I MUA I TE PŪTEA POTI PRE-ELECTION REPORT 2019
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Far North District Council I Pre-Election Report 2019
I MUA I TE
PŪTEA POTI
PRE-ELECTION
REPORT
20192
Far North District Council I Pre-Election Report 2019
Ngā Kaupapa | Contents
Our vision, mission, values and expectations . . . . . . . . . . 1
Our District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Message from the Chief Executive Officer . . . . . . . . . . . . 3
Our activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Our major achievements in the past three years . . . . . . . . 5
Our challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Our direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Our community outcomes . . . . . . . . . . . . . . . . . . . . 8
Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Key projects for the next three years . . . . . . . . . . . . . . 11
Our financial strategy . . . . . . . . . . . . . . . . . . . . . . 14
Financial statements . . . . . . . . . . . . . . . . . . . . . . . 18
Key dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Mō tēnei rīpoata | About this report This Pre-Election Report provides voters and candidates with information about the issues and opportunities facing the district and Council. Its purpose is to promote informed public discussion in the lead up to the local body elections on 12 October this year. This report is required by the Local Government Act 2002. Information is extracted from previously published information from Long Term Plans, Annual Plans and Annual Reports. The content of the report focuses on the Council’s financial results over the last Council term, and forecasts performance for the next, highlighting key achievements and the major projects expected to be initiated over the next triennium. While the Pre-Election Report itself has not been audited, most of the information included has been reviewed by independent auditors either as part of previous Annual Reports or the Long Term Plan 2018-28. Information from the recent financial year (2018/19) is currently being audited as part of the annual reporting process. Information for 2018/19 will appear unaudited in this document because the timeframe in which Council has to prepare this report is insufficient to complete an audit process. Some information, including that of the current year, may have changed since it was audited in the Long Term Plan 2018-28. Although this document discusses the plans of previous councils, it is possible that the incoming council may wish to take some activities, projects and policies in a new direction. Where to find out more Our website www.fndc.govt.nz contains a wealth of information about Council and its activities. You can find these and other documents at www.fndc.govt.nz/your-council/strategic-planning: • Long Term Plan 2018-28 • 2019/20 Annual Plan • Annual Reports
1
Far North District Council I Pre-Election Report 2019
Tō tātou tirohanga, tāke, uara me ngā tū
manakohanga | Our vision, mission, values
and expectations
Tirohanga | Our vision
He whenua rangatira
A district of sustainable prosperity and well-being.
Aronga | Our mission
He ara tāmata
Creating great places, supporting our people.
Wāriu | Our values Tūmanako | Our expectations
• Manawatopu. • He wahi ataahua.
Unity of purpose and working Valuing the outstanding beauty of our
together. District.
• Whanaungatanga. • Oranga taiao, oranga tangata.
Family, community, connecting Nurturing the environment so it
and caring. nourishes us.
• Tu tangata. • Oranga kainga.
Strong cultural identities. A thriving, sustainable local economy.
• Mana tangata. • Mana i te whenua.
Respect and fairness. The role of tangata whenua is valued and
respected.
• Te Tiriti o Waitangi.
Partnership. • Te ira tangata.
Rich heritage and diversity respected and
• Kaitiakitanga. celebrated.
Environmental stewardship and
sustainability. • Whānau.
A great place for our families to flourish.
• Tangata whai ora.
Happy, healthy, safe and purposeful
people.
• He waka hourua.
Fit for purpose infrastructure
underpinning success.
• Kōkiri tahi.
Empowered communities, working
collaboratively.2
Far North District Council I Pre-Election Report 2019
Ko tō tātou rohe | Our District
Far North District The district area covers
with Whāngarei and Kaipara form the Northland region
54%
7,324km2 of Northland
land area and makes up
2,347km
coastline
37.5% 40
of the regions’ population disperse towns and villages
across the district
KAITAIA
I
KERIKERI
KAIKOHE
3 wards
Bay of Islands - Whangaroa
Kaikohe - Hokianga
64,400
estimated resident
Te Hiku population
41 %
9 iwi and 38,217 $430,511
identify as being of rating units average house price in
Māori descent 250+ hapū at 30 June 2019 the District, 2018
24,185 3,312 2,000 70,000 +
filled jobs employed in agriculture, average sunshine tourists visit in
in 2018 forestry and fishing industries hours annually January each year
in 2018
33 %
44 %
23 %
2.5 people
of families are of families are of families are one average household size
couples with children couples without children parent with children (national average 2.7)
Sources: Statistic NZ 2013 Census, .idnz community profile 2019, Infometrics economic profiles 2018, Niwa 20193
Far North District Council I Pre-Election Report 2019
He kōrero nā te kaiwhakahaere matua | Message from the Chief Executive Officer
Kia ora koutou
We welcome this opportunity to highlight our achievements We are a progressive Council and pride ourselves on being
over the last three years and to outline the challenges we face involved in a number of projects that place us in a vanguard
as we enter the 2019-2022 triennium. of local government leaders. The Northland Transportation
Alliance was the first of its kind in New Zealand when we
We have continued to address historic deficiencies in our established it with other Northland councils and the NZ
core infrastructure and are pleased to have made significant Transport Agency in July 2016. This Alliance has enabled us to
progress on our largest infrastructure project, which will deliver improve the efficiency and consistency of roading services in
21st century sanitation to our fastest-growing town, Kerikeri. the region and we have collaborated with Northland councils in
other service areas too.
We were proud to complete the Twin Coast Cycle Trail, a project
which was first conceived 10 years ago. Our mission is to create We won’t address challenges and opportunities facing the
great places and support our people. This trail, which has district unless we partner with Māori and collaborate with
created job opportunities in some of our poorest communities, other councils in the region. A high point of the last three years
is a great example of how we are succeeding in our mission. has been the signing of a partnership agreement between
Northland Mayors and Iwi Chairs. This is a major step forward
We also started many projects that will deliver social, economic, for Northland, even though much work remains to be done
cultural and environmental benefits to communities across the before this delivers the trust, understanding and outcomes we
District when they are completed. These projects include: Te are all seeking. We also need to improve the way the Council
Hiku Sports Hub; upgrades of wastewater and water schemes engages with Māori and we are establishing a Te Hono Team
at Paihia and Rawene-Omanaia respectively, and Tē Pu o Te in our Strategic Planning and Policy Group to ensure that we
Wheke (The Heart of Ngāpuhi); a community, cultural and consider Māori interests in our strategies, policies and day-to-
tourism hub in Kaikohe. day operations.
We also helped to secure $46 million of Provincial Growth We were one of the first councils to agree to be assessed under
Funds for Far North projects and government subsidies for Local Government New Zealand’s excellence programme
ultrafast broadband infrastructure in our main towns. CouncilMARK™ in 2017. We received a B grade for leadership,
finance, service delivery and community engagement. We have
These achievements shouldn’t distract from the challenges developed an extensive business improvement programme
we face. Providing affordable infrastructure and services to that addresses feedback from assessors and we aim to improve
more than 64,000 people in a large district with more than 40 this grade when the Council is next assessed in April 2020. We
towns and villages is our greatest challenge. Compounding this have also established programmes to improve the customer
challenge is the need to meet rising environmental standards, experience and to reduce waiting times for building consents.
deal with frequent and damaging adverse weather and adapt These projects will remain high priorities in 2019/20.
to climate change. On top of this, we have to address the
expectations of socially, culturally and economically diverse I encourage you to read this report to get a fuller understanding
communities. Many of the services people would like us to of our achievements and the challenges we face.
provide are affordable in large cities, where economies of scale
support cost-effective infrastructure, but unaffordable in a Ngā mihi.
sparsely populated district with a small rating base. This is a
reality many new residents in the District don’t appreciate.
Likewise, we struggle to meet the expectations of rural
ratepayers who live on 1,650km of unsealed roads the Council
maintains. Maintaining our road network is our single biggest
area of expenditure and we pursue Government subsidies
where we can to minimise the cost burden for ratepayers.
While we will never have the funds to seal all of these roads, we
plan to seal short sections of unsealed road on a prioritised and
unsubsidised basis. We budgeted $1 million for seal extensions
in 2018/19 and increased this to $3 million in 2019/20. We
are also developing an Integrated Transport Strategy that will Shaun Clarke ONZM
prioritise road spending across the District. Chief Executive Officer4
Far North District Council I Pre-Election Report 2019
Tā tātou māhi | Our activities
WIN COAS
- THE T T CY
TAI CLE
NGA TR
RE AI
HE L
U
PO
AD
E& MIN
NC ISTR
GOVE RNA ATION
CEMETERIES
BUILDING CONSENTS
ON FACILITIES
RECREATI
CONSE
RCE NTS
SOU
RE
FOOTPATHS
IC TOILETS
PUBL
INSPECTIONS
PARKS AND RESERVES
E
NG FOR THE LDER
USI
WATER
SUPPLY LY
HO
ING
NC
LICE
SPORTSGROUNDS
STRATEGIC
RELATIONSHIPS5
Far North District Council I Pre-Election Report 2019
Ko ā mātou tutukitanga rahinga i ngā tau e toru kua pahure | Our major
achievements in the past three years
New wastewater scheme for Kerikeri Innovation and Enterprise Park
The new wastewater scheme and reticulation network for Council agreed an equity investment of $5 million in FNHL
Kerikeri is due for completion in July 2020. Once finished, it will to buy farmland at Ngawha to develop as an Innovation and
cater for the 1,090 properties connected to the existing scheme, Enterprise Park. FNHL has since secured $890,000 from the
and allow a further 350 properties that rely on septic tanks to Provincial Growth Fund to develop a business case, prepare
connect. Latent capacity means a further 350-400 properties in District Plan change and resource consent applications, and
the area served by the scheme can easily be accommodated. to initiate discussions with potential investors. FNHL and
The modular design also enables us to add extra capacity government agencies have already identified opportunities for
as needed to cater for future growth of the town. This is the businesses in the honey processing, botanical oil extraction,
Council’s largest infrastructure project and when costed two bio-fuel energy and horticulture sectors.
years ago the budget stood at $25.6 million. The completion
date has since been pushed out by six months, increasing Collaboration with other councils
costs by approximately $1.3 million to a total of $26.9 million
(a 5.1% increase). The impact on rates paid by property owners We continue to provide roading infrastructure and services with
served by the scheme will become clearer once the project is other Northland Councils and the NZ Transport Agency under
completed. an alliance established in 2016. The Northland Transportation
Alliance has allowed partners to coordinate work programmes
Improved water supplies for South Hokianga and contracting, resulting in significant savings. The Northland
councils have also progressed initiatives under a collective
We are upgrading the water supply at Omanaia where residents Northland Forward Together plan that aims to deliver better
have received untreated water for decades. A new treatment social, economic and environmental outcomes for Northland
plant will be built for the Omanaia-Rawene water scheme at a and its people. A major advocacy achievement for the region was
total cost of $2.8 million, $2.3 million of which is funded through securing $33.8 million of government investment in ultra-fast,
a Ministry of Health subsidy. We aim to complete the new plant broadband infrastructure.
in August this year. We are also seeking resource consent to
draw water from a bore to supplement sources that supply the A strategic partnership with iwi
Opononi-Omapere water scheme and hope to commission the
bore by next summer. In February 2019, we signed a partnership agreement with
two other Northland Councils (Northland Regional Council and
Twin coast cycle trail completed Kaipara District Council) and Tai Tokerau Iwi Chairs Forum.
Building a strategic partnership between local government
Pou Herenga Tai, an 84km cycle trail which links Horeke on the and iwi will give each group a better understanding of each
West Coast with Opua on the East Coast was commissioned other’s perspectives, provide opportunities for joint ventures
a few years ago and has been enjoyed by locals and visitors that deliver mutual benefits and help the region to speak with
ever since. Developments planned include $4.6 million to build one voice on regional issues, giving it more influence in central
a permanent trail between Taumarere and Opua in the Bay government decision-making.
of Islands, along with a number of other network extensions
provided the government will agree to subsidise these costs. New rules and facilities for managing dogs
Investing in tourism We adopted a new Dog Management Policy and Bylaw in 2018
after a community consultation exercise that attracted 1,285
Our commercial company Far North Holdings Ltd (FNHL) submissions. The new policy and bylaw promotes responsible
secured $14.5 million from the government’s Provincial Growth dog ownership and includes new rules for dogs in public places,
Fund to develop and upgrade tourism and maritime facilities. especially beaches. We also included $1.14 million in our Long
Term Plan 2018-28 for new dog impounding facilities in the
A new terminal building at the Bay of Islands Airport opened in District and had planned to build a new northern area dog
June and construction of the Hundertwasser-inspired cultural shelter near Kaitaia before Christmas 2019. Since then, we have
and tourism hub Te Hononga in Kawakawa is now under way. obtained engineers estimates that are significantly higher than
A $1.2 million upgrade of Russell Wharf is due for completion this figure. We are reviewing these estimates and investigating
in August, while new pontoons and walkways will be installed more cost-effective options for the dealing with 30 – 60 dogs
at Paihia Wharf by October. FNHL are also developing a Manea impounded per month.
Footprints of Kupe cultural and education centre at Opononi on
behalf of Te Hua o Te Kawariki Trust.6
Far North District Council I Pre-Election Report 2019
Ko ā mātou wero kei mua | Our challenges
Our unique challenges It would cost at least $500 million to seal the entire unsealed
road network and add $14,000 to each rates bill over one year.
Providing affordable infrastructure and services to more than We are planning to seal short sections of unsealed road on a
64,000 people in a large district with more than 40 towns and prioritised and unsubsidised basis. We budgeted $1 million for
villages is arguably our single greatest challenge. Most of these seal extensions in 2018/19 and plan to increase this to $3 million
towns have small populations, so the high cost of maintaining in 2019/20. We also plan to spend $8 million renewing sealed
core infrastructure is spread across a small number of roads, $3 million metalling unsealed roads and $1 million on
ratepayers. The same applies to maintaining a long roading footpaths (new works and renewals).
network that crosses flood and slip-prone terrain and that is
frequently damaged by adverse weather. Many districts in New We lack a stormwater strategy for the district for the meantime,
Zealand don’t face these problems because they have one large but are addressing historic flooding issues on a prioritised basis
urban centre and economies of scale that support more cost- and are undertaking condition assessments of our 129km pipe
effective delivery of services. network.
Keeping it affordable
Poipoia te kakano kia puawai • Nurture the seed
and it will blossom
Providing affordable water, wastewater and stormwater
services that meet national standards is a fiscal challenge for
Maintaining core infrastructure most local authorities in New Zealand. We are investigating
opportunities for collaboration with other Northland councils
Many of our wastewater schemes aren’t fully compliant with under the Northland Forward Together programme. We also
resource consents because successive councils have deferred await the outcome of a government-led Three Waters Review
improvement works to keep rates down. The Long Term which is investigating the challenges councils face and options
Plan and Infrastructure Strategy adopted in 2018 included a for performance improvements, including service delivery. How
programme of capital works to address historic infrastructure we fund these services will also be one of the questions we
deficiencies. We remain committed to this programme and are consider in a rates and revenue review that is underway now.
progressing renewals on a priority basis. Staff and Elected Members are working together to develop
options for the new Council to consider after the elections.
The Infrastructure Strategy identified age-based renewals as It is important to note that any changes to the rating system
a risk therefore a programme of scheduled asset condition will not alter the amount we need to collect in rates, just how
assessments is being formulated across Three Waters and we allocate responsibility for meeting those costs across
District Facilities assets. This will assist in addressing decisions ratepayers.
made with regard to funding our assets (i.e. data-driven
decisions based on asset condition as opposed to age), while Partnering with iwi
remaining cognisant that Council will provide delivery of the
services in the most effective, efficient, sustainable and cost We recognise that the District will not address challenges
effective way. and opportunities effectively unless the Council partners
with tangata whenua. We were a signatory of a relationship
We look forward to completing, or making substantial progress agreement between the Northland Mayoral Forum and Tai
on, a number of historic infrastructure projects in 2019/20, Tokerau Iwi Chairs in 2018/19 and are using this agreement
notably the Kerikeri wastewater scheme which will provide to promote participation and cooperation between iwi and
our fastest-growing town with 21st century sanitation. Treated local government. We also accept that we need to improve the
effluent discharges at our Paihia wastewater plant have not way the Council engages with Māori who make up 41% of our
met consent standards for years but we have finally found an population. We are establishing a Te Hono Team in our Strategic
affordable medium term solution and plan to upgrade the plant Planning and Policy Group to ensure that we seek and consider
this year. At Omanaia, in the South Hokianga, we will complete Māori interests in all our strategies, policies, plans, reports and
a new water treatment plant that will deliver safe drinking water day-to-day operations.
to residents who have received untreated water for decades.
Maintaining our road network is our single biggest area of Ka pū te ruha, ka hao te rangatahi • The old net is
expenditure and we pursue government subsidies where we cast aside, the new net goes fishing
can to minimise the cost burden for ratepayers. Realistically, we
will never have the funds to seal the 1,650km of unsealed roads,
which make up 66% of the network. It costs between $300,000
and $1 million to seal one kilometre of road depending on the
strengthening works needed.7
Far North District Council I Pre-Election Report 2019
Planning a sustainable future
In 2016, we launched a community engagement project called of this development will be the availability of commercial
Let’s Plan Together as the first step in a review of our District quantities of water. Northland Councils have secured $18.5
Plan. In 2018, we released the Draft District Plan and invited million of Provincial Growth Funds to investigate and, if feasible,
communities to give their feedback. We are analysing the build community-scale water storage in the mid-north and
feedback we received and using this to inform zone maps Kaipara District. We will be consulting tangata whenua and
and rules for the Proposed District Plan. We will seek formal stakeholders about this in 2019/20.
submissions on this in mid-2020.
Lifting our performance
In light of the issues we face in this District, Council needs to be
more strategy-driven and future focused in order to establish We were one of the first councils to be assessed under
clear direction for the future. To that end, we are developing Local Government New Zealand’s excellence programme
a District Strategy and Spatial Plan called Far North 2100 to CouncilMARK™ in 2017. We received a B grade for leadership,
inform future planning by the Council and community. We will finance, service delivery and community engagement. We are
seek community feedback on a discussion document in August addressing feedback we received from independent assessors
2019 and release a draft strategy and spatial plan for formal and aim to improve this grade when we are assessed again
submissions in February 2020. in April 2020. We have also established work programmes to
improve the customer experience and reduce waiting times for
Traffic congestion is an issue in some urban areas, especially building consents. These business improvement projects will
Kerikeri. We are investigating transport options for this town remain a high priority in 2019/20.
and will seek community feedback in October on a draft
Integrated Transport Strategy, which identifies where we We conduct a resident opinion survey every year to gauge
should be spending our roading and transport dollars. public satisfaction with our services and to measure
perceptions of the Council’s leadership, trust and financial
Climate change is recognised as the top risk for this Council, management. We publish the survey reports on our website at
and it will remain one of the biggest challenges to face our www.fndc.govt.nz. We encourage you to read these reports to
district into the future. We need to adapt to changing weather get a deeper understanding of the challenges we face meeting
patterns as warmer weather, more severe weather events, the expectations of our communities.
prolonged drought conditions and sea level rise have an impact
on our infrastructure and communities. We are also developing
a Regional Climate Change Strategy in collaboration with other
Kaua e hoki i te waewae tūtuki, ā āpā anō hei te
Northland Councils to ensure a regionally consistent approach
ūpoko pakaru • Do not turn back because of
to climate change adaptation. We will publicise this work, which
minor obstacles but press ahead to the desired
is still being scoped, in 2019/20.
goal
Economic and social development
A change to the Local Government Act in May 2019
means councils are again required to promote the social,
economic, environmental and cultural well-being of citizens
and communities. While the Council has largely delivered
across these four areas since they were removed by the last
government, their inclusion in the Act mandates the Council to
foster liveable communities instead of simply providing ‘core
services’.
Building a sustainable future for the Far North depends on a
diversified economy that capitalises on the District’s strengths.
Our commercial company Far North Holdings Ltd is developing
an Innovation and Enterprise Park at Ngawha and we are
developing plans for a community, cultural and tourism hub,
Tē Pu o Te Wheke (The Heart of Ngāpuhi) with Ngāpuhi Asset
Holding Company Ltd and Te Rūnanga Ā Iwi O Ngāpuhi in
Kaikohe. Both of these projects have the potential to create
jobs in the greater Kaikohe area, which has huge potential, but
is one of the most deprived parts of the district. A key enabler8
Far North District Council I Pre-Election Report 2019
Ko mātou ahunga | Our direction Ngā putanga ō tō hapori | Our
He whenua rangatira - a district of sustainable prosperity and community outcomes
well-being
In 2015, the communities of the Far North told us that a district Communities that are healthy, safe,
of sustainable prosperity and well-being is what they want to connected and sustainable
achieve and Council continues to be guided by this vision in He tina ki runga, he tāmore ki raro.
its daily activities and direction for the future. In response, the
current Council agreed and published a range of goals that it Contentment above, firmly rooted below.
believes our District needs to achieve if the vision is to become Those with good family foundation and
reality. The community outcomes we, as a council, pursue on grounding in their own culture and heritage
behalf of our communities are shown to the right. will find satisfaction and contentment in life.
As a local authority, we play our part in achieving the vision and
community outcomes through focusing on our mission:
Connected and engaged communities
He ara tāmata - creating great places, supporting our people prepared for the unexpected
Te toka tū moana.
The Long Term Plan 2018-28 identified a number of priorities
that we continue to work to: The boulder standing in the ocean. This
refers to a chief or to a group of warriors
• better data and information being buffeted by opposing forces but
standing firm.
• affordable core infrastructure
• improved Council capabilities and performance Proud, vibrant communities
Te pā harakeke.
• address affordability
A community of harakeke plants.
• civic leadership and advocacy
• empowering communities.
Prosperous communities supported by a
Strategy framework sustainable economy
He kūaka marangaranga, kōtahi te manu i
No great vision becomes a reality without strategies and tau ki te tāhuna, ka tau, ka tau, tau atu e.
deliberate action, so Council is facilitating the development of
an 80-year strategy called Far North 2100 (FN2100) that we can Godwits rise and flock together in the
use to guide the future provision of support and services to our air, one bird comes down to land on the
District. Those at the table co-designing the strategy with us are sandbank to feed, then another, then
too many to name here, but key ones are iwi and hapū, central another and another. Emphasises the
government and health agencies, industry and commerce, and importance of combining group action with
non-profit organisations. By the time we adopt a strategy we individual initiative and vice versa.
hope to have reached a diverse range of people in the district
for their feedback. We plan to release a discussion document
to the public for feedback later this year. We will use the A wisely managed and treasured
information and preferences received to refine the strategy, environment that recognises the special
and then consult on it prior to adoption early next year. role of tangata whenua as kaitiaki
Whatungarongaro te tangata, toitu te
Alongside FN2100 are a range of subordinate strategies, some whenua.
of which are already underway. A District Transport Strategy
that will guide our transportation planning for the upcoming As man disappears, the land remains.
2021-31 Long Term Plan is underway, and a number of other
strategies are being considered, including stormwater, water,
wastewater, climate change, communications and engagement,
and much more.9
Far North District Council I Pre-Election Report 2019
Progressive Council Mahi ngātahi | Collaboration
A lot of our work programme revolves around providing As recently as 2015 the Local Government Commission
services to the public such as consenting, protecting safety and consulted Northland on a proposal to centralise local
building infrastructure such as roads, footpaths, treatment government in our region, in essence creating one unitary local
plants and recycling centres. authority. While the proposal did not proceed, the Commission
asked the councils of Northland to work together to explore and
Less visible, but every bit as important, are initiatives that implement collaborative initiatives where opportunities exist to
are going on behind the scenes. We continue to advance achieve greater cost efficiencies and reduce pressures on rates.
as a progressive council via an ambitious programme of
improvement projects based on Local Government New Northland | Forward Together; Tai tokerau | Kōkiri
Zealand’s 'four excellences' for local government – governance Ngātahi
excellence, cultural excellence, operational excellence and
customer excellence. Fast forward to 2019, and considerable momentum has been
achieved through Northland | Forward Together; Tai tokerau |
Improvements range from revamped asset management, Kōkiri Ngātahi. This forum includes representatives of all four
building consenting and project management practices and councils, including the Mayors and Chief Executives, with a
tools, to reviewing our rating system; building a new website, vision of collaborating to lift the overall well-being of our people
and launching an online service programme that will contribute and our place. Current priorities are to:
to a better customer experience.
• deliver the regional information and communication
technology programme, with the priority of meeting the
Tē tōia, tē haumatia • Nothing can be achieved requirements of the Northern Transport Alliance
without a plan, workforce and way of doing things
• deliver the Four Waters Programme, incorporating
drinking water, stormwater, wastewater and flood
protection
• refresh the Digital Enablement Plan to increase digital
engagement across Northland
• deliver over 40 Northland projects totalling $135 million
under the Provincial Growth Fund
• develop a Regional Economic Development project to
consider business model concepts and funding options.
The Northern Transport Alliance (the NTA)
The NTA brings together roading staff from the Far North,
Kaipara and Whangarei District councils, the regional council
and the NZ Transport Agency (NZTA). Since it was established
in 2016 the alliance has achieved a number of important
milestones, including:
• approval of three-year (2018-21) Asset Management Plans
covering the Northland region
• awarded five new and aligned road maintenance contracts
across the three District areas
• developed regionally consistent toolsets for asset
condition assessments and road safety design
• increased the local presence of NZTA staff to improve
planning and funding outcomes.
The alliance now has increased focus on asset planning and
strategy (including safety), project planning and delivery,
maintenance delivery and performance, and wider business
performance and customer responsiveness.10
Far North District Council I Pre-Election Report 2019
With the NTA structure now firmly in place we expect noticeable Economic development
improvements to become evident within the next triennium.
The Tai Tokerau Northland Economic Action Plan was
Digital enablement developed in response to a 2015 Growth Study that identified
economic opportunities to grow investment, jobs and incomes
FNDC is a member of the regional Digital Enablement Group, from key sectors in the region. The Action Plan brings projects
along with the other councils in Northland and the regional together that are contributing to transforming Northland's
economic development agency Northland Inc. The goal of the economy and social development.
group is to achieve 100% connectivity in the region by 2022. The
Digital Enablement Plan 2018-22 details eight projects across The Action Plan was refreshed in 2019 and includes an update
four work streams. A key strand is supporting the 'last mile' to on completed projects. The plan, led by Northland Inc, sets
connect the 5% of households that won’t be reached through out more than 50 projects and is intended to provide for the
central government-funded programmes (UFB, RBI 1 and 2). integration of regional economic development priorities with
central government decision making.
Twin Coast Discovery Route
Northland is identified as one of the six 'surge' regions that will
Council is collaborating with the NZ Transport Agency on the benefit most from central government funding through the
development of seven business cases to support tourism Provincial Growth Fund (PGF). Almost $135 million has been
related improvements on the Twin Coast Discovery Route. allocated to a large number of Northland-based projects, many
The scope is significantly larger than just state highways of them in the Far North.
and includes local road byways, township improvements
and associated infrastructure upgrades. Council has so far So far, PGF investment in the Far North totals just over $44
committed $18,000 to funding of the Wayfinding business million for 19 projects. While some are still in early stages and
case and expects to be notified of further expected funding have been granted funding for business case development,
contributions as the other business case projects near many are well-progressed or completed, including:
completion. The Provincial Growth Fund is likely to be the
primary funding source for the majority of projects arising from • construction of Te Hononga, the Kawakawa Hundertwasser
these business cases. Park Centre ($6.4 million)
Four waters collaboration • regional water storage and use studies ($18.5 million)
A few years ago Havelock North experienced unintended • Waipapa intersection improvement, due for construction
contamination of their major drinking water supply. A this year ($9 million)
government inquiry (Havelock North Drinking Water Inquiry)
followed and, among other issues, concluded that the • the Bay of Islands Airport terminal upgrade ($1.7 million),
relationship between district and city councils and their recently completed
regulatory regional councils could be improved.
• development of the Māori Battalion Museum at Waitangi
As a result of the incident at Havelock North and the inquiry, ($15 million).
the four Northland councils decided to establish a Four Waters
Advisory Group to enable regional collaboration, sharing A large number of Northland-based projects are still proceeding
best practice and processes, and general improvement and through the PGF funding application process, but there is no
maintenance around potable water, wastewater, stormwater doubt that Northland (and hopefully the Far North) will benefit
and flood protection. further as we continue to work with the other Northland
councils to maximise the benefit for us all.
Northland walking and cycling strategy
A steering group made up of representatives from the
Whangarei, Kaipara and Far North District Councils and the NZ
Transport Agency, Northland Inc, Department of Conservation
and the NZ Walking and Access Commission was formed. It's
goal was to develop a Northland Walking and Cycling Strategy
and a tactical framework to support the development and
implementation of individual council walking and cycling
strategies. The strategy was adopted last year, and the steering
group is now working with NZTA to develop business cases for
proposed routes. From an FNDC perspective, our primary focus
is on routes that will extend the local and tourism Twin Coast
Cycle Trail experience.11
Far North District Council I Pre-Election Report 2019
Ngā kaupapa hiranga mō ngā tau e toru nei | Key projects for the next three years
We continue to focus on investing in strong, resilient infrastructure in our communities while maintaining existing levels of service.
While providing essential services such as water supply, stormwater, wastewaster, roading and district facilities remains of high
importance, we must also turn our attention to less tangible but critical issues that we cannot ignore.
We have established a programme of major projects through the Long Term Plan process and are working in partnership the
government, other councils, key groups and others in the region to deliver them. Below is an overview of what the District can
expect over the next three years.
Water • expand the Kerikeri reticulated area to service the central
urban area and upgrade the treatment plant to meet new
Council-owned water supply assets include eight schemes that resource consent effluent discharge limits;
deliver potable water for domestic, commercial and industrial
use to a population of 25,000. Four major towns in the District • ensure all treatment plants comply with current and future
account for 70% of the reticulation network. consent conditions with an immediate focus on renewing
the East Coast, Opononi and Kohukohu resource consents,
• We have nearly completed our work on providing a potable and improvement works to reduce ammonia levels in the
water supply to Omanaia and Rawene . The new treatment discharge from the Paihia treatment plant;
plant is on track for completion by August this year.
• implement a Sludge Management Strategy. Pond
• We have started preliminary project planning for desludging will progress in line with this new strategy.
improvement works at Paihia and Kaitaia with future work Ponds that contain high levels of sludge include Kaitaia,
to start in Kaikohe, Kerikeri and Kawakawa in the next Kaikohe, Kawakawa, Kaeo and Rawene;
three years.
• obtain a new discharge consent for the Hihi wastewater
• A programme of fireflow facility upgrades will continue treatment plant and replace the structurally ailing
across the District. treatment plant; and
• $4 million will be invested in reticulation and plant • invest $8.7 million in maintaining and renewing
renewals, with a further $4.5 million allocated to general components of the wastewater network across the District.
upgrades and just over $1.3 million on water source
renewals across the district. Stormwater
• Our District’s limited sources of raw water and / or Council maintains and manages stormwater schemes within 26
contingency supply during severely dry weather continues defined urban areas in the District. The management systems
to pose a risk to meeting peak demand periods for some include approximately 129km of pipes and approximately 39km
schemes (e.g. Opononi, Rawene and Kaitaia). The next of open drains and overland flow paths.
three years will see a continuation of our work on potential
solutions. • Generally the stormwater network can be considered fit
for purpose. However, there are some large-scale river-
Wastewater generated flooding issues at Waipapa, Kaitaia, Kaeo and
Moerewa that require a combined response from us and
Wastewater infrastructure continues to be a challenging area Northland Regional Council.
for the district due to large number of small schemes that
we own and operate. Generally the network is performing • We expect to invest a total of $5.2 million in the stormwater
adequately, but there are significant challenges in meeting network over the next three years, addressing historic
consent compliance and anticipated future consent standards. issues and maintaining the network in general.
There are also further challenges being placed on our network
in areas where we are growing and where tourism has an • Condition assessments of the stormwater network are
impact during peak periods. scheduled to continue to inform a stormwater strategy. The
new Council may choose to increase funding in this area as
There are a number of strategic priorities for the next three a result of this work.
years and beyond that we aim to achieve. These are:
Roading and footpaths
• reduce the volume and frequency of wet weather
overflows in all wastewater schemes with a particular Transportation forms Council’s largest asset group with
emphasis on Kaitaia; roading and footpaths and related assets accounting for 81% of
Council’s core assets. Key transport assets include 2,508km of12
Far North District Council I Pre-Election Report 2019
roads (34% sealed and 66% unsealed), 715 bridges, two dams, A substantial programme of work is planned for the next few
more than 1,682 street lights, the Pou Herenga Tai Twin Coast years:
Cycle Trail and cycle networks, and one Council-owned ferry.
• A $15 million programme of renewals is underway for
• We are making considerable investments in our unsealed district facilities across the District, including public toilets,
road network as we recognise the ongoing issues such cemeteries, playgrounds and parks, sports facilities, halls
as health implications, and heavy traffic increases caused and community buildings, carparks and street furniture
through forestry harvesting. We have increased our budget such as bins and benches.
for sealing high-priority roads by $2 million to $4 million
in 2019/20 and plan to spend the first part of this year • A three-year programme of work to improve the
identifying which roads will be addressed first. accessibility of our facilities for those with disabilities gets
underway this year. The plan is to tie this work in with
• Climate change factors impact on our transport system regular renewals, so that as we attend to carparks, halls,
from increased rain fall to location of our roads, so we need libraries and toilets, accessibility improvements will be
to factor these impacts in to build a resilient operational carried out at the same time.
network. We plan to resolve historic flooding issues on
West Coast Road near Panguru, with work expected to start • New toilets will go ahead at Mitimiti, Haruru Falls (bush
as soon as the remedial plan has been agreed with the walk), Memorial Park in Kaikohe and Centennial Park in
Panguru community. Kaitaia. Existing toilets at Centennial Park will be relocated
to North Park.
• Our expenditure rate on road maintenance is high compared
to our peers and has been targeted for improvement • With Lindvart Park and Kerikeri Domain Reserve
through the new Activity Management Plan. We aim to Management Plans now in place Council will work with key
reduce expenditure by procuring physical works contracts stakeholders and management bodies to develop plans to
with economy-of-scale benefits realised through the NTA as provide flexible and vibrant spaces with passive and active
well as changes to the mix of maintenance and renewal work recreational opportunities for all ages and abilities. Other
allied with improved prioritised and targeted expenditure. parks and reserves across the District will see investment in
maintenance and renewals of another $3 million.
• Over the next three years we expect to spend $23 million
on renewing and rehabilitating our sealed road network, • The rolling programme of renewals for our network of
another $12 million metalling unsealed roads and pensioner housing will see a further $1.3 million investment.
approximately $4 million on structures across the network,
such as bridges. • $4.7 million has been allocated to marine facilities, $2.8
million for the maintenance and renewals of existing
• Construction on the much anticipated and long overdue structures and the remainder on improvements at Windsor
Waipapa Roundabout on SH10 will get underway soon in Landing and a car and boat trailer park near the boat ramp
partnership with NZTA and using a $9 million allocation at Rangitane.
from the government through the Provincial Growth Fund.
• The Kawakawa library and service centre is scheduled
• We plan to spend $84 million sealing short sections of to move in to Te Hononga, the new Hundertwasser Park
unsealed road in high-priority areas over the next three Centre when the site build is completed during 2019/20.
years, with $4 million allocated for this year.
• Significant activity on animal care facilities can be expected.
• Almost $3 million has been allocated to maintaining and We had budgeted $1.14 million for new dog impounding
constructing footpaths across the District. facilities in the District that meet the design and welfare
standards of animal welfare groups. We had planned
• We will get started on further extensions to the Pou to build a new Northern Area dog shelter near Kaitaia
Herenga Tai (the Twin Coast Cycle Trail) and hope to be before Christmas 2019. However, engineers’ estimates are
able to secure funding to help establish a permanent trail significantly higher and we are reviewing these estimates
between Opua and Taumarere in the Bay of Islands. and investigating more cost-effective options. We have
done a lot of work developing proposals that are a big
District Facilities and Services improvement on our existing facilities and we want to
assure animal welfare groups that design elements that
Maintaining thousands of recreation and leisure facilities focus on animal welfare will remain part of the specification.
spread across a large geographic area is a challenge.
• The Te Hiku Sports Hub is expected to become a landmark
As always, our work programme strives to balance the need asset, providing a major contribution to the District’s
to keep current assets in good condition while delivering new sporting, recreation and social needs. The development of
assets that contribute to people’s sense of place and vibrancy the first stage of the project is underway, and comprises of
of our District. a multi-use sports hub. The second stage is to include an
$8 million indoor pool, co-funded by Council, community13
Far North District Council I Pre-Election Report 2019
fundraising and a recently announced $2.8 million four-stage programme is underway and we expect this work
contribution from the Government. The build is anticipated to deliver results during 2019/20.
to start in 2020/21. Regional funding via a regional
recreational fund may also be available. • Over the past year we have completely renovated our
building consents process and this coming year will see
• For some time now Council and Ngāpuhi have been working more improvements as we implement technology and
together to progress the concept of Tē Pu o Te Wheke (the systems to better serve our customers in this area.
Heart of Ngāpuhi), a community, cultural and tourism hub
in Kaikohe (incorporating community spaces, library, the • Our customer experience programme continues to make
existing Memorial Hall, and Council’s offices). In anticipation good progress, focusing on being more responsive to our
of proceeding with the project we included $11.8 million in customers and enhancing customers’ experience when
our Long Term Plan 2018-28 as Council’s contribution. The dealing with us. The programme now includes analysis of
Government recently provided $178,000 in funding from Request for Service (RFS) information which will help us to
the Provincial Growth Fund to allow Ngāpuhi Asset Holding improve service over time.
Company Ltd to develop a business case on behalf of Te
Rūnanga- Ā-Iwi O Ngāpuhi and the Council. The business • We aim to be more strategy-driven and are developing a
case will form part of a further application to the PGF District Strategy and Spatial Plan called Far North 2100. We
requesting funding for the build of the asset. will seek community feedback on a discussion document
in August 2019 and release a draft strategy and spatial
• FNHL will continue to scope and plan for the Ngawha
plan for formal submissions in February 2020. We are
Innovation and Enterprise Park in 2019/20.
also developing a Regional Climate Change Strategy with
Internal projects other Northland Councils to ensure a regional approach to
climate change adaptation. With support from NZTA and
As an organisation we are forging on with a large programme the Northland Transport Alliance (NTA) an integrated district
of internal initiatives to improve our delivery to the community. transportation strategy is underway. Strategy work aligns
closely with the review of the District Plan to enable us to
• We were one of the first councils to be assessed under
help deliver the future our communities want to see.
Local Government New Zealand’s excellence programme
CouncilMARK™ in 2017. We received a B grade for
• A substantial review of all revenue streams is underway,
leadership, finance, service delivery and community
including revenue from rates, development contributions,
engagement. We are addressing feedback from assessors
and fees and charges. We anticipate that the options will be
and aim to improve this grade in 2019/20. We have
well understood ahead of the 2019 local body elections in
also established programmes to improve the customer
October. The new Council will consider these proposals and
experience and to reduce waiting times for building
seek public feedback on any changes in the second half of
consents. These projects will remain high priorities in
2019/20.
2019/20.
• A significant programme of technology updates and
improvements designed to better support the business
will happen in the coming year. We are now over
halfway through digitising all property records, making
access to property information fast and efficient.
Critical infrastructure upgrades, data and information
management, improved data security and a major website
upgrade are also underway and are expected to deliver
tangible results this year. Our Online Services Programme
will directly benefit customers by allowing them to do
transactions with Council online. Many of our customers
already do their business online as a matter of course -
their shopping, their banking, even their taxes. We are now
configuring our systems so that eventually customers will be
able to make payments, submit applications, report issues
and update their own information online. Residents and
ratepayers will have choice about how, when and where
they interact with Council. This will vastly improve the
experience they have as customers. The first phase of this
A full list of projects can be found in our Annual Plan 2019/20 and our Long Term Plan 2018-28 at
www.fndc.govt.nz/your-council/strategic-planning14
Far North District Council I Pre-Election Report 2019
Ko tā tātou rautaki pūtea | Our financial strategy
Our financial strategy supports our strategic direction and is a legislative requirement. Its intention is to confirm what Council
believes to be appropriate levels of borrowing, rates and expenditure while raising sufficent revenue to meet requirements. We
update our financial strategy every three years through the Long Term Plan process.
In our financial strategy we recognise the following important factors:
• running a balanced budget while responding to the community's desire to keep debt and rates at acceptable levels at the
same time accommodating the increasing costs of delivering infrastructure and services
• keeping operational costs as low as possible so that all available funding can be put to areas where it is needed the most
• considering the interests of the community now and in the future
• managing the cost of adverse weather events that our District is susceptible to and that have in the past, cost significant sums
to repair.
Inflation adjustors
It is common practice across local government to adjust rates and user fees and charges annually in order to counteract inflation
effects. Council uses Local Government Cost Index (LGCI) which measures the buying power of councils; e.g. oil prices and
construction costs.
LGCI forecasts are provided to councils annually and we recognise an increase in costs and adjust our budgets in accordance with
those forecasts.
Balanced budget
Every year we aim to run a balanced budget where income is sufficient to cover expenditure. How we measure this is prescribed
by legislation.
Rates revenue
We aim to keep the level of total rates income below 90% of total revenue, and have maintained this at between 81% and 83% in
the past three years. We expect this to remain fairly static across the next four years.
Because of the impact inflation has on Council's purchasing power, we factor inflation increases into our budgets so that we
can continue to adequately fund our activities. We do, however, set a limit, aiming to increase rates no more than the Local
Government Cost Index inflation rate plus 2.5%. We have maintained lower increases every year and forecast to continue this
trend for the next four years.15
Far North District Council I Pre-Election Report 2019
Revenue
Where our revenue comes from
24% 4%
Targeted rates Other
(including water supply)
12%
Fees and charges
19%
Subsidies
41%
General rates
Our sources of revenue includes rates, government subsidies, fees and charges and other income, e.g. dividends from Far North
Holdings Limited. The majority of revenue (65%) comes from rates (including water supply).
Fees and charges revenue
Approximately 12% of our revenue comes from user fees and charges and as with rates, our current strategy is to increase these
annually (with a few exceptions) by no more than the Local Government Cost Index inflation factor.
Revenue from government subsidies
A portion of our revenue comes from government subsides, mostly from the New Zealand Transport Agency for roading and from
the Ministry of Health for project-specific water and wastewater projects. Maximising this income stream is a core focus for our
infrastructure teams.
Rates increase What you are getting for your rates dollar in 2019/20
2019/20
4.0%
Long Term Plan
Year two
predicated
19¢
Roading
13¢
Wastewater
10¢
Customer
10¢
Community
10¢
Regulatory
services services services services
3.36 % 9¢
Forward
6¢ 6¢
Stormwater and
4¢ 4¢
Governance
Recreational Refuse - transfer
Annual Plan
planning facilities flood protection stations
actual
3¢ 3¢ 1¢ 1¢
Housing for
1¢
Footpaths
Sustainable Water Public
environment supply safety the elderly16
Far North District Council I Pre-Election Report 2019
Expenditure
District Facilities 13% 32% Roading and Footpaths
Environmental Management 11% 4% Stormwater
4% Solid Waste Management
6% Strategic Planning and Policy
Wastewater 11%
7% Customer Services
Governance 4% 7% Water Supply
Source: Budgeted - 2019/20 Annual Plan
Approximately 80% of our income is allocated to the provision of core and community infrastructure. Ten percent goes towards
our regulatory work, e.g. building and resource consents and animal control. The remainder covers the costs of the governance,
policy and planning functions.
Operating expenditure
We aim to invest approximately 85% of rates income in operating expenditure, with the remainder funded through user fees
and charges, and government subsidies. Efforts to keep operating costs as low as possible are constant and we have chosen to
increase expenditure in order to lift our organisational capacity and capability. We are confident this will result in further cost
savings from successes such as reduced reliance on contractors and consultants and improve procurement processes. Annual
operating costs at present are sitting around $126.06 million (Annual Plan 2019/20).
Capital and operating expenditure
180
160
140
120
Millions
100
80
60
40
20
0
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Operating expenditure Capital expenditure
Capital expenditure
We prioritise and optimise our capital works programme to ensure the efficient and effective use of internal and external
resources. What is not spent one year is carried forward to the next year.17
Far North District Council I Pre-Election Report 2019
Debt funding Net debt affordability as a
percentage of revenue
Debt is used to fund new capital projects. Estimated total borrowings for 2019/20 is
$84.7 million ($20 million less than forecast in year two of the Long Term Plan). This is
due to prudent financial management but mostly because we are behind on our
capital programme and have not drawn down on available debt funding as a result. LIMIT18
Far North District Council I Pre-Election Report 2019
Ngā kōrero pūtea | Financial statements
Past, present and future financials 2016 to 2023
The funding impact statement (FIS) is one of the key statements in this report. It pulls together information from each of Council's
different activity groups and is prepared as a single statement that shows the sources of both operating and capital funding for
everything Council does.
This statement is prepared in a different format to most of the other financial statements included in this document and provides
a synthesis of Council's overall funding requirements. Its format is prescribed by legislation.
Summary funding impact statement - Whole of Council
Annual Annual Estimate Long Long Long
Report Report Annual Annual Term Term Term
Actual Actual Report Plan Plan Plan Plan
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$000s $000s $000s $000s $000s $000s $000s
Sources of operational funding
General rates, uniform annual general charges, 49,422 48,498 55,541 58,313 57,678 59,259 61,791
rate penalties
Target rates 28,306 30,967 31,149 31,289 34,353 35,481 36,796
Subsidies and grants for operating purposes 7,683 7,798 9,396 10,020 9,931 10,043 10,273
Fees and charges 16,809 16,920 15,749 16,101 15,624 15,671 15,967
Interest and dividends from investments 815 1,091 1,052 1,370 1,064 1,064 1,064
Local authority fuel tax, fines, infringement 2,269 1,509 977 1,052 983 986 989
fees and other receipts
Total operating funding 105,303 106,783 113,865 118,146 119,633 122,504 126,880
Applications of operating funding
Payment to staff and suppliers 71,781 73,656 86,708 89,863 85,981 87,167 89,499
Finance costs 2,466 2,365 2,594 2,253 4,594 5,037 5,680
Other operating funding applications 727 788 - - - - -
Total applications of operating funding 74,974 76,809 89,301 92,117 90,575 92,204 95,179
Surplus (deficit) of operating funding 30,329 29,974 24,563 26,029 29,058 30,299 31,701
Sources of capital funding
Subsidies and grants for capital expenditure 13,000 20,103 21,566 15,197 17,392 21,108 20,437
Development and financial contributions 327 48 - 2,977 3,043 -
Increase (decrease) in debt (4,000) (2,500) 18,235 26,016 10,064 14,617 13,804
Gross proceeds from sale of assets - - -
Lump sum contributions - - 86 - - - -
Total sources of capital funding 9,328 17,651 39,886 41,213 30,432 38,768 34,241
Applications of capital funding
Capital expenditure to meet:
- Additional demand 20 - - - - - -
- Improved levels of service 13,002 17,418 32,725 33,618 27,951 38,305 28,683
- Replacement of existing assets 20,035 27,660 29,754 30,175 32,101 34,899 39,396
Increase (decrease) in reserves 6,287 2,352 (4,029) 3,449 (561) (4,137) (2,137)
Increase (decrease) in investments 314 194 6,000 - - - -
Total applications of capital funding 39,657 47,624 64,449 67,242 59,491 69,067 65,942
Surplus (deficit) of capital funding (30,329) (29,974) (24,563) (26,029) (29,058) (30,299) (31,701)
Funding balance - - - - - - -You can also read
