elderly in Kohukohu. The flats a higher credit rating than Council can achieve and offers low-interest loans.
may be better used by a wider range of However, Council would need to buy shares in the Authority to borrow from the
people with welfare needs. Council is fund. It would also be held liable for a portion of other councils’ debts in case
considering whether to sell the flats to a of a default.
social housing provider to reduce main-
tenance costs which exceed rent income.
Discount for early payment of rates?
Council may offer a 3% discount for people who pay their rates in full before the
Who should fund first instalment is due on 20 August 2012. This would reduce rates revenue, but
improve cash flows and cut administrative costs.
parking wardens in
Paihia and Kerikeri?
Council is funding parking wardens in
Kerikeri and Paihia during the peak visitor Tsunami sirens for coastal communities?
period from general rates. Council would
like to know if ratepayers agree with an Council plans to install 15 tsunami
alternative to fund by a targeted rate. warning sirens a year in coastal
communities with Civil Defence
response plans. This would cost
More money for parks and $37,500 and incur interest and
depreciation costs of $15,000 per
boat ramps? annum which Council would fund
Council plans to spend $30,000 improv- from the general rate.
ing popular parks and walkways in the The alternative is to not install
Bay of Islands-Whangaroa Ward and an sirens and rely on local response
extra $70,000 of rates money maintain- plans and media to warn people
Flood dam
ing boat ramps and jetties in the district. of tsunami. aged highw
ay near K
awakawa
12 The top place where talent wants to live, work and investAn artificial kauri tree dominates Council's new Kaitaia Library at Te Ahu Centre.
Spray waste oil on metal roads to suppress dust? Reduce serv
ices at libra
and Council ries
Council is urging the Northland Regional Council to relax Regional Plan service centr
to save mon es
rules banning the use of waste oil sprays to suppress dust on metal roads. ey?
Allowing licensed contractors to apply a seal coat of waste oil to road Council is co
surfaces under controlled conditions would be a cost-effective alternative nsidering w
services at it hether to red
s smallest li uce
to more expensive glycerol sprays which have proved ineffectual. service centr braries and
es so it can
services in K increase thes
aikohe, Kait e
It may also aia and Ker
reduce week ikeri.
at libraries a end opening
nd replace C hours
in smaller ce ouncil libra
ntres with co ries
libraries run mmunity
by volunteer
s.
What do
you think?
1. Should Council invest in the Local
Government Funding Agency?
2. Should Council continue to urge the
Northland Regional Council to allow
the use of waste oil sprays to sup-
press dust on metal roads?
3. Should Council install tsunami war
ning sirens?
4. Should Council make halls easier for
disabled people to access?
5. Should Kohukohu pensioner flats be
sold for social housing?
6. Should parking wardens be funded
from a rate levied on Kerikeri and
Paihia businesses or should all rate-
payers pay for these services?
7. Should Council reduce services at
libraries and Council service centres
to save money?
8. Should Council offer a 3% discount
for early payment of rates?
9. Should Council spend extra money
on parks, walkways, boat ramps and
jetties?
13Lobby government for unitary
authority status?
Council signalled its desire to become a unitary
authority in the last Long Term Plan. Since then,
it and other Northland councils have commis-
sioned a report on governance options for the
region. Achieving unitary authority status would
require the councils to convince the govern-
ment of the need for a new governance model
in Northland.
Council sponsors the annual State Paihia Classic ocean swim from Russell to Paihia.
What else are we planning? In the pipeline
Council plans to spend up to $43.5
million on sewerage and water supply
upgrades that will reduce pollution of
New water source for Kaitaia rivers and harbours and save money,
Council has applied for a resource consent to take water from the Sweetwater including:
Aquifer for the Kaitaia water supply. Capital works programmed for 2011/13 will
• The Draft Plan includes a discussion
cost $500,000, but reduce the likelihood of Kaitaia facing the severe summer water
of phase one of the BOI Sewerage
shortages it experienced in 2010.
scheme but Council is planning to
conduct a separate consultation
Mineral exploration over the full scheme over the next
12 months. We will call for submis-
Council will continue to promote mineral exploration opportunities in the dis- sion on that proposal at that.
trict in partnership with the Ministry of Economic Development, GNS, Enterprise
Northland, the private sector and other local authorities. This will include market- • New sewer systems will be built at
ing the results of an aerial geophysical survey of Northland. Awanui and Opua before the end of
2013 at a combined cost of $9.4
million
Converting waste to fuel
• Asbestos-cement water pipes will be
Council is exploring technologies that would enable it to convert refuse and wood
replaced in the next 10 years at
waste from forest harvesting operations into automotive diesel and synthetic fuels
a cost of $2.5 million, resulting in
for electricity generation. This would create jobs and revenue streams for the dis-
fewer pipe breaks and less water
trict and reduce waste disposal costs.
wasted.
Twin Coast Cycle Trail (Pou Herenga Tai)
Council expects to complete an 83 km, government-funded promote the trail as a tourist attraction and support individuals
cycle trail it has been developing between Horeke and and organisations who are keen to capitalise on the economic
Kawakawa before the end of the year. It will continue to opportunities it offers.
14 where talent wants to live, work and investRate Increase Strategy Financial
challenges
7.00%
6.00%
5.00% Factors expected to impact on Council
finances in the next 10-years include the:
• global economic slowdown
% increase
4.00%
• affordability of rate increases for low-
3.00% income ratepayers
• cost of providing services to a large,
2.00%
sparsely-populated district with diver
se communities
1.00%
• frequency and severity of storms that
0.00%
damage infrastructure
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 • difficulties of collecting rates on Māori
Year FNDC Strategy FNDC actual Freehold Land.
Taking a conservative
approach
What is our financial strategy?
Council plans to continue taking a
conservative approach to managing its Limits on rates?
finances until market conditions allow Council draws about 89% of its income from rates because it doesn’t have alterna-
otherwise. It will focus on affordability tive revenue streams, such as significant investment funds. Council will try to keep the
and try to minimise financial risk by: income required from rates steady and create predictability in the level of rates needed
• Carefully managing income from to fund Council services. Ways it will manage the cost to the ratepayer include making
rates efficiencies, reducing services and disposing of surplus assets.
• Borrowing within its ability to pay Limits on rate increases
• Trying to ensure that those who Council proposes to limit the increase in the total amount of rates it levies to no
create the demand for services pay more than the % increase of the local government cost index (LGCI) plus 1% for
for those services that year. Rate increase limits may differ at an individual community board level.
• Retaining a mixed rating structure
which takes account of the diverse
Limits on borrowing
needs of the district’s communities Borrowing ensures that current ratepayers pay for the services they use now and
future ratepayers pay their share too. Council’s borrowing limits are currently linked
• Only providing new infrastructure
to total revenue. However, Council’s only guaranteed revenue is from rates which
when it is really needed and where
make up about 89% of its total income. Council considers that borrowing external
it is planned
funds of up to 175% of its total revenue, excluding capital grants, to be financially
• Applying a principle of intergen- prudent.
erational equity so that current
and future ratepayers pay their fair Projected borrowing?
share of costs
Council expects externally funded borrowing to peak at $133.1 million in 2015-16
• Maintaining a disaster reserve fund and tail off in the latter part of the plan. This demonstrates that Council has
to pay for unforeseen works result- the capacity to increase capital renewals or reserve-funded projects if required,
ing from damaging natural events particularly in the last half of the plan.
15Cover photo & design by Different Design, Waipapa - differentdesign.co.nz
Where can I get more
information about some-
thing in this summary?
The two volumes of the draft plan
include detailed information about
the proposals in this summary. These
can be read on Council’s website at
www.fndc.govt.nz or browsed at its
service centres and libraries. CDs with Meeting Host Meeting Date Meeting Venue
electronic copies of the plan are avail- Kerikeri Business Association 20 March, 6pm Palmco Garden Lounge, Kerikeri
able by phoning 09 401 5200. You can
also put questions to elected members Rawene Area Residents Association 22 March, 5:30pm Rawene Town Hall
and Council staff at public meetings Kaikohe Business Association 10 April, 5:30pm Council Chambers, Kaikohe
hosted by Kaitaia, Kerikeri, Kaikohe and
Kaitaia Business Association 11 April, 6pm Te Ahu Centre, Kaitaia
Paihia Business Associations and the
Rawene Area Residents Association in Paihia Business Association 16 April, 7pm Details on Council’s website on April 13
March and April.
What do Have your say!
you think?
Council invites you to make a sub-
How do I make a submission?
mission on the Draft Long Term Plan Simply complete the submission form in this booklet and return it to Council before
2012-22 from March 19 to April 19. 5pm on April 19.You can make a submission as an individual or on behalf of the group.
This is a one-in-three-year chance for You can also ask to speak to councillors about your submission at one of the public
you to influence the direction of the hearings scheduled for May 14-21.
district and Council. Councillors will
hear submissions from May 14-21 and Make your submission online
deliberate over submissions on June 12
and 13 before finalising and adopting You may find it easier to make your submission online if you have Internet access.
the plan on 21 or 25 June. A summary of the draft plan on our website at www.fndc.govt.nz is linked elec-
tronically to the submission form so you can answer the multiple-choice questions
while reading the summary.
Will Council take any notice of my submission?
Council notes all the points made to it during the submissions process. Previous
Far North District Council finalised Long Term Plans have included changes and additions that councillors
Memorial Avenue made after considering submissions. However, Council is often unable to meet
requests for reasons of affordability. You need to be realistic when writing your
Private Bag 752
submission and consider Council’s district-wide priorities if you are proposing local-
Kaikohe 0440
ised projects.
Northland
Aotearoa/New Zealand
What shouldn’t I make a submission on?
www.fndc.govt.nz
24-hour Freephone 0800 920 029 Don’t make submissions about matters that are outside the scope of the 10 year
or (09) 401 5200 planning process. These include maintenance requests, building and resource
Fax (09) 401 2137 consent enquiries and complaints about the District Plan.
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