final 1112 annual report - buller district · 2013-08-12 · 5 mayors & ceos introduction...

2011

/2012

�Annu

al�Rep

ortBu

ller D

istric

t Cou

ncil

Buller District Council

Online�Version:To save on both cost and environmental impact, this report has been created with online viewing in mind.

Only a limited number of the printed version have been produced.

www.bullerdc.govt.nz

ContentsOverview 5Message from Mayor and Chief Executive 5Contact Details 9Mayor and Councillors 11Inangahua Community Board 13Statement of Compliance & Responsibility 15Governance 17Community Outcomes 19Financial Highlights 25Consultation with Maori 29

Our�Work�in�Detail 31Democracy 31Community Services 37Environmental Services 47Emergency Management 53Amenities & Reserves 57Roading & Urban Development 63Water Supplies 69Solid Waste 77Wastewater 81Stormwater 87Support Services 91In-house Professional Services 97Westport Harbour 99

Council�Controlled�Trading�Organisations

101

Westport Airport 101Buller Holdings Limited 103WestReef Services Limited 105Westport Harbour Limited 106Buller Recreation Limited 109Buller Health Trust 111Tourism West Coast 112

Financial�Statements 113Statement of Comprehensive Income 114Statement of Changes in Equity 115Statement of Financial position 116Statement of Cashfl ows 118Notes to the Financial Accounts 121

Accounting Policies 171

Audit Report 185Co

ntents

.....................................................................................................................

....................................................................................................................................................

55

Mayors�&�CEOsIntroduction

Welcome to Council’s 2011/2012 Annual Report. This Annual Report provides comprehensive information to you, our community, about our activities for the year, the projects we have undertaken and the ser-vices we have delivered. It compares these actions and our financial results to the goals and budgets we set at the beginning of the year to provide accountability and feedback to our residents about how we have performed.

This year was an extremely busy year for Council. Work started on our ten year Long Term Plan (LTP) in December 2011 fi nalising the process in June 2012 with the adoption of our audited 2012-22 LTP. In this plan, we reviewed the existing levels of services across all Council’s activities and confi rmed or amended just what would get done and how we would pay for those things. We also examined the Buller’s economic activity to identify opportunities for Council to work with the community to achieve a prosperous future for the District. Consultation on the Plan began in April 2012 with Roadshows conducted in Westport, Reefton, Punakaiki and Karamea. These question and answer sessions were well attended and gave Councillors the opportunity to listen to your issues and views. The end result was a plan that balanced services provided with affordable costs and addressed some of our key infrastructure upgrades, while maintaining a sustainable and sound fi nancial position.

Completion of a comprehensive and strategic ten year plan was a major milestone for the Council. We are now fi rmly committed to a growth pathway that aims to ensure that the current economic boom enables a long term diversifi ed and sustainable future for the district.

Drinking water quality has remained a contentious issue during the year. Council remains committed to both fi nding a long term solution for the Westport Water Supply and bringing other district schemes up to the Drinking Water Standards. In November 2011 Council made a decision to proceed with a ten year phased upgrade for Westport with a budget of $10.6 million and we were pleased to be successful in obtaining an initial Ministry of Health subsidy of $1.47 million. This upgrade of the Westport water supply will provide consistent and safe water to Westport, as required to meet NZ health standards. Council has engaged Consultants Opus International to undertake project management, investigation and preliminary design, which is likely to continue through to March 2013.

During the year the covered Water Reservoir for the Reefton Water Supply was completed and the water treatment plant commenced. This treatment plant, adjacent The Strand in Reefton, will ensure that water delivered to the residents of Reefton will comply with the Drinking Water Standard of New Zealand and will be completed in 2012.

Mayor

s�&�CE

Os��In

trodu

ction

6


Other�Key�Issues�and�Projects�worked�on�during�the�year�included:Infrastructure�Projects• Drinking Water Standards subsidies have been approved for Ngakawau-Hector, Waimangaroa and Punakaiki Water Sup-

plies

• Continuation of the Derby Street upgrade project

• Development, review and consultation on the Waste Minimisation Strategy

Community�Facilities�&�Services• A decision to lift the hockey turf so that the causes of the performance problems experienced by hockey players could be

established.

• Council has committed to getting the Buller Hockey Turf fi xed and relaid and has began negotiations with contractors to fi nd a resolution. All parties involved in the original construction of the turf have met, and while progress has been made, no fi nal settlement has yet been reached.

• During the fi nancial year architectural designs were fi nalised for the Cultural Hub. Tenders were called for the construction of the Cultural Hub and in June 2012 Council agreed to relocate the Coaltown Museum and I-site into the Cultural Hub and ap-proved the construction of the new facility in Palmerston Street.

• The Grants Committee allocated $1.63 million towards community based projects from the Extraordinary Distribution Fund of Development West Coast. This funding has proved crucial in kick starting some key community based projects.

• Development and national distribution of the Buller Touring Guide was undertaken, which showcases the tourism attractions and services in all areas of our beautiful District. This 44 page booklet is the fi rst comprehensive guide to the Buller that has ever been produced. Its design complements the themes in our Buller website and makes it easy for visitors to orientate them-selves with the extensive use of maps along with great photographs and local information. We thank our local businesses for the support they have shown for this guide book.

Regulatory�Services• The Planning Department has had a busy year with some complex and resource high profi le consents in the mining

sector including Solid Energy’s Mount William Coal Mine application at Stockton and changes to the Globe Hill/Oceana Gold consent in Reefton.

• The Building Control Function has once again achieved accreditation after the two yearly audit in December 2011.

• More active monitoring of licensed premises has taken place over the last 12 months by the three agencies - Council (District Licensing Authority), the Police and Community and Public Health with various enforcement actions being undertaken to address non-compliance.

• The Planning Department has also been heavily involved in progressing the resolution of appeals made through the Environment Court appeal process in relation to Buller Coal Holdings coal mine application and the Meridian/Mokihinui hydro power scheme.

• Council gave its fi nal approval to the fi rst two sets of the Buller District Plan on 21 September 2011. These changes became a fully operative part of the Buller District Plan on that day.

• There has been extensive consultation with our community on the Freedom Camping Bylaws.

Westport�Harbour�• There has been ongoing collaboration between Westport Harbour Ltd and Bathurst Resources Ltd. The intention is to

develop a long term sustainable shipping business for West Coast coal and prospects for this opportunity are good.

• All this bodes well for development and economic growth in the Buller. At the same time to strengthen and under-pin the importance of developing a diversifi ed economy Council has changed the future focus of the Promotion and Development offi ce to an Economic Development role.

7

In April 2012 we received the great news that Buller was the leader in the Business and Economic Research Ltd (BERL) re-gional rankings report for economic growth. According to the BERL report for 2011, Buller was the best performing local authority in New Zealand. Out of the nine ranking indicators Buller topped four to gain this coveted top spot. In 2011 Buller had the high-est employment and business unit growth for the country and over the past fi ve years we have had the best employment and GDP growth of all the districts throughout New Zealand.

Buller District Council does not operate in isolation and in the background of our day-to-day work the Local Government sector continues to be reshaped by extensive reform and legislative change. The proposed Better Local Government reforms, changes in the Liquor Licensing Act and the impending building consent changes that are expected from the Christchurch Royal Commission of Enquiry are some of the external challenges we face.

The last year has also produced intensive focus on Council debt by central government and the media. I am pleased to report that currently our Council has a net debt profi le of $9.3 m after a period where we have tackled some major infrastructure and com-munity projects which have vastly improved our levels of service to the Buller community. Even with some large projects scheduled over the next ten years we are committed to keeping net debt at conservative levels while matching capital costs over the life of these assets.

After many decades of deferring major capital expenditure in the face of declining population the current generation has been forced to fund the inevitable catch up. That has placed enormous strain on the Council and its ratepayers. Fortunately we are through the worst of it, and if we can maintain the present growth cycle, the additional ratepayers will help ease the individual burden on each ratepayer.

Summary�of�Financial�Performance�for�the�yearCouncil is reporting a bottom line ‘Comprehensive Income’ surplus of $13.3 milion. This is a favourable variance against an original budget prediction of a Comprehensive Surplus of $6.2 million, however, $13.8 million of this surplus was due to biennial asset valu-ation gains. The original budget preduction for these gains was $4.6 million in 2011/2012 and $4.5 million in 2010/2011.

At an operating level Council recorded a small defi cit of $0.5 million, instead of the surplus of $1.6 million originally budgeted. Much of this shortfall can be attributed to a variety of one-off events such as the impairment provision in respect of Council’s shareholding in Buller Recreation Limited ($679,000), changes in the accounting treatment of some Council building maintenance expenditure ($130,000), various asset right-offs or loss on sales ($515,000), a loss on derivative contracts ($259,000).

When these one-off transactions are removed the underlying operating position of Council shows an increase in operating costs of about $1.4 million. This increase in operating costs is the result of increased activity. There has been an increase in operating revenue of about $1.5 million too.

Council’s net cash and net debt position has improved by $1.7 million.

This improvement in Council’s net debt position was primarily due to Council not spending as much as had originally been pre-dicted on its capital works programme. In the 2011/2012 budget Council had expected to spend more than $10 million acquiring additional fi xed assets. Not all these projects have occurred as scheduled and in particular delays in proceeding with the Cultural Hub project and three of the drinking water improvements are not suffi ciently advanced to be recorded in the accounts cut-off for 30 June 2012. However, the costs of these projects and any subsidy contributions will fl ow through in next year’s accounts.

The overall result for Council is a signifi cant improvement on the defi cit recorded in the 2010/2011 year. While the result does show several variations from the original budget projections, these variations are largely the result of one-off unbudgeted events. Overall, the improvement in shareholders equity and the further reduction in net debt are satisfactory indicators of Council’s overall fi nancial health.

Pat McManus - Mayor 31 October 2012

Paul Wylie - Chief Executive31 October 2012

99

Contact�Details

Brougham�House

4-6 Brougham Street Phone: [03] 788-9111

PO Box 21 Fax: [03] 788-8041

WESTPORT 7866 Freephone: [0800] 807-239

Email: [email protected]

Reefton�Service�Centre66 Broadway Phone: [03] 732 8821

PO Box 75 Fax: [03] 732-8822

REEFTON 7851 Freephone: [0800] 807-821

Sue�Thomson-Casey�Memorial�Library87-89 Palmerston Street Phone: [03] 788-8030

WESTPORT 7825 Fax: [03] 788-8147

www.bullerdc.govt.nz

1111

Mayor�&�Councillors

left from front:Councillor’s David Barnes, Graeme Neylon, Graham Howard, Jim Halsall and Dave Hawes

centre:His Worship the Mayor, Pat McManus

right from front:Councillor’s Fred Ratahi, Margaret Montgomery, Rosalie Sampson, Peter Campbell and John Hill

12


MayorPat McManus (Mayor - Buller District)First Elected: 2000

Phone: [03] 789-7013 | [027] 208-7583


Westport WardDavid BarnesFirst Elected: 2007

Peter CampbellFirst Elected: 2007

Phone: [03] 789-6494 | [021] 159-1593 Phone: [03] 789-6421 | [027] 434-8157

Email: [email protected] Email: [email protected]

Jim Halsall John Hill First Elected: 2007 First Elected: 2010

Phone: [03] 789-7546 (private) Phone: [03] 789-6415 | [021] 199-7155


Graham Howard Margaret MontgomeryFirst Elected: 2010 First Elected: 2004

Phone: [03] 789-8787 | [027] 534-3129 Phone: [03] 789-7043 | [027] 433-6016


Seddon WardFred Ratahi Rosalie SampsonFirst Elected: 1998 First Elected: 1989

Phone: [03] 782-8119 Phone: [03] 782-6745 | [027] 356-7388


Inangahua WardDave Hawes Graeme Neylon First Elected: 2007 First Elected: 1992

Phone: [03] 732-8423 Phone: [03] 732-8382 | [027] 431-4659


13

Inangahua Community BoardJenette Hawes (Chair)First Elected: 2004

Phone: [03] 732-8423


Helen Bollinter First Elected: 2008

Phone: [03] 732-8123


Barrie FowlerFirst Elected: 2008

Phone: [03] 732-8488


Megan McCarthyFirst Elected: 2007

Phone: [03] 732-7006


1515

Statement�of�Compliance�&�Responsibility

ComplianceThe Council and Management of the Buller District Council confi rm that all the statutory requirements in relation to the An-nual Report, as outlined in the Local Government Act 2002, have been complied with.

ResponsibilityThe Council and Management of the Buller District Council accept responsibility for the preparation of the Annual Financial Statements and the judgements used in them. The Financial Statements are unable to be amended following issue.

The Council and Management of the Buller District Council accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of fi nancial reporting.

In the opinion of the Council and Management of the Buller District Council, the Annual Financial Statements for the year ended 30 June 2012 fairly refl ect the fi nancial position and operations of the Buller District Council and Group.

Pat McManus - Mayor 31 October 2012

Paul Wylie - Chief Executive31 October 2012

1717

GovernanceCouncil complies with the laws of New Zealand and adheres to good business practice by relying on the processes and systems which constitute the fabric of the organisation. Stakeholders rely on these processes to obtain information on Council operations and to obtain assurance that Council is working in the best interest of the community. This section identifies the parameters within which the business of Council is run.

Division�A key to the effi cient running of the Council is the clear division between the role of Council and that of manage-ment. The Council concentrates on setting policy and strategy, then reviews progress. Management is concerned with implementing the policies and strategies.

While many of the Council’s functions have been delegated, the overall responsibility for achieving the vision and goals of the district ultimately rests with the Council. The Council discharges this responsbility by maintaining ef-fective systems of internal control. Internal control includes the policies, systems and procedures established to provide measurable assurance that specifi c objectives of the Council will be achieved.

Training�Elected�RepresentativesAfter each election the Council holds training sessions for all Councillors to review their responsibilities as elected members. These sessions include meeting procedures and an overview of the legislative parameters within which local authorities operate.

Legislative�ComplianceBeing a regulatory body, the Council administers various regulations and laws. As such, it is vital the Council also complies with all relevant legislation.

AuditThe Local Government Act 2002 requires the Council to prepare fi nancial statements that fairly refl ect the organisa-tion’s fi nancial position, performance and cashfl ows. In addition, the Council is required to report on the achieve-ment of non-fi nancial objectives, set three yearly as part of the Long Term Plan process.

Section 15 of the Public Audit Act 2001 requires the Auditor-General to audit both fi nancial and non-fi nancial state-ments. Audit New Zealand is contracted to perform the audit on behalf of the Auditor-General.

Internal�AuditThe Council has an internal audit function which is responsible for monitoring the Council’s systems of internal con-trol and the quality and reliability of fi nancial information reported to the Council. The Council liaises closely with the external auditors who review the internal control systems to support their audit opinion.

Monitoring�Council�Controlled�OrganisationsThe Council has interests in other organisations, these include Buller Holdings Limited, Westport Harbour Limited, WestReef Services Limited, Buller Recreation Limited and Westport Airport Authority. These organisations are re-quired to produce a Statement of Intent developed in consultation with Council.

Other interests of Council include Buller Health Trust where the Mayor and Chief Executive are Trustees, Tourism West Coast where Council appoints two board members, Buller Art and Recreation Trust (BART) where one Councillor is a Trustee and Denniston Heritage Charitable Trust where two Trustees are appointed by Council.

1919

Community�Outcomes

The Local Government Act 2002 has prompted changes in the way which Council plans for the future of the district. It also provides greater scope for communities to make their own choices about what Council does and the way in which it does these things.

The legislation requires Council to undertake a process, at least every six years to identify community out-comes.

These outcomes are determined by the community, rather than by Council. However, they do provide Council with clear direction in planning by forming the basis for the Long Term Plan.

In 2005 Council facilitated a full community outcomes consultation for the Buller District. Council staff re-viewed the feedback received during the consultation process and an overview report “Mapping A Future For Buller” was produced. After publishing the results and providing an opportunity for comment, Council was satisfi ed that we had refl ected what was important to the community.

The�following�six�high�level�outcomes�were�identified:

Health

Education

Safety

Environment

Economy

Identity

Comm

unity�

Outco

mes

20


��HealthWe will know we are succeeding when we: How will progress be measured: Provide essential services to residents and businesses to

support a healthy environment Food premises inspections Sewerage disposal services

Promote opportunities for community access to health information and participation

Waste management Water supply

Advocate for local community on health issues/services Healthy homes Establish an environment of support and assistance to

health providers Support alcohol and drug education initiatives Support for community health initiatives

Sports and recreation facilities Cemetery management Buller Health Trust

Activity support recruitment of medical professionals

Health information provided in libraries Work closely with West Coast District Health

Board Work with Department of Conservation to

improve participation and enjoyment

��EducationWe will know we are succeeding when we: How will progress be measured: Provide a supportive environment for education providers Library services Recognise and support education excellence and

opportunity in the district Grant activities Relationships with education providers

Advocate for local community in provision of education services and related issues

Support for literacy programmes

Support the implementation of employment and training initiatives that offer improved employment, skill and income opportunities

Education programmes Youth worker networks

Promote friendly Local Government Road Safety networks Celebrate community and individual achievements Road education safety

Provision for pool facilities and sports grounds Scholastic awards to local students Support for learning and education initiatives

and competitions Support for school programmes and curriculum Internet access at libraries Advocate for suport of training initiatives

21

��SafetyWe will know we are succeeding when we: How will progress be measured: Provide and develop safe public places Animal control activities Assist in reducing crime and accident levels Liquor licensing and bans Promote friendly Local Government and provide

opportunity for involvement Enforcement and monitoring Elderly Housing

Provide opportunity for the community to work in partnership with Council

By-laws Youth worker networks

Welcome residents, businesses and visitors Civil defence, rural fi re and emergency management

Celebrate community and individual achievements Road and traffi c safety/user safety Recognise and support those with special needs and

requirements Hazard identifi cation/lifelines Community awards (host responsibility) Townwatch and security cameras Safety initiatives and projects Street lighting, road cleaning and vegetation

control Consultation policies and practices Support for community projects/groups Communication policies and practices Disabled access, building control/priority paths

��EnvironmentWe will know we are succeeding when we: How will progress be measured: Develop policies and implement practices that enhance

our environmental sustainabllity and natural diversity District Plan Resource consent process

Recognise and preserve the essential elements of the district’s landscape that contribute to Buller’s unique natural identity.

Monitoring and enforcement Waste management

Ensure that planning processes enable effective public consultation over an appropriate balance between the natural and built environment

Harbour management District promotion

Develop practices that help to improve cleanliness and sustainability of the districts infrastructure

Relationship with Department of Conservation Road upgrade improvements

Access central Government funds to support infrastructure development and improvement

Wastewater/sewerage projects Parks and reserves maintenance Maintenance and development of walkways Support/implement community projects, ie

beach cleanups Relationship with key industries Town planning/urban design

22


��EconomyWe will know we are succeeding when we: How will progress be measured: Develop policies and implement practices that enhance

our environmental sustainabllity and natural diversity District promotion Support of Business Assocation and Buller

Promotions Association Recognise and preserve the essential elements of the district’s landscape that contribute to Buller’s unique natural identity.

Building consent liaison with businesses/developers

Ensure that planning processes enable effective public consultation over an appropriate balance between the natural and built environment

Road improvements to support industry Relationships with key industries

Develop practices that help to improve cleanliness and sustainability of the districts infrastructure

Film and business friendly strategies Street enhancements and urban design

Access central Government funds to support infrastructure development and improvement

Purchasing policy District Plan reviews Mayor’s Taskforce for Jobs Transport infrastructure: airport/harbour/

roading Support to health and education providers

��IdentityWe will know we are succeeding when we: How will progress be measured: Support and encourage community groups and

organisations providing events within the region Libraries and theatres Sports facilities and community halls

Provide a range of arts, cultural, recreation and social facilities throughout the district

Community Grants Facilitate Creative New Zealand grants

Encourage and support other organisations in providing arts, cultural, recreational and social facilities throughout the district

Support to cultural organisations such as museums

Ongoing support of events

Provision of appropriate infrastructure to support a vibrant community

Provision for public toilets/facilities Maintenance of parks and reserves

Facilitate community grant process to assist in the provision of events and services that support a vibrant community

Road and signage Urban design

Visitor information Camping ground Replacement of pools/sports venues New or upgraded theatre facilities

23

As required by Section 92 of the Local Government Act, we have finalised monitoring documents on the Community Outcomes, together with the Regional Council and other local District Councils on the West Coast. It was agreed that this would be jointly done to expedite the process and to achieve cost and efficiency synergies.

To-date indicators across all outcomes have been agreed and draft monitoring reports have been fi nalised. The District Council’s and Regional Council have met quarterly to achieve agreement on the community outcome indicators and have chosen indicators based on consultation with Statistics New Zealand and the Department of Internal Affairs. It is important also that the indicators chosen are both meaningful to the community and data to measure progress is readily available. It was agreed that the Regional Council would take a lead role in consolidating the draft monitoring reports. Monitoring reports were fi nalised during June 2009 and were made publicly available.

During 2011 as part of the Long term Plan process Council consulted on its community outcomes. This resulted in a change to the Community Outcomes for the Long Term Plan.

New Community Outcomes in the Long Term Plan are

1. Well-being

2. Learning

3. Who we are

4. Sustainable Environment

5. Prosperity

Community Outcomes are identifi ed as the outcomes which a local authority aims to achieve in order to promote the social, economic, environmental, and cultural well-being of its district or region, in the present and for the future.

2525

Financial�Highlights

Annual�ReportThis summary provides an overview of the information contained in the Annual Report for 2011/2012 financial year. We have prepared it to help you understand how we performed against our plans for that particular year and includes details of any significant variances in operational and capital expenditure.

Council is reporting a bottom line ‘Comprehensive Income’ surplus of $13.3 milion. This is a favourable variance against an original budget prediction of a Comprehensive Surplus of $6.2 million, however, $13.8 million of this surplus was due to biennial asset valuation gains. The original budget preduction for these gains was $4.6 million in 2011/2012 and $4.5 million in 2010/2011.

At an operating level Council recorded a small defi cit of $0.5 million, instead of the surplus of $1.6 million originally budgeted. Much of this shortfall can be attributed to a variety of one-off events such as the impairment provision in respect of Council’s shareholding in Buller Recreation Limited ($679,000), changes in the accounting treatment of some Council building maintenance expenditure ($130,000), various asset right-offs ($515,000), a loss on derivative contracts ($259,000).

When these one-off transactions are removed the underlying operating position of Council shows an increase in operating costs of about $1.4 million. This increase in operating costs is the result of increased activity. Operating revenue increased about $1.5 million too.

Council’s net cash and net debt position has improved by $1.7 million.

This improvement in Council’s net debt position was primarily due to Council not spending as much as had originally been predicted on its capital works programme. In the 2011/2012 budget Council had expected to spend more than $10 million acquiring additional fi xed assets. Not all these projects have occurred as scheduled and in particular delays in proceeding with the Cultural Hub project and three ofthe drinking water improvements are not suffi ciently advanced to be recorded in the accounts cut-off for 30 June 2012. However, the costs of these projects and any subsidy contributions will fl ow through in next year’s accounts.

The overall result for Council is a signifi cant improvement on the defi cit recorded in the 2010/2011 year. While the result does show several variations from the original budget projections, these variations are largely the result of one-off unbudgeted events. Overall the improvement in shareholders equity and the further reduction in net debt are satisfactory indicators of Council’s overall fi nancial health.

Operating�RevenueCouncil achieved additional revenue of $1.5 million in comparison with the budget. The total operating revenue was $23.7 million versus budgeted revenue of $22.2 million. This favourable variance is mainly due to additional fi nan-cial assistance received ($148,000), investment income ($320,000) and higher than anticipated fees and charges ($915,000). Fin

ancia

l�High

lights

26


Financial�AssistanceCouncil received fi nancial assistance which totalled $5.2 million versus a budget of $5.0 million. This is mainly attributable to the following.

The additional amount received in fi nancial assistance was due to the recognition of the sponsorship for the Cultural Hub which had in prior years been treated as Revenue Received in Advance. Revenue totaling $830,000 was recognised in this fi nancial year when the project was approved by Council on 27 June 2012. Contributions budgeted to be received within the 2011/2012 totalling $500,000 were not received due to late approval of the project which hindered further fund raising. Overall there was a favourable variance for sponsorship income for the Cultural Hub project of $330,000.

Unbudgeted external sponsorship income for the NBS Theatre and Solid Energy Centre and contributions from the Develop-ment West Coast Extraordinary Fund for community based projects accounted for a further favourable variance of ($722,000).

Lower than planned income from New Zealand Transport Authority (NZTA) was recorded. Variations are to be expected as there are cyclical variations in the agreed three year approved Roading programme with NZTA.

In addition the Waimangaroa and Ngakawau- Hector Drinking Water Upgrades were deferred to 2012/2013 which resulted in no fi nancial assistance being received for these upgrades. Lower than anticipated subsidies for the Reefton and Punakaiki schemes were received as both these upgrades were still in progress at year end. The reduction in fi nancial assistance for the water upgrades totalled $725,000.

Dividend�Income�Dividend and subvention income received totalled $1.3 million versus a budgeted amount of $825,000.

This is due to the fact that Council received the 2010/2011 dividend of $580,000 from the Holding company in the 2011/2012 fi nancial year. During the year Council received a total of $521,000 ($245,000 as a dividend from Buller Holdings and $276,000 as a subvention payment from Westreef Services) against a 2011/2012 budgeted dividend/ subvention income of $825,000.

Fees�and�ChargesFees and charges received totalled $4.4 million versus a budget of $3.5 million. This is due to lease income of $208,000 from Westport Harbour and unbudgeted income from the Domain Boards of $353,000. A budget error in the Fees and Charges for dog registration income resulted in the budgeted income being understated by $319,300.

Revaluation�of�Investment�LandRevaluation of investment land was $141,000 more than budgeted. This favourable increase is market driven.

Operating�ExpenditureOperating Expenditure incurred totalled $24.4 million versus budgeted expenditure of $20.6 million. This unfavourable vari-ance of $3.8 million is explained below.

Employee�Benefit�ExpensesThe overrun in employee benefi t expenses is due to an unbudgeted correction of prior year health care expenses and un-budgeted provisions for retiring gratuities, employee entitlements and long service leave ($123,000).

DepreciationDepreciation is $212,000 above budget due to the non funding of depreciation for certain assets which are funded from Reserve Contributions or from external subsidies. Depreciation is not provided for in the budget but is accounted for in the fi nancial statements. Depreciation was unbudgeted for the Harbour but this was offset by the lease income.

27

Finance�CostsFinance costs were $271,000 lower than budgeted due to lower than anticipated interest rates and the deferral of major capital projects such as the Cultural Hub and Waimangaroa, Ngakawau-Hector Drinking Water Upgrades.

Other�ExpensesOther expenses incurred exceeded budget by $ 2 million. This is mainly attributable to subsidiary transactions ($875,000) and overruns in expenditure ( $1,125,000)

Subsidiary�TransactionsChange in accounting treatment at year end for painting resulted in unbudgeted expenses totalling $130,000 being recog-nised.

Recognition of the obligation at year end to Buller Recreation for the remediation of the hockey turf ($745,000)

Expenditure�Variances• Unbudgeted grants for Vision 2010 projects not owned by Council (Reefton V2010 projects - $63,000; Seddon - $5,000)

• Unbudgeted legal and consultant expenses associated with preparation for the hockey turf dispute with contractors ($64,000)

• Predicted budget effi ciencies not materialising for Repairs and Maintenance in Parks and Reserves ($120,000)

• Greater usage of external consultants to assist with the higher workload associated with signifi cant increase in re-source consents and for complex high profi le resource consents ($133,000). This was offset by higher income levels which resulted in the full recovery of this expenditure.

• Domain Board expenditure required to be included in the fi nancial statements but not included in council budgets ($295,000)

• The overrun on solid waste composting costs ($66,000) occurred because of the shortage of greenwaste material taken to the transfer station. The activated sludge waste water treatment plant produces biosolids on a daily basis as part of the treatment of sewage. The biosolids need to be disposed of and the production of compost is a safe and productive way of dealing with biosolids. The overrun on the production of compost should not be taken out of context as it is one aspect of the waste water treatment. Overall the Westport wastewater was 4.7% over budget.

• Greater costs in contract supervision and repairs and maintenance in Reefton, Westport, Waimangaroa totalling $61,000. This is associated with the repeated backwash pump failures in Westport, a higher than anticipated volume of repairs in Reefton and trunk main repairs in Waimangaroa.

• Higher than anticipated costs of operating the landfi ll and transporting the refuse and recycling ($83,000) were re-corded. Once again effi ciencies envisaged in the budget did not materialise.

• Council paid $256,000 towards power and heat for Buller Recreation which is accounted for under “other expenses”. This is offset by the contribution totalling $157,000 under “fees and sundry”. The expense budget was exceeded by an amount of $33,000.

RevaluationCouncil revalued its infrastructural assets during the 2011/2012 fi nancial year and this infrastructural resulted in the increase in the revaluation reserve totalling $13.8 million.

2929

Consultation�with�Maori

An opportunity for Maori to contribute to the decision making processes of the Local Authority

Consu

ltation

�with�

Maori

The Buller District Council continues to participate in local kaitiaki ropu meetings with local Iwi and the Department of Conservation as appropriate. Iwi have indicated that addi-tional liaison groups, such as an Iwi Liaison sub-committee would pose resource issues for them at this time.The public forum available before all Council meetings have been utilised over the past year by local Maori to raise con-cerns or issues with Council.Both the Papatipu Runanga - Ngati Waewae and local com-munity groups working with Maori are included on Council’s stakeholder database and are included in information dissem-ination such as Council newsletters and consultation docu-ments.Ngati Waewae was included in stakeholder group discussions prior to consultation within the district on community out-comes.

3131

DemocracyWhat�do�we�do?Council is an elected body that provides a governance structure for effective leadership, advocacy and accountable stewardship of the Council’s assets and resources.

The Council is made up of the Mayor, 10 elected Councillors and the Inangahua Community Board. They are sup-ported by a Chief Executive and Council staff. Under the Local Government Act 2002, our statutory roles are:

• To enable democratic local decision making and action by and on behalf of the people of the Buller District

• To promote the social, economic, environmental and cultural wellbeing of the Buller District, in the present and in the future

The Council develops strategies and policies which set the direction for the future of the Buller District Council by including the democratic and decision making processes of Council such as informing the public, generating feedback and involving people in the decision making process.

Why�do�we�do�it?Council wish to ensure that the community is satisfi ed that the Buller District Council is effectively governed and managed. The Council’s purpose is to enable democratic decision making at a local level by and on behalf of our communities, to promote the social, economic, environmental and cultural wellbeing of our communities now and into the future to meet legal requirements and statutory deadlines.

Contributes�to�what�Community�Outcome?Democracy supports all the community outcomes as it provides the governance and the opportunity for civic engage-ment.

How�Council�PerformedBuller�2050The Buller 2050 Strategic Plan aims to develop a strategy for actions that will determine where the region will be in 2050. The Council is aware that relying on extractive industries alone will not provide long term security for the region. Mining will be the spring board but other economic growth opportunities must be pursued to diversify our economic base. Work on the Buller 2050 project drifted over the past twelve months. The project will be reacti-vated during 2012/2013 with a view to developing widespread community consensus on the way forward for the whole District.

The Chief Executive undertook a visit to Western Australia to investigate the model of Royalties from Mining paid to regions to fund local infrastructure development and to review plans for the development of miningtowns in Western Australia. These plans will prove useful for Westport where we are trying to ensure that the forecast growth in new mining activities stays invested in the region.

There is currently legislative changes being made to the Crown Minerals Act and Local Government New Zealand have prepared a submission to lobby Government for obtaining royalty funds for the region. The Chief Executive has met with the Minister in this regard.

Engagement�with�MaoriDuring the 2011/2012 fi nancial year Ngati Waewae were consulted regarding the Community Outcomes.

Demo

cracy

32


Council�PrioritiesCouncil continued to work on the list of top 10 priorities identifi ed in November 2010.

First on the list was development of a long term solution for Westport water. The current system is no longer able to meet the latest drinking water standards issued by central Government so a long term solution needs to be implemented. A Water Group was created to ensure that decisions made can last for 50-100 years.

In November 2011, Council was provided with three options:

1. Upgrade the existing supply at a cost of $10.6 million

2. Change the source of supply to the Buller River with a gravity fed system ($15.6 million)

3. Change the source of supply to the Buller River with a pumped fed system ($13.4 million)

At the November 2011 Council meeting Council approved a phased upgrade of Westport Water Supply was approved, totalling $10.6 million over the next 10 years.

Council will consider the fi nancial impact during the 2012/2013 year of upgrading the water supply over a shorter period.

Council has continued to work closely with the West Coast District Health Board (WCDHB) and Ministry of Health (MoH) on the development of an integrated Family Health Centre.

Long�Term�PlanOn 27 June 2012, Council adopted its Long Term Plan for 2012-2022.

Several workshops were held with Council to review the current level of service for the various Council activities. Council spent considerable time developing the current Long Term Plan and debating what services and projects need to be under-taken. Prioritising the services and activities was no easy task for Council.

Councillors and staff held Long Term Plan Roadshows in Karamea, Reefton, Punakaiki and Westport. Council listened to the views of the community on key issues highlighted such as the Westport Water Upgrade.

Our infrastructure and rebuild programme sees just over $57.7 million invested across the district over the ten years.

The Ten Year Plan shows our Council to be in a sound fi nancial position with sustainable increases in borrowings despite a signifi cant capital expenditure programme to maintain and upgrade aging infrastructure.

The Plan initiated the development of the Westport Concept Plan – a concept plan for a new look Westport town. Given the anticipated growth in mining activities, the Westport plan will address issues such as the roading hierarchy, streetscapes, tree planting and land zoning.

Council also signalled its intention that effective from 1 July 2013 we intended to move from a Council delivered waste dis-posal system to a service managed by a contractor.

33

Key�Performance�IndicatorsWhat we did What we measured TARGET ACTUAL

To provide a gov-ernance structure and to develop strategic direction for the future of the Buller district

All meetings notifi ed as per legislative requirements (Local Government Offi cial Meetings Act “LGOIMA”) and Standing Orders

Minimum notifi cation period of fi ve days but this notifi cation period must not exceed 14 days

If meeting after the 21st day of the month minimum notifi cation is fi ve days but notifi cation period not to exceed 10 days

100% All meetings notifi ed as required (2011: no change)

% of agendas and reports available from Council two clear working days prior to each meeting

100% 100%(2011: no change)

% attendance of Council members at various Committee and Working Group meetings

90% 88% at Council Meetings(2011: 94% at Council Meetings)

% of Council meetings that are run ac-cording to statutory requirements

90 - 100% range

All Council meetings are run according to statutory requirements. Nil breaches of legislation noted. (2011: no change)

To engage and edu-cate members of the community in mat-ters of importance in our district

% Residents who are satisfi ed with the way Council involves people in decision making

The leading priorities that were identi-fi ed by residents as actionable include water supplies, sewerage, waste man-agement and stormwater drainage

60% satisfaction

Survey was undertaken in November 2010

No survey was planned to be carried out in 2011/2012

As a result of the survey Council formalised a list of priorities at the No-vember 2010 meeting which includes a ‘long term view’ of the Westport Water Supply upgrade and long term solution for Buller refuse

Council has continued to focus on these priorities and develop long term solutions for Westport water and Buller Refuse

In November 2011 Council agreed to a phased upgrade of the Westport Water Supply over 10 years

In the Long Term Plan Council signalled a move to a service where the refuse collection, transfer station and landfi ll would be operated by an independent contractor

Council has also continued to obtain a designation for the proposed landfi ll, should this be required

Number of meetings held with Maori Two formal meetings per annum

Ngatai Waewae were consultated with regards to the Community Outcomes.

(2011: Nil meetings held but consulta-tion over proposed landfi l site)

% of consultations undertaken in compli-ance with legislation through evaluation of consultation procedure

90 - 100% range

Consultations were undertaken and all legislative requirements were met (100%).(2011: no change)

% of Agenda items in open Council 90% 90% (2011: no change)

34


What we did What we measured TARGET ACTUAL

Co-ordination of an-nual budgeting and fi nancial planning processes and prepa-ration of Long Term Plan and Annual Plan

Adoption of Long Term Council Plan and Annual Plan within statutory timeframes with an unqualifi ed opinion on Long Term Plan

Meet required statutory deadlines for adoption of required reports

Met required statutory deadlines for adoption of required reports.(2011: no change)

Provide timely and accurate fi nancial information to Man-agement and Council to enable effec-tive monitoring and reporting of fi nancial performance

Adoption of Annual Report Meet required statutory deadlines for adoption of required reports

Met required statutory deadlines for adoption of required reports(2011: no change)

Key�Performance�Indicators

35

Full�Council�Meeting�attendanceDate Number of Attendees Councillor not in AttendanceJuly 2011 11 Nil

August 2011 10 Ratahi

September 2011 9 Halsall, Howard

October 2011 9 Neylon, Ratahi

November 2011 10 Ratahi

December 2011 11 Nil

January 2012 11 Nil

February 2012 9 Neylon, Ratahi

March 2012 7 Campbell, Hill, Neylon, Montgomery

April 2012 10 Montgomery

May 2012 11 Nil

June 2012 8 Hawes, Neylon, Sampson

Summary 12 Meetings Held

Average % of Attendance 88%

Inangahua�Community�Board�attendanceDate Number of Attendees Member not in Attendance

August 2011 6 Nil

October 2011 4 G Neylon, M McCarthy

December 2011 3 D Hawes, H Bollinger, G Neylon

February 2011 4 H Bollinger, G Neylon

April 2012 4 M McCarthy, B Fowler

June 2012 4 M McCarthy, D Hawes

36


Democracy2011/2012 2011/2012 2010/2011

Actual Budget Actual

$(000) $(000) $(000)

OPERATING Revenue

Fees and Sundry 0 10 31

Financial Assistance 0 0 13

TOTAL Revenue $0 $10 $44

OPERATING Expenditure

Employee Benefi t Expenses 213 228 218

Depreciation and Amortisation 0 0 0

Finance Costs 0 0 0

Other Expenses 601 567 627

TOTAL Expenditure $814 $795 $845

NET Cost/(Surplus) of Services $814 $785 $801

CAPITAL EXPENDITURE $0 $0 $0

Explanation�of�Significant�Operating�VariancesNo signifi cant operating variances noted.

Significant�Capital�ExpenditureNo capital expenditure undertaken.

Explanation�of�Significant�Capital�Expenditure�VariancesNo capital expenditure undertaken.

3737

Community�Services

What�do�we�do?A community is enhanced through the provision of services that deliver to the cultural and recreational needs of residents.

Community�Grants�&�FundingThe Council provides funding directly to community organisations, as well as managing the distribution of various government funding for the arts, sporting and safety initiatives.

District�Promotion�&�Development,�Tourism�Support�&�EventsWe introduced a District Promotion and Development Targeted Rate in the 2009/2010 fi nancial year based on a tiered fl at rate in conjunction with a capital charge, targeting tourism operators who advertise and all commercial/industrial ratepayers. This rate funds tourism grants for local I-sites and promotions groups as well as providing the budget for the Promotion & Development Offi ce to run tourism-based marketing initiatives for the region as a whole.

The original Buller Visitor Strategy that was included in the 2006-2009 Long Term Plan has consistently been used as the framework for all promotion and development projects. The recommendations and plans that came out from the Buller Promotion and Development Strategy, Buller Promotion and Development 2011-2015 Marketing Plan and Special Project Plan have driven all promotion and marketing initiatives.

The Promotion and Development Co-ordinator meets regularly with industry stakeholders and governing bodies to secure support and direction.

There has been solid buy-in and support from the Tourism industry and a number of marketing campaigns and initia-tives have recently been rolled out: Buller Regional Touring Guides and South-Island wide distribution, increased search engine optimisation and Google ad campaigns for the regional website. We have also constructed a 5 panel, 11 metre long regional display system that is for both tourism and regional promotional use. The region has also been heavily represented at the Tourism Export Council (TEC) conference held on the West Coast. This conference enabled a network of tourism operators to formulate a team marketing approach for teh region.

Development�of�a�Cultural�HubCouncil consulted with the Community on a proposal to establish a Cultural Hub consisting of an I-Site and Museum in 2005.

The first stage of this project (I-Site and Museum relocation) was included in the 2006 Long Term Plan.

There were plans to revitalise the town centre through the creation of a Cultural Hub, linking these two services and the new Performing Arts Centre. Council’s budget increased from $1.5m (as previously indicated) to $3m over three years in the 2009-2019 Long Term Plan. Tenders received during the year indicated that the project cost would rise to $3.75m.

Council was successful in securing corporate sponsorship from Solid Energy totalling $750,000 towards the project.

In November 2011 the Lottery Environment and Heritage Committee agreed to provide funding of $586,000 towards the Cultural Hub project.

In April 2012 the Grants Committee agreed to provide up to a maximum of $500,000 from the Development West Coast Extraordinary Distribution Fund towards the Cultural Hub project with Coaltown Trust fundraising for the re-mainder. The contribution towards the project, from the general ratepayers funds, remains capped at $1.5 million and will be loan funded.

Council approved the successful tenderer, Coman Construction on 27 June 2012 and construction of the project com-menced in the new fi nancial year.

Construction for the relocation of Coaltown and the I-Site is expected to take nine months, and it is expected to be fi nished by April 2013.

Comm

unity�

Servic

es

38


Recreation�&�Cultural�Facilities�&�ServicesThe NBS Theatre provides the Buller District with live theatre and shows, performing arts and fi lm. The venue is also able to hold conferences of varying sizes, workshops and festivals - both dramatic and fi lm.

Public Libraries and Community Libraries are provided within the District delivering access to many forms of information and resources to help support life long learning, literacy and recreational reading.

Significant importance is placed on the delivery of cultural, environmental and industrial heritage to the District. The Council is leading projects to develop cultural facilities for the district.

Community�EngagementCouncil provides community newsletters, media releases, specialist working groups and consultation programmes to inform and involve residents in Council activities and decisions.

Why�do�we�do�it?A community is enhanced through the provision of services that deliver to the cultural and recreational needs of residents.

These services are vital to the quality of life of residents and provide the infrastructure that enables the building of social, cultural and sporting associations within the community. The community also has a vital role to play in contributing to the district’s success by being informed about and involved in decisions and projects.

Contributes�to�what�Community�Outcome?Community Outcomes How the Council Contributes

Health By providing facilities that allow people to play sport and achieve their fitness and recrea-tional goals. Providing grants, facilities and spaces that assist in developing the community cohesion that supports mental and social well being.

Education Assisting in the development of lifelong learning and literacy through the Library network. Providing performance space for use in artistic and cultural performance. Working with edu-cational institutions on collaborative projects.

Safety Supporting the work of social organisations that deliver services to those in need.

Economy Providing high quality community facilities to attract people to live and work in the Buller district. Provide opportunities and funding that assist with tourism development and district promotion.

Identity Using consultation opportunities to make decisions about the future of the Buller district that refl ect the unique attitudes and needs of Buller district residents.

Supporting the promotion of the Buller district through developing opportunities to tell the stories of the social, cultural and industrial heritage.

(conceptual drawing - Cultural Hub, Westport, currently under construction)

39

How�Council�Performed?Grants�In 2011/2012 Council contributed over $67,000 in base and contestible community, representation and minor grants. The groups that received the funding provide accountability statements to Council.

NBS�TheatreIn 2012 the NBS Theatre has held numerous shows both with local performers and acts from outside the district (including two over-seas acts) over the last year.

Some of the highlights in the au-ditorium have been Showtime Aus-tralia with their ABBA show. Other show genres have included com-edy, dance, live theatre and musi-cal. The NBS Theatre has joined with Nelson School of Music, Nel-son Theatre Royal and Ashburton Event Centre as the Top of the South Consortium. This is one of three consortiums throughout NZ that apply for funds from Creative NZ to enable New Zealand per-

(NBS Theatre, Westport)

formers to visit local venues.

It is pleasing to see usage of the auditorium by a local church group every Sunday. Two professional health providers have also hired rooms within the Theatre on a regular weekly basis. The Theatre is also the preferred venue for the 3 yearly voting for the general parliamentary elections.

The Fred Gregory screen room is constantly being hired out for birthday parties, utilising the IT equipment for playing playsta-tion or watching a fi lm of their choice. This room has also been used for meetings and small conferences with presentations being electronically delivered to the audience.

The NBS Theatre is versatile in that all three areas (Auditorium, Bill Moffi tt Cinema and Fred Gregory screen room can be used simultaneously.

The cinema area of the building is open seven days with new releases of fi lms being screened in Westport as soon as they are available to the rest of New Zealand. Midnight screenings of blockbuster fi lms have proved to be popular. The theatre has also assisted local groups, clubs and schools offering fundraiser screenings of fi lms.

The Theatre website (www.nbstheatre.co.nz) has been developed and users on our database receive regular weekly updates on movies and shows. A ticketing/booking fee system has also been introduced for the convenience of patrons.

The Theatre fulfi ls an important role in facilitating fundraising for local community groups and schools. It is a valued com-munity asset that is widely utilised as has been indicated by the favourable growth in our Key Performance Indicators for 2011/2012.

40


Libraries�and�Aotearoa�Peoples�NetworkBuller Libraries experienced a growth in customer demand for online and e-resources. At the same time customers made more use of reader advisory and reference services provided by library staff.

Despite a national drop, local issue numbers were nearly unchanged (- 0.7%). With 85,250 visitors Buller libraries are highly frequented facilities. Over 2,600 new additions updated the collection which currently holds nearly 32,000 items for the community.

To enable community access to e-books and audio-books in an affordable and effective manner the library joined up with several other libraries on the South Island to subscribe OverDrive, an electronic download platform. There was a large update and within the fi rst three quarters over 850 e-books had been downloaded. PressDisplay, a virtual newspaper service for full text reading of national and international newspapers was integrated into the library website. The library would like to acknowledge New Coasters Westport and Tindall Foundation for their fi nancial support for Overdrive. All online services are available to library members throughout the district with free access to use their virtual library at any time.

As a consequence of community demand, Reefton library became equipped with wireless internet access. The library under-took several activities to support literacy and learning in the community: 44 class visits and group library tours took place to promote library services to children and adult students and to use library resources. Collaboration with local community training providers contributed to a successful Adult Learner’s Week where the library turned into a hub for educational talks and presentations.

Seventeen library events, programmes and displays allowed for engagement with authors and books. Twice the library has been organiser for the West Coast events of New Zealand Book Month for Children’s and also for Adults. A special highlight was the launch of the Denniston Literature trail where the library was involved in setting up and promoting the new literature walkway and its guid-ing materials.

Children activities included research workshops entitled “Informa-tion for the Young and Curious”, a writing workshop with awarded writer Fleur Beale, colouring competitions and story times. Over the long summer and winter holidays an overbooked reading pro-gramme was offered to encourage reading and maintain literacy levels during the school breaks.

Displays and story time Te Reo celebrated Maori Language Week.

To keep members and stakeholders informed, the library produced a bi-monthly newsletter, contributed to the council community newsletter and frequently promoted activities through news and radio.

41

District�Promotion�and�TourismOver the past year the Promotions and Development Offi ce has continued momentum on its core projects.

The Collective Tourism Promotion Project, which is a fi ve-year project has been consistently added to providing the framework, systems and components needed to promote the Buller Dis-trict as a recognised visitor destination (RVD).

Achievements to date include:

• a comprehensive strategy and marketing plan

• district tourism brand,

• a new tourism website with search engine optimisation and google ad campaigns,

• a photo library

• district-wide signage

• development of a Buller Touring Guide and distribution throughout the South Island

• creation of 11m long portable display system for tradeshows, expo’s, events and meetings

• plus further developing networks with tourism operators and stakeholder groups within the region

The offi ce has also produced the fi rst Buller District promotional video which was showcased/launched at the Tourism Export Council conference. This has been released for all tourism operators and stakeholders to use on their own websites.

The Promotions and Development Governance Group has been kept informed and engaged in all of the above developments.

CommunicationsCouncil continued to produce a bi-monthly newsletter that is delivered to all households in Buller. The Council website is regularly updated to provide the most up-to-date information to our customers.

During the 2011/2012 fi nancial year Community Services introduced an e-newsletter “Council Community Info” which is sent to community members every two weeks.

This allows for communication lines to be kept open for those who want to know about Council activities. Promotion of this e-newsletter was done through the bi-monthly newsletter, Council’s website and directly approaching large organisations to send promo information to their staff.

This form of communication is slowly increasing as time progresses and more people become aware of the service.

Solid�Energy�Centre�(managed�by�Buller�Recreation�Ltd�(BRL))Buller Recreation has now completed three years of business, and has seen some signifi cant growth during this period. The building has performed well during this time, with only minor issues needing to be dealt with in comparison to the fi rst two years, and this has meant that more time can be focused on improving the way the business is run.

Current membership is over 600, which is almost double what it was 12 months ago. This has meant the centre has been very busy towards the end of the fi nancial year, and the numbers attending exercise classes has grown considerably. It has been great to see more of the “less fi t” members of the community making use of the facility, and enjoying the benefi ts of increased fi tness and healthy lifestyles. BRL has recently entered into a contract with the West Coast Public Health Organisation to deliver Green Prescription services to the Buller community, and this has been a great way to connect with those who need a helping hand on their road to healthy living.

The removal of the turf has been a big loss for the centre, and the absence of the hockey community during the winter months has been very noticeable. We look for-ward to seeing this reinstated in time for the next season, and having a turf that we can rely on in all weather conditions.

Schools have continued to make good use of the facility – primary schools have predominantly been using the pool while Buller High and Westmount have been using all areas of the centre.

The centre has undertaken an energy audit towards the end of the year, with the report due shortly. It is hoped that this will result in some additional ways to save money on the energy bill, which continues to be a signifi cant cost to the business.

BRL is now well placed to develop its services further in the coming year, and looks forward to working with our community to help them reach their fi tness and exercise goals.

42



To contribute to commu-nity develop-ment through liaison, funding and support to vital commu-nity organisa-tions

Community Grants and Funding:

Distribution of national funding in accordance with policies

90 - 100% range 92% Achieved (2011: 100%)

A further $67,000 distributed in base and contestible funding for Creative New Zealand, SPARC and Ministry of Justice (2011: $40,000)

Council Grants dis-tributed and moni-tored in accordance with our policies

90 - 100% range 100% (2011: 100%)

To support the develop-ment and sustainability for district tourism

District Promotion, Tourism Support and Events:

Key Performance Indicators (KPI’s) agreed with all identifi ed grant recipients and monitored

90 - 100% range

KPI’s monitored and achieved

KPI’s have been set per organisation by Council and agreed by the relative par-ties

Quarterly reports are provided to the Community Services Offi cer.

Monitor achieve-ment of strategic tourism objectives

Monitor increase / decrease in guest nights for Buller

Continual monitoring of data from Sta-tistics NZ in relation to regional visitor nights is being undertaken

Communication and data sharing with Tourism West Coast has occurred

Tourism West Coast also provides regular updates and newsletters to industry on changes in guest night data. These are forwarded to stakeholders where required

Ongoing input and development of tour-ism website

Continual search engine optimisation and google ad campaigns intiated for buller.co.nz website

Monthly reports from Visitor Strategy Offi cer

Consistent reporting in place for all key stakeholders

Completion of Cul-tural Hub Project

Fundraising strategy developed, imple-mented and initiation of Cultural Hub construction

Council approved calling for tenders in March 2011. Council approved the project and successful tenderer on 27 June 2012

Delays were experienced in the approval of the project until all funds to proceed with the project were in place

As a result of the delay in the approval of the project, construction only com-menced in August 2012

Visitor satisfaction Establish Memorandum of Understanding and/or level of service agreements with I-Site and Museum once construction completed and businesses are opera-tional

The project was only approved in June 2012 and this has delayed the formal or approval of any associated governance structures

43


To provide services and facilities that meet information, learning, recreational and cultural needs

Community Services and Facilities:

Quality of sport and recreation service provision via the Solid Energy Centre

Establishment of Memorandum of Understanding and agreed levels of service for operation and management of the Solid Energy Centre (including all aquatic and dry-sport provision) and the Reefton pool (providing seasonal aquatic services).

Service level agreement fi nalised be-tween Buller District Council and Buller Recreation Limited. Statements of Intent are submitted and approved by Council. Quarterly reports regarding us-age are submitted to Council

Agreed levels of service are likely to in-clude attendance, satisfaction, mainte-nance of ACC Pool Safe quality Manage-ment accreditation for the Solid Energy Centre (which includes independent quality assessment of pool management and operation to industry standards) and working towards ACC Pool Safe Qual-ity Management accreditation for the Reefton Pool as the Reefton pool will be managed by the Solid Energy Centre, the measures relative to the Reefton Pool will be included in the Memoran-dum of Understanding for the Solid Energy Centre.

Measures will be agreed and refi ned once the Memorandum of Understanding has been developed.

Monitoring of these done in the half yearly reports submitted by Buller Hold-ings to Council

Performance to the targets in the State-ment of Intent reports as refl ected under Council Controlled Organisations

Number of perform-ing arts events, exhibitions and shows per year

Number of cinema screenings per week - 21 (dependent on fi lm titles and time of the year)

35 on average per week (2011: 45 per week)

Occupancy of cinema - 50% per month 22.8% occupancy per month in the Bill Moffi tt Cinema and 24.1% occupancy in the Fred Gregory screen room - totalling 23.6% total occupancy

The introduction of Met Opera screen-ings averaged 41.7% occupancy

Number of shows/performances - 30 days per year

42 days per year (2011: 37 per year)

Occupancy per show - 60%(full Theatre not always required for smaller shows)

Overall occupancy 63.6% (77.03% local show occupancy and 49.6% outside show occupancy) (2011: 25.4% overall occu-pancy - local occupancy 90%)

The wide variety of shows offered has vastly increased occupancy from last year

Room hire - 4.0 hours per week The average room hire per week for three rooms is approximately 31 hours

Positive growth due to regular hiring out of two rooms by health professionals

44



To provide services and facilities that meet information, learning, recreational and cultural needs

Community Services and Facilities: (continued....)

Satisfaction with Library services

80 - 95% range 90% according to an internal customer survey (2011: 88.7%)

Number of active members of librar-ies

Maintain or increase (0-4%) Active Members 3,247 - increased by 3.2% (2011: 3,145 - 8% increase)

Number of items borrowed

Issues maintained or increased 77,248 items borrowed decreased by 0.7% (Target 72,000) (2011: 77,769)

Number of physical items added to the Library collection per year

Increase annually until we are meeting the LIANZA standard

2,663 items added (2011: 2,796). LIANZA standards would require a minimum holding of 35,957 items (86% of LIANZA Standard)

Not less than 2,000 new items per year Current items held total 31,097 (2011: 86%)


45

Community�Services2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING Revenue

Targeted Rates 268 320 227


Financial Assistance 1,528 576 712

Internal Recoveries 3 22 5

TOTAL Revenue $2,379 $1,369 $1,468

OPERATING Expenditure



Finance Costs 1,103 1,278 1,147

Other Expenses 3,413 2,280 2,561

$5,436 $4,453 $4,537

Less: Internal Interest (26) (24)

TOTAL Expenditure $5,410 $4,453 4,513

NET Cost/(Surplus) of Services $3,031 $3,084 $3,045

Capital Expenditure - Renewals 896 114 602

Capital Expenditure - Increases in Levels of Service 0 1,152 0

TOTAL CAPITAL EXPENDITURE $896 $1,266 $602

Explanation�of�Significant�Operating�VariancesFees�and�Sundry:Unbudgeted power contribution from Buller Recreation Limited ($157,000). This does not represent additional income but merely offsets the heating and power costs incurred by Council in respect of the Solid Energy Centre.

Financial�AssistanceThis is due to the recognition of sponsorship revenue ($830,000) for the Cultural Hub when the project was approved by Council in June 2012. This income was previously classifi ed as income received in advance. Delays in approval of the project hindered fundraising and the budget of $500,000 was not achieved. Overall a favourable variance to budget of $330,000 was recorded.

In addition, Council received unbudgeted sponsorship income of $114,000 towards the NBS Theatre and $540,000 for the Solid Energy Centre.

Finance�CostsFinance costs were lower than anticipated due to lower prevailing interest rates and the postponement of the Cultural Hub project. The postponement of the project resulted in savings of $32,000.

46


Other�ExpensesOther expenditure was signifi cantly higher than budget ($1.1 million) largely due to the following:

• Recognition of the obligation to Buller Recreation to remediate the hockey turf ($744,000)

• Unbudgeted legal and consultant expenses associated with preparation for the hockey turf dispute with contractors ($64,000)

• Unbudgeted grants for Vision 2010 projects not owned by council (Reefton V2010 projects - $ 63,000; Seddon - $5,000)

• Council incurred costs of $190,000 for power and gas for the Solid Energy Centre, however $157,000 of these costs were recovered from Buller Recreation Limited. Power and gas exceeded budget by $33,000.

• Performance fees for the NBS Theatre exceeded budget by $34,000.

Significant�Capital�ExpenditureTo-date $1.3 million has been carried forward to 2011/2012 as work in progress for the relocation of the Coaltown Museum and construction of the Cultural Hub. Work in progress carried forward from 2010/2011 totalled $873,000. Costs to-date include purchase of land, buildings and professional services.

$191,000 has been carried forward in respect of the carpark at the NBS Theatre.

Unbudgeted capital expenditure on Domain Boards totalled $134,000.

Other capital expenditure included the following:

• Work in progress totalling $14,000 was carried forward for Buller Regional display panels

• Promotion and Development initiatives ($12,000) which mainly include photography, development of the website and signage

• Acquisition of library books ($41,000, Westport; $16,000, Reefton)

Explanation�of�Significant�Capital�Expenditure�VariancesApproval to proceed with the Cultural Hub project was only given by Council in June 2012. This delayed the construction of the project and all expenditure incurred to-date has been carried forward as work in progress.

$191,000 was carried forward as work in progress for the completion of the NBS carpark. This was budgeted for in the 2010/2011 fi nancial year.

4747

Environmental�Services

What�do�we�do?These activities protect people and the environment by regulating and licensing aspects of commer-cial services and private behaviour where public well-being issues may arise, an in preparing for and responding to emergency situations in the District.

Animal�and�Stock�Control�Animal control manages dogs and wandering livestock, including the control of animals (excluding dogs) on public land and public roads.

Council also operates the pound where stray dogs are taken. These dogs are returned to owners or rehomed where possible.

Plans,�Policies�and�Guidance�Documents�The Council provides a range of tools to guide the public in complying with rules, regulations and best practices. These range from regulatory tools such as the District Plan and Bylaws through to guidance tools such as policies and brochures.

Compliance�Management�Council manages the licensing and inspection of food and liquor premises, inspects activities carried out under consents and manages the impact of nuisances through investigation, remediation and the use of regulatory tools where necessary.

Provision�of�Consents�Council provides consents for activities to be carried out in accordance with regulatory requirements. These include building consents and resource consents for land use and subdivision consents. Council also issues Land and Project Information Memoranda (LIM’s and PIM’s) and ensures that appropriate certifi cation is achieved for buildings in use by way of Code Compliance Certifi cates and Building Warrants of Fitness.

Liquor�Licensing�For the purposes of the Sale of Liquor Act 1989 each local authority is the District Licensing Agency for its district and except as otherwise provided in this Act, the Agency is governed by the provisions of the Local Government Act.

The Alcohol reform Bill which the Justice and Electoral Committee has recommended be passed with some amend-ments, will result in the requirements for Council to form a Local Alcohol Policy and there will also be an increase in responsibility and consequences for holders of liquor licences.

Building�Building Services provide a compliance service to ensure the built environment throughout the District meets the minimum requirement of the Building Act 2004. Guidance is provided to customers as they navigate their way through the building consent process. Asessment of building consent applications are required to meet the require-ments of the Building Act 2004. Env

ironm

ental�

Servic

es

48


Why�do�we�do�it?The Council plays a vital role in ensuring standards are met that result in a high quality of life for residents and visitors in our district. This is achieved by administration of statutory regulations for building, resource management, licensing of premises and the keeping of dogs and livestock. The outcome of effective delivery of Environmental Services is a district where resource utilisation and standards of living are appropriate for the community long term needs.

How�do�we�contribute�to�Strategic�Goals�&�Community�Outcomes?Community Outcomes How the Council ContributesHealth Through the administration of legislative frameworks we ensure that appropriate standards of

food safety and responsible provision of liquor occurs within licensed premises

Addressing adverse effects of animals and social behaviour when they occur

Safety Building services ensure the ongoing safety of structures within the District

Investigation and management of non-compliance with regulations and district rules where these have the potential to create hazard or danger to the public

Environment Applying the provisions of the District Plan and the Resource Management Act to minimise adverse effects of land use and subdivision of land

Working with other agencies to ensure regional plans and national policies are upheld in resource use for the sustainable management of our environment

Economy Consideration of economic and productive use of resources in planning decisions for the long term protection of the value to our community

Working with licensed operators to maintain high standards of service delivery and host responsibility

Identity Ensuring the District Plan and Policies of Council are developed to protect those unique aspects of Buller lifestyles

(Animal Control Offi cers - Issac Taylor and Tracy Judd)

How�the�Council�PerformedAnimal�Control�Council has continued to provide animal control and lost and found animal services. Council has also provided assis-tance to owners in dealing with problem animinals and has provided education programmes.

Liquor�Licensing�171 liquor licences and manager certifi cate applications have been processed.

The Buller District Licensing Agency Liquor Policy is to be reviewed and publically adopted after the second reading of the proposed Liquor Reform Bill.

The Liquor Licensing Inspector together with the Police and Community & Public Health have undertaken monitoring and inspections of licensed premises throughout the district including Controlled Purchase Operations. Council has undertaken enforcement action with the Liquor Licensing Authority to deal with serious non-compliance. Council has also provided staff training, advice to licensees and managers and the general public.

49

Freedom�Camping�BylawCouncil replaced its Freedom Camping Bylaw 2011, which had been adopted under the Local Government Act 2002, with the Free-dom Camping Control Bylaw 2012 which was adopted under the Freedom Camping Act 2011. The new Bylaw came into force on 30 August 2012 and extensive consultation took place during the fi nancial year.

Under the Bylaw, Freedom Camping is allowed in any local authority area outside of the defi ned “no freedom camping zones”, for up to three consecutive nights at the one site or in the same area in self-contained vehicles certifi ed against NZS5465: 2001. Freedom Camping that does not meet these criteria may be allowed with the prior consent of Council, which may be with or without conditions.

Building�The Buller District Council is currently accredited to operate as a Building Consent Authority. Two-yearly statutory audits are carried out by International Accreditation New Zealand (IANZ) and the latest audit was completed and passed in December 2011.

An internal audit of all building processes has been carried out over the past 12 months. These audit fi ndings resulted in continu-ous improvements via minor amendments to the technical and management manuals which are used by staff to carry out building control functions. Previous assessments by IANZ have shown that Council is a leading Building Consent Authority (BCA) with regard to policies and procedures and the way it operates.

District�Plan�Review�The District Plan Review is an ongoing project looking at the effi ciency and effectiveness of the Buller District Plan (BDP).

It aims to ensure that the BDP remains relevant and meets the needs of our community in relation to the use of natural and physical resources, as well as meeting our responsibilities under the Resource Management Act 1991 (RMA). Under the RMA, Council must review every provision of the BDP at least once every 10 years and initiate a ‘plan change process’ in relation to each, whether or not Council proposes to amend the provision. This process provides an opportunity for the community to have input into the BDP.

Council gave its fi nal approval to the fi rst two sets of BDP changes to come out of the review, Plan Changes 115-121 and 122-132, on 21 September 2011. These changes then became a fully operative part of the Buller District Plan.

The Buller District has changed signifi cantly since the BDP became operative in 2000. We are using the opportunity of the District Plan Review to update the BDP to take into account where the district is now and how the community would like to see it develop over the next 10 years.

Resource�Management�The Planning Department has had a busy year with increased workload and some complex resource consents in the mining sector. High profi le consents have included Solid Energy’s application for a coal mine at Mount William, Stockton, and changes to the Globe Hill/Oceana Gold consent in Reefton.

The Planning Department has also been heavily involved in progressing the resolution of appeals made in relation to Buller Coal Holdings coal mine application and the Meridian/Mokihinui hydro power scheme through the Environment Court appeal process.

Westport�Concept�PlanThe Westport Concept Plan is an initiative that is designed to create a picture of what we want Westport to look like in the future and what we will have to do to get there.

We would like to prevent ad-hoc development and we believe that a cohesive plan will assist in the future development and growth of our community. The Plan will include preferred zoning of land, landscaping, traffi c movement and generally display Westport as a great place to live and invest in. It will be developed in consultation with the community and stakeholders with opportunities for input through its development.

The work already undertaken by Council as part of Vision 2050 strategic planning and the adoption of the Long Term Plan 2012 to 2022, will set the direction for the Westport Concept Plan which will in turn provide direction for the review of the Buller District Plan and Council’s other regulatory policies and guidance documents.

Once developed the Westport Concept Plan will be used as a template to develop Concept Plans for Buller’s other towns.

50


Key�Performance�IndicatorsWHAT WE DID WHAT WE MEASURED TARGET ACTUAL

To maintain quality of life through ensuring compliance with building and development regulations

Carry out investigations into non-compliance and nuisance / activities in acceptable timeframes

Simple investigations to be carried out within 10 work-ing days

Achieved 112 simple investiga-tions within 10 days 82% (2011: 161 investigations with 100% within time-frame

More complex investigations to be undertaken within 20 working days

5 remain under investigation, await-ing court action (2011: 5 - 3.65%)

20 complex investigations undertaken within 20 days 14.6% (2011: nil)

Building inspections carried out within 24 hours for urban and 48 hours for rural areas

Achievement of this level of services in the 90-100% range

Achieved 100% (2011: 100%)

1,473 inspections have been recorded (2011: 1,327)

Building inspections are scheduled and carried out in accordance with bookings made

Achieved 100%

Building consents and LIM’s issued within statutory time-frames 10 working days for LIM’s and 20 working days for Building Consents

Target 100% 491 Building Consents issued 99% (2011: 465 99%) completed within the statutory 20 working day timeframe

312 LIM’s issued 100% completed within the 10 working day timeframe, with an average of 4 days process-ing time (2011: 217 issued with 98% completed within timeframe)

Audit compliance schedules No sampling undertaken

Not currently a requirement under the Building Act

No sampling undertaken

Meet earthquake policy objec-tives

This policy was revised and a new policy approved by Council 16 December 2009

Buildings will be identifi ed when a consent applica-tion is received, change of use occurs or complaint received

Due to the publicity following the Christchurch earthquakes, any build-ing consent application received for commercial buildings which would be affected by this policy have included voluntary strengthening work by the applicant without any requirement for Council enforcement

In addition, Council has carried out an initial visual inspection of at risk commercial buildings in both West-port and Reefton

The fi ndings passed onto the building owners which have prompted further in depth investigations funded by the owner

It has resulted in some buildings undergoing strengthening work and in some cases evacuation of the build-ings

Process non-notifi ed resource consents within 20 days

Target 100% 96.8% achieved within statutory timeframes (2011: 100%)

Ensure quality assurance requirements for building consent authorities are met as required by Regulation 17 of Building Consent Authorities Regulation 2006

Completed by 31 December 2009

Continued compliance with accreditation requirements

Audit completed in December 2011 and accreditation maintained

51

WHAT WE DID WHAT WE MEASURED TARGET ACTUAL

To maintain quality of life through ensur-ing the health and safety of li-cenced activities

Inspect all food premises Target 100% 100%, 94 premises inspected (2011: 100%, 90 premises)

No signifi cant fi ndings

These premises met the standards set by the Food Hygiene Regulations 1974

To maintain quality of life through ensur-ing the effects of dogs and live-stock are mini-mised

Investigate all animal related complaints

Target 100% 100%, 468 complaints investigated (2011: 100%, 499 complaints investi-gated)

This is measured by the use of the service request system and all com-plaints are loaded through this system

Continued education for animal own-ers occurs

To address non-compliance or nuisance activi-ties in ways that uphold the com-munity outcomes

Respond to 90% of all noise complaints within 30 minutes

Target 90% Achieved 95% - 202 complaints re-ceived with 192 being responded to within 30 minutes (2011: 95%, 340 complaints received, 323 responded within 30 minutes)

Maintain quality of life in Buller and ensure that future plan-ning rules re-fl ect community needs and legis-lative require-ments

Plan changes processes initi-ated as part of the District Plan Review.

District Plan to be completed by June 2015

A set of District Plan changes is cur-rently being worked on

District Plan changes to be aligned with Vision 2050 and Westport Con-cept Plan

District Plan review to be com-pleted by 30 June 2015

Each process can involve con-sideration of a number of provi-sions of the Buller District Plan

It is intended they will be initiated in October/ November 2012 (2011: Plan changes 122-132 initiated in the 2011 calendar year)

5353

Emergency�Management

What�do�we�do?Civil�Defence�Preparedness:The goals of local emergency management in Buller are summed up as the four R’s: Reduction, Readiness, Response and Recovery:

Reduction - we analyse potential hazards in our region and take steps to reduce the risk of injury and death, damage and social and economic disruption.

Readiness - staff in local emergency services are trained to deal with dangers, and the general public made aware of ways to stay safe during emergencies and how to cope on their own.

Response - actions taken before, during and after a disaster to save lives and property include declaring a civil defence emergency, evacuating areas, closing roads and requisitioning anything useful.

Recovery - activities taken to restore the community to normal functioning. We encourage local businesses to plan recovery actions.

Council recruits and trains volunteers to ensure that in the event of a disaster a workforce can be maintained to deliver services to residents in need. The Council works with Regional and Government representatives to develop plans and processes.

Rural�Fire�Control:Council participates in the West Coast Rural Fire Committee to manage the fi re district. This involves issuing of fi re permits, training and maintenance of volunteer fi re forces and the maintenance of a comprehensive fi re plan.

Buller Rural Fire Authority has 40 volunteer’s and 3 rural fi re units (Charleston, Inangahua and Seddonville) sup-ported by three staff members providing emergency response and community safety programmes throughout the rural district.

Rural Fire Services also assist in motor vehicle accidents and education programmes.

Community Outcomes How the Council ContributesHealth Emergency management is a key function in ensuring that injury to people is

minimised in the event of natural disasters.

Safety The safety of people and their property is the paramount concern of emergency management plans and processes.

Emerg

ency�

Mana

geme

nt

54


How�the�Council�PerformedCivil�Defence:Civil Defence Emergency Management is delivered through a series of partnerships between many different groups: emergency services, community agencies and the wider community. Buller communities rely upon these partnerships for effective emer-gency response and relief and volunteers are a vital component of this partnership.

Without the commitment of devoted and skilled volunteers, services to the wider com-munity in the event of an emergency would be severely restricted. Volunteers fulfi l a range of roles in an emergency, including rescue and welfare services and come from all walks of life.

Rural�Fire:Council retains its strong position with the West Coast Rural Fire Committee. The rural fi re stations are staffed by dedicated people who commit their time and considerable effort into ensuring that their neighbourhoods have the best protection from fi re as possible.

Charleston Volunteer Rural Fire Force at a special awards presentation held recently at Charleston, left to right Mike Copland, Brent May, Tina Greiter, Nathan Keoghan (Zone Controller) Marilyn Berendt, Marg Nolan, Phil Cate and Chris Milligan who has just joined the brigade after his retirement from the US Air force Airborne Communication Air-craft Fire Rescue and Safety Instructor

55


To establish an ef-fective level of pre-paredness for Civil Defence disasters

Maintain three teams of trained volunteers

30 trained volunteers (3 teams)

Achieved Karamea, Westport and Reefton teams in place. 160 volunteers and staff trained in various roles (2011: 160 volun-teers)

Run exercises to test ef-fectiveness

On-going regional exercises scheduled and completed

Council participated in Operation Cruick-shank Minor as a desktop exercise, co-ordi-nated from the Grey District Council.

Develop Civil Defence, In-formation Communication Technology and Recovery Plans

On-going review of the Emergency Op-erations Centre

Emergency Operation Centre fully functional

The Community Response Plan has been updated and Buller Civil Defence plans have been reviewed and aligned with the group plan.

Review all plans against best practice

This is still very much a work in progress

Council is looking at aligning our local ar-rangements with Westland and Grey District Councils and the Civil Defence Emergency Managment Group Plan)

To respond to and control wildfi res to protect property and conservation values.

Annually review fi re plan On-going review of fi re plan

Continual review of fi re plan

Maintain trained volun-teers, fi re engines and equipment

Regular personnel and equipment audits carried out by Zone Controllers

All rural fi re stations conducted weekly training sessions

Crews have also attended specialist training courses when required

Maintain restricted fi re season and fi re education

Provision of on-going training to all Rural Firefi ghters

On-going training to all rural fi refi ghters and ensuring equipment met compliance require-ments

56


Environmental�Services2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE

Fees and Sundry 1,342 788 1,009

Financial Assistance (12) 0 81


TOTAL Revenue $1,336 $811 $1,098

OPERATING EXPENDITURE



Finance Costs 13 11 12


2,295 2,071 2,054

Less: Internal Interest (13) - (12)

TOTAL Expenditure $2,282 $2,071 $2,042

NET Cost/(Surplus) of Services $946 $1,260 $944


Capital Expenditure - Increases in Levels of Service 0 0 157

TOTAL CAPITAL EXPENDITURE $2 $0 $157

Explanation�of�Significant�Operating�VariancesFees�and�SundryA budget error associated with the dog registration income resulted in budgeted fees and sundry being understated for 2011/2012 by $319,000.

A signifi cant increase in the number of Resource consents processed resulted in Resource Consent fees being $86,000 higher than budget.

Council also received an unbudgeted contribution towards legal fees ($62,000).

Unbudgeted Reserve Contributions on subdivisions of $91,000 were also received by Council.

Employee�Benefit�ExpensesThe overrun in employee benefi t expenses is due to an unbudgeted correction of prior year health care expenses and provisions for retiring gratuities, employee entitlements and long service leave.

Other�ExpensesThe increase in resource consents processed, in combination with the workload associated with high profi le consents resulted in a greater usage of external consultants. This led to higher than anticipated expenditure on consultants ($133,000). All expenditure was fully recovered.

Significant�Capital�ExpenditureNo signifi cant capital expenditure.

Explanation�of�Significant�Capital�Expenditure�VariancesNo signifi cant capital expenditure variances

5757

Amenities�&�Reserves

What�do�we�do?Council provides and maintains active and passive recreational facilities in the Buller District to meet community and environmental needs.

These include parks, reserves and sports facilities.

Public toilet facilties are provided by Council at Westport, Reefton and Waimangaroa. Council also assists in the provision of toilet facilties at Karamea, Granity, Carters Beach, Inangahua Junction and Ikamatua.

Council operates the Orowaiti, Mokihinui, Reefton and Boatmans cemeteries. Council also owns the Punakaiki Beach Camp.

Why�do�we�do�itThe provision and maintenance of parks and reserves create a pleasant environment in which to live, work and play, which is an important part of the Vision for the district. The provision of public toilet facilities assists with promot-ing the health and well being of the district and environment. Jointly funding facilities with other agencies allows the public access to facilities at an acceptable cost.

How�we�contribute�to�Strategic�Goals�&�Community�OutcomesThis activity supports the following community outcomes:

Community Outcomes How the Council ContributesSafety By ensuring our parks and reserves are healthy and safe.

Health By providing areas for people to engage in healthy activities.

Environment By offering opportunities for people to contribute to projects that improve our dis-trict’s environment.

Education By providing the opportunity to learn through social interaction and recreation.

Economy By contributing to the district’s image and attracting businesses, skills and tourism.

Identity By organising community events and providing people with opportunity to interact with different communities and by creating a unique image of the district.

Amen

ities�&

�Reser

ves

58


How�Council�PerformedCouncil’s active and passive recreation areas were available to be used by ratepayers and sporting clubs throughout the year. There were no days in which the facilities were closed for any purpose.

In 2011/2012 the Buller District Council invested $157,000 funds towards upgrading playgrounds around Buller. Upgrading of the Derby Street, Seddonville, Hector, and Mokhinui Playgrounds were commenced and are ongoing and will be com-pleted in 2012/13. These structural upgrades have been funded from the Reserves Contributions. $13,000 has been carried forward as work in progress.

District-wide garden upgrades totalling $26,000 were undertaken with new water systems installed in Palmerston and Menzies Streets in Westport and in Reefton.

District beautifi cation projects included the pruning of 80 trees in Victoria Square and 18 replacements were undertaken.

Planting of magnolia trees and garden upgrades at Westport Cemetery were completed . The Westport and Reefton Sextons sheds were painted. Finalisation of the land purchase to extend the capacity of the Orowaiti cemetery was completed .

Exterior painting of the Broadway Reefton pensioner fl ats ($20,000) and interior upgrades of four units in Westport and Reefton

Air conditioning was installed and exterior painting of the Reefton service centre was undertaken ($32,000) and the Brougham Street garage was reroofed ($27,000).

Vandalism protection and an upgrade was undertaken on the Victoria Square public toilets ($147,000). Work in progress from 2010/2011 totalling $85,000 was carried forward from 2010/2011 fi nancial year.

Consultation on the proposal to lease the Punakaiki Camp began in October 2011. This resulted in the formation of a work-ing group to consider all options available to the community. No fi nal decision has yet been recommended as at 30 June 2012.

Critical maintenance was carried out at the Reefton Service Centre, WestReef Depot, at Victoria Square and at the Brougham Street building.

59

Key�Performance�IndicatorsWHAT WE DID WHAT WE MEASURED TARGET ACTUALTo provide parks and reserves that meets community and environmental needs

Customer satisfaction with appearance of parks and with range of recreation opportuni-ties available in parks

80% No complaints were received concerning the maintenance or operation of any of the facilities

% checks on contractors stand-ard of maintenance on active recreation area

95% Checks were undertaken on the mainte-nance contractor any defects were noti-fi ed to the contractor who then remedi-ated (2011: 100%)

% of households that have used or visited parks, reserves or gar-dens in the last 12 months

80% No survey undertaken

Weekly safety and maintenance inspections of playground equip-ment

100% 100% (2011: 100%)

The contractor completed weekly safety checks on all play ground equipment

Survey to determine if sports fi elds meet the agreed standard as notifi ed to Council by sporting codes

90% Sports fi eld usage has met users require-ments

PGG Wrightsons are engaged to provide advice on the annual turf management programme

No survey carried out

% of occupancy of Elderly Per-sons Housing

90% 98.7%

From income records fl ats were vacant for 29 weeks (2011: 24 weeks)

There is potential for the fl ats to be occupied for 2,288 weeks per annum therefore the occupancy rate was 98.8% (2011: 98.8%)

% customer satisfaction on provi-sion of elderly housing

80% A questionaire was sent to the occupiers of all 44 units - 31 (70%) were returned

Of those returned 93% were satisfi ed with their units (2010/11: 34 returned, 91% satisfi ed)

Providing and managing cem-eteries to provide for community health

Continue to do the same

Cemeteries have been maintained and are available for purpose

To have suffi cient plots available in all wards to meet current and future demands

Verify cemetery re-cords to verify that availability is keep-ing up with demand

Surveys show that cemeteries in Kara-mea, Mokihinui, Westport and Reefton have capacity for the next fi ve years

60


Amenities�&�Reserves2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

Operating Revenue

Fees and Sundry 1,158 791 1,243



TOTAL Revenue $1,471 $1,104 $1,533

Operating Expenditure





2,788 2,098 2,492

Less: Internal Interest (45) 0 (50)


NET Cost/(Surplus) of Services $1,272 $994 $909



TOTAL Capital Expenditure $537 $716 $1,043

Explanation�of�Significant�Operating�VariancesFees�and�SundryThis is due to unbudgeted Domain Board income of $353,000.

Depreciation�and�AmortisationDepreciation was $135,000 higher than budget due to the following:

• Domain Board depreciation ($29,000) was not budgeted

• It was decided in the Annual Plan process that depreciation on the playground equipment would not be funded as future upgrades would be funded from Reserve Contributions, so depreciation was not budgeted ($33,000). For ac-counting purposes depreciation is provided for.

• Budget error of $29,000 resulted in the depreciation budget being understated.

Other�ExpenditureRepairs and Maintenance – Parks and Reserves

• During the Annual Plan process Council had reduced the maintenance budget from 2010/2011 by $77,500. However the budget effi ciencies anticipated in Parks and Reserves did not materialise and this resulted in expenditure on Repairs and Maintenance exceeding budget by $120,000.

• Domain Board expenses of $295,000 were unbudgeted.

• Historically Council has capitalised painting of Council buildings and the cost has been depreciated over the extimated life. A change in accounting treatment has resulted in Council expensing an unbudgeted amount of $130,000.

61

Significant�Capital�Expenditure• The purchase from Utopia Farms to extend the capacity of the Orowaiti Cemetary was fi nalised in the 2011/2012 fi -

nancial year ($301,000). Land purchase for the extension of Karamea cemetery has not been resolved. $245,000 was carried forward from the 2010/2011 budget as work in progress.

• In 2011/2012 the Buller District Council invested $157,000 funds towards upgrading playgrounds around Buller. Upgrad-ing of the Derby Street, Seddonville, Hector, and Mokihinui Playgrounds were undertaken. Work in progress of $13,000 was carried forward to 2012/2013.

• District beautifi cation projects and garden upgrades totalling $70,000 were undertaken.

• Vandalism protection and an upgrade of the Victoria Square public toilets was undertaken ($147,000). Work in progress from 2010/2011 totalling $85,000 was carried forward from 2010/2011 fi nancial year for vandalism protection.

Explanation�of�Significant�Capital�Expenditure�VariancesWork in progress from 2010/2011 totalling $85,000 was carried forward from 2010/2011 fi nancial year for the upgrade of the Victoria Square public toilets.

The change in accounting treatment of painting has resulted in $130,000 being expensed and not refl ected as capital ex-penditure.

6363

Roading�&�Urban�Development

What�we�do?Council provides the management of the District’s roading network so that people can have safe, easy and comfortable access to homes and businesses. This activity includes the professional and technical work involved in providing for the ongoing management of the District’s network. It provides for the op-erating, maintenance and improvement programmes. This includes the day to day operation and main-tenance of footpaths and road pavement construction/ upgrades, traffic signs, street lighting, bridge maintenance, urban design and various road safety activities. Council provides for the ongoing opera-tion of the Westport Taxi Services.

Why�we�do�it?Public ownership of the road corridor ensures property access and freedom of travel through the area for all citi-zens and supports the sustainability of the community.

Roads, footpaths and streetlights are provided for the safe travel of motor vehicles, bicycles and pedestrians.

Management of the roading network provides vital economic links for the District.

Council supports the continued operation of the Westport Taxi Service to ensure provision of transport for the dis-advantaged and to provide an alternative to drink driving as a road safety measure.

Urban Design is undertaken to provide a more pleasant environment for our communities by use of plantings, street treatment and decorative measures.

How�we�contribute�to�Strategic�Goals�and�Community�OutcomesThis activity supports the following community outcomes.

Community Outcomes How the Council ContributesSafety: By providing a safe roading system.

Economy: By providing everyone easy access to roading network and to minimise the viability of remote communities could be compromised.

Environment By helping reduce energy consumption in our community.

Education By providing education programmes.

How�Council�PerformedCouncil’s programme of maintenance and capital works were undertaken and completed to budget. There were some variances in the categories that together make up the maintenance and capital programmes. The work under-taken is needs-based, and this will vary depending on road use and weather conditions.

Council continued to use in-house professional services for contract administration and the design and supervision of the majority of road construction and maintenance contracts. Consultant engineers were engaged for those projects where specialist knowledge or a degree of impartiality was required.

Regular inspections of the roading network were undertaken by both Council staff and the maintenance contractor, and from these inspections road maintenance programmes were developed to keep the network maintained and safe.

Council set a long term project for the upgrading of Derby Street from one end to the other, including replacing the underground services and reconstruction of the road. It is planned to upgrade the street two blocks per annum to spread the costs over a period of time for the ratepayer. The renewals undertaken this fi nancial year included water main renewals, new water connections and an upgrade of stormwater disposal - covering the blocks between Bright and Pakington Streets.

Upgrading of footpaths continue (2km of footpaths were refurbished).

Road

ing�&�

Urban

�Devel

opme

nt

64


Key�Performance�IndicatorsWHAT WE DID WHAT WE MEASURED TARGET ACTUALProvide a safe road network

Public Safety

Annual Road Safety Audit Continue to audit 10% of the network

Road Infrastructure and Safety Assessment under-taken by NZTA over 36.4 km of rural roads and an audit of the Karamea Highway and Karamea local roads was undertaken by Council Staff and road maintenance contractor

An audit carried out by NZTA and Council staff cov-ered 93.15km which is 15.5% of the network (2011: 57.25km, 10%)

The audit recommended replacing worn and clean-ing dirty signs, review consistency of some rural delineation, removal of vegetation where it is re-ducing the effectiveness of edge marker pegs

Reducing trend in the num-ber of fatal and injury acci-dents and accident contrib-uting behaviour as measured by statistics published by NZTA

Reducing trend of fatal accidents and those causing in-jury

Analysis of acci-dent causes to de-termine if remedial work is required

Based on the crash analysis report produced by the New Zealand Transport Agency there has been a decrease in the number of accidents for 2012 for the Buller District compared to 2010/11 but is still higher than the accident levels in 2008/09

Serious accidents show a downward trend com-pared with the previous years

Fatal accidents have remained fairly static at 1 fa-tality in 2012 (2011: 2 fatalities)

Accident reports provided to Council are analysed to determine if any road factors contributed to the accidents

If there are road conditions or geometry that could have contributed to the accident then these are investigated for remedial work

Provide a comfortable road network

System Usability

Maintain current road rough-ness levels

Average sealed road NASSRA rough-ness less than 120, unsealed roughness less than 200

Road roughness surveys were undertaken in July 2011 and June 2012 (not undertaken in in 2010/2011 because of gear malfunction)

Sealed road roughness 89.8 which meets the target of less than 120 (2011: 88.3)

The roughness of a good sealed road is 70 NASSRA and for an unsealed road 170 NASSRA

Unsealed roughness not measured, as this meas-urement is considered by the industry to not be of value as the roughness of an unsealed road changes constantly

65

WHAT WE DID WHAT WE MEASURED TARGET ACTUALProvide useable footpaths

Footpaths

Undertake condition rating of footpaths

Underake rating of footpaths every two years

Footpaths were rated according to condition on a scale of 1 to 5

From these ratings the forward programme of re-medial work for footpaths is determined

Rating was undertaken in April 2011 and due to be undertaken in 2013

Maintenance programmes for footpaths are based on rating

2km of footpaths were refurbished by reseal or as-phalt concrete (2011: 1.7 km; 2%)

This represents 2.3% of the footpath length

Design all new footpaths for accessibility

New footpaths de-signed for wheel-chair and pram us-age

75 metres of new footpath constructed in concrete - suitable for wheelchair and pram usage

Minimise the effects of road works

System Disruption

To attend to all slips and obstructions in a timely manner and undertake road works in accordance with national safety standards

80% compliance with the contracted response times

Road works checked against national standards during site inspections

The contractor responded to notifi cation of all slips from call centre logs within the response times re-quired

Compliance checks were undertaken randomly at construction sites to check compliance with the NZ Code of Practice for Temporary Traffi c Management – Local Road Supplement

Provide roads with the minimum environmental impact

Environmental Impact

To comply with resource consent conditions

100% compliance No resource consents required for road mainte-nance or construction during the fi nancial year

Encourage higher usage of walking and cycling

Encourage higher usage of walking and cycling

Undertake survey to determine base-line

The baseline survey was to be undertaken in con-junction with the New Zealand Transport Agency and other West Coast Local Authorities.

The change to the Government Policy Statement and availability of external funding resulted in the survey not being done

66


Roading & Urban Development2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE


Financial Assistance 2,736 3,045 2,914

Petrol Tax 177 170 173

Fees & Sundry 28 0 28

TOTAL Revenue $2,988 $3,261 $3,154



Depreciation and Amortisation 2,606 2,621 2,605

Finance Costs 0 0 0


6,037 6,054 5,882

Less: Internal Interest 0 0 -


NET Cost/(Surplus) of Services $3,052 $2,793 $2,728

Capital Expenditure - Renewals 1,689 1,832 1,741


TOTAL CAPITAL EXPENDITURE $1,835 $1,999 $1,741

Explanation�of�Significant�Operating�VariancesFinancial�AssistanceNZTA fi nancial subsidy was $311,000 lower than planned.

The will be variation between the budget and the actual expenditure as Council has a three year approved roading pro-gramme with NZTA. This results in fl uctuations over the three year budget cycle. However over the three year cycle Council has remained within the approved NZTA budget programme.

67

Significant�Capital�Expenditure• Upgrade of Derby Street in Westport, between Salisbury and Gladstone Streets ($248,000)

• Pavement reseals:- Local roads and special purpose ($611,000)

• Drainage renewal:- Local Roads ($78,000)- Special purpose roads ($43,000)

• Traffi c services:- Local roads ($150,000)- Special purpose roads ($40,000)

• Minor safety Improvements:- Local roads ($147,000)- Special purpose roads ($27,000)

• Footpath upgrades ($182,000)

Explanation�of�Significant�Capital�Expenditure�Variances• Lower than budget expenditure occurred on sealed road resurfacing ($58,000).

• Drainage renewals for local and special purposes roads ($78,000), minor safety for special purpose and local roads ($47,000) emergency works ($35,000).

• The under expenditure in resurfacing was a reduction in areas to be resurfaced as a result of fl ood damage. These areas are to be included in the 2012/13 contract The contracts were tendered under the engineers estimates. There was a conscious effort, with the knowledge of the amount of higher than planned expenditure on emergency works, to keep within the overall roading budget. To enable this some works were deferred to the following years.

• The deck of the Alexander Bridge was replaced ($92,000) against a budget of $25,400 (work in progress of $6,000 was carried forward to 2012/2013). The structural inspection of Alexander Bridge recommended painting of the steel beams and also drilling of timber components to determine strength. This bridge is over a deep chasm and while the scaffolding was erected, the opportunity was taken to have a full structural check of the bridge undertaken. This es-tablished that the bridge was only suitable for light traffi c, i.e. cars. The bridge is used to access a farming block, and as there is no other access, the replacement of the deck was brought forward for safety reasons.

6969

Water�Supplies

What�we�do?Council provides the management of the water supply to support the health and wellbeing of the com-munity. Council is currently responsible for water supply services for a number of townships in the district including Little Wanganui, Ngakawau-Hector, Waimangaroa, Westport, Cape Foulwind, Reefton, South Granity, Mokihinui, Inangahua Junction and Punakaiki. The Westport and Punakaiki supplies are treated with the remaining supplies not providing treated water. Water conservation programmes are used to ensure the long term availability and quality of the town water supply.

Why�we�do�it?Council intends to retain ownership of the water supply schemes for the following reasons:

Community Health Water is a necessity of life

Community Safety The provision of fi re fi ghting capabilities

Community Develop-ment

The provision of reticulated water enables industrial and residential development

Core Business Considered to be a core function of Local Government

Exclusivity The ability to exclude or disconnect properties from a water supply has economic and public health implications. Public ownership can prevent the water supply being controlled in an exclusive manner

Monopoly Supply The majority of properties have limited supply options

Community Opinion The general public does not favour the privatisation of water supply services

Legislation Section 130-135 of the Local Government Act 2002, places restrictions on the ability to divest or lose control over water supplies

For these reasons the objective of retaining ownership of the water supplies is to keep Council in a position whereby it can exercise some control over the supply of water to communities within the district. The goal of ownership is to use that control wisely and in the best interests of the affected communities.


Community Outcomes How the Council ContributesHealth: By providing a reticulated water supply to support a healthy community

By providing water for sanitary services.

Safety: By maintaining suffi cient water for fi re fi ghting purposes.

Environment: By conserving water and encouraging others to do the same.

Education: By providing water conservation education.

Economy: By meeting commercial water needs and meeting community needs at affordable costs and equal access to water.

Water

�Supp

lies

70


How�Council�Performed

WestportLong�Term�Solution�for�Westport�WaterCouncil clearly identifi ed this as its highest priority. The provision of consistent, safe, potable water is a fundamental ser-vice for any local authority. The current supply has been in place since 1903. The treatment plant constructed in 1985 is no longer able to meet the latest drinking water standards. Finding a long term solution for the Westport Water Supply was Council’s highest priority. In the 2011/2012 Annual Plan Council had signalled that $2.5 million as a preliminary estimate for structural and monitoring upgrades for the Westport water Supply. This did not include the cost of replacing the trunk main which was an additional $2 million.

In November 2011 Council was provided with a report from Opus Consultants which detailed three options:

• Upgrade the existing supply at a cost of $10.6 million

• Change the source of supply to the Buller River with a gravity fed system ($15,641 million)

• Change the source of supply to the Buller River with a pumped fed system ($13,423 million)

At the November 2011 Council meeting Council approved a phased upgrade of Westport Water Supply totalling $10.6 million over the next 10 years as refl ected below:

Year Cost Details

2012/2013 $856,700 Improve Raw Water quality

2013/2014 $988,089 Filters refurbishment

Seismic upgrade

Filtered Water Storage for backwashing fi lters

Filter to waste system

2014/2015 $1,501746 New plant and buildings

Upgrade monitoring and control system

UV disinfection and building

Alkalinity correction system

2016/2017 $1,562,665 Raw ponds to excavate and remove material

2018/2019 $1,859,962 Piping of tunnels 1,2 and 3

2020/2021 $3,868,188

This is the programme of work that has been signalled in the 2012-2022 Long Term Plan. Council also received notifi cation in 2012/2013 that we had received $1.47 million as an initial subsidy from the Ministry of Health.

Council has indicated that it intends considering the fi nancial impact of expediting the planned Westport water supply up-grade. This will be considered as part of the 2012/2013 Annual Plan.

Existing�Water�SupplyOngoing Issues with the existing Westport/ Carters Beach Water Supply were experienced:

• In January 2012 as a result of an overnight storm, there was a major power outage near the Water Treatment Plant and the Carters Beach/ Westport water supply was not able to be fully treated at this time. However, the raw water was able to be chlorinated to give a level of protection, but boil notices were issued.

• Four boil notices were issued for the Westport/Carters Beach Water Supply one in January 2012 during a power outage, and three between March and June 2012. The main issue was a hairline fracture in the steel casting of the pump body of the backwash pump. This allowed water to seep into the pump electrics causing a failure. The pump was installed and re-commissioned in late June 2012.

Tunnel�BracingCouncil undertook an inspection of the tunnels with an experienced Geotechnical Engineer ($70,000) that determined that no tunnel bracing was required during this fi nancial year.

71

Reefton�Water�SupplyCouncil approved two tenders that will allow for plans to upgrade the Reefton Water Supply to meet Ministry of Health Drink-ing Water Standards at the Council meeting on 27 April 2011.

The Ministry of Health contributed 90% of the cost of this project with funding from the Drinking Water Assistance Programme and will cover $670,000 of the full project costs which are estimated to be $745,000. The upgrade to the supply occurred in two parts. The fi rst part to line the reservoir and construct a roof over the existing water reservoir in Reefton has been completed.

The second part of the upgrade to the treatment process is currently in progress. A water treatment plant will be con-structed adjacent The Strand and will ensure that water delivered to the residents of Reefton complies with the Drinking Water Standards of New Zealand. Water will be fi ltered down to less than fi ve microns via a multimedia fi lter, and then further fi ltered to one micron through cartridge fi lters. Final disinfection will then be completed by exposing the water to ultraviolet light to disinfect the water. This upgrade includes capping the existing well head to secure the water supply against surface infi ltration and the provision of a back-up generator which is being undertaken outside of this tender process.

The upgrading of the Reefton Water Supply will be completed in 2012 .

Other�suppliesNone of the supplies complied with the Drinking Water Standards of New Zealand 2005 (revised 2008) due to protozoa re-quirements. Council has a choice as to the Drinking Water Standards that it wishes to be measured against until Council is required to meet the provisions of the Health Amendment Act 2009. This Act requires Council to upgrade water supplies in the district progressively depending on the population served by the supplies.

A reliable supply was provided in all areas with no water restrictions being imposed for any of Council’s supplies during the period. 5 total shutdowns of the Waimangaroa water supply occurred and 4 planned shutdowns were notifi ed at least 24 hours prior to the event, there was one unplanned emergency shutdown

Council received notifi cation that subsidies for the following Drink Water upgrades were approved:

Ngakawau/Hector $219,000

Punakaiki $206,000

Waimangaroa $209,000

Only a portion ($668,000) of the Reefton and Punakai-ki Drinking Water subsidies were recognised in the 2011/2012 fi nancial year.

The Drinking Water upgrades for, Waimangaroa and Ngakawau/Hector Water Supplies, which were sched-uled for 2011/2012, were deferred to 2012/2013.

72



Provide an ad-equate quality of water

Water Quality:

No potential for ill-ness due to unwhole-some water

No confi rmed E coli contamination

A total of 2 e-coli tests were recorded showing contami-nation (2011: 10 tests showed contamination)

In total there were 198 individual samples taken from Westport, Carters Beach, Reefton and Punakaiki water supplies. E-coli or faecal coliforms come from the gut of warm blooded animals (possums, deer, goats and birds) (2011: 169 samples)

For the transgression for the Westport supply and the transgression for the Punakaiki supply, all consecutive day tests were clear of contamination

The Punakaiki transgression also occurred when con-sumers were on a boil water notice to allow for a plant upgrade

The boil water notice for Reefton will remain in place until the Water Treatment Plant is completed in 2012

Seven water sup-plies will comply with Drinking Water Standards 2005 (re-vised 2008)

The Council programme in the Long Term Plan allows for all water supplies, except Mokihinui and Cape Foulwind, to be upgraded to meet the Drinking Water Standards in accordance with the Health Act

Subsidies have been confi rmed for Westport, Ngakawau/Hector, Reefton Waimangaroa and Punakaiki

The upgrades are dependant on the provision of fi nancial assistance from the Ministry of Health

The Waimangaroa and Ngakawau - Hector water supplies have funding approved and have been programmed for 2012/2013?

Provide an adequate quan-tity of water

Water Quantity - Westport and Reefton Supplies

To be able to fi ll a ten litre bucket three times within a minute

No more than ten recorded failures per annum through-out the district

No request for pressure tests (2011: no request for pres-sure tests)

All fi re hydrants to be operational

Waimangaroa and Granity Fire Brigades check Waimangaroa and Ngakawau/Hec-tor supply

All hydrants were operational (2011: all operational)

Level of service 100%

73


Provide a reli-able supply of quality water

Water Reliability

To provide water into the system virtually all of the time.

To minimise disrup-tion caused by un-planned shutdowns.

To permit gardens to be maintained in a healthy state all year.

Water supplied 99% of the time.

Water was supplied for 99.86% of the time (mains only) (2011: 99.8%)

Measurement of the availability to individual laterals not currently measured.

There were 2 occasions when water was provided on low pressure because of repairs being undertaken on the 354mm trunk main (2011: 6 occasions)

No more than three shutdowns per kilo-metre

130 leaks were repaired over the 174 km of mains which is 0.75 leaks per km (2011: 0.95 leaks per km)

Response to failures within two hours. All unplanned shut-downs less than four hours.

The target is not deemed to be a relevant measure - systems not in place to record this measure

The current measure is not a relevant measure so Council has opted to measure how many service requests were attened to within agreed priority deadlines

As service requests are received, Council assess the priority of the request and advises the contractor ac-cordingly

Contractors responded to these priorities 93% of the time within agreed deadlines (2011: 90%)

No more than fi ve days of water re-strictions per year.

No water restrictions for any of the supplies

Provide water with the mini-mum environ-mental impact

Environmental Impact

To comply with re-source consent condi-tions as assessed by Regional Council consents

100% compliance 100% compliance (2011: 100%)

74


Water�Supplies2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE

Targeted Rates 1,538 1,531 1,353


Financial Assistance 668 1,393 0

TOTAL Revenue $2,435 $3,158 $1,568






1,747 1,725 1,851



NET Cost/(Surplus) of Services $(810) $(1,433) $157


Capital Expenditure - Increases in Levels of Service 1,023 4,078 568

TOTAL CAPITAL EXPENDITURE $1,523 $4,796 $1,107

Explanation�of�Significant�Operating�VariancesFinancial�AssistanceThe reduction in fi nancial assistance to budget is attributable to the reduction in the Drinking Water Subsidies received from the Ministry of Health.

Reefton and Punakaiki upgrades were in progress as at 30 June 2012 and the subsidies were only partially recognised ($668,000). Ngakawau-Hector and Waimangaroa Drinking Water Upgrades were deferred. Overall subsidies for drinking water upgrades were reduced by $725,000 to budget.

Other�ExpensesRepairs and maintenance and Contract Administration/supervision costs were higher in the Westport, Reefton and Waiman-garoa water supplies ($84,000). This was mainly due to repeated failures of the Westport/Carters Beach backwash pump, trunkmain repairs in Waimangaroa and a higher than anticipated volume of repairs for the Reefton water supply.

75

Significant�Capital�Expenditure�Westport�Water�-�Supply�UpgradeA start was made on the proposed improvements to Westport water supply. Expenditure on professional services during this fi nan-cial year were for a leak detection analysis and report, measurement and collection of data on the capacity of the existing intake, and for a report detailing the various options for upgrade of the water supply ($221,000). Work in progress for the 2011/2012 year totalled $308,000.

Westport�Water�-�Other�CapitalReticulation was renewed in sections of Romilly Street, Peel Street, Shellswell Street, Derby Street and Snodgrass totalling $256,000.

Reefton�Drinking�Water�-�Supply�UpgradeThe upgrade of the Reefton water supply treatment was started with a new roof being constructed over the reservoir, the construc-tion of the treatment plant building and most of the treatment equipment. A failure of a pipe connection has resulted in delays to the commissioning of the plant. $274,000 has been capitalised for the lining of the reservoir and constructing the reservoir roof and $768,000 has been carried forward to 2012/2013 as work in progress.

Punakaiki�Drinking�Water�-�Supply�UpgradeThe upgrade commenced in 2011/2012 $30,000 was capitalised for water tanks, and $30,000 was carried forward as work in progress.

Explanation�of�Significant�Capital�Expenditure�VariancesIn the 2011/2012 Annual Plan $2.5 million was budgeted as a preliminary estimate for the upgrade of the Westport Water Supply. For the 2011/2012 only $308,000 was spent on professional services as detailed above. Likewise $250,000 was budgeted for an upgrade of the trunkmain renewal.

The amount included in the budget for trunk main renewal was to allow a start on the trunk main replacement if the water treat-ment plant upgrade progressed. As the full upgrade did not progress this curtailed any further work on the trunk main replace-ment. The replacement of the trunk main is included in the programmed upgrade detailed in the 2012-2022 Long Term Plan.

The Drinking Water upgrades for Waimangaroa ($245,000) and Ngakawau/Hector Water ($315,000) Supplies which were scheduled for 2011/2012 were deferred to 2012/2013.

Reefton and Punakaiki upgrades were in progress at year end. Reefton ($274,000) was capitalised for the lining of the reservoir and constructing the reservoir roof, and partial construction of the new treatment plant ($532,000) has been carried forward as work in progress for 2012/2013.

$30,000 was capitalised for the Punakaiki water tank with $30,000 being carried forward as work in progress to 2012/2013.

76


Water�Supplies

Water Supply Current Standard Target Standard Upgrade Required

Estimated Cost

($000’s)Westport Ungraded Satisfactory, low level of risk

for source, treatment and distribution

(Bb)

Existing treatment with the addition of ultra violet disinfection

$10,638

Punakaiki Unsatisfactory, high level of risk at source, treat-ment and distribution

Awaiting approval of ap-plication by MOH

(Ee)

Marginally satisfactory, moder-ate level of risk for source, treatment. Satisfactory, low level of risk for distribution

(Cc)

Covered storage, fi ltration and disinfection

$230

Reefton Unsatisfactory level of risk for source and treatment. Unacceptable level of risk for distribution

(Ee)

Marginally satisfactory, moder-ate level of risk for source, treatment and distribution

(Cc)

Cover reservoir and disin-fection

$745

Waimanga-roa

Ungraded Marginally satisfactory, moder-ate level of risk for source, treatment and distribution

(Cc)


Upgrade in 2012/2013

$245

Ngakawau/Hector

Ungraded Marginally satisfactory, moder-ate level of risk for source, treatment. Satisfactory, low level of risk for distribution

(Cc)


Upgrade in 2012/2013

$260

Inangahua Junction


(Cc)

Disinfection and fi ltration

Upgrade deferred to 2013/2014

$74

Mokihinui Ungraded

No upgrade planned

Marginally satisfactory, moder-ate level of risk for source, treatment and distribution

(Cc)


$180

Little Wanganui


(Cc)



$70

South Gran-ity


(Cc)



Cost to be determined

Compliance with these Drinking Water Standards will only be achievable if Council receives the budgeted fi nancial assistance.

7777

Solid�Waste

What�do�we�do?The Solid Waste Activity provides for the collection, transfer and final disposal of waste materials gener-ated by households and businesses within the District.

Council currently provides domestic refuse and recycling (rubbish) and recycling collections to houses in Westport and Reefton and most rural areas. However some have no collection. An estimated 3,069 tonnes of refuse is cur-rently transported out of the District to landfi lls in Nelson as this is the most cost effective option.

Council currently operates transfer stations and recovery parks in Westport and Reefton. These sites are used by all District residents and businesses for the disposal of separated recyclable materials, household hazardous waste and garden waste.

Council also operates two active landfi lls at Karamea and Maruia.

Council provides for the aftercare of Council’s closed landfi ll sites at Birchfi eld, Westport, Charleston, Inangahua, Reefton, Springs Junction and Ikamatua, and monitors groundwater quality at these sites as required under resource consent conditions.

Council also has a role in facilitating waste minimisation behaviours within communities. This is put into effect by providing resources for education programmes into schools about sustainability and waste minimisation. Support is provided to businesses to develop more sustainable practices.

Why�do�we�do�it?Solid Waste Management is necessary for the health and quality of life for the community. It supports local develop-ment and assists in maintaining a quality environment. Council promotes recycling and waste reduction to better support these goals.

Council provides programmes to encourage reusing and recycling and to motivate behaviour change.

Council provides kerbside recycling, greenwaste, composting and recycling drop off facilities at refuse stations, and Council wishes to promote recycling and waste reduction to better support these goals.


Community Outcomes How the Council ContributesHealth: By the collection and disposal of refuse

Safety: By collecting and disposing of refuse in a safe, effi cient and sustainable manner that maintains district natural and aesthetic values

The solid waste disposal minimises risk of waste being inappropriately or danger-ously disposed of

Environment: By providing safe collection and disposal of refuse by encouraging waste minimisa-tion

Education: Provide programmes to schools and the community on waste care and reduction

Economy: By meeting commercial needs for dealing with waste Solid�

Waste

78


How�Council�Performed

All of the Council operating and closed landfi lls were monitored during the year and a report was prepared for the West Coast Regional Council on the results of this monitoring.

Refuse and recycling was collected weekly from all properties within the collection area.

Residual refuse was transferred to the Nelson tip for disposal. Council carted 3069 tonnes of refuse to Nelson which is less than the 5,000 tonnes forecasted when the service started (2011 : 3,079).

No further development on the landfi ll has occurred. Council is in the process of applying for a designation over the site as part of the District Plan review. Costs associated with the purchase of Caroline Terrace and associated with Landfi ll design have been capitalised ($521,000 and $161,000 for feasibility and design). Work is still continuing to fi nalise the designation (work in progress $14,000).

The Waste Minimisation Act 2008, required Council to complete an assessment of its current practice and write an updated Waste Minimisation and Management Plan (WMMP) to become operative by 1 July 2012.

These plans once adopted by Council are required to be reviewed and re-adopted every six years. The next effective date will be 1 July 2018.

Effectively they become working documents that allow Council to continue to monitor, improve and introduce change as the need arises with any changes or improvements introduced being recorded and becoming part of the Plan at each review date. Consultation took place in May and June 2012 and the Plan was adopted in June 2012.

Council identifi ed fi ve specifi c areas where the Council can improve the current service provided and move towards better compliance with the specifi c requirements of the Waste Minimisation Act:

1. Council needs to change its collection method to a more cost effective system that places greater emphasis on recycling of product.

2. Consider making the disposal of greenwaste either free or minimal cost to encourage greater volume dis-posed at approved facilities.

3. Consider collection of organic waste to reduce residual refuse volumes and disposal to reduce greenhouse gas emissions.

4. Create an opportunity for the disposal of approved cleanfi ll.

5. Enhance education programmes to be more encompassing and wider reaching of a broader range of recy-clable and reusable product.

Council also signalled in its Long Term Plan their intention to move from a Council delivered waste disposal system, to an enhanced and environmentally sustainable waste solution for the entire District. The enhanced service could be funded and operated “in house” as a Council service of the District could move to a service where the refuse collection, recycling, landfi lls and transfer stations will be operated by an independent contractor. Prospective op-erators will be encouraged to offer prices for 2 or 3 bin options, as part of a tender process.

79


To encourage waste min-imisation and recycling to support the health of the community and the environment and to en-courage sustainable use of our natural resources

To provide a safe and environmentally sound solid waste collection, treatment and disposal service

Monitoring of Council’s solid waste facilities

Continue to monitor and provide reports to West Coast Regional Council

All sites monitored and reports provided to West Coast Regional Council in accordance with resource consents

Results indicate that fi nal capping of the closed landfi lls should be considered as well as some changes to the resource consent conditions

Total amount of waste (tonnes) sent to land-fi ll per year

Reduce by 5% per annum

Reduction over last 12 months is 1% (2011: less than 1%)

Publication of infor-mation and articles for community mem-bers

Four articles Four articles were distributed (2011: fi ve arti-cles)

Provide programmes to schools on waste care, refuse and recycling

Council con-tributes to Enviroschools Programme which delivers presentations to schools

The programme to schools was previously under-taken by the Waste Minimisation Offi cer whose position was funded through the Ministry for the Environment and the other West Coast Councils

This position was disestablished at the end of 2009

Council now contributes to the Enviroschools Programme which is delivered to schools that are prepared to take part in the programme

This programme was also stopped, however it is due to recommence in 2011/2012

Council staff took two school groups through the transfer station and recycling facility

80


Solid�Waste2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE




TOTAL Revenue $1,460 $1,497 $1,242






$1,877 $1,943 $2,033







Explanation�of�Significant�Operating�VariancesFinance�CostsThe closure liability expense reduced by $107,000 resulting in a favourable variance to budget.

Other�ExpensesHigher than anticipated costs of operating the landfi ll and transporting the refuse and recycling largely accounted for the budget overrun ($84,000) offset by savings across a number of expenses.

Significant�Capital�ExpenditureThe purchase of Caroline Terrace ($460,000)and associated land for the Buller District landfi ll ($64,000) were capitalised. An amount of $161,000 for site analysis and design was also capitalised.

Expenditure of $14,000 has been incurred on obtaining a designation has been carried forward to work in progress. Prior year expenditure ($91,000) was associated with feasibility, design and compensation was written off from work in progress.

Explanation�of�Significant�Capital�Expenditure�VariancesAt this stage Council has purchased the land at Caroline Terrace for the Buller District Landfi ll and is in the process of ap-plying for a designation over the land. The land purchases were capitalized in 2011/2012 ($521,000) and the expenditure obtaining a designation has been carried forward to work in progress ($14,000). Work in progress of $750,000 was carried forward from 2010/2011. Expenditure associated with design and compensation totalling $91,000 was written off from work in progress in 2011/2012.

The Council deferred the installation of the concrete fl oor in the transfer station storage facility ($60,000) until decisions are made on the future location of WestReef Services Ltd.

8181

WastewaterWhat�do�we�doCouncil provides these activities to support the health and wellbeing of the community and the environ-ment. Currently Council provides for the continuous collection and transportation of the wastewater from residential and commercial properties of the township of Westport, Little Wanganui and Reefton through underground piping infrastructure and treatment facilities. The rest of the district is serviced by on site disposal systems that property owners are responsible for maintaining. Council is investigat-ing areas where septic tank systems can be upgraded, whether by including these into the reticulated system or assisting with subsidy applications for communities to upgrade areas of concern to mitigate potential environmental risks.

Why�do�we�do�itCouncil intends to retain ownership of the sewer systems for the following reasons:

• The provision of wastewater services is considered to be a core service

• The ability to exclude or disconnect properties from the sewer reticulation had economic and public health implications.

• Public ownership can prevent the sewer system from being controlled in an exclusive manner

For these reasons the objective of retaining ownership of the wastewater system is to use that control wisely and in the best interests of the affected communities.

How�we�contribute�to�Strategic�Goals�and�Community�OutcomesThis activity supports the following community outcomes:

Community Outcomes How the Council contributesSafety By providing a sanitary wastewater collection and treatment service

Environment By protecting the environment through the wastewater treatment

Health: By providing a sanitary wastewater collection and treatment service

Education By providing water conservation programmes

Economy By meeting commercial wastewater needs and meeting community needs at afford-able costs

How�Council�PerformedMonitoring and reporting of the Wastewater Treatment Plants has been undertaken in accordance with the re-source consents.

The composting of biosolids from the Wastewater Treatment Plant with greenwaste from the Transfer Station has continued at Westport.

Stormwater that is disposed of in combination with wastewater has resulted in some areas of Westport’s wastewa-ter system not working effi ciently because of overload. This has resulted in residents being unable to use toilet facilities for periods when the system is overloaded. Council has requested modelling of the wastewater system to programme separation and also to provide solutions.

Ongoing upgrade of Derby Street has continued with the block from Cobden Street to Pakington Street being com-pleted.

The modelling of wastewater and stormwater reticulation has been completed by the Consultant, but not verifi ed to the satisfaction of Council, and capital expenditure is to be carried forward to 2012/2013 to enable the analysis to continue.

Waste

water

82



Public Safety:

Provide safe facilities for both the community and the operators

No accidents, injuries or pub-lic contact with sewage

Supplying reticu-lated sewer sys-tems that support public health and operator safety

No accidents recorded (2011: no injuries)

Number of public health is-sues attributed to the waste-water system

Maintain zero reports

No reports (2011: nil)

No intrusions or injuries Maintain zero reports

No intrusions and no injuries arising from intrusions (2011: nil)

System Capacity:

Provide adequate capacity

Maintain capacity of existing combined systems

Design all new systems to nationally acceptable stand-ards.

No more than ten overfl ows through-out the district

6 of the 16 sewerage overfl ows occurred on the Carters Beach rising main between Carters Beach and Westport (2011: 11 overfl ows)

These are unavoidable due to inferior pipe being installed in 1995

Derby Street from Cobden Street to Pakington Street was designed to meet NZS4104:2010 which are the Engineering Standards adopted by Council

No new systems constructed

System Reliability:

Provide a reliable sewer system

To accept sewage from prop-erties virtually all of the time

No more than one blockage per kilo-metre of pipeline

Council has 74.7 km of sewerage mains and for the 2011/2012 year we had 25 blockages which equals 0.34 blockages per kilometer of pipe. This is less than the target level indicated (2011: 21 blockages which equals 0.39 blockages per kilometer of pipe)

All blockages cleared within four hours

One blockage took six hours to clear due to a manual excavation in a confi ned area

All other blockages were cleared in ac-cordance with response times

No more than 40 blockages in later-als

Within the Westport/Carters Beach, Reefton and Little Wanganui Subdivision sewerage schemes there are over 3,000 property connections (laterals)

Over all three sewerage schemes there were a total of 52 lateral blockages that required clearing

This is 12 more than the targeted level (2011: 39 lateral blockages)

83


Environmental Impact:

Provide sewer collec-tion and disposal with the minimum environ-mental impact


100% compliance

Reefton Waste Water Treatment Plant (WWTP):Reefton WWTP consent requires scheduled monitoring 9 times per annum for a variety of analytes at various locations

The Ponds are monitored for Dissolved Oxy-gen levels, odours, and a variety of poten-tial visual anomalies

The effl uent in the ponds discharge channel is monitored for various analytes including Biological Oxygen demand, Faecal Coli-forms, Ecoli, and Total Suspended Solids

Receiving water quality is also undertaken downstream at the confl uence of Cemetery Creek and the Inangahua River. Analytes in-clude Visual clarity of the water, Biological Oxygen demand, Suspended Solids, Union-ised Ammonia, Dissolved Oxygen, pH, Water Temperature, Faecal Coliforms, and Ecoli

Additionally annual monitoring of the sedi-ments in the discharge channel is required on an annual basis. Analytes for this include Arsenic, Cadmium, Chromium, Copper, Mer-cury, Nickel, Lead, Zinc, and Poly Aromatic Hydrocarbons

Analytes that were in breach of the consent conditions on 8 occasions were:

Arsenic (1), Copper (1), Lead (1), Mercury (1), and Zinc (1) were detected in Cemetery Creek. - The same analytes were tested for at the ponds discharge point and were not detected, supporting the theory that the metals detected in Cemetery Creek may originate from upstream of the WWTP and are not present as a result of the wastewa-ter treatment plant.

Other non compliance was for Temperature (1), Ecoli (1) and Faecal Coliform (1) results in the Inangahua river sites.

84



Environmental Impact: continued....



100% compliance

Conveyance Pump Sta ons:Large parts of Westport’s sewer network also double as its stormwater network. This leads to large quantities of rainwater entering the sewer system. Prior to the 2006 upgarde of Westports sewerage system this was not an issue. However the sewerage treatment upgrade required the construc-tion of sewerage pumping stations at the sewer / stormwater outfalls, in order to transport the sewerage to the Alma road treatment plant. It was deemed to be un-economic and impractical to size the pump stations and the treatment plant to treat this huge volume of additional stormwater. This was recognised in the Westport Waste Water Treatment Plant consent which al-lows for storm water induced overfl ows to occur at the 3 outfall sewer pump stations located at Pakington, Rintoul and Roebuck St outfalls.

Stormwater induced overfl ows are moni-tored by testing the receiving water quality downstream of the pump station concerned, and recording the dates times and durations of these events. As well as monitoring water quality at two recreational (Marr’s and Shin-gle) beach locations downstream

There were 18 breaches for overfl ow moni-toring, Ecoli (8), Enterroccoci (3) Faecal Coliforms (7)

It is noted that as the pump stations are located prior to the treatment plant, that council can only monitor the upstream and downstream contaminant levels, and cannot alter the concentration or dilution or dura-tion of the sewerage overfl ows to the river during these rain overfl ow events.


85




100% compli-ance

Westport Waste Water Treatment Plant (WWTP):The Westport Waste Water Treatment Plant consent requires monitoring of receiving wa-ters in the Buller river 9 times per annum. Analytes include Visual clarity of the water, Biological Oxygen demand, Suspended Sol-ids, Unionised Ammonia, Dissolved Oxygen, pH, Water Temperature, Faecal Coliforms, and Ecoli. As well as observing whether any scums, discoloration or odours are present

The consent also requires monitoring of the effl uent quality at the point where it leaves the treatment plant, 9 times per annum. Analytes for this include Biologival oxygen demand, Faecal coliforms, E.coli, Suspend-ed solids, conductivity, effl uent volume

Once per year the sediments in the Buller river are tested for levels of various con-taminants, These analytes include Alumini-um, Arsenic, Cadmium, Chromium, Copper, Mercury, Nickel, Lead, Zinc, Cyanide Phenol, and Total Hydrocarbons

Leaving the treatment plant there were 7 breaches, three of these were for the presence Ecoli and four were for Faecal Coliforms

No complaints regarding objectionable odour from the treatment plants

Zero Nil unsubstantiated smell complaints re-ceived (2011: one unsubstantiated com-plaint was received)

8787

StormwaterWhat�do�we�do?Stormwater management systems are an integrated set of procedures and physical assets designed to manage the surface runoff from urbanised catchments.

Council manages open drain stormwater systems in Hector, Ngakawau, Seddonville, Granity, Waimangaroa, West-port, Carters Beach and Reefton. In addition there is a piped stormwater system in Westport.

Sections of the Westport piped sewer system and all of the Reefton piped sewer system also convey stormwater.

In Punakaiki, the only public stormwater drain is maintained by NZTA as part of their roading network. In other townships, such as Mokihinui or Little Wanganui, there are no formal stormwater systems at all - stormwater simply soaks to ground naturally.

Why�do�we�do�it?Council provides stormwater systems to manage surface water runoff from urbanised catchments in a way that achieves a balance between the level of protection and the cost to the community. Council intends to retain owner-ship of the stormwater systems.

This continued ownership is justifi ed on the following grounds:

Public Benefi t - the service is deemed to provide a public benefi t, through the protection of property

Health and Safety - the provision of stormwater systems reduces the risk of death or injury resulting from fl ooding or private property

Core Business - the provision of stormwater systems is considered to be a core function of Local Government

Exclusivity - the ability to exclude or disconnect properties from a stormwater collection system has economic and public health implications. Public ownership can prevent the stormwater system being controlled in an ex-clusive manner

Monopoly Supply - the majority of properties have limited options

How�we�Contribute�to�Strategic�Goals�&�Community�OutcomesThe most signifi cant outcome supported by the provision of stormwater systems is a healthy community. Uncon-trolled stormwater runoff can be destructive and represent an immediate risk to life. Over the longer term, stagnat-ing pools of water can become a breeding ground for disease.

Two other service outcomes supported by the stormwater systems are prosperous and sustainable communities, through the minimisation of stormwater damage and the protection of the environment.

How�did�we�PerformStormwater that is disposed of in the wastewater pipes have resulted in areas of Westport where wastewater sys-tems could not be used during rainfall events. Modelling of the wastewater system will determine areas of the town where additional stormwater separation will be required. During this year there have been more overfl ows compared with previous years. No residentIal houses were inundated. The overfl ows are because pipes are at full capacity

Reconstruction of Derby Street involving upgrades of the stormwater disposal began in March 2011. This upgrade is a long term project and Council has planned to upgrade underground services and reconstruct the road two blocks per annum to ensure that the costs are spread out over a period of time for the ratepayers.

Storm

water

88



Provide adequate stormwater capacity

Maintain capacity of existing sys-tems and have all new systems designed with a minimum 1 in 10 year event without ponding, and a 1 in 50 year event without in-undation of dwellings

Number of defi cient designs found

One new main constructed designed for a 1 in ten year event (2011: one new main)

No more than fi ve houses inundated by stormwater fl ooding per annum

No houses inundated with stormwater (2011: nil)

Provide a reliable stormwater system

Maintain the stormwater system in a state of readiness by identi-fying no more than 20 faults per annum during quarterly inspec-tions

90% compliance with response times as stated in the service request

14 service requests of which 13 were completed on time

93% of service requests completed within response times (2011: 100%)

Regular inspections of stormwater sys-tem were undertaken

These will pick up loose or stuck man-hole lids, buildup of silt and if fl ood-gates are blocked by silt or debris re-pairs are undertaken to remediate

Minimise disruption caused by obstructions

Monitor and record blockages

There were 4 blockages to the storm-water system that resulted in main clearance (2011: eight blockages)

These blockages did not result in any signifi cant fl ooding

Provide a stormwater system with minimal environmental impact

Compliance with Resource Con-sents

100% compliance Currently no resource consents for stormwater due to existing use

Stormwater system was in place prior to the Resource Management Act

89

��Wastewater�&�Stormwater2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

Operating RevenueTargeted Rates 1,882 1,895 1,807



TOTAL Income $1,983 $2,146 $1,818

Operating ExpenditureEmployee Benefi t Expenses 0 0 0




2,509 2,495 2,507







Significant�Operating�Expenditure�VariancesFees�&�SundryCouncil budgeted to receive $218,000 for the Orowaiti Sewerage Scheme connection charge. This income was recognised in 2009/2010. This was offset by a prior year unbudgeted contribution from a large subdivision in Westport ($72,000).

Other�ExpensesThe activated sludge waste water treatment plant produces biosolids on a daily basis as part of the treatment of sewerage.

The biosolids needs to be disposed of and the production of compost is a safe and productive way of dealing with the biosolids. Higher costs ($66,000) were incurred because of the shortage of greenwaste material taken to the transfer station. The over-run on the production of compost should not be taken out of context as it is just one of aspect of the wastewater treatment.

Overall the Westport wastewater was 4.7% over budget.

Internal�InterestInternal Interest was higher than budget as projects were funded internally rather than through external loans.

90


Significant�Capital�ExpenditureCritical Spares for the Waste Water Treatment Plant ($113,000). The budget for the spares in 2011/2012 was $95,000 and $38,000 was carried forward from 2010/2011.

Greenwaste Biosolids Mixing Machine ($60,000)

Continued phased upgrade of Derby Street ($93,000)

Reefton telemetry upgrade ($19,000)

Additional manholes for Reefton sewerage ($29,000)

Main renewals for Little Wanganui sewerage ($37,000)

Stormwater Main Renewals ($73,000)

Significant�Capital�Expenditure�VariancesDeferment of the sewer modelling and separation ($50,000)

Deferment of the movement of the septic facility in Westport ($25,000)

Deferment of the stormwater pumping station in Brougham Street ($271,000) . This has been deferred until the modelling of the Wastewater reticulation system was completed and an appropriate decision regarding the benefi ts and effects of constructing the pump station could be determined. The capital project has been carried forward to the 2012/2013 fi nan-cial year

Minor budget overruns on main renewals for Little Wanganui sewerage and critical spares for the Westport Waste Water Treatment Plant were recorded.

9191

Support�Services

What�do�we�do?The goal of Support Services is to be effi cient, service orientated and accountable to Council and includes the following functions:

• Management functions

• Corporate planning

• Financial and accounting operations - monitoring and fi nancial reporting

• Generation of Annual Plans, Long Term Plans and Annual Reports

• Rating operations

• Customer Service Centres in Westport and Reefton

• Human Resources management

• Information Technology management

• General administration

• Health and safety compliance & legal counsel

• Monitoring and compliance of all Council Controlled Organisations

• Guidance and monitoring of Holding Company performance

• Asset Management

Why�do�we�do�it?The activity is intrinsic to the support and functioning of all Council’s activities and service provision.

Contributes�to�what�Community�OutcomeSupport Services covers all the community outcomes as it provides the administrative and operational capacity to achieve them

Supp

ort�Se

rvices

92


How�Council�PerformedLeasehold�LandIn June 2010 Council passed a resolution approving 20% discount off the market value of its Endowment Leasehold Property as an incentive to encourage leaseholders to freehold this type of property from Council. This offer expired 30 June 2011.

The current scheme approved by Council closed on 30 June 2012. At this date there were 65 completed freeholding transac-tions with a total $3.98m of funds that have been paid to Council over the 2 year period the scheme has run. This represents 51% percent of the total number of properties that Council owned at the start of the scheme in 2010. The scheme has proved highly successful, realising signifi cant funds for Council, and has delivered signifcantly better returns for the ratepayer.

Information�SystemsCouncil has continued to improve and develop information systems. During the fi nancial year a Debt Management Module to address debt recovery and a Customer Database was installed to improve relationships and frontline communications with ratepayers.

Investigation�into�a�Shared�IT�System:Buller District participated in a project with Grey and Westland District Council’s and the West Coast Regional Council to investigate the feasibility of a Shared IT System. A full business case with a confi rmed technical architecture was presented to the Chief Executive Offi cer in October 2011. At this stage Buller and Westland District Council decided not to participate in the Shared Services.

Health�and�SafetyOn-going development of Health and Safety Procedures has occurred to show compliance with legislation.Council achieved Secondary Workplace Safety Management Practices Accreditation after the Health and Sfety Audit in November 2011.

Development�West�Coast�Extraordinary�FundingA one-off $2 million extraordinary distribution was made available to our Council in this fi nancial year. The pool of funds is used for the development of community assets and/or projects that will contribute to sustainable economic benefi ts for the Buller District. The Grants Committee held two funding rounds in December 2011 and April 2012. Council has allocated $1,630,500 towards various community projects spread throughout the District as shown below:

Organisation Project details Amount ap-proved ($)

Buller Rugby Football Union To install new lights at Craddock Park Rugby Football Ground to comply with the standard to play rugby at night

$25,000

Carters Beach Hall Commit-tee

To upgrade the Carters Beach Community Hall $50,000

Karamea Medical Associa-tion

Construct a new replacement house for medical staff $195,000

Salvation Army Building work for “The Shed” project $50,000

Sunset Speedway Club Replacement of outdated safety fence to meet new imposed standards $25,000

Westport Kindergarten Association

Construction of a second kindergarten to address large numbers of pre-school children that cannot access childhood education in Buller

$100,000

Coaltown Trust Construction of Cultural Hub – relocating the museum and I-Site into a central location

$500,000

Reefton Powerhouse Sub-committee

To reconstruct the original power house and water race to be a complete working unit

$400,000

Mokihinui-Lyell Backcoun-try Trust

Create an 80km iconic walking/cycling trial – The Old Ghost Road. Facilities to include huts, toilets and interpretive material

$250,000

Seddonville Community Association

To relocate the fi re station and Library from fl ood area to higher ground at the Seddonville Domain

$35,500

TOTAL Approved:

$1,630,500

We look forward to seeing these projects develop and take shape in the Buller community. Each of the organisations have made signifi cant progress from the hard work and dedication from volunteers and the funding from the Extraordinary Fund has kickstarted key projects within the District.

93

Long�Term�Plan�-�Financial�StrategyOne of the requirements for this year’s Long Term Plan was the development of a Financial Strategy. The overarching Fi-nancial Strategy is to ensure that rates remain affordable to the average ratepayer and that net borrowings are fi nancially sustainable.

The Financial Strategy demonstrated that Council is forecasting a relatively low level of net debt while maintaining a substan-tial capital improvements and replacement programme of $57.7 million addressing infrastructure defi cits. To manage volatile rate movements the Council smoothed its rates by under-rating in 2013 and recovering this amount in 2014. Council received an unqualifi ed opinion from Audit New Zealand on its Long term Plan which was adopted by the statutory deadline.


Prioritise and manage operat-ing expenditure and capital ex-penditure

Net operating results and net capital re-sults within overall budget

Operate within overall budgets

Within overall budgets with exceptions have been not-ed and explanations provided

Council operating defi cit of $0.7 million versus a budg-et surplus of $1.6 million (2011: $647,000 defi cit)

Net Capital Expenditure $5.3 million (2011: $5.5 mil-lion)

Maintenace of rating inforam-tion database in compliance with Local Rat-ing Act 2002

Statutory compli-ance and availability of rating information to public in Westport and Reefton

Continue to provide up-dated rating informa-tion available to public at Westport and Reefton Offi ces and on website

Continued availability of rating information to all members of the public

Maintenance of Council’s infor-mation systems including GIS and fi nancial and regulatory systems

Availability of fi nan-cial and operational systems including GIS systems to support provision of Council services for effective decision making

99% availability with no extended downtime on all critical applications

99% availability with no extended downtime on all crit-ical applications (2011: 99%)

Customer Ser-vices provides the fi rst point of contact for customers

This services includes a web-site (www.bull-erdc.govt.nz), telephone ser-vice and face to face contact through the Customer Ser-vices desk in Westport

Customer informa-tion services are available to all cus-tomers. The activ-ity employs highly trained and skilled staff who have local and Council knowl-edge and can provide clear, consistent and accurate information

The number of business transactions carried out at Customer Service

The number of transactions at Westport Customer Ser-vices averages 5,700 per month, and 6,000 per month for Reefton

The number of transactions is not relevant as a meas-ure of Customer Service (0.1%) rather the number of complaints as a % of transactions is indicative of the quality and effectiveness of service provided

Customer Services log all Customer Service Requests and handle all frontline enquiries such as rating en-quiries, payments, dog registrations and lodging of all buidling consents

In addition Reefton Service Centre handles Post Shop transactions and LTSA registrations

The breadth of services handled by Customer Services is constantly reviewed to ensure customers enquiries can be resolved at fi rst point of contact

Number of complaints received

Complaints are handled and investigated by each de-partmental manager

No signifi cant fi ndings noted

Customer satisfaction survey - internal and ex-tenal 90% rating

Survey has not been carried out

External customers provide feedback via a suggestion box in Customer Services - no negative comments re-ceived

Complaints relating to staff / Council services are dealt with by the Management Team

Monitor turnaround time to resolve queries by in-ternal departments.

Service request system has been implemented to log all requests and monitor the deadlines for completion (875 logged with 852 being completed for this fi nancial year)

Overdue service requests are escalated to the Team Leaders for resolution

94



To reduce the incidence of work related accidents and to ensure that Council com-plied with Health and Safety legisla-tion

Health and Safety Achieve and main-tain ACC accredita-tion - measure savings achieved via rebates on ACC levies

Secondary accreditation achieved

100% compliance with Council Health and Safety policies and pro-cedures

Council complies with all Health and Safety policies and procedures

Work was been undertaken on improving the principal contractor relationship health and safety procedures and processes

One complaint was received pertaining to Health and Safety

The matter was investigated and no signifi cant fi ndings were noted

Monitoring of contrac-tors safety and com-pliance procedures to ensure compliance with Council policies and statutory requirements

Setting up systems to ensure that all contracts and con-tractors comply with legislative requirements


95

��Support�Services2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE



Internal Recoveries 3,563 3,497 3,487

TOTAL Revenue $3,633 $3,497 $3,489


Employee Benefi t Expenses 1,691 1,628 1,643





NET Cost/(Surplus) of Services ($32) $0 $0




Explanation�of�Significant�Operating�VariancesFinancial Assistance: Unbudgeted funds received from Development West Coast for allocations made from the Extraordinary Development Fund for community-based projects ($67,000).

Employee Benefi ts: Unubdgeted healthcare benefi ts and accrued employee benefi ts accounted for the overrun on employee expenses ($63,000).

Other Expenses: As Council made a decision not to proceed with the Shared Services IT system, costs incurred in the inves-tigation were expensed and represent unbudgeted costs in the 2011/2012 year ($55,000). In addition debt collection costs ($31,000) proved to be higher than anticipated. This was offset by minor savings across a wide variety of expenses.

Significant�Capital�ExpenditureA Debt Management Module was implemented to improve Council Debt Recovery function. Other IT upgrades include an up-grade of the Microsoft Software and hardware, server and network upgrades ($170,000)

Explanation�of�Significant�Capital�Expenditure�Variances�Council decided not to participate in the Shared IT System with the other local District Council ($400,000 capital budgeted was not required).

Delays were experienced in the implementation of other IT projects accounting for the remainder of the under expenditure. This capital budget has been carried forward to the 2012/2013 fi nancial year.

9797

In-House�Professional�Services

What�we�do?The Professional Services Unit provides engineering services to support the maintenance and develop-ment of Council infrastructure. This includes the preparation of contracts for roading, water, wastewater, solid waste and property. They monitor the performance of contractors and issue instructions for work found necessary as a result of requests for service and comments from ratepayers.

Why�we�do�it?The maintenance of an in-house professional services unit allows Council to access engineering services on a cost ef-fective basis. In-house expertise assists the effi cient management of Council roading and other infrastructure assets.

How�we�Contribute�to�Strategic�Goals�&�Community�OutcomesThis activity supports the following community outcomes:

Community OutcomesSafety By monitoring the conditions of Council assets and issuing requests for maintenance

in time.

Environment By monitoring landfi lls.

Economy By requesting necessary maintenance in time.

How�Council�PerformedThe professional services business unit provided monthly updates to Council on contracts under their jurisdiction in a timely manner.

Key�Performance�IndicatorsWhat we did What we measured Target ActualTo provide engineering ad-vice to Council and adminis-ter contracts

Provide monthly reports on annual work programmes, monitor contract works and prepare monthly contract progress reports

Prepare annual work programmes and month-ly progress reports

Have continued to do the same

In-Ho

use�Pr

ofessio

nal�Se

rvices

98


In-House�Professional�Services2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE

Fees and Charges 1 9 1


TOTAL Income $615 $662 $605




Finance Costs 2 2 2


$532 $583 $565



NET Cost/(Surplus) of Services $(85) $(79) $(42)




Explanation�of�Significant�Operating�VariancesNo signifi cant operating variances were noted.

Explanation�of�Significant�Capital�Expenditure�VariancesThere were no signifi cant capital expenditure variances noted.

9999

Westport�Harbour

The Council Harbour operation was established under the Westport Harbour Foreshore, Seabed, Riverbed and Waters Control Order 1988, which came into force on 1 July 1998. A grant of control was given to the Council which has since then amalgamated into the Buller District Council.

Buller Port Services Limited, a wholly owned subsidiary of Holcim New Zealand Limited managed the harbour until 31 August 2010. Westport Harbour Limited took over the management contract from Holcim on 01 September 2010. On 01 September 2010 Council sold land and buildings to Westport Harbour Limited, and in consideration Buller Holdings issued 1,118,000 shares to Council with a par value of $1.00.

The harbour is a key strategic asset and provides transportation opportunities for bulk cargos such as coal, cement, gypsum and timber. It also provides facilities for commercial and recreational fi shing. Harbour operations such as dredging and maintenance of the full and half-tide walls contribute to the effi cient fl ow of the Buller River during times of fl ood, providing a degree of protection to the town of Westport.

Westport Harbour Limited will provide land, facilities, plant for receiving, delivery, stockpiling and shipment of a wide range of products and raw materials; the ownership of land and facilities necessary to maintain the company’s commercial assets; and the provision of facilities associated with the repair and servicing of vessels.

It has now been agreed that assets would no longer be transferred to Westport Harbour Limited, but leased via an operating Lease.

Contributes�to�what�Community�Outcome?This activity supports the outcomes of safety and economy.

This activity contributes to the community outcomes by:

• Providing fl ood protection to the town of Westport; and

• Promoting and enhancing opportunities for economic development.

What�was�achievedProvided safe and effi cient port services.

How�the�Council�PerformedNet surplus for the year was $54,000.

Westp

ort�Ha

rbour

100


Westport�Harbour2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

OPERATING REVENUE









NET Cost/(Surplus) of Services $(54) $0 $168


Capital Expenditure - Increases in Levels of Service

0 0 0


Operating�VariancesCouncil did not budget for Westport Harbour.

Lease income $208,000) and depreciation on harbour asets ($154,000) were unbudgeted

Significant�Capital�ExpenditureNo capital expenditure was incurred.

Explanation�of�Significant�Capital�Expenditure�VariancesNo signifi cant capital variances were noted.

101101

Council�Controlled�Trading�Organisations

Westport�AirportWestport Airport is a joint venture between the Crown and Buller District Council, with each holding a 50% interest. Management and control of Westport Airport is vested in the Buller District Council.

Objective:• To operate as close as possible to a commercial business in a cost effective and effi cient manner.

• To maintain the Westport Airport assets.

• To enter into any commercial undertakings that will complement the airport operations.

Nature�&�Scope�of�Activities:To operate airport facilities at Westport. This includes the provision, maintenance, upgrading and enhancement of services and facilities to accommodate the landing of aircraft and the safe and effi cient facilitation of passengers and cargo, having regard to the regulatory requirements of the Civil Aviation Authority of New Zealand.

Performance�Targets�&�Results:Performance against the targets set in the Airport Authority’s Statement of Coprorate Intent is as follows:

Westport�Airport�Authority�-�Councils�Half�Share2011/2012 2011/2012 2010/2011


$(000) $(000) $(000)

REVENUE

Fees & Sundry - Airport 59 50 58


EXPENDITURE



Finance Costs 0 0 0


$117 $115 $112

Less: Internal Interest 0 0 0



Note: Council’s share of expenditure is not exactly half of total expenditure because of depreciation on different assets owned by each of the joint venture partners.




Coun

cil�Con

trolled

�Tradin

g�Orga

nisatio

ns

102


Non-Financial�Performance�&�Targets:A�commitment�to�the�environment• To comply with the Resource Management Act and undertake its activities in an environmentally sound manner

having regard to the interest of the community.

A�commitment�to�service• To systematically improve the quality and effectiveness of services provided to customers.

A�commitment�to�the�community• To operate the airport with due regard to sound, cultural and environmental issues arising from the community

in which they are located.

• A commitment to full ownership and independent air transport.

• To seek full contribution or divestment.

Significant�Capital�ExpenditureNo signifi cant capital expenditure were noted.

103

Buller�Holdings�LimitedThe nature and scope of Buller Holdings Limited is to provide a holding company structure for the ownership of selected Council assets and investments. Buller Holdings Limited provides a commercial focus in the govern-ance and administration of these assets, enabling more effective management of Council’s commercial activities therefore allowing for maximum returns on behalf of the ratepayers.

ObjectiveTo operate as a successful business and to be guided by the following principles:

• Financial performance;

• Service;

• Employee relations; and

• Safety and environment.

Nature�&�Scope�of�ActivitiesThe nature and scope of Buller Holdings Limited is to provide a holding company structure for the ownership of selected Council assets and investments.

Financial�Targets�and�Results

Description

Actual

2011/2012

$000

Budget

2011/2012

$000Group revenue 13,831 12,017

Net surplus 400 310

Return on revenue 2.9% 2.6%

Dividends 825 825

Subvention Payment 276 0

104


Service�PerformanceOBJECTIVE TARGET ACTUAL

Financial Performance The company is committed to operate as a suc-cessful business and achieve a commercial rate of return on the investment in the business. This will mean meeting the targets of subsidiaries as stated in the Statements of Intent.

Buller Holdings has continued to pursue all opportunities to increase revenue and con-tain costs. The main focus was to look for sustainable growth opportunities that reduce the reliance upon Council contracts

Westreef has pursued this strategy and con-tinued to make good progress in obtaining competitively tendered works and in growing private customer works

To actively pursue additional revenue streams re-sulting in the increased profi tability of BHL so as to increase the dividend payable to Council.

Westport harbour has worked throughout the year with the new customer Bathurst Re-sources to develop a long term sustainable shipping business for West Coast coal and prospects for this opportunity are good.

Buller Recreation uptake of services by cus-tomers continues to grow favourably but also needs to diversify in order to improve fi nan-cial performance.

During the year a total of $825,000 (2011: $980,000) in distributions were paid to Coun-cil. This is in line with the Statement of In-tent which estimated a distribution to Coun-cil of $825,000.

Service 3 meetings per year between Council and BHL Board

3 meetings held during the period with Direc-tors.

CEO’s meet 6 times per year CEO’s have met 7 times during the period and three with the chairman present

Formal monthly reporting to Council Quarterly reports to Council

Compliance with charter and protocols No breaches of charter known

105

WestReef�Services�LimitedWestReef Services Limited is 100% owned by Buller Holdings Limited.



• Service; and

• Employee relations.

Nature�&�Scope�of�ActivitiesThe nature and scope of WestReef Services Limited’s activities are to predominantly provide contracting services for physi-cal works in the Buller Region and the West Coast of the South Island. Its activities include maintenance and construction services for:

• Roads and bridges; • Response for road and civil defence emergencies;

• Parks and reserves (including associated facilities); • Utility services (water and sewerage reticulation);

• Rural fi re emergency response; • Vehicle workshop repairs;

• Landfi ll sites; • Refuse collection and kerbside recycling;

• Roadside vegetation control; and • Property maintenance.

Performance�Targets�&�ResultsTARGET ACTUAL

The Company will achieve a post tax operating profi t of 10.0% on gross revenue (before any subvention payment)

• 12% achieved (2011: 20%)

Grow gross revenue by 10% • 10% growth achieved in the period (2011: 22%)

To renew its TQS1 certifi cation as required • Achieved

Monthly meeting with major client and Council staff to obtain feed-back on specifi c contract performance

• Achieved

• In addition to client meetings direct contact from the public was used to gauge customer sat-isfaction.

Support six activities involved with the social and environmental de-velopment in the community.

• Supported 18 events and organisations in the pe-riod (2010: 15 events supported)

Staff turnover to be less than 15% annually excluding retirement. • 16% achieved - 10 left, 24 started, 2 retired (2011: 23% achieved)

Ensure succession plans are put in place for all senior management positions.

• Completed and implementation has com-menced.

Lost time incidents to be no more than 5% of total hours • 0.02% achieved (2011: 0.3% achieved)

Held staff meetings to ensure effective communication with all staff • Meetings held weekly with minutes kept

106


Westport�Harbour�LimitedSince 01 September 2005 the operation of the Westport Harbour and the management of the harbour assets have been carried out by Buller Port Services Limited, a wholly owned subsidiary of Holcim (New Zealand) Limited (“Holcim”) pursuant to a Harbour Management Agreement between the Council and Holcim dated 16 March 2006 (“the HMA”).

The term of the HMA expired on 31 August 2010 and with effect from the expiry of the HMA Westport Harbour Limited has operated the Harbour in accordance with agreed service levels.

On 01 September 2010 Council sold land and buildings to Westport Harbour Limited and in consideration Buller Holdings Lim-ited issued 1,118,000 shares to Council with a par value of $1.00. The remainder of the port assets were leased to Westport Harbour Limited.



• Service;



Nature�&�Scope�of�ActivitiesWestport Harbour Limited will be involved in providing land, facilities, plant and labour for receiving, delivery, stockpiling and shipment of a wide range of products and raw materials; the ownership of land and facilities necessary to maintain the company’s commercial assets; and the provision of facilities associated with the repair and servicing of vessels

107

Key�Performance�IndicatorsWHAT WE DID TARGET ACTUALFinancial perfor-mance

Pre-tax operating profi t of at least 9% of gross revenue Pre-tax operating profi t for the year of -2.39%

Target not achieved due to substantial dredge maintenance costs

To achieve a post tax operating profi t of at least 15% of BHL’s investment before any subvention payments

Defi cit for the year

Pursue and demonstrate opportunities for practical growth 2% operating profi t on BHL’s investments

Joint venture proposed with Bathurst to provide long term services

Service To safely maintain by dredging (subject to prevailing weather and littoral draft conditions), a bar depth greater than 2.8 metres at chart datum

3.9m high, 2.4m low over the year

Average depth of 3m

To achieve a maximum total tonnage of 460,000 tonnes through the port consistent with customers require-ments and vagarities of the port

425,239mt of cement shipped

6,400mt of coal shipped

To safely maintain, by dredging, an average river depth in the main navigation channel of 3.8m at chart datum

Dredged as required to maintain depth

Average river depth of 4.0m

To maintain the cement berth depth to allow the Mil-burn Carrier II to lie always afl oat at a draft of at least 5.6m to 6.0m

To maintain fl oating basin berth and Talleys wharf at 5m at chat datum-

To maintain practical depths in fi shing vessel berths consistent with the size of working users so that they remain afl oat at MLW tides

Provide forums for discussion on port related matters, conduct port tours and make presentations to prospec-tive and present customers

During the year a lot of work has been undertaken to agree long term commer-cial arrangements with Bathurst Resourc-es Ltd

There have also been a number of en-quiries for other shipping opportunities throughout the year which may result in business for the port

Outport dredging contracts are still be-ing actively pursued with the Nelson contract for 2013 agreed and terms have been provided to Gisborne

Employee Relations Achieve and maintain succession plans for the key staff positions of Harbourmaster and Dredgemaster

Key position succession plans in place

Staff turnover - 1 per year

Engage in policies that will assist in recruiting and re-taining staff

Group Code of Conduct adopted by WHL during the year

Achieve target training hours per employee of 0.5% of total work hours (114 hours)

286 hours achieved

108


WHAT WE DID TARGET ACTUALSafety and Environ-ment

Log all incidents from all sources and ensure that ap-propriate action is taken to investigate, report and cor-rect identifi ed shortcomings

6 incidents for the year

LTI target is zero 2 LTI’s

LTIFR’s to be less than 4 per annum

Conduct 4 safety tours per month Average of 3.17 per month

Environment No adverse effects on the environment All consents requirements met

Oil spill training and procedures in place

109

Buller�Recreation�LimitedCouncil incorporated a new Council Controlled Organisation, Buller Recreation Limited, which is 100% owned by Buller Holdings Limited.In the Council meeting held on 24 June 2009, Council agreed to transfer the Solid Energy Centre to Buller Recreation Limited, and Westport Harbour to Westport Harbour Limited effective 01 July 2009.

In the meeting of 23 September 2009 Council ratifi ed the purchase and sale documents for the sale of the assets to Buller Recreation Limited. The sale was concluded and Council received 17,570 million shares in Buller Holdings Limited, valued at $17.570 million, and transferred the assets to Buller Recreation Limited.



• Service;



Nature�&�Scope�of�ActivitiesThe nature and scope of the company’s activities are to provide accessible sport, recreation and event services and facilities to residents and visitors to the Buller District of New Zealand.

Its activities will include provision of services for:

• Recreational swimming and learn to swim programmes

• Aquatic sports events

• Indoor court sports competitions and events

• Fitness centre programmes and classes

• Outdoor turf sports

• Corporate, trade and social events

The Directors will consider opportunities from time to time with regard to other types of activities or expanding the reach of the Buller Recreation Limited for the provision of services outside of the centre’s physical location.

110


Key�Performance�IndicatorsWHAT WE DID TARGET ACTUALFinancial perfor-mance

To operate within budget Revenue exceeds budget by 9%

Expenditure exceeds budget by 4.5%

Buller Recreation continues to be a diffi cult business to operate, ending the year with a pre-tax loss of $730,000

The company has reached the point where ex-penditure controls are strong, but future suc-cesses will depend upon the ability to generate further revenue

Achieve fi tness centre membership of circa 320pa with a retention rate of more than 35%

Membership currently at 516

Average membership is 318

Retention rate of memberships is 70%

Achieve regular patronage of aquatic services to an average of 2,800 visits per month

Achieved average of 4,880

Achieve swimming lesson students in programmes of circa 125 students (averaged over 12 months)

Averaged 179 per month

Ensuring compliance with legislation and industry best practice in health and safety management

Achieved

Employee leader-ship, development and retention

Engage in policies that will assist in developing and retaining staff

Staff turnover to be less than 15% annually

Staff turnover 29% (7 staff out of 25)

One of these is a retiree

Establishing a structure of leadership and succes-sion that enables delivery of service objectives

Structure developed and implemented

Leader structure and succession plans developed

Development of a training plan for staff Staff training has been undertaken to ensure that they have the necessary skills to perform the tasks they are required to do

Customer service and management training has been given to some members of staff during this period

Fortnightly team leader meetings to be held and minuted

Achieved

Asset management plans developed for the facil-ity, plant and equipment

Asset management plans completed in 2011

Complete maintenance and replacement in ac-cordance with the asset management plan

Achieved

Monthly report on asset management

111

Buller�Health�TrustThe Buller Health Trust was established in 1997 for the preservation of public health and wellbeing in the Buller District.The Mayor and Chief Executive are appointed trustees of the Buller Health Trust.

Objective• To benefi t the community;

• To be a good employer; and

• To be environmentally and socially responsible.

Nature�&�Scope�of�ActivitiesTo be involved in establishing, maintaining, controlling, aiding or carrying on medical and dental clinics or any other body in accordance with the Trust Deed, with the objective on conserving public health and wellbeing in the community of the Buller District.

Performance�Targets�&�ResultsTARGET ACTUALTo support provision of appropriate medical services to the Buller community.

Dental services were available 100% of the year (2011: 100%)

To operate on a breakeven basis Annual result was a $102,845 surplus (2011: $23,255 loss)

112


Tourism�West�CoastTourism West Coast is the official Regional Tourism Organisation for the West Coast region. The Board of Directors is made up of five members. The Buller District Council appoints one member, along with the one each from Westland District Council and Grey District Council. The Council also provides annual funding to Tourism West Coast.The other two members are appointed by Development West Coast and from the Tourism industry.

Objective• Enhance the West Coast’s basic promotional capabilities;

• Co-ordinate the work of development and promotional agencies;

• Secure long term funding; and

• Provide advisory and support services for the local tourism industry.

Nature�&�Scope�of�ActivitiesTourism promotion at a regional level.

Performance�Targets�&�Results

TARGET ACTUALThe Chairperson of the Board and Chief Executive of Tourism West Coast will ad-dress Council on an annual basis

Presentation completed to Council during Annual Plan process.

The Annual Report is to be presented to Council within two months of adoption

Annual Report provided and adopted by Council on 25 July 2012

113111131111113333333333333333333333333333333333333

Financial�Statements

Contains:

Statement�of�Comprehensive�Income

Statement�of�Changes�in�Equity

Statement�of�Financial�Position

Statement�of�Cashflows

Finan

cial�St

ateme

nts

114


111144

Statement�of�Comprehensive�IncomeParent Group

For the year ended30 June 2012

2011/2012 2011/2012 2010/2011 2011/2012 2010/2011

Note Actual Budget Actual Actual Actual

$000 $000 $000 $000 $000

OPERATING REVENUE

General Rates 1 6,835 6,790 6,411 6,835 6,411

Targeted Rates 1 4,486 4,538 4,068 4,486 4,068

Rate Penalties 1 231 170 231 231 231

Financial Assistance 5,162 5,014 3,892 5,162 3,892

Investment Income 2 1,764 1,444 1,610 612 640

Other Income 2 159 0 167 2 167

Fees & Charges 4,420 3,505 4,443 9,435 8,228

Vested Assets 122 350 40 122 40

Profi t on Sale of Assets 6 0 384 35 0

Revaluations of Investment Land 12 532 390 141 532 141

Share in Profi t/(Loss) of Associate 0 0 0 (1) (8)

TOTAL Operating Revenue 3 $23,717 $22,201 $21,387 $27,451 $23,810


Employee Benefi t Expense 4,015 3,892 4,003 9,110 8,157

Depreciation 5,015 4,803 5,199 6,118 6,222

Finance Costs 1,219 1,490 1,512 1,217 1,446

Other Expenses 12,509 10,428 11,443 10,328 9,866

Loss on Derivative Contracts 16 259 0 208 259 208

Impairment of Assets 12 679 0 1,400 744 0

Assets Written Off 461 0 572 461 572

Loss on Sale of Assets 9 0 0 9 127

Loss on Sale of Investment Property 52 0 194 52 194

TOTAL Operating Expenditure 4 $24,218 $20,613 $24,531 $28,298 $26,792

NET Surplus (Defi cit) Before Taxation 5 $(501) $1,588 $(3,144) $(847) $(2,982)

Income Tax Expense 6 0 0 0 97 77 (501) 1,588 (3,144) (421) (3,059)

NET Surplus (Defi cit) After Taxation $(501) $1,588 $(3,144) $(944) $(3,059)

OTHER COMPREHENSIVE INCOME

Increase /(Decrease) in Infrastructure Revaluation Reserves

13,823 4,596 130 14,345 130

Gain/(Loss) on Investment Recognised in Asset Revaluation Reserve

(11) 0 (8) (11) (8)

TOTAL Comprehensive Income $13,311 $6,184 $(3,022) $13,390 $(2,937)

The accompanying Notes form part of these Financial Statements

1151111155

Statement�of�Changes�in�EquityParent Group


2011/2012 2011/2012 2010/2011 2011/2012 2010/2011

Actual Budget Actual Actual Actual

$000 $000 $000 $000 $000

Equity as at 1 July $295,510 $321,240 $298,532 $293,695 $296,632

Total Comprehensive Income 13,311 6,184 (3,022) 13,390 (2,937)

Transactions with Owners recorded directly in Equity

0 0 0 0 0

Total Equity at End of Year $308,821 $327,424 $295,510 $307,085 $293,695

Components of Equity

Accumulated Funds 171,516 187,271 171,948 169,099 169,974

Reserves 1,872 739 1,941 1,872 1,941

Asset Revaluation Reserve 135,433 139,414 121,621 136,114 121,780

Total Equity at End of Year $308,821 $327,424 $295,510 $307,085 $293,695


116


111166

Statement�of�Financial�PositionParent Group

As at30 June 2012

2011/2012 2011/2012 2010/2011 2011/2012 2010/2011


$000 $000 $000 $000 $000

CURRENT ASSETS

Cash and Cash Equivalents 8 1,986 628 506 2,560 1,818

Trade and Other Receivables 9 4,645 3,746 4,259 4,708 4,334

Tax Receivable 0 100 0 0 0

Inventories 16 13 16 188 171

Other Current Assets 10 9 9 237 44 297

Short Term Investments 10,938 10,764 10,376 12,241 11,229

Assets Held for Sale 11 415 0 1,536 415 1,536

TOTAL Current Assets $18,009 $15,260 $16,930 $20,156 $19,385

NON CURRENT ASSETS

Investments 12 20,149 24,744 20,509 198 199

Investment Property 12 11,410 16,124 12,003 11,410 12,003

Infrastructural Assets 13 269,692 285,236 257,185 269,692 256,891

Other Non Current Assets 13 19,683 22,557 18,707 36,458 36,644

Intangible Assets 14 140 68 85 882 819

TOTAL Non Current Assets $321,074 $348,729 $308,489 $318,640 $306,556

TOTAL Assets $339,083 $363,989 $325,419 $338,796 $325,941


1171111177

Parent Group

As at30 June 2012

2011/2012 2011/2012 2010/2011 2011/2012 2010/2011


$000 $000 $000 $000 $000

CURRENT LIABILITIES

Cash and Cash Equivalents 8 0 0 216 0 216

Trade and Other Payables 15 4,051 4,978 3,702 3,379 4,052

Derivative Financial Instruments 16 0 50 0 0 0

Employee Benefi ts 17 468 403 437 1,063 947

Provisions 19 33 0 51 33 51

Current Portion of Term Debt 18 0 1,338 0 0 0

TOTAL Current Liabilities $4,552 $6,769 $4,406 $4,475 $5,266

NON CURRENT LIABILITIES

Derivative Financial Instruments 16 902 0 643 902 643

Provisions 19 1,503 1,372 1,593 1,503 1,593

Bond Deposits 82 82 82 82 82

Employee Benefi ts 17 199 109 161 303 314

Deferred Tax 6 0 0 0 1,422 1,324

Term Debt 18 23,024 28,233 23,024 23,024 23,024

TOTAL Non Current Liabilities $25,710 $29,796 $25,503 $27,236 $26,980

EQUITY

Accumulated Funds 20 171,516 187,271 171,948 169,099 169,974

Reserves 21 1,872 739 1,941 1,872 1,941

Asset Revaluation Reserve 22 135,433 139,414 121,621 136,114 121,780

TOTAL Equity $308,821 $327,424 $295,510 $307,085 $293,695

TOTAL LIABILITIES & EQUITY $339,083 $363,989 $325,419 $338,796 $325,941


118


111188

Statement�of�CashflowsParent Group


2011/2012 2011/2012 2010/2011 2011/2012 2010/2011


$000 $000 $000 $000 $000

CASHFLOWS FROM OPERATING ACTIVITIES

Cash was provided from:

Rates 11,695 11,498 10,764 11,666 10,764

Other Income 9,089 8,519 8,707 13,948 12,372

Interest Received 680 619 599 629 540

Tax Received 0 0 0 1 238

Dividends Received 825 825 980 0 0

22,289 21,461 21,050 26,244 23,914

Cash was applied to:

Payments to Suppliers & Employers 15,024 13,363 16,042 18,581 18,059

Interest Paid 1,328 1,490 1,334 1,325 1,334

Income Tax Paid 0 0 0 0 0

Net GST Movement 408 0 76 443 35

16,760 14,853 17,452 20,349 19,428

Net Cash From Operating Activities 7 $5,529 $6,608 $3,598 $5,895 $4,486

CASHFLOWS FROM INVESTING ACTIVITIES


Disposal of Fixed Assets 2,210 0 2,779 2,283 1,750

Investment Realised 10,376 439 0 11,229 50

Transfer of Cash from Assets Held for Sale

(0) 0 0 0 0

12,585 439 2,779 13,512 1,800


Purchase of Fixed Assets 5,096 10,207 5,919 5,718 6,534

Purchase of Investments 11,190 0 1,703 12,586 1,158

Purchase of Intangibles 133 0 94 145 94

Transfer of Cash to Assets held for sale

0 0 0 0 0

16,419 10,207 7,716 18,449 7,786

Net Cash From Investing Activities $(3,834) $(9,768) $(4,937) $(4,937) $(5,986)


11911111999

�Parent Group


2011/2012 2011/2012 2010/2011 2011/2012 2010/2011


$000 $000 $000 $000 $000

CASHFLOWS FROM FINANCING ACTIVITIES


Loans Raised 0 4,530 750 0 750


Repayment of loans 0 260 0 0 0

Net Cash From Financing Activities $0 $4,270 $750 $(0) $750

NET INCREASE (DECREASE) IN CASH $1,696 $1,110 $(589) $958 $(750)

OPENING CASH AS AT 1 JULY $290 $(481) $879 $1,602 $2,352

CLOSING CASH AS AT 30 JUNE $1,986 $628 $290 $2,560 $1,602


121112212222222222222111111111111111111111111111111

Notes�to�the��Financial�Statements

Contains:

Note�1 Rates�Revenue

Note�2 Investment�Income

Note�3 Operating�Revenue

Note�4 Operating�Expenditure

Note�5 Operating�Surplus

Note�6 Income�Tax

Note�7 Reconciliation�of�Net�Surplus�after�Tax�to�Cashflows�from�Operating�Activities

Note�8 Cash�&�Cash�Equivalents

Note�9 Trade�and�Other�Receivables

Note�10 Other�Current�Assets

Note�11 Non�Current�Assets�held�for�sale

Note�12 Investments

Note�13 Property,�Plant�and�Equipment

Note�14 Intangible�Assets

Note�15 Trade�&�Other�Payables

Note�16 Derivative�Financial�Instrument

Note�17 Employment�Benefit�Liabilities

Note�18 Borrowings

Note�19 Provisions

Note�20 Accumulated�Funds

Note�21 Reserves

Note�22 Asset�Revaluation�Reserves

Note�23 Related�Party�Transactions�and�Balances

Note�24 Statement�of�Financial�Involvements�in�CCTOs�&�Other�Companies�or�Organisations

Note�25 Statement�of�Committments,�Contingent�Liabilities�&�Contingent�Assets

Note�26 Capital�Management

Note�27 Financial�Instruments

Note�28 Post�Balance�Date�Events

Note�29 Explanation�of�Major�Variances�against�Budget

Notes

�to�th

e�Fina

ncial�S

tatem

ents

122


112222

Note�1�~�Rates�RevenueRates�Revenue

Parent

Actual Actual

2011/2012 2010/2011

$000 $000

General Rates $6,835 $6,411

Targeted Rates Attributable to Activities:

Water 1,538 1,353

Refuse and Sanitation 2,633 2,449

Roading 47 39

Economic Development 268 227

Penalties 231 231

TOTAL Revenue from rates $11,552 $10,710

Rates�Remissions�Rates revenue is shown net of rates remissions, BDC’s rates remission policy allows BDC to remit rates on sporting, culture and other community organisations.

Parent

Actual Actual

2011/2012 2010/2011

$000 $000

TOTAL Rates Revenue $11,598 $10,752

Rates Remissions:

Land used for sport 29 27

Land protected for historical or cultural purposes 17 15

TOTAL Remissions $46 $42

Rates Revenue Net of Remissions $11,552 $10,710

1231122233

Note�2�~�Investment�IncomeParent Group

Actual Actual Actual Actual

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Interest 1,313 1,335 1,262 1,345

Dividend Income 1,101 980 0 0

2,414 2,315 1,262 1,345

Less: Internal Interest 650 705 650 705

TOTAL Investment Income $1,764 $1,610 $612 $640

Parent Group

OTHER INCOMEActual Actual Actual Actual

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Investment Loan Discount Amortisation Revenue 69 2 2 2

Sundry Income 90 165 0 165

TOTAL Other Income $159 $167 $2 $167

124


112244

Note�3�~�Operating�RevenueParent Group

2011/2012 2011/2012 2010/2011 2011/2012 2010/2011

REVENUE BY ACTIVITY Actual Budget Actual Actual Actual

$000 $000 $000 $000 $000

Democracy 0 10 44 0 44

Community Services 2,379 1,369 1,468 2,379 1,468

Environmental Services 1,336 811 1,098 1,336 1,098

Amenities & Reserves 1,471 1,104 1,533 1,471 1,533

Roading & Urban Development 2,988 3,261 3,154 2,988 3,154

Solid Waste 1,460 1,497 1,242 1,460 1,242

Water Supplies 2,435 3,158 1,568 2,435 1,568

Wastewater and Stormwater 1,983 2,146 1,818 1,983 1,818

Harbour 208 0 720 208 720

Airport 59 50 58 59 58

In House Professional Services 615 662 605 615 605

Support Services 3,633 3,497 3,489 3,633 3,489

$18,567 $17,565 $16,797 $18,567 $16,797

PLUS:

General Rates 6,835 6,790 6,411 6,835 6,411

Rates Penalties 231 170 231 231 231

Investment Income 1,764 619 1,610 612 640

Profi t on Sale of Assets 6 0 384 35 0

Vested Assets 122 350 40 122 40

Sundry Income 159 825 167 2 167

Revaluations of Investment Land 532 390 141 532 141

Group Income 0 0 0 5,014 3,785

Share in Profi t/(Loss) of Associate 0 0 0 (1) (8)

$28,217 $26,709 $25,781 $31,951 $28,204

LESS: Internal Recoveries (4,500) (4,508) (4,394) (4,500) (4,394)

TOTAL Income $23,717 $22,201 $21,387 $27,451 $23,810

1251122255

Note�4�~�Operating�ExpenditureParent Group

2011/2012 2011/2012 2010/2011 2011/2012 2010/2011

EXPENDITURE BY ACTIVITY Actual Budget Actual Actual Actual

$000 $000 $000 $000 $000

Democracy 814 795 845 814 845

Community Services 5,436 4,453 4,537 5,436 4,537

Environmental Services 2,295 2,071 2,054 2,295 2,054

Amenities & Reserves 2,788 2,098 2,492 2,788 2,492

Roading & Urban Development 6,037 6,054 5,882 6,037 5,882

Solid Waste 1,877 1,943 2,033 1,877 2,033

Water Supplies 1,747 1,725 1,851 1,747 1,851

Wastewater and Stormwater 2,509 2,495 2,507 2,509 2,507

Harbour 154 0 888 154 888

Airport 117 115 112 117 112

In House Professional Services 532 583 565 532 565

Support Services 3,602 3,497 3,489 3,602 3,489

$27,908 $25,828 $27,255 $27,908 $27,255

PLUS:

Group Expenses 0 0 0 4,015 3,534

Assets Written Off 461 0 572 461 572

Loss on Derivative Contracts 259 0 208 259 208

Impairment of Assets 679 0 1,400 744 0

Loss on Sale of Assets 9 0 0 9 127

Loss on Sale of Investment Property 52 0 194 52 194

LESS:

Internal Recoveries (4,500) (4,507) (4,394) (4,500) (4,394)

Internal Interest (650) (708) (704) (650) (704)

TOTAL Expenditure $24,218 $20,613 $24,531 $28,298 $26,792

126


112266

Note�5�~�Operating�SurplusParent Group

OPERATING SURPLUS WAS DETERMINED AFTER ACCOUNTING FOR: Actual Actual Actual Actual

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Fees to principal auditor:

Audit fees for fi nancial statement audit 98 96 198 187

Audit fees for long term plan audit 72 0 72 0

Additional audit fees (cost recoveries long term plan) 17 10 17 10

Additional audit fees (1/2 share WAA) 4 2 4 2

Grants and Donations Expense 491 594 491 594

Lease Income 357 359 88 119

Lease Expense 147 157 170 183

Movement in provision doubtful debts:

Accounts Receivable (58) 10 (58) 10

1271122277

(i)�RemunerationDuring the year to 30 June 2012, the total remuneration and value of non-fi nancial benefi ts received by or payable to the Mayor, other Councillors and the Chief Executive of the Council were as follows:

Actual Actual

2011/2012 2010/2011

$ $

Chief Executive:

Gary Murphy (resigned 27 Jul-11) 32,525 180,905

Paul Wylie (commenced 05 Dec-11) 125,300 0

Craig Scanlon (Acting CEO 27 Jul-11 to 30 Sep-11) 34,977 0

Angela Oosthuizen (Acting CEO 03 Oct-11 to 02 Dec-11)

30,753 0

$223,555 $180,905

Mayor: Pat McManus $64,713 $60,446

Councillors:

Katherine Bainbridge (until 09 Oct-10) 0 4,214

David Barnes 18,171 14,899

Peter Campbell 13,091 14,038

Jim Halsall 13,091 14,028

Dave Hawes 13,091 14,034

John Hill (from 09 Oct-10) 13,091 9,656

Graham Howard (from 09 Oct-10) 13,091 9,656

Margaret Montgomery 16,145 16,025

Graeme Neylon 13,091 14,034

Fred Ratahi 13,091 14,028

Lynley Roberts (until 09 Oct-10) 0 4,214

Rosalie Sampson 18,019 19,169

$208,685 $208,441

(ii)�Severance�PaymentsDuring the year no severance payments were made to staff (2011: two severance payments of $36,087 and $14,028 totaling $50,112 were made).

128


112288

Note�6�~�Income�TaxParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Components of Tax Expense

Current Tax Expenses 0 0 0 0

Adjustments to Current Tax in Prior Year 0 0 0 0

Deferred Tax Expenses 0 0 97 77

Income Tax Expense $0 $0 $97 $77

Parent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Relationship Between Tax and Accounting Profi t

Surplus/(Defi cit) Before Tax (501) (3,144) (847) (2,892)

Tax @ 28% (2011: 30%) (140) (943) (237) (895)

Non-Deductible Expenditure 21 0 279 967

Non-Taxable Income 0 811 0 0

Change in Building Depreciation 0 0 0 0

Effect of tax rate change 0 (2) 0 5

Prior Year Adjustment 0 0 0 0

Group Loss Offset 77 0 0 0

Temporary Differences Not Recognised 55 8 0 0

Tax Losses Not Recognised (13) 126 0 0

Deferred Tax Adjustments 0 0 55 0

Tax Expense $(0) $0 $97 $77

12911222999

Deferred�Tax�Assets/(Liabilities)Parent Property,

Plant & Equipment

Financial Instruments

Employee Entitlements

Other Provisions

Tax Losses Total

Balance at 1 July 2010 0 0 0 0 0 0

Charged to Profi t & Loss 0 0 0 0 0 0

Balance at 1 July 2011 $0 $0 $0 $0 $0 $0

Charged to Profi t & Loss 0 0 0 0 0 0

Charged to Equity 0 0 0 0 0 0

Balance at 1 July 2012 $0 $0 $0 $0 $0 $0

Group Property, Plant &

Equipment

Financial Instruments

Employee Entitlements

Other Provisions

Tax Losses Total

Balance at 1 July 2010 (2,063) 0 180 25 608 (1,247)

Charged to Profi t & Loss (104) 7 (9) 32 (77)

Balance at 1 July 2011 $(2,167) $0 $187 $16 $640 $(1,324)

Charged to Profi t & Loss (43) 0 (12) 4 (46) (97)

Charged to Equity 0 0 0 0 0 0

Balance at 1 July 2012 $(2,210) $0 $175 $20 $594 $(1,421)

Additional�disclosures2012: Council has an unrecognised deferred tax asset in relation to temporary timing differences of $91,132 (2011: $289,025) and tax losses of $2,120,244 (2011: $2,167,059). This deferred tax asset has been recognised at the group level.

130


113300

Note�7�~� Reconciliation�of�Net�Surplus�after�Tax�to�Cashflows�from�Operating�Activities

Parent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Surplus/(Defi cit) after Tax (501) (3,144) (944) (3,059)

Add/(less) non-cash items:

Depreciation Expense 5,015 5,199 6,118 6,222

Impairment 679 1,400 744 -

Movement in Provisions (108) 58 (108) 58

Movement in Deferred Taxation - - 98 128

Write down of Suspensory Loan - 67 - -

Other Non Cash Items - - 425 -

Vested Assets (122) (40) (122) (40)

Loan Amortisation (69) (2) (2) (2)

(Gains)/Losses in Fair Value of Investment Property (532) (141) (532) (141)

(Gains)/Losses on Derivative Financial Instruments 259 208 259 208

5,122 6,749 6,880 6,433

Add/(less) Items Classifi ed as Investing Activities:

(Gains)/Losses on Disposal of Investment Property & PPE

52 (190) 26 321

Assets Written Off 463 572 461 572

Movement in fi xed asset accounts receivable - 300 - -

Movement in fi xed asset prepayment 230 230 230 -

Transfer of Working Capital on Sale - (460) - -

Movement in Fixed Asset Accounts Payable (98) 629 (52) 597

647 1,081 665 1,490

Add/(less) Movements in Working Capital Items:

Trade and Other Receivables (386) (228) (374) (232)

Inventories (0) 116 (17) 61

Other Current Assets 228 (216) 253 (261)

Trade and Other Payables 349 (724) (673) (326)

Income Tax Receivable - - - 238

Employee Benefi ts 69 (36) 105 142

261 (1,088) (706) (378)

Net Cash Infl ow/(Outfl ow) from Operating Activities $5,529 $3,598 $5,895 $4,486

1311133311

Note�8�~�Cash�&�Cash�EquivalentsParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Cash at bank and in hand 1,986 506 2,560 1,818

Short term deposits maturing three months or less from the date of acquisition

0 0 0 0

Total cash and cash equivalents $1,986 $506 $2,560 $1,818

The carrying value of short-term deposits with maturity dates of three months or less approximates their fair value.

Cash�&�bank�overdrafts�include�the�following�for�the�purposes�of�the�Cashflow�Statement:Parent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Cash at bank and in hand 1,986 506 2,560 1,818

Short term bank deposits maturing within three months 0 0 0 0

Bank overdrafts 0 (216) 0 (216)

$1,986 $290 $2,560 $1,602

132


113322

Note�9�~�Trade�&�Other�ReceivablesParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Trade Receivables $2,337 $1,693 $2,935 $2,323

Amounts Due from Controlled Entities (excluding GST)

WestReef Ltd 71 67 0 0

Buller Holdings Ltd 88 88 0 0

Buller Recreation Ltd 16 16 0 0

Buller Arts and Recreation Trust 0 0 0 0

Buller Health Trust 2 99 0 0

Westport Harbour Ltd 82 374 0 0

NZTA 576 638 576 638

Interest Receivable 67 83 67 83

Subvention Receivable 276 0 0 3

Rates Receivable 1,206 1,334 1,206 1,334

$4,721 $4,393 $4,784 $4,378

Less: Provisions for Doubtful Debts (76) (134) (76) (44)

$4,645 $4,259 $4,708 $4,334

Represented By;

Current Portion 4,645 4,259 4,708 4,334

Term Portion 0 0 0 0

Fair�ValueTrade and other receivables are non-interest bearing and receipt is normally on 30 day terms. The carrying value of trade, and other receivables (excluding loans to related parties and community loans) approximates their fair value.

ImpairmentThere is no concentration of credit risk with respect to receivables outside the group, as the group has a large number of customers.

Buller District Council does not provide for any impairment on rates receivables as it has various powers under the Local Government (Rating) Act 2002 to recover any outstanding debts. Ratepayers can apply for payment plan options in special circumstances. Where such payment plans are in place debts are discounted to the present value of future repayments.

These powers allow Council to commence legal proceedings to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made within 3 months of the Court’s judgement, then Council can apply to the Registrar of the High Court to have the judgement enforced by sale of lease or the rating unit.

1331133333

2011/2012 2010/2011

Gross Impairment Net Gross Impairment Net

$000 $000 $000 $000 $000 $000

Council

Not past due 3,301 0 3,301 2,843 0 2,843

Past due 1-60 days 352 0 352 358 0 358

Past due 61-120 days 20 0 20 113 0 113

Past due > 120 days 1,048 76 972 1,079 134 945

TOTAL $4,721 $76 $4,645 $4,393 $134 $4,259

Group

Not past due 3,255 0 3,255 2,748 0 2,748

Past due 1-60 days 443 0 443 425 0 425

Past due 61-120 days 38 0 38 126 0 126

Past due > 120 days 1,048 76 972 1,079 44 1,035

TOTAL $4,784 $76 $4,708 $4,378 $44 $4,334

The doubtful debt provision has been calculated based on expected losses for Council’s pool of debtors. Expected losses have been determined based on an analysis of Council’s losses in previous periods, and review of specifi c debtors as detailed below:

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Individual Impairment 76 134 76 44

Collective Impairment 0 0 0 0

Total Provision for Impairment $76 $134 $76 $44

134


113344

Individually impaired receivables have been determined to be impaired because of the signifi cant fi nancial diffi culties being experienced by the debtor. An analysis of these individually impaired debtors are as follows:

Parent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Past Due 1-60 days 0 0 0 0

Past due 61-120 days 0 0 0 0

Past due > 120 days 76 134 76 44

Total Individual Impairment $76 $134 $76 $44

Movement in the provision for impairment of receivables are as follows:

Parent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

At 1 July 134 124 44 124

Additional provisions made during the year 32 44 32 44

Provisions reversed during the year (90) (34) 0 (124)

Receivables written-off during the period 0 0 0 0

At 30 June $76 $134 $76 $44

Buller District Council holds no collateral as security or other credit enhancements over receivables that are either past due or impaired.

1351133355

Note�10�~�Other�Current�AssetsParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$ $ $ $

Work In Progress 3 3 8 6

Prepayments 6 234 36 291

$9 $237 $44 $297

136


113366

Note�11�~�Non�Current�Assets�held�for�SaleAs at 30 June 2012 the assets held for sale, being surplus to requirements are listed below (2011: Council had investment land and an item of plant and equipment for sale).

Parent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Non-current assets held for sale are;

Investment Land 379 1,500 379 1,500

Westport Transfer Station Portable Weighbridge 36 36 36 36

Total Assets Held for Sale $415 $1,536 $415 $1,536

1371133377

Note�12�~�InvestmentsParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Buller Holdings Ltd 16,909 17,288 0 0

Loans and Receivables 3,129 3,110 0 0

Other Share Investments 31 31 31 32

Investment in Associate 0 0 87 87

Bond Deposits 80 80 80 80

$20,149 $20,509 $198 $199

On 22 August Council exchanged an advance of $300,000 made to Buller Holdings Limited for a consideration of $300,000 shares capital.

(2011: On 1 September Council sold land to Westport Harbour Limited and in consideration Buller Holdings Limited issued 1,118,000 shares to Council with a par value of $1. The assets were sold at market value with the valuation carried out by Quotable Value New Zealand.)

In 2012 Buller District Council investment in Buller Holdings Limited was impared by $679,000 due to an additional writedown in the value of Buller Holdings’ investment in Buller Recreation Limited assets.

(2011: Buller District Council investment in Buller Holdings Limited was impaired by $1,400,000 due to the write down in the value of Buller Holdings’ investment in Buller Recreation Limited assets.)

2011/2012 2010/2011

$000 $000

Investments acquired - Shares issued by Buller Holdings Limited 300 1,118

Investments acquired - Advances and Loans (300) 300

$0 $1,418

Consideration paid:

Property, Plant and Equipment transferred at cost 0 876

Gain on Sale recognised in Surplus 0 542

$0 $1,418

All loans to Council Controlled Organisations have been advanced at market interest rates (2011: Section 63 of the Local Gov-ernment Act states that a Local Authority must not lend money or provide any other fi nancial accommodation to a CCTO on terms and conditions more favourable to a CCTO than those that would apply if the Local Authority was borrowing the money.

In 2011 the District Council has lent money to Westport Harbour Limited at an interest rate of 2% pa. This rate is considered to be more favourable than the rate that the Distrit Council could have obtained when borrowing money. This is a breach of Section 63 of the Local Government Act 2002).

From 1 July 2011 Council has charged a market-based interest rate for funds advanced to Westport Harbour Limited.

138


113388

Investment�Property

Parent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Balance at 1 July $12,003 $15,328 $12,003 $15,328

Transfers (279) (1,500) (279) (1,500)

Disposals/Adjustments (846) (1,966) (846) (1,966)

Fair value gains/(losses) on valuation 532 141 532 141

Balance 30 June $11,410 $12,003 $11,410 $12,003

Investment�Property��-�Income�&�ExpensesParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Rental Income from Investment Property 87 126 87 126

Direct Expenses of Income Generating Investment Property 0 0 0 0

Direct Expenses of Non-income Generating Investment Prop-erty

0 0 0 0

Buller District Council investment properties are valued annually at fair value efective 30 June. All investment properties were valued based on open market evidence in July 2012. The valuation was performed by Darroch Valuations, an independent valuer. Darroch.

As at 30 June 2012 there were a total of 5 leasehold properties with a sale value of $379,050 lodged at Council’s solicitors pending completion of sale, these are disclosed in note 11. (2011; 23 properties total sale value $1,480,800).

The fair value of loans to related parties is $3,129,017 (2011: $3,607,281). Fair value has been determined using cash fl ows discounted at a rate based on market interest rates including an additional risk to take into account the specifi c risks of each loan. The interest rate on the loan of $2,363,860 to Buller Holdings Ltd is 3.73%. The interest rate on the loan of $200,000 to Westport Harbour Ltd is 4.03%. Weighted average of low interest loans to community organisations is 4.5%.

13911333999

�-�Co

uncil

�2012

Infra

stru

ctur

e As

sets

Cost

/ Re

valu

a o

n 01

-07-

11

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-11

Curr

ent

Year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s /

Impa

irmen

t Ch

arge

s

Tran

sfer

(to

)/fr

om

Asse

ts H

eld

for S

ale

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

12

Accu

mul

ated

De

prec

ia o

n 30

-06-

12

Carr

ying

Am

ount

30

-06-

12

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

und

er r

oads

19,2

460

19,2

4630

(4)

00

031

019

,303

019

,303

Sew

erag

e24

,926

(563

)24

,362

409

(28)

00

(563

)0

1,36

425

,545

025

,545

Stor

mw

ater

7,63

5(1

55)

7,48

014

0(5

2)0

0(1

55)

582

1,10

09,

096

09,

096

Road

s an

d Br

idge

s18

6,71

1(2

,603

)18

4,10

71,

757

(68)

00

(2,6

03)

(576

)9,

743

192,

360

019

2,36

0

Wat

er s

uppl

ies

18,0

56(5

21)

17,5

3577

4(1

09)

00

(521

)0

1,61

519

,294

019

,294

Airp

ort

runw

ay17

4(7

1)10

30

00

0(8

)0

017

4(7

9)96

Land

fi lls

/Tra

nsfe

r St

ns1,

860

(339

)1,

521

00

00

(87)

00

1,86

0(4

26)

1,43

4

Wha

rves

2,10

3(4

91)

1,61

20

00

0(3

5)0

02,

103

(526

)1,

577

Wor

k in

Pro

gres

s1,

217

01,

217

516

(90)

00

0(6

57)

098

70

987

$261

,928

$(4,

743)

$257

,183

$3,6

26$(

351)

$0$0

$(3,

972)

$(62

0)$1

3,82

2$2

70,7

22$(

1,03

1)$2

69,6

92

Oth

er F

ixed

Ass

ets

Cost

/ Re

valu

a o

n 01

-07-

11

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-11

Curr

ent

year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s /

Impa

irmen

t Ch

arge

s

Tran

sfer

(to

)/fr

om

Asse

ts H

eld

for S

ale

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

12

Accu

mul

ated

De

prec

ia o

n 30

-06-

12

Carr

ying

Am

ount

30

-06-

12

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

3,56

30

3,56

328

60

00

047

50

4,32

40

4,32

4

Leas

ehol

d Im

prov

emen

ts0

00

00

00

00

00

00

Build

ings

14,4

23(3

,448

)10

,975

241

(77)

08

(439

)12

40

14,7

11(3

,879

)10

,832

Offi

ce

Equi

pmen

t,

Furn

itur

e &

Fit

ting

s1,

574

(1,3

16)

258

82(1

)0

1(6

9)0

01,

655

(1,3

84)

271

Vehi

cles

540

(217

)32

312

(36)

036

(58)

00

516

(239

)27

8

Libr

ary

Book

s59

4(3

52)

242

570

00

(62)

00

651

(414

)23

7

Plan

t an

d Eq

uipm

ent

1,97

6(1

,384

)59

286

(65)

053

(134

)8

02,

005

(1,4

65)

540

Oth

er A

sset

s2,

310

(902

)1,

408

231

00

0(1

34)

160

02,

701

(1,0

36)

1,66

5

Vess

els

4,38

5(4

,107

)27

80

00

0(7

0)0

04,

385

(4,1

77)

208

Wor

k in

Pro

gres

s1,

068

01,

068

440

(32)

00

0(1

47)

01,

329

01,

329

$30,

433

$(11

,726

)$1

8,70

7$1

,435

$(21

1)$0

$98

$(96

6)$6

20$0

$32,

277

$(12

,594

)$1

9,68

4

Tota

l$2

92,3

61$(

16,4

69)

$275

,890

$5,0

62$(

562)

$0$9

8$(

4,93

8)$0

$13,

822

$302

,999

$(13

,625

)$2

89,3

76

Note�13�~�Property,�Plant�&�Equipment

140


114400

�-�Gr

oup�

2012

Infra

stru

ctur

e As

sets

Cost

/ Re

valu

a o

n 01

-07-

11

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-11

Curr

ent

Year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s Tr

ansf

er

(to)/

from

As

sets

Hel

d fo

r Sal

e

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

/ Im

pairm

ent

Char

ges

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

11

Accu

mul

ated

De

prec

ia o

n 30

-06-

11

Carr

ying

Am

ount

30

-06-

11

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

und

er r

oads

19,2

460

19,2

4630

(4)

00

031

019

,303

019

,303

Sew

erag

e24

,908

(563

)24

,345

394

(28)

00

(563

)0

1,39

725

,545

025

,545

Stor

mw

ater

7,61

0(1

55)

7,45

513

2(5

2)0

0(1

55)

610

1,13

39,

123

09,

123

Road

s an

d Br

idge

s18

6,55

7(2

,603

)18

3,95

41,

644

(68)

00

(2,6

03)

(575

)10

,010

192,

362

019

2,36

2

Wat

er s

uppl

ies

17,9

68(5

21)

17,4

4771

7(1

09)

00

(521

)0

1,76

019

,294

019

,294

Airp

ort

runw

ay17

4(7

1)10

30

00

0(8

)0

017

4(7

9)95

Land

fi lls

/Tra

nsfe

r St

ns1,

850

(339

)1,

511

00

00

(87)

(18)

01,

832

(426

)1,

406

Wha

rves

2,10

4(4

91)

1,61

30

00

0(3

5)0

02,

104

(526

)1,

578

Wor

k in

Pro

gres

s1,

217

01,

217

516

(90)

00

0(6

57)

098

60

986

$261

,634

$(4,

743)

$256

,891

$3,4

33$(

351)

$0$0

$(3,

972)

$(60

9)$1

4,30

0$2

70,7

23$(

1,03

1)$2

69,6

92

Oth

er F

ixed

Ass

ets

Cost

/ Re

valu

a o

n 01

-07-

11

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-1

Curr

ent

Year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s Tr

ansf

er

(to)/

from

As

sets

Hel

d fo

r Sal

e

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

11

Accu

mul

ated

De

prec

ia o

n 30

-06-

11

Carr

ying

Am

ount

30

-06-

11

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

4,54

70

4,54

731

90

00

047

50

5,34

10

5,34

1

Leas

ehol

d Im

prov

emen

ts0

00

880

00

(8)

00

88(8

)80

Build

ings

29,1

96(4

,806

)24

,390

220

(77)

08

(1,7

52)

147

029

,486

(6,5

50)

22,9

36

Offi

ce

Equi

pmen

t,

Furn

itur

e &

Fit

ting

s1,

983

(1,4

61)

522

115

(12)

07

(153

)0

02,

086

(1,6

07)

479

Vehi

cles

3,59

7(1

,796

)1,

801

543

(327

)0

289

(419

)0

03,

813

(1,9

26)

1,88

7

Libr

ary

Book

s59

4(3

52)

242

570

00

(62)

00

651

(414

)23

7

Plan

t an

d Eq

uipm

ent

2,93

2(1

,796

)1,

136

186

(76)

063

(214

)8

03,

050

(1,9

47)

1,10

3

Oth

er A

sset

s3,

620

(958

)2,

662

222

00

0(1

34)

109

03,

951

(1,0

92)

2,85

9

Vess

els

4,38

5(4

,107

)27

80

00

0(7

0)0

04,

385

(4,1

77)

208

Wor

k in

Pro

gres

s1,

066

01,

066

440

(32)

00

0(1

46)

01,

328

01,

328

$51,

920

$(15

,276

)$3

6,64

4$2

,190

$(52

4)$0

$367

$(2,

812)

$593

$0$5

4,17

9$(

17,7

21)

$36,

458

Tota

l$3

13,5

54$(

20,0

19)

$293

,535

$5,6

23$(

875)

$0$3

67$(

6,78

4)$(

16)

$14,

300

$324

,902

$(18

,752

)$3

06,1

50

1411144411

�-�Co

uncil

�2011

Infra

stru

ctur

e As

sets

Cost

/ Re

valu

a o

n 01

-07-

10

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-10

Curr

ent

Year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s /

Impa

irmen

t Ch

arge

s

Tran

sfer

(to

)/fr

om

Asse

ts H

eld

for S

ale

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s /O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

11

Accu

mul

ated

De

prec

ia o

n 30

-06-

11

Carr

ying

Am

ount

30

-06-

11

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

und

er r

oads

19,2

460

19,2

460

00

00

00

19,2

460

19,2

46

Sew

erag

e24

,823

024

,823

132

(29)

00

(563

)0

024

,926

(563

)24

,363

Stor

mw

ater

7,42

80

7,42

822

3(1

6)0

0(1

55)

00

7,63

5(1

55)

7,48

0

Road

s an

d br

idge

s18

5,51

70

185,

517

1,56

9(3

75)

00

(2,6

03)

00

186,

711

(2,6

03)

184,

108

Wat

er s

uppl

ies

17,4

590

17,4

5974

9(1

52)

00

(521

)0

018

,056

(521

)17

,535

Airp

ort

runw

ay17

4(6

3)11

10

00

0(8

)0

017

4(7

1)10

3

Land

fi lls

/Tra

nsfe

r St

ns1,

461

(274

)1,

187

392

0(3

6)0

(70)

480

1,86

0(3

39)

1,52

1

Wha

rves

1,87

3(3

74)

1,49

90

00

0(3

1)14

40

2,10

3(4

91)

1,61

2

Wor

k in

Pro

gres

s77

00

770

495

00

00

(48)

01,

217

01,

217

$258

,751

$(71

1)$2

58,0

40$3

,560

$(57

2)$(

36)

$0$(

3,95

1)$1

44$0

$261

,928

$(4,

743)

$257

,185

Oth

er F

ixed

Ass

ets

Cost

/ Re

valu

a o

n 01

-07-

10

Accu

mul

ated

de

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-10

Curr

ent

year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s /

Impa

irmen

t Ch

arge

s

Tran

sfer

(to

)/fr

om

Asse

ts H

eld

for S

ale

Accu

mul

ated

De

prec

ia o

n on

disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

11

Accu

mul

ated

De

prec

ia o

n 30

-06-

11

Carr

ying

Am

ount

30

-06-

11

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

4,23

80

4,23

80

(675

)0

00

00

3,56

30

3,56

3

Leas

ehol

d im

prov

emen

ts0

00

00

00

00

00

00

Build

ings

14,2

72(3

,189

)11

,083

680

(367

)0

119

(405

)(1

35)

014

,423

(3,4

48)

10,9

75

Offi

ce

equi

pmen

t,

furn

itur

e &

fi tt

ings

1,50

8(1

,251

)25

766

00

0(6

5)0

01,

574

(1,3

16)

258

Vehi

cles

383

(178

)20

515

70

00

(39)

00

540

(217

)32

3

Libr

ary

book

s53

9(2

95)

244

550

00

(57)

00

594

(352

)24

2

Plan

t an

d eq

uipm

ent

2,02

8(1

,308

)72

07

00

0(1

35)

00

1,97

6(1

,384

)59

2

Oth

er a

sset

s2,

084

(783

)1,

301

226

00

0(1

19)

00

2,31

0(9

02)

1,40

8

Vess

els

4,38

5(3

,741

)64

40

00

0(3

66)

00

4,38

5(4

,107

)27

8

Wor

k in

pro

gres

s60

50

605

472

00

00

(9)

01,

068

01,

068

$30,

042

$(10

,745

)$1

9,29

7$1

,663

$(1,

042)

$0$1

19$(

1,18

6)$(

144)

$0$3

0,43

3$(

11,7

26)

$18,

707

Tota

l$2

88,7

93$(

11,4

56)

$277

,337

$5,2

23$(

1,61

4)$(

36)

$119

$(5,

137)

$0$0

$292

,361

(16,

469)

$275

,892

142


114422

�-�Gr

oup�

2011

Infra

stru

ctur

e As

sets

Cost

/ Re

valu

a o

n 01

-07-

10

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-10

Curr

ent

Year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s /

Impa

irmen

t Ch

arge

s

Tran

sfer

(to

)/fr

om

Asse

ts H

eld

for S

ale

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

11

Accu

mul

ated

De

prec

ia o

n 30

-06-

11

Carr

ying

Am

ount

30

-06-

11

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

und

er r

oads

19,2

460

19,2

460

00

00

00

19,2

460

19,2

46

Sew

erag

e24

,823

024

,823

114

(29)

00

(563

)0

024

,908

(563

)24

,345

Stor

mw

ater

7,42

80

7,42

819

8(1

6)0

0(1

55)

00

7,61

0(1

55)

7,45

5

Road

s an

d Br

dige

s18

5,51

70

185,

517

1,41

5(3

75)

00

(2,6

03)

00

186,

557

(2,6

03)

183,

954

Wat

er s

uppl

ies

17,4

590

17,4

5966

1(1

52)

00

(521

)0

017

,968

(521

)17

,447

Airp

ort

runw

ay17

4(6

3)11

10

00

0(8

)0

017

4(7

1)10

3

Land

fi lls

/Tra

nsfe

r St

atio

ns1,

461

(274

)1,

187

382

0(3

6)0

(70)

480

1,85

0(3

39)

1,51

1

Wha

rves

1,87

3(3

74)

1,49

90

00

0(3

1)14

40

2,10

4(4

91)

1,61

3

Wor

k in

Pro

gres

s77

00

770

495

00

00

(48)

01,

217

01,

217

$258

,751

$(71

1)$2

58,0

40$3

,265

$(57

2)$(

36)

$0$(

3,95

1)$1

44$0

$261

,634

$(4,

743)

$256

,891

Oth

er F

ixed

Ass

ets

Cost

/ Re

valu

a o

n 01

-07-

10

Accu

mul

ated

De

prec

ia o

nCa

rryi

ng

Amou

nt

01-0

7-10

Curr

ent

Year

Ad

di o

n

Curr

ent Y

ear

Disp

osal

s /

Impa

irmen

t Ch

arge

s

Tran

sfer

(to

)/fr

om

Asse

ts H

eld

for S

ale

Accu

mul

ated

De

prec

ia o

n on

Disp

osal

s

Curr

ent Y

ear

Depr

ecia

on

Tran

sfer

s/O

ther

sRe

valu

a o

n Ga

ins

Cost

/Re

valu

a o

n 30

-06-

11

Accu

mul

ated

De

prec

ia o

n 30

-06-

11

Carr

ying

Am

ount

30

-06-

11

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Land

4,54

70

4,54

70

00

00

00

4,54

70

4,54

7

Build

ings

30,2

26(3

,867

)26

,359

970

(93)

022

(1,0

24)

(1,8

44)

029

,196

(4,8

06)

24,3

90

Offi

ce

Equi

pmen

t,

Furn

itur

e &

Fit

ting

s1,

918

(1,3

37)

581

97(3

2)0

28(1

50)

(2)

01,

983

(1,4

61)

522

Vehi

cles

3,26

7(1

,989

)1,

278

876

(546

)0

491

(298

)0

03,

597

(1,7

96)

1,80

1

Libr

ary

Book

s53

9(2

95)

244

550

00

(57)

00

594

(352

)24

2

Plan

t an

d Eq

uipm

ent

2,85

3(1

,877

)97

690

(237

)0

237

(203

)27

30

2,93

2(1

,796

)1,

136

Oth

er A

sset

s2,

001

(800

)1,

201

260

00

0(1

09)

1,31

00

3,62

0(9

58)

2,66

2

Vess

els

4,38

5(3

,741

)64

40

00

0(3

66)

00

4,38

5(4

,107

)27

8

Leas

ehol

d Im

prov

emen

ts0

00

00

00

00

00

00

Wor

k in

Pro

gres

s60

40

604

472

00

00

(10)

01,

066

01,

066

$50,

340

$(13

,906

)$3

6,43

4$2

,820

$(90

8)$0

$778

$(2,

207)

$(27

3)$0

$51,

920

$(15

,276

)$3

6,64

4

Tota

l$3

09,0

91$(

14,6

17)

$294

,474

$6,0

85$(

1,48

0)$(

36)

$778

$(6,

158)

$(12

9)$0

$313

,554

$(20

,019

)$2

93,5

35

1431144433

Note�14�~�Intangible�AssetsParent Group

Computer Software &

Licences

Total Goodwill Software Licences

Total

$000 $000 $000 $000 $000

Cost

Balance at 1 July 2010 194 194 698 0 892

Transfers 0 0 0 0 0

Additions 94 94 30 10 134

Disposals 0 0 0 0 0

Balance at 30 June 2011 $288 $288 $728 $10 $1,026

Balance at 1 July 2011 288 288 728 10 1,026

Transfers 0 0 0 0 0

Additions 133 133 0 12 145

Disposals 0 0 0 0 0

Balance at 30 June 2012 $421 $421 $728 $22 $1,171

Accumulated Amortisation and Impairment

Balance at 1 July 2010 141 141 0 0 141

Transfers 0 0 0 0 0

Amortisation charge 62 62 0 4 66

Disposals 0 0 0 0 0

Balance at 30 June 2011 $203 $203 $0 $4 $207

Balance at 1 July 2011 203 203 0 4 207

Transfers 0 0 0 0 0

Amortisation charge 78 78 0 4 82

Disposals 0 0 0 0 0

Balance at 30 June 2012 $281 $281 $0 $8 $289

Carrying Amounts

Balance at 30 June 2011 85 85 728 6 819

Balance at 30 June 2012 $140 $140 $728 $14 $882

Goodwill has been assessed for impairment during the year. Due to the performance of the subsidiary during the period it was determined that goodwill was not impaired.

144


114444

Note�15�~�Trade�&�Other�PayablesParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Trade payables $1,909 $1,758 $2,994 $2,801

Amounts due to related parties:

WestReef Ltd 828 506 0 0

Buller Arts & Recreation Trust 0 0 0 0


Buller Holdings Ltd 0 0 0 0

Buller Recreation Ltd 745 71 0 0

Westport Harbour Ltd 0 0 0 0

Revenue Received in Advance 569 1,368 385 1,251

TOTAL Trade and Payables $4,051 $3,702 $3,379 $4,052

Trade and other payables are non-interest bearing and are normally settled on 30 day terms, therefore the carrying value of creditors and other payables approximates their fair value.

1451144455

Note�16�~�Derivative�Financial�InstrumentParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Current Liability Portion

Interest Rate Swaps 0 0 0 0

Total Current Liability Portion $0 $0 $0 $0

Non Current Liability Portion

Interest Rate Swaps 902 643 902 643

Total Non Current Liability Portion $902 $643 $902 $643

The notional principal amounts of the outstanding interest rate swap contracts at 30 June 2012 were $15,000,000 (2011: 15,000,000).

At 30 June 2012 the fi xed interest rates of interest rate swaps vary from 4.89% to 5.59% (2011: 4.56% to 5.59%).

The interest rate swaps have been included at fair value.

The termination date of the interest rate swap contracts of $15,000,000 at 30 June 2012 vary from 31 March 2014 to 31 March 2017 (2011: 31 March 2013 to 31 March 2016).

146


114466

Note�17�~�Employment�Benefit�LiabilitiesParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Accrued pay 150 132 172 132

Annual Leave & Long service leave 368 333 941 845

Retirement gratuities 149 133 253 284

Sick leave 0 0 0 0

Total Employee Benefi t Liabilties $667 $598 $1,366 $1,261

Comprising:

Current 468 437 1,063 947

Non-current 199 161 303 314

Total Employee Benefi t Liabilties $667 $598 $1,366 $1,261

1471144477

Note�18�~�BorrowingsParent Group


2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Current

Bank overdraft 0 216 0 216

Secured loans 0 0 0 0

Total current borrowings $0 $216 $0 $216

Non-current

Secured loans 23,024 23,024 23,024 23,024

Total non-current borrowings $23,024 $23,024 $23,024 $23,024

Total Borrowings $23,024 $23,240 $23,024 $23,240

Fixed�-rate�debtBuller District Council’s secured debt of $15,000,000 (2011: $15,000,000) is issued at fi xed rates of interest by way of interest rate swaps.

Floating-rate�debtBuller District Council’s debt of $8,023,860 (201: $8,023,860) is at a fl oating interest rate. The interest is set quarterly at the 90-day bill rate + 0.11%.

The debt is due to be repaid in 2013, at which time the terms and conditions may be re-negotiated.

SecurityThe overdraft is secured by a general security agreement. The maximum amount that can be drawndown against the overdraft facility is $1,250,000 (2011: $1,250,000). There are no restrictions on the use of this facility.

Council’s loans are secured over either separate or general rates of the district.

RefinancingCouncil manages its borrowings in accordance with its funding and fi nancial policies, which includes a Treasury policy. These policies have been adopted as part of Council’s Long Term Plan 2012-2022.

148


114488

Maturity�analysis�and�effective�interest�ratesThe following is a maturity analysis of Council’s borrowings:

Overdraft Council

Overdraft Group

Secured Loans Council &

Group

$000 $000 $000

2011/2012

Less than one year 0 0 0

Wweighted average effective interest rate 7.95% 7.95% 0

Later than one year but not more than fi ve years 0 0 23,024

Weighted average effective interest rate 0% 0% 5.85%

Later than fi ve years 0 0 0

Weighted average effective interest rate 0% 0% 0%

$0 $0 $23,024

Overdraft Council

Overdraft Group

Secured Loans Council &

Group

$000 $000 $000

2010/2011

Less than one year 216 216 0

Wweighted average effective interest rate 8.3% 8.3% 0

Later than one year but not more than fi ve years 0 0 23,024

Weighted average effective interest rate 0% 0% 5.6%

Later than fi ve years 0 0 0

Weighted average effective interest rate 0% 0% 0%

$216 $216 $23,024

Fair�value�of�non-current�borrowingsThe carrying amounts of borrowings are at market interest rates and approximate their fair values.

14911444999

Note�19�~�ProvisionsLandfi ll

AftercareProvision

ContaminatedSite

Remediation

TotalEnvironmental

Provisions

Total Environmental

Provisions

2011/2012 $000

2011/2012$000

2011/2012$000

2010/2011$000

Environmental Position

Opening Balance $1,635 $9 $1,644 $1,587

Additional Provisions 0 0 0 0

Amounts Used (18) 0 (18) (18)

Unused Provision Reversed (35) 0 (35) (36)

Discounting Changes (55) 0 (55) 111

Closing Balance $1,527 $9 $1,536 $1,644

Council and Group

Current Liability 33 51

Non-current Liability 1,503 1,593

$1,536 $1,644

Landfill�Aftercare�ProvisionCouncil has responsibility under its resource consents to provide ongoing maintenance and monitoring of its landfi lls after the sites are closed. Council’s closure and post closure responsibilities include:

Closure�responsibilities:- Lay cover and revegetation - Drainage control- Water quality monitoring

Post�Closure�responsibilities:- Ground and surface water quality monitoring- Landfi ll gas monitoring- Site maintenance- Mitigation of environmental effects identifi ed- Annual reporting in accordance with consent conditions

The expected closure dates for Councils Landfi ll sites are as follows:

Westport - Closed 2008 but still to be capped

Birchfi eld - Closed 2005

Karamea - 2010 (Council has received a resource consent for an additional 30 years)

Ikamatua - Closed 2005

Charleston - Closed 2010

Mawheraiti - Closed 2005

Inangahua - Closed 2010

Reefton - Closed 2005

Maruia - 2021

The cash outfl ows for landfi ll post-closure costs have been estimated to occur for a period of 35 years from the closure of the site.

The long term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred.

The provision has been estimated taking into ac-count existing technology and is discounted us-ing a discount rate of 5.70% based on NZ Govern-ment Bond rates (2011: 5.04%).

150


115500

Note�20�~�Accumulated�FundsParent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Opening Balance as at 1 July $171,948 $174,806 $169,974 $172,747

Net Surplus (Defi cit) for the Period (501) (3,144) (422) (3,059)

Transfer from Reserves 1,093 1,175 1,093 1,175

Transfer to Reserves (1,024) (889) (1,546) (889)

Balance at 30 June $171,516 $171,948 $169,099 $169,974

1511155511

Note�21�~�ReservesParent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Balance as at 1 July $1,941 $2,227 $1,941 $2,227

Add: Transfer from Accumulated Funds 1,024 889 1,024 889

$2,965 $3,116 $2,965 $3,116

Less: Transfer to Accumulated Funds (1,093) (1,175) (1,093) (1,175)

Balance at 30 June $1,872 $1,941 $1,872 $1,941

152


115522

Note�22�~�Asset�Revaluation�ReservesParent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Opening Balance as at 1 July $121,621 $121,499 $121,780 $121,658

Change in Asset Values through Comprehensive Income

13,812 122 14,334 122

Closing Balance as at 30 June $135,433 $121,621 $136,114 $121,780

Comprising:

Library Books 258 258 258 258

Roads and Bridges 111,685 101,942 112,122 102,012

Sewerage 8,088 6,724 8,170 6,752

Stormwater 6,636 5,536 6,681 5,540

Water Supplies 8,761 7,146 8,860 7,184

Landfi ll 0 0 19 19

Investment Revaluation Reserve 4 15 4 15

Balance at 30 June $135,433 $121,621 $136,114 $121,780

1531155533

Note�23�~�Related�Party�Transactions�&�BalancesBuller District Council is the ultimate parent of the Group and controls four Entities, being WestReef Services Limited, Buller Holdings Limited, Westport Airport Authority, Buller Health Trust, Buller Arts and Recreational Trust and Buller Recreation Limited.

The following transaction were carried out with related parties:

Actual Actual

2011/2012 2010/2011

$000 $000

WestReef Services Limited

Services provided by Council during the year 182 165

Services provided to Council during the year 7,044 6,760

Accounts payable to Council at 30 June 71 67

Accounts receivable from Council at 30 June 828 506

Sponsorship towards Vision 2010 and NBS Theatre 64 60

Subventions paid to Council during the year 276 0

Subventions payable to Council at 30 June 276 0

Buller Recreation Limited

Service level fee paid by Council to Buller Recreation 780 738

Energy Subsidy paid by Council to Buller Recreation 157 157

Services provided to Council during the year 1 1


Grants provided by Council during the year 0 1


Accounts receivable from Council at 30 June 745 71

Buller Holdings Limited


Loans owed to Council at 30 June 2,364 2,364

Dividends paid to Council during the year 825 980

Interest Expenses paid to Council 88 88

Total Shares Issued to Council 18,988 18,688

Shares issued during the year 300 1,118

154


115544

Actual Actual

2011/2012 2010/2011

$000 $000

Westport Airport Authority Limited


Services provided by Westreef Services Limited during the year 22 13

Rates, lease and interest charges paid to Council during the year 1 1

Current account balance owed (to) from Council at 30 June 113 106

Accounts payable to WestReef Services Limited at 30 June 2 1

Lease Payments made to Westport Harbour Limited during the year 3 3

Westport Harbour Limited

Services provided by Council during the year (including interest & lease payments)

342 206

Loans owed to Council at 30 June 200 200

Advances relating to purchase of business 479 517


Advances relating to purchase of business (current receivable) 0 300

Buller Health Trust

Interest paid to Council during the year 10 13

Loans owed to Council at 30 June 86 187


Buller Arts and Recreation Trust

Funds paid to Council 80 105

In addition there are administration services provided by Council to Buller Health Trust during the year for no consideration.

The $67,000 write-down in advances to Westport Harbour Limited has been reversed during the period as a commercial inter-est rate for the loan has been established. (2011; a total of $67,000 in debts were written off or forgiven during the period, including a writedown of $67,000 in the face value of advances to Westport Harbour Limited).

1551155555

Key�Management�and�Members�of�CouncilDuring the year Councillors and Key Management, as part of a normal customer relationship, were involved in minor transactions with Council (such as payments of rates, purchase of rubbish bags, etc).

Mayor Pat McManus is a Director/Owner of Rainbow Cake Kitchen. During the period goods to the value of $1,726 were provided to Council (2011: $2,459). No services were provided by Gibbys Café (related party as guarantor to a loan) (2011: $62)

Councillor Margaret Montgomery is an Owner of Westport Holiday Park. During the period no goods and services were provided to Council (2011: $209)

Councillor Peter Campbell is a Principal of Campbell and Associates. During the period no goods or services were provided to Council (2011: $2,318). At a Group level goods and services to the value of $6,743 were provided to Council controlled entities (2010: $6,537).

Key�Management�Personnel�CompensationActual Actual

2011/2012 2010/2011

$000 $000

Salaries and other short term employee benefi ts 772 761

Post employment, other long term benefi ts and share-based payments 0 0

$772 $761

Key management personnel include the Mayor, Councillors, Executive and other senior management personnel.

156


115566

Note�24�~�Statement�of�Financial�Involvements�in��CCTOs�&�Other�Companies�or�Organisations

The Council has a signifi cant interest in the following entities:

Entity Ownership Status Principal Activities Interest held by Council

WestReef Services Limited Subsidiary CCTO Infrastructure, Maintenance & Construction 100%

Buller Holdings Limited Subsidiary CCTO Ownership of Selected Council Assets & Invest-ments

100%

Westport Harbour Limited Subsidiary CCTO Port Operations 100%

Buller Recreation Limited Subsidiary CCTO Sports & Recreation Facilities 100%

Buller Health Trust Controlled Exepted as a CCO

Dental Services 100%

Buller Arts & Recreation Trust

Controlled Controlled Charitable Trust 100%

Westport Airport Authority Joint Ven-ture

CCO Airport Operation 50%

Tourism West Coast (INC) Associate Exempted as a CCO

Incorporated Society 29%

Denniston Heritage Trust Associate Trust Incorporated Society 29%

CCTO: Council Controlled Trading OrganisationCCO: Council Controlled Organisation

Council passed a resolution to exempt Tourism West Coast as a Council Controlled Organisation as is permitted under the Local Government Act (2002).

The cost to each of the above enterprises for the fi nancial interest, fi nance or fi nancial assistance of Council is as follows:

Dividends Interest/ Grants Total Total

2011/2012 2011/2012 2011/2012 2010/2011

$000 $000 $000 $000

Westreef Services Limited 0 0 0 0

Buller Recreation Limited 0 0 0 0

Buller Holdings Limited 1,101 88 1,189 1,068

Westport Airport Limited 0 0 0 0

Westport Harbour 0 29 29 2


Buller Arts & Recreation Trust (Grant) 0 80 80 105

Tourism West Coast (INC) 0 0 0 0

Denniston Heritage Charitable Trust 0 0 0 0

$1,101 $207 $1,308 $1,188

The provision of fi nancial assistance by Buller District Council is by way of share capital in Westreef Services Limited, Westport Harbour Limited and Buller Recreation Limited through Buller Holdings Ltd and by way of a current account facility provided to the Westport Airport Authority. The current account facility is provided on normal commercial terms. The Council’s interest in Buller Health Trust is by way of loan.

1571155577

Westport�Airport�Authority��Westport Airport Authority is proportionately consolidated on a line by line basis in the Parent Financial Statements.

In 2011/2012 there were no contributions made by the joint venture holders. (2010/2011: There were no contributions made by the joint venture holders.)

Buller District Council’s 50% share of its interest in the joint venture is detailed below:

2011/2012 2010/2011

$000 $000

Current Assets 5 9

Long Term Assets 2,819 2,815

Current Liabilities 34 4

Long Term Liabilities 0 0

Income 59 58

Expenses 117 112

Tourism�West�Coast2011/2012 2010/2011

$000 $000

Revenue 557 512

Profi t/ (Loss) (4) (27)

Total Assets 284 300

Total Liabilities 21 33

Total Equity $263 $267

158


115588

Note�25�~� Statement�of�Commitments,�Contingent�Liabilities�&�Contingent�Assets

Parent Group

COMMITMENTS2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Capital Commitments Approved and Contracted $83 $565 $83 $565

Non-cancellable Operating Lease Commitments

Motor Vehicles:

Not later than a year 85 94 85 94

Later than one year but not later than fi ve years 5 97 5 97

Later than fi ve years 0 0 0 0

$90 $191 $90 $191

Offi ce Equipment:

Not later than a year 31 14 31 14

Later than one year but not later than fi ve years 103 0 103 0

Later than fi ve years 0 0 0 0

$134 $14 $134 $14

Westport Harbour Ltd leases land and buildings from Buller District Council. Operating lease revenue are as follows;

Operating�Lease�Revenue�commitments�with�Westport�Harbour�Limited2011/2012 2010/2011

$000 $000

Less than a year 206 216

More than 1 year less than 2 206 216

More than 2 years less than 5 439 559

Greater than 5 years 3,582 3,690

$4,433 $4,681

Other�ContractsThe following contracts held by Westreef Services Limited with Council expired at 30 June 2006.

2011/2012 2010/2010

$000 $000

Utility Services and Fire Fighting 942 667

Parks, Reserves, and Cemetaries 846 749

Refuse Collection, Recycling and Landfi ll Operation

891 841

$2,679 $2,257

15911555999

These contracts have a seven year right of renewal (except for Landfi ll Operation) subject to negotiation between the parties. It has been agreed that the existing contracts be rolled over for a further year until further notice.

Council’s Roading Network Maintenance Contract was tendered in August 2004 under Transfund’s Competitive Pricing Procedures. The contract’s fi rst period term expired on 30 June 2006 and the existing contract has been extended for subsequent renewable yearly terms since then. The Roading Network Maintenance Contract was updated as at 01 July 2010. The committments under this contract are as follows:

Roading2011/2012 2010/2011

$000 $000

Not later than one year $2,242 $2,358

Contingent�LiabilitiesContingent Liabilities for Council and the Group are as follows:

Council has a suspensory loan as at 30 June 2012 of $400,000 owing to Housing New Zealand. If Council decides not to proceed with planned pensioner housing upgrades then this amount is required to be paid back (2011: $400,000).

Council has no outstanding leaky home claims for which Council may be liable ($2011: $80,000 leaky home claim).

A legal dispute is underway between Council and developer Swordfi sh Co Limited. The company has sued the Buller District Coun-cil in regard to the standard of two sections that the company purchased in 2007 on a newly formed subdivision. The company claims that the Council had signed off on the subdivision, but it was subsequently revealed that it has inadequate fi ll and lacked fl ood protection, both measures being conditions of the resource consent. The company has alleged that the Council had a duty of care to ensure that the sections were compliant with the terms of the consent. The matter is currently being handled through the Council’s insurers and Council’s exposure in this regard is limited to the excess on the policy.

Council has a liability to Riskpool for a call on insurance premiums the amount was not known at balance date.

Westreef had $64,000 in Performance Bonds outstanding with Westpac as at 30 June 2012 (2011: $64,000).

Buller Health Trust has a contingent liability as at 30 June 2012 for rework or settlement on a patient treated in 2007. No values were known at balance date. (2011: Nil).

Buller Holdings Limited has no contingent liabilities as at 30 June 2012 (2011: Nil).

Westport Harbour Ltd has no contingent liabilities as at 30 June 2012 (2011: Nil).

Buller Arts & Recreation Trust and Tourism West Coast (INC) also have no contingent liabilities as at 30 June 2012 (2011: Nil).

Contingent�AssetsBuller District Council has a contingent asset relating to construction of the Solid Energy Centre hockey turf. The turf has not met expectations as a playing surface. Council has met with contractors involved in the original construction of the hockey ground to seek settlement. However no estimate of a settlement can be made at balance date apart from Buller District Council parent, the Group has no contingent assets as at 30 June 2012. (2011: Nil).

160


116600

Note�26�~�Capital�ManagementThe Council’s capital is its equity (or ratepayers funds), which comprise retained earnings, reserves and asset revaluation reserves. Equity is represented by net assets.

The Local Government Act 2002 (the Act) requires Council to manage its revenues, expenses, assets, liabilities, investments, and general fi nancial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayer’s funds are largely managed as a by-product of managing revenues, expenses, assets, liabilties, investments, and general fi nancial dealings.

The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising Council’s assets and not expecting them to meet the full cost of long term assets that will benefi t ratepayers in future generations. Additionally, Council has in place asset managment plans for major classes of assets detailing renewal and maintenance programmes, to ensure ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance.

The Act requires Council to make adequate and effective provision in its Long Term Plan (LTP) and in its Annual Plan (where applicable) to meet the expenditure needs identifi ed in those plans. And the Act sets out the factors that Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the Funding and Financial Policies in the Long Term Plan.

Buller District Council has the following Council created reserves:

• Reserves for different areas of benefi t;

• Self-insurance reserves; and

• Trust and bequest reserves.

Reserves for different areas of benefi t are used where there is a discrete set of rate or levy payers as distinct from the general rate. Any surplus of defi cit relating to these seperate areas of benefi t is applied to the specifi c reserves.

Self-insurance reserves are built up annually from general rates and are made available for specifi c unforseen events. The release of these funds generally can only be approved by Council.

Trust and bequest reserves are set up where Council has been donated funds that are restricted for particular purposes. Interest is added to trust and bequest reserves where applicable and deductions are made where funds have been used for the purpose they were donated.

1611166611

Note�27�~�Financial�Instruments

Financial�Instrument�RisksBuller District Council has a series of policies to manage the risks associated with fi nancial instruments. Council is risk averse and seeks to minimise exposure from its treasury activities. Council has established Council Approved Liability Management and Investment Policies. These policies do not allow any transactions that are speculative in nature to be entered into.

Market�RiskPrice�RiskPrice risk is the risk that the value of a fi nancial instrument will fl uctuate as a result of changes in market prices. Council may be exposed to equity securities price risk on its investments, which are classifi ed as fi nancial assets held at fair value through equity. This price risk on its investment portfolio in accordance with the limits set out in Council’s Investment Policy.

Council currently doesn’t hold listed equity instruments which are publicly traded and included in the NZX50 equity index.

Currency�RiskCurrency risk is the risk that the value of a fi nancial instrument will fl uctuate due to changes in foreign exchange rates. Council is not exposed to currency risk, as it does not enter into foreign currency transactions.

Interest�Rate�RiskThe interest rates on Council’s investments are disclosed in Note 12 and on Council’s borrowings in Note 18.

Fair�Value�Interest�Rate�RiskFair value interest rate risk is the risk that the value of a fi nancial instrument will fl uctuate due to changes in market interest rates. Borrowings issued at fi xed rates expose Council to fair value interest rate risk. Council’s Liability Management Policy outlines the level of borrowing that is to be secured using fi xed rate instruments. Fixed to fl oating interest rate swaps are entered into to hedge the fair value interest rate risk arising where Council has borrowed at fi xed rates. In addition, investments at fi xed interest rates expose Council to fair value interest rate risk.

Cashflow�Interest�Rate�RiskCashfl ow interest rate risk that the cashfl ows from a fi nancial instrument will fl uctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose Council to cashfl ow interest rate risk.

Council manages its cashfl ow interest rate risk on borrowings by using fl oating-to-fi xed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings at fl oating rates and swaps them into fi xed rates that are generally lower than those available if Council borrowed at fi xed rates directly. Under the interest rate swaps, Council agrees with other parties to exchange, at specifi ed intervals, the difference between fi xed contract rates and fl oating rate interest amounts calculated by reference to the agreed notional principal amounts.

Credit�RiskCredit risk is the risk that a third party will default on its obligation to Council, causing Council to incur a loss. Council has no signifi cant concentrations of credit risk, as it has a large number of credit customers, mainly ratepayers. Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers.

162


116622

Liquidity�RiskLiquidity risk is the risk that Council will encounter diffi culty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining suffi cient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Council aims to maintain fl exibility in funding by keeping committed credit lines available.

In meetings its liquidity requirements Council maintains a target level of investments that must mature within the next 12 months. Council manages its borrowings in accordance with its funding and fi nancial policies, which includes a Liability Management Policy. These policies have been adopted as part of Council’s Long Term Plan.

Council has a maximum amount that can be drawn against its overdraft facility of $1,250,000 (2011: $1,250,000). There are no restrictions on the use of this facilty.

The maturity profi les of Council’s interest bearing investments and borrowings are disclosed in Note 18.

Parent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Financial Assets

Loans and Receivables:

Cash and Cash Equivalents 1,986 506 2,560 1,818

Debtors and Other Receivables 4,645 4,259 4,708 4,334

Other Financial Assets:

- Short Term Deposits 10,938 10,376 12,241 11,229

- Community Loans 0 0 0 0

- Loans to Related Parties 3,129 3,110 0 0

Total Loans and Receivables $20,698 $18,251 $19,509 $17,381

Fair Value Through Other Comprehensive Income


- Unlisted shares 31 31 31 32

Total Fair Value Through Other Comprehensive Income $31 $31 $31 $32

Financial Liabilities

Fair Value Through Surplus or Defi cit - Held For Trading

Derivative Financial Instrument Liabilities 902 643 902 643

Total Financial Liabilities At Fair Value Through Surplus or Defi cit

$902 $643 $902 $643

Financial Liabilities At Amortised Cost

Creditors And Other Payables 4,051 3,702 3,379 4,052

Borrowings:

- Bank Overdraft 0 216 0 216

- Secured Loans 23,024 23,024 23,024 23,024

Total Financial Liabilities At Amortised Cost $27,075 $26,942 $26,403 $27,292

1631166633

Fair�Value�Heirarchy�DisclosuresFor those instruments recognised at fair value in the statement of fi nancial position fair values are determined according to;

Valuation techniques using observable inputs (level 2) - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and fi nancial instruments valued using models where all signifi cant inputs are observable.

Valuation techniques with signifi cant non-observable inputs (level 3) - Financial instruments valued using models where one or more signifi cant inputs are not observable.

Observable Inputs

Signifi cant Non-obsevable Inputs

Total

$000 $000 $000

Parent 2011/2012

Financial Assets:

Unlisted Shares 0 31 31

Financial Liabilities:

Derivative Financial Instrument Liabilities

902 0 902

Group 2011/2012

Financial Assets:




902 0 902

Observable Inputs

Signifi cant Non-obsevable Inputs

Total

$000 $000 $000

Parent 2010/2011

Financial Assets:




643 0 643

Group 2010/2011

Financial Assets:




643 0 643

164


116644

Maximum�Exposure�to�Credit�RiskBuller District Council’s maximum exposure for each class of fi nancial instrument is as follows:

Parent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Cash at Bank and Term Deposits 12,924 10,882 14,801 13,047

Debtors and Other Receivables 4,645 4,259 4,708 4,334

Community and Related Party Loans 3,129 3,110 0 0

Total Credit Risk $20,698 $18,251 $19,510 $17,381

Credit�Quality�of�Financial�AssetsThe credit quality of fi nancial assets that are neither past due nor impaired can be assessed by reference to Standard and Poors or Fitch Credit Ratings (if available) or to historical information about counterparty default rates:

Parent Group

2011/2012 2010/2011 2011/2012 2010/2011

$000 $000 $000 $000

Counterparties With Credit Ratings

Cash at Bank and Term Deposits:

AA 9,456 7,414 11,335 9,579

BB 3,468 3,468 3,468 3,468

Total Cash at Bank and Term Deposits $12,924 $10,882 $14,801 $13,047

Counterparties Without Credit Ratings

Cash at Bank and Term Deposits:

Existing counterparty with no defaults in the past 0 0 0 0

Total Cash at Bank and Term Deposits $0 $0 $0 $0

Community and Related Party Loans:

Existing counterparty with no defaults in the past 3,129 3,110 0 0

Total Community and Related Party Loans $3,129 $3,110 $0 $0

1651166655

Contractual�Maturity�Analysis�of�Financial�LiabilitiesCarrying Amount

Contractual Cashfl ows

Less than 1 Year

1-2 Years 2-5 Years More Than 5 Years

$000 $000 $000 $000 $000 $000

PARENT 2011/2012

Creditors and Other Payables 4,051 4,051 4,051 0 0 0

Net Settled Derivative Liabilities 902 902 0 45 857 0

Bank Overdraft 0 0 0 0 0 0

Secured Loans 23,024 26,010 1,059 10,083 14,868 0

Total $27,977 $30,963 $5,110 $10,128 $15,725 $0

GROUP 2011/2012




Secured Loans 23,024 26,010 1,059 10,083 14,868 0

Total $27,305 $30,291 $4,438 $10,128 $15,725 $0

PARENT 2010/2011




Secured Loans 23,024 24,130 8,326 15,804 0 0

Total $27,585 $28,691 $12,244 $15,966 $481 $0

GROUP 2010/2011




Secured Loans 23,024 24,130 8,326 15,804 0 0

Total $27,935 $29,041 $12,594 $15,966 $481 $0

This table analyses Buller District Council’s fi nancial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date.

Future interest payments on fl oating rate debt is based on the fl oating rate on the instrument at balance date. The amounts disclosed are the contractual undiscounted cashfl ows.

166


116666

Contractual�Maturity�Analysis�of�Financial�AssetsCarrying Amount

Contractual Cashfl ows

Less than 1 Year

1-2 Years 2-5 Years More Than 5

Years

$000 $000 $000 $000 $000 $000

PARENT 2011/2012

Cash and Cash Equivalents 1,986 1,986 1,986 0 0 0

Debtors and Other Receivables 4,645 4,645 4,645 0 0 0


- Short Term Deposits 10,938 11,220 11,220 0 0 0

- Loans to Related Parties 3,129 3,247 3,000 247 0 0

Total $20,698 $21,098 $20,851 $247 $0 $0

GROUP 2011/2012





- Loans to Related Parties 0 0 0 0 0 0

Total $19,509 $19,510 $19,510 $0 $0 $0

PARENT 2010/2011

Cash and Cash Equivalents 506 506 506 0 0 0




- Loans to Related Parties 3,110 2,660 2,660 0 0 0

Total $18,251 $18,096 $18,096 $0 $0 $0

GROUP 2010/2011





- Loans to Related Parties 0 0 0 0 0 0

Total $17,381 $17,381 $17,381 $0 $0 $0

This table analyses Buller District Council’s fi nancial assets into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cashfl ows.

1671166677

Financial�Instrument�RisksSensitivity�AnalysisThe tables below illustrate the potential profi t and loss and equity (excluding retained earnings) impact for reasonably possible market movements, with all other variables held constant, based on Buller District Council’s fi nancial instrument exposures at the balance date.

Council�-

Interest�Rate�Risk

2011/2012 2010/2011

$000 $000

Note -100bps +100bps -100bps +100bps

Profi t Other Equity




Financial Assets

Cash and Cash Equivalents 1 (14) 0 14 0 0 0 0 0

Other Financial Assets - Short Term Deposits

2 (109) 0 109 0 (104) 0 104 0


Cash and Cash Equivalents - Bank Overdraft

3 0 0 0 0 2 0 (2) 0

Derivatives - Held for Trading 4 (150) 0 150 (150) 0 150

Borrowings - Secured Loans 5 80 0 (80) 0 80 0 (80) 0

Total Sensitivity to Interest Rate Risk (193) 0 193 0 (172) 0 172 0

Explanation�of�Sensitivity�Analysis�-�CouncilFinancial�Assets1.�Cash�and�Cash�EquivalentsCash and cash equivalents of $1,986,000 (2011: $506,000) of which $586,000 (2011; $506,000) are held in non-interest bearing cheque deposit accounts. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $14,000 (2011: nil).

2.�Other�Financial�Assets�-�Short�Term�Deposits�Short Term Deposits consist of term deposits at fi nancial institutions and total $10,940,000 (2011: $10,376,000). A movement in interest rates of plus or minus 1.0% has an effect on investment income of $109,400 (2011: $104,000).

Financial�Liabilities3.�Bank�OverdraftThere were no bank overdrafts in 2012 (2011: $216,000). Bank overdrafts are at fl oating interest rates. Therefore a movement in interest rates of plus or minus 1.0% has no effect on interest expense (2011: $2,000).

4.�Derivatives�-�Held�For�TradingDerivative fi nancial instruments held for trading consist of interest rate swaps with a fair value totalling $902,000 (2011: $643,000). A movement in interest rates of plus or minus 1.0% has an effect on realised reciepts/(payments) on the derivatives during the period of $150,000 (2011: $150,000 ).

5.�Borrowings��-�Secured�LoansCouncil has fl oating rate debt with a principal amount totalling $8,024,000 (2011: $8,024,000). A movement in interest rates of plus or minus 1.0% has an effect on interest expense of $80,000 (2011: $80,000). a movement in market interest rates on fi xed rate debt does not have any impact on interest expense.

168


116688

Group�-

Interest�Rate�Risk

2011/2012 2010/2011

$000 $000

Note -100bps +100bps -100bps +100bps





Financial Assets

Cash and Cash Equivalents 1 (14) 0 14 0 (3) 0 3 0

Other Financial Assets - Short Term Deposits 2 (122) 0 122 0 (112) 0 112 0


Cash and Cash Equivalents - Bank Overdraft 3 0 0 0 0 2 0 (2) 0

Derivatives - Held for Trading 4 (150) 0 150 (150) 0 150

Borrowings - Secured Loans 5 80 0 (80) 0 80 0 (80) 0

Total Sensitivity to Interest Rate Risk (206) 0 206 0 (183) 0 183 0

Explanation�of�Sensitivity�Analysis�-�GroupFinancial�Assets1.�Cash�and�Cash�EquivalentsCash and cash equivalents of $2,560,000 (2011: $1,818,000) of which $1,160,000 (2011: $1,515,000) are held in non-interest bearing cheque deposit accounts. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $14,000 (2011: $3,000).

2.�Other�Financial�Assets�-�Short�Term�Deposits�Short Term Deposits consist of term deposits at fi nancial institutions and total $12,242,000 (2011: $11,229,000). A movement in interest rates of plus or minus 1.0% has an effect on investment income of $122,000 (2011: $112,000).

Financial�Liabilities3.�Bank�OverdraftThere were no bank overdrafts in 2012 (2011: $216,000). Bank overdrafts are at fl oating interest rates. Therefore a movement in interest rates of plus or minus 1.0% has no effect on interest expense (2011: $2,000).

4.�Derivatives�-�Held�For�TradingDerivative fi nancial instruments held for trading consist of interest rate swaps with a fair value totalling $902,000 (2011: $643,000). A movement in interest rates of plus or minus 1.0% has an effect on realised reciepts/(payments) on the derivatives during the period of $150,000 (2011: $150,000 ).

5.�Borrowings��-�Secured�LoansThe Group has fl oating rate debt with a principal amount totalling $8,024,000 (2011: $8,024,000). A movement in interest rates of plus or minus 1.0% has an effect on interest expense of $80,000 (2011: $80,000). A movement in market interest rates on fi xed rate debt does not have any impact on interest expense.

16911666999

Note�28�~�Post�Balance�Date�EventsThere are no signifi cant events occurring after balance date that impact on the reported fi nancial information for the year ending 30 June 2012 for Buller District Council and the Group.

(2011: Subsequent to balance date, in August 2011, Buller Holdings issued $300,000 ordinary shares at $1 each in order to make the second and fi nal payment for land and buildings purchased from Buller District Council prior to 30 June 2011.)

170


117700

Note�29�~� Explanations�of�Major�Variances�against�Budget

Explanations for major variations from the Council’s budget fi gures in the 2011-12 Annual Plan are as follows:

Statement�of�Comprehensive�IncomeOperating revenue was $1.5 million greater than budget. The major reasons for this are:

• Increase in investment income of $0.3m. This is due to Council receiving a subvention payment of $0.3m from Westreef Services Ltd.

• Increase in fees and charges of $0.9m. This included unbudgeted income from domain boards of $0.4m. In addition, a budget error for dog registration income resulted in budgeted income being understated by $0.3m.

• Increase in fi nancial assistance income of $0.2m. During 2011/12, Council received fi nancial assistance for the Solid Energy Centre, NBS Theatre, Cultural Hub, and the upgrading of its water supplies.

Operating expenditure was $3.6 million greater than budget. The major reasons for this are:

• Recognition of an unbudgeted obligation of $0.8m to Buller Recreation Ltd for damage to the hockey turf. Council agreed to fund the repair of the turf.

• Unbudgeted legal and consultant costs of $0.1m in relation to a dispute with contractors over the damaged hockey turf referred to above.

• Unbudgeted expenditure for domain boards of $0.3m.

• Unbudgeted painting expenditure of $0.1m arising from change in accounting treatment.

• Additional costs of $0.1m relating to greater use of external consultants to assist with a higher workload associated with an increase in resource consents and more complex resource consents.

• Higher than anticipated costs of operating the landfi ll and transporting refuse and recycling of $0.1m.

• A contribution of $0.3m to Buller Recreation Ltd towards its power and heating costs.

• Unbudgeted loss on derivative contracts of $0.3m.

• Unbudgeted impairment of Council’s investment in Buller Holdings Ltd of $0.7m.

• Unbudgeted asset write-offs of $0.5m.

Statement�of�Financial�Position• Cash and cash equivalents has increased $1.4m above budget. This is due to proceeds from the sale of investment

properties.

• Trade and other receivables have increased mainly due to water supply subsidies accrued at year end for Reefton and Punakaiki water supplies.

• Investments have decreased $4.6m due to changes in assumptions regarding the structuring of the ownership of ha-bour.

• Infrastructural assets have decreased $15m due to major deferral of capital projects (Westport Water Upgrade, Drink-ing Water Upgrades).

• Other non-current assets are less than budget $2.8m due to transactions of land and buildings associated with the sale of Westport Harbour Limited.

• Trade and Other payables have decreased due to deferral of capital projects.

• Term debt has decreased $6.5m due to deferral of capital projects.

171171

AccountingPolicies

Reporting�EntityThe Buller District Council is a territorial local authority governed by the Local Government Act 2002.

The Buller District Council group consists of Buller District Council and its subsidiaries Buller Holdings Ltd, WestReef Services Ltd (owned by Buller Holdings Ltd), Buller Recreation Ltd and Westport Harbour Ltd (all 100% owned), sub-sidiaries in substance Buller Health Trust and Buller Arts and Recreation Trust (BART) and Westport Airport Authority (50% joint venture).

The primary objective of Buller District Council is to provide goods and services for the community or social benefi t, rather than making a fi nancial return. Accordingly, Buller District Council has designated itself and the group as a public benefi t entity for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

The fi nancial statements of Buller District Council are for the year ended 30 June 2011. The fi nancial statements were authorised for issue by Council on 31 October 2012.

Basis�of�PreparationThe fi nancial statements of Buller District Council have been prepared in accordance with the requirements of the Local Government Act 2002: Part 6, Section 98 and Part 3 of schedule 10, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP).

These fi nancial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefi t entities. The accounting policies set out below have been applied consistently to all periods presented in these fi nancial statements.

The fi nancial statements have been prepared on a historical cost basis, modifi ed by the revaluation of certain infra-structural assets, investment property and fi nancial instruments.

The fi nancial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($1,000) unless stated. The functional currency of Buller District Council is New Zealand dollars.

There have been no changes in accounting policies during the fi nancial year.

The Council and group has adopted the following revisions to accounting standards during the fi nancial year, which have only a presentational or disclosure effect:

FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Ac-counting Standards (Harmonisation Amendments) – The purpose of the new standard and amendments is to harmo-nise Australian and New Zealand accounting standards with source IFRS and to eliminate many of the differences between the accounting standards in each jurisdiction. The main effect of the amendments on the Council and group is that certain information about property valuations is no longer required to be disclosed.

Accou

nting�P

olicies

172

Buller District CouncilBuller District CouncilBuller Distric

SubsidiariesSubsidiaries are those entities where Buller District Council has the capacity to control their fi nancing and operating policies so as to obtain benefi ts from the activities of the entity. This power exists where Buller District Council controls the majority voting power of the governing body or where such policies have been irreversibly predetermined by Buller District Council.

The subsidiaries of Buller District Council are Buller Holdings Limited, WestReef Services Limited, Westport Harbour Limited, Buller Recreation Limited, Buller Health Trust and Buller Arts and Recreation Trust (BART).

Buller District Council measures the cost of a business combination as the aggregate of the fair values at the date of exchange, of assets given, liabilities incurred or assumed, in exchange for control of the subsidiary plus any costs attributable to the business combination.

Any excess of the cost of the business combination over Buller District Council’s interest in the net fair value of the identifi -able assets, liabilities and contingent liabilities, is recognised as goodwill. If Buller District Council’s interest in the net fair value of the identifi able assets, liabilities and contingent liabilities exceeds the cost of the business combination, the differ-ence will be recognised immediately in the surplus or defi cit.

The purchase method of consolidation has been used to prepare the consolidated fi nancial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line by line basis. All signifi cant intragroup bal-ances, transactions, income and expenses are eliminated on consolidation.

Buller District Council’s investment in its subsidiaries is carried at cost in the Buller District Council’s own “parent entity” fi nancial statements.

AssociatesAn associate is an entity over which Buller District Council has signifi cant infl uence and that is neither a subsidiary nor an interest in a joint venture.

Buller District Council accounts for an investment in an associate using the equity method. The investment in an associate is initially recognised at cost and the carrying amount is increased or decreased to recognise the share of the surplus or defi cit of the associate.

The Council has two associates, Tourism West Coast and Denniston Heritage Trust. There is no equity investment and there-fore no results are equity accounted for in these fi nancial statements. Further disclosure of the results of these associates is provided in note 24.

Joint�VenturesA joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.

Buller District Council has a 50/50 joint venture interest in the Westport Airport Authority with Ministry of Transport.

Buller District Council recognises in its fi nancial statements the assets it controls, the liability and expenses it incurs, and the share of income that it earns from the joint venture.

Revenue�Revenue is measured at the fair value of consideration received. Revenue from the rendering of services is recognised by the reference to the stage of completion of the transaction at balance date based on the actual service provided as a percentage of the total services to be provided.

Rates�Revenue.Rates are set annually by a resolution from Council and relate to a fi nancial year. All ratepayers are invoiced within the fi -nancial year to which the rates have been set. Rates revenue is recognised when payable.

173

Other�RevenueBuller District Council receives Government Grants from the New Zealand Transport Authority, which subsidises part of Buller District Council’s costs in maintaining the local roading infrastructure. Grants are received from the Ministry of Health for eligible sewerage schemes. The subsidies are recognised as revenue upon entitlement as conditions pertaining to eligible expenditure are fulfi lled.

Sales of goods are recognised when a product is sold to a customer. Sales are usually in cash. The recorded revenue is the gross amount of the sale.

Where a physical asset is acquired for nil or nominal consideration, the fair value of the asset received is recognised as rev-enue. Assets vested in Buller District Council are recognised as revenue when control over the asset is obtained.

Rental income is recognised on a straight line basis.

Interest income is recognised using the effective interest method.

Dividends are recognised when the right to receive the payment has been established.

Borrowing�CostsBorrowing costs are recognised as an expense in the period in which they are incurred.

Grant�ExpenditureNon-discretionary grants are those grants that are awarded if the grant application meets the specifi ed criteria and are rec-ognised as expenditure at the time when such application has been received.

Discretionary grants are those grants that Buller District Council has no obligation to award and are recognised as expenditure when a successful applicant has been notifi ed of the Buller District Council’s decision.

Income�TaxIncome tax expense in relation to the surplus or defi cit for the period comprises current tax and deferred tax.

Current tax is the amount of income tax payable based on the taxable profi t for the current year, plus any adjustments to income tax payable in respect of prior years. Current tax is calculated using rates that have been enacted or substantively enacted by balance date.

Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the fi nan-cial statements and the corresponding tax bases used in the computation of taxable profi t.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable profi ts will be available against which the deductible temporary differences or tax losses can be utilised.

Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill, or from the initial recognition of an asset and liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting profi t nor taxable profi t.

Deferred tax is recognised on taxable temporary differences arising from investments in subsidiaries and associates, and interests in joint ventures, except where the Council can control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, using tax rates that have been enacted or substantively enacted by balance date.

Current tax and deferred tax is shown against the surplus or defi cit for the period, except when it relates to items charged or credited directly to equity, in which case the tax is dealt with in equity.

174


LeasesFinance�LeasesA fi nance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred.

At the commencement of the lease term, Buller District Council recognises fi nance leases as assets and liabilities in the Statement of Financial Position at the lower of the fair value of the leased item or the present value of the minimum lease payments.

The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether Buller District Council will obtain ownership at the end of the lease term, the asset is fully depreciated over the lease term or useful life, whichever is the shortest.

Operating�LeasesAn operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of the asset. Lease payments under an operating lease are recognised as an expense on a straight line basis over the lease term.

Cash�and�Cash�EquivalentsCash and cash equivalents includes cash on hand, deposits held on call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts.

Bank overdrafts are shown as current liabilities in the Statement of Financial Position.

Trade�and�Other�ReceivablesTrade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effec-tive interest rate method, less any provision for impairment.

Loans, including loans to community organisations made by Buller District Council at nil, or below market interest rates, are initially recognised at the present value of their expected future cash fl ows, discounted at the current market rate of return for a similar asset / investment. They are subsequently measured at amortised cost using the effective interest method. The difference between the face value and the present value of the expected future cash fl ows of the loan is recognised in the surplus or defi cit.

A provision for impairment of receivables is established when there is objective evidence that Buller District Council will not be able to collect all the amounts due according to the original terms of receivables. The amount of the provision is the difference between the assets carrying amount and the present value of estimated future cash fl ows, discounted using the effective interest method.

InventoriesInventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at the lower of cost and current replacement cost.

Inventories held for use in the production of goods and services on a commercial basis are valued at the lower of cost and net realisable value. The cost of purchased inventory is determined using the FIFO method.

The write down from cost to current replacement cost or net realisable value is recognised in the surplus or defi cit.

Non�Current�Assets�Held�for�SaleNon current assets held for sale are classifi ed as held for sale if their carrying amount will be recovered principally through the sale transaction rather than through continuing use. Non current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment losses for writedowns of non current assets held for sale are recognised in the surplus or defi cit.

Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have previously been recognised.

Non current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classi-fi ed as held for sale.

175

Financial�AssetsBuller District Council classifi es its fi nancial assets into the following four categories:

Financial assets at fair value through surplus or defi cit;

Held-to-maturity investments;

Loans and receivables; and

Fair value through other comprehensive income.

The classifi cation depends on the purpose for which the investments were acquired. Management determines the classifi ca-tion of its investments at initial recognition and re-evaluates this designation at every reporting date.

Financial assets and liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value through surplus or defi cit in which case the transaction costs are recognised in surplus or defi cit.

Purchases and sales of investments are recognised on trade date, the date on which Buller District Council commits to pur-chase or sell the asset. Financial assets are derecognised when the rights to receive cash fl ows from the fi nancial assets have expired or have been transferred, Buller District Council having transferred substantially all the risks and rewards of ownership.

The fair value of fi nancial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used is the current bid price.

The fair value of fi nancial instruments that are not traded in an active market is determined using valuation techniques. Bull-er District Council uses a variety of methods and makes assumptions that are based on market conditions existing at balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash fl ows, are used to determine fair value for the remaining fi nancial instruments.

Financial�Assets�at�Fair�Value�Through�Surplus�or�DeficitThis category has two sub-categories:

Financial assets held for trading

Those designated at fair value through surplus or defi cit at inception.

A fi nancial asset is classifi ed in this category if acquired principally for the purpose of selling in the short term or if so desig-nated by management.

Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classifi ed as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date.

After initial recognition they are measured at their fair values. Gains or losses on re-measurement are recognised in the surplus or defi cit.

Currently Buller District Council recognises derivative fi nancial instruments in this category.

Held�to�Maturity�InvestmentsHeld to maturity investments are assets with fi xed or determinable payments and fi xed maturities that Buller District Council has the positive intention and ability to hold to maturity.

After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or defi cit.

Currently Buller District Council does not hold any fi nancial assets in this category.

Loans�and�ReceivablesThese are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market.

After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or defi cit. Loans and receivables are classifi ed as “trade and receivables” and short and long term investments in the Statement of Financial Position.

Investments in this category include loans to subsidiaries and other companies and term deposits.

176


Fair�Value�Through�Other�Comprehensive�IncomeFinancial assets at fair value through other comprehensive income are those that are designated into this category at initial recognition or are not classifi ed in any of the other categories above.

This category encompasses:

Investments that Buller District Council intends to hold long-term but which may be realised before maturity.

Shareholdings that Buller District Council holds for strategic purposes. Buller District Council’s investments in its subsidiary and associate companies are not included in this category as they are held at cost whereas this category is to be measured at fair value.

After initial recognition these investments are measured at their fair value.

Gains and losses are recognised directly in other comprehensive income except for impairment losses, which are recognised in the surplus or defi cit.

Investments in this category include shares in other companies.

Impairment�of�Financial�AssetsAt each balance sheet date Buller District Council assesses whether there is any objective evidence that a fi nancial asset or group of fi nancial assets is impaired. Any impairment losses are recognised in the surplus or defi cit.

Any cumulative losses previously recognised in equity will be removed from equity and shown in the surplus or defi cit.

Derivative�Financial�InstrumentsBuller District Council uses derivative fi nancial instruments to hedge exposure to interest rate risks arising from fi nancing activities. In accordance with its treasury policy, Buller District Council does not hold or issue derivative fi nancial instruments for trading purposes. However derivatives that do not qualify for hedge accounting are accounted for as trading instruments.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each balance date.

The gain or loss on re-measurement to fair value is recognised immediately in surplus or defi cit. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged.

The fair value of interest rate swaps is the estimated amount that Council would receive or pay to terminate the swap at the balance sheet date, taking into account current interest rates and the current creditworthiness of the swap counterparties. The fair value of forward contracts is their quoted market price at the balance sheet date, being the present value of the quoted forward price.

Buller District Council has not adopted hedge accounting to account for its derivative fi nancial instruments.

177

Property,�Plant�and�EquipmentProperty, plant and equipment consist of:

Council Assets – These include land, buildings, plant and machinery, motor vehicles, offi ce equipment, library books and the Airport runway.

Infrastructure Assets – These include roads, footpaths, traffi c facilities, street lights, bridges, culverts, water reticulation, storm water reticulation, sewerage reticulation and landfi ll.

Harbour Assets – These include land, buildings, wharves, plant and machinery, offi ce equipment, motor vehicles and harbour vessels.

WestReef Assets – These include leasehold improvements, plant and equipment, offi ce equipment, offi ce furniture, fi ttings and computer equipment.

Buller Health Trust Assets – These include plant and equipment and furniture and fi ttings.

Property, plant and equipment is shown at cost or revaluation, less accumulated depreciation and impairment losses.

AdditionsThe cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future eco-nomic benefi ts or service potential associated with the item will fl ow to Buller District Council and the cost of the item can be reliably measured.

In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the surplus or defi cit. When revalued assets are sold, the amounts included in asset revalu-ation reserves in respect of those assets are transferred to accumulated funds.

DisposalsGains and losses on disposal are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the surplus or defi cit. When revalued assets are sold, the amounts included in asset revalu-ation reserves in respect of those assets are transferred to accumulated funds.

Subsequent�CostsCosts incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefi ts or ser-vice potential associated with the item will fl ow to Buller District Council and the cost of the item can be measured reliably.

DepreciationDepreciation is provided on a straight line basis on all property, plant and equipment, other than land, at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives.

The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Council�AssetsDepreciation Rate

(%)Useful Life (Years)

Motor vehicles 15% 7

Offi ce Equipment 10% to 50% 2 - 5

Plant and machinery 3.33% to 15% 7 - 30

Buildings 1% to 10% 10 - 100

Library Books 10% 10

Airport runway

- Basecourse 1.3% 75

- Seal 5% 20

178


Infrastructure�AssetsDepreciation Rate (%) Useful Life (Years)

Roads

- Formation Not Depreciated

- Basecourse- unsealed roads Not Depreciated

- Basecourse – sealed roads 1% to 2% 50 - 100

- Seal 4% to 12.5% 8 - 25

Footpaths

- Basecourse Not Depreciated

- Pavement 1.25% to 10% 10 - 80

Traffi c facilities 5% to 10% 10 - 20

Street lights 3.33% 30

Bridges 2% to 6.67% 50 - 100

Culverts 1.11% to 1.25% 80 - 90

Water Reticulation

- Drains Not depreciated

- Kerb and Channelling 1.25% 80

- Pipes 1.10% to 4.10% 25 - 100

- Valves, hydrants 1.67% 60

- Intake structures 1.11% to 2% 50 - 90

- Reservoirs 1.25% 80

- Resource Consents 2.85% 35

- Pump stations 2% to 6.67% 15 - 50

- Treatment Equipment 2% to 6.67% 15 – 50

- Tunnels 0.7% to 4% 25 - 150

Stormwater Reticulation

- Pipes 1% to 1.54% 65 - 100

Sewerage Reticulation

- Pipes 1% to 1.42% 70 - 100

- Treatment Plants 1.11% to 6.67% 15 - 90

- Pump Stations 1.11% to 6.67% 15 - 90

- Manholes 1.11% 90

Harbour�AssetsDepreciation Rate


Wharves 1.67% 60

Buildings 2.5% 40

Plant and Machinery 3.3% to 10% 10 - 30

Offi ce Equipment 20% to 33.5% 3 - 5

Motor Vehicles 10% to 20% 5 - 10

Harbour Vessels 5% to 6.7% 15 - 20

179

WestReef�Services�Limited�AssetsDepreciation Rate


Leasehold Improvements 6.5% to 15% 6.7 - 15

Plant and Equipment 5.5% to 40% 2.5 – 18

Vehicles 8% to 29% 3 - 12

Offi ce Equipment 8% to 40% 2.5 - 12.5

Offi ce Furniture and Fittings 8% to 24% 4 - 12.5

Computer Equipment 18% to 36% 3 - 5.5

Buller�Health�Trust�AssetsDepreciation Rate


Plant and Equipment 7% to 50% 2 - 10

Furniture and Fittings 7% to 13.5% 7.4 – 14.3

Furniture and fi ttings 16.2% to 48% 2.1 - 6.2 years

Capital work in progress is not depreciated. The total cost of the project is transferred to Property Plant and Equipment on its completion and then depreciated.

The residual value and useful life of an asset is reviewed and adjusted if applicable, at each fi nancial year end.

RevaluationThose asset classes that are revalued are valued on a basis described below. All other asset classes are carried at depreciated historical cost. The carrying values of revalued items are reviewed at each balance date to ensure that those values are not materially different to fair value.

Council Land- The Airport land was revalued to fair value as determined by market based evidence by an independent valuer. The most recent valuation was performed by Quotable Value with an effective date as at 30 June 2005. Council land is rec-ognised at deemed cost.

Harbour Land - The Harbour land was revalued to fair value as determined by market based evidence by an independent valuer. The most recent valuation was performed by Quotable Value with an effective date as at 30 June 2005. Harbour land is recognised at deemed cost.

Infrastructural Assets – The infrastructural assets are valued on a three yearly valuation cycle at fair value determined on a depreciated replacement cost basis by an independent valuer. At balance date Buller District Council assesses the carrying values of its infrastructural assets to ensure that they do not differ materially from the assets fair value. The most recent valuation was performed by GHD Limited and the valuation is effective as at 30 June 2012. All infrastructural asset classes carried at valuation were valued. The total value of infrastructural assets valued by GHD Limited on 30 June 2012 was $246,295,000.

Accounting�for�RevaluationBuller District Council accounts for revaluations of property, plant and equipment on a class of assets basis.

The results of revaluing are credited or debited to an asset revaluation reserve. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the surplus or defi cit. Any subsequent increase on revaluation that off-sets a previous decrease in value recognised in the surplus or defi cit, will be recognised fi rst in the surplus or defi cit up to the amount previously expensed, and then credited to the revaluation reserve.

180


Intangible�AssetsGoodwillGoodwill is initially measured at its cost, being the excess of the cost of the acquisition over Buller District Council’s interest in the net fair value of the identifi able assets, liabilities and contingent liabilities. Goodwill on acquisition of subsidiaries is included in intangible assets by applying the purchase method.

Goodwill arising in business combinations is not amortised. Instead, goodwill is tested for impairment annually. After initial recognition, Buller District Council measures goodwill at cost less any accumulated impairment losses. An impairment loss recognised for goodwill will not be reversed in any subsequent period.

Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash generating units or groups of cash generating units that are expected to benefi t from the business combination, in which the goodwill arose.

Investment�PropertyProperties leased to third parties under operating leases are classifi ed as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation.

Investment property is measured initially at cost, including transaction costs.

After initial recognition, Buller District Council measures all investment property at fair value as determined annually by an independent valuer. The most recent valuation of investment property was carried out by Darroch Valuations with an effec-tive date as at 30 June 2012.

Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or defi cit

Impairment�of�Non�Financial�AssetsNon-fi nancial assets that have an indefi nite useful life are not subject to amortisation and are tested annually for impair-ment.

Assets that have a fi nite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the assets fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefi ts or service potential of an asset are not primarily dependent on the assets ability to generate net cash infl ows and where the entity would, if deprived of the asset, replace its remaining future economic benefi ts of service potential.

The value in use for cash generating assets is the present value of expected future cash fl ows.

If an asset’s carrying amount exceeds its recoverable amount the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised against the revaluation reserve. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or defi cit.

For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or defi cit.

The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss was previously recognised in the surplus or defi cit, a reversal of the impairment loss is also recognised in the surplus or defi cit.

For assets not carried at a revalued amount (other than goodwill) the reversal of an impairment loss is recognised in the surplus or defi cit.

181

Employee�EntitlementsShort�Term�BenefitsEmployee benefi ts that Buller District Council expects to be settled within 12 months of balance date are measured at nomi-nal values based on accrued entitlements at current rates of pay.

These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

Buller District Council recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that Buller District Council anticipates it will be used by staff to cover future absences.

Buller District Council recognises a liability and expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation.

Long�Term�Benefits- Long Service Leave and Re rement LeaveEntitlement that are payable beyond 12 months, such as long service leave and retirement gratuities, have been calculated on an actuarial basis. The calculations are based on:

Likely future entitlements accruing to staff, based on years of service, years to entitlement and the likelihood that staff will reach the point of entitlement : and

The present value of the estimated future cashfl ows. A discount rate of 5.7%, and a infl ation factor of 2.5% were used. The discount rate is based on the weighted average of Government interest rates for stock with terms to maturity similar to those of the relevant liabilities. The infl ation factor is based on the expected long term increase in remuneration for employees

Superannuation�Schemes- Defi ned Contribu ons SchemesObligations for contributions to defi ned contribution superannuation schemes are recognised as an expense in the surplus or defi cit as incurred.

ProvisionsBuller District Council recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that refl ects current market assessments of the time value of money and the risks specifi c to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense.

BorrowingsBorrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

182


EquityEquity is the communities interest in Buller District Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classifi ed into a number of reserves.

The components of equity are:

Retained earnings;

Restricted reserves; and

Asset revaluation reserve.

Goods�and�Services�Tax�(GST)All items in the fi nancial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receiva-bles or payables in the Statement of Financial Position.

The net GST paid to, or received from the IRD, including the GST relating to investing and fi nancing activities, is classifi ed as an operating cash fl ow in the statement of cash fl ows.

Commitments and contingencies are disclosed exclusive of GST.

Budget�FiguresThe budget fi gures are those approved by the Council at the beginning of the year in the Annual Plan. The budget fi gures have been prepared in accordance with NZ IFRS, using accounting policies that are consistent with those adopted by Buller District Council for the preparation of the fi nancial statements.

Cost�AllocationBuller District Council has derived the cost of service for each signifi cant activity using the cost allocation system outlined below.

Direct costs are those costs directly attributable to a signifi cant activity. Indirect costs are those costs, which cannot be identifi ed in an economically feasible manner, with a specifi c signifi cant activity.

Direct costs are charged directly to signifi cant activities. Indirect costs are charged to signifi cant activities using an appropri-ate cost driver.

183

Critical�Accounting�Estimates�and�AssumptionsIn preparing these fi nancial statements Buller District Council has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that form a signifi cant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next fi nancial year are discussed below:

Landfill�Aftercare�ProvisionThe Landfi ll Aftercare Provision Note discloses an analysis of the exposure of Buller District Council in relation to estimates and uncertainties surrounding the landfi ll aftercare provision.

Infrastructural�AssetsThere are a number of assumptions and estimates used when performing valuations over infrastructural assets which include:

The physical deterioration and condition of an asset, eg Council could be carrying an asset at an amount that does not refl ect its actual condition. This is particularly so for those assets which are not visible such as stormwater, wastewater and water supply pipes that are underground. The risk is minimised by Council performing a combination of physical inspections and condition modelling assessments of underground assets;

Estimating any obsolescence or surplus capacity of an asset; and

Estimates are made when determining the remaining useful lives over which the asset will be depreciated. These estimates can be impacted by local conditions, eg weather patterns and traffi c growth. If useful lives do not refl ect the actual consumption of the benefi ts of the asset, then Council could be over or under estimating the annual depre-ciation charge recognised as an expense in the surplus or defi cit. To minimize the risk, Council’s infrastructural asset useful lives have been determined with reference to the NZ Infrastructure Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group, and have been adjusted for local conditions based on past experience. Asset inspections, deterioration and condition modeling are also carried out regularly as part of Council’s Asset management planning activities, which gives Council further assurance over its useful

Experienced independent valuers prepare Council’s infrastructural asset revaluations. The last valuation was prepared by GHD Limited on 30 June 2012.

Standards�and�Interpretations�Not�Yet�AdoptedStandards, amendments, and interpretations but not yet effective that have not been early adopted, and which are relevant to the Council and group, are:

NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments:

Recognition and Measurement. NZ IAS 39 is being replaced through the following 3 mainphases:

- Phase 1 Classifi cation and Measurement

- Phase 2 Impairment Methodology,

- Phase 3 Hedge Accounting

Phase 1 on the classifi cation and measurement of fi nancial assets has been completed and has been published in the new fi nancial instrument standard NZ IFRS 9. NZ IFRS9 uses a single approach to determine whether a fi nancial asset is meas-ured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its fi nancial instruments (its business model) and the contractual cash fl ow characteristics of the fi nancial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in NZ IAS 39. The new standard is required to be adopted for the year ended 30 June 2014. Buller District Council has not yet assessed the effect of the new standard and expects it will not be early adopted.

The Minister of Commerce has approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Council is classifi ed as a Tier 1 reporting entity and it will be required to apply full Public Benefi t Entity Accounting Standards (PAS). These standards are being developed by the XRB based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is expected to be for reporting periods beginning on or after 1 July 2014. This means the Council expects to transition to the new standards in preparing its 30 June 2015 fi nancial statements. As the PAS are still under development, the Council is unable to assess the implications of the new Accounting Standards Framework at this time.

Due to the change in the Accounting Standards Framework for public benefi t entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefi t entities. Therefore, the XRB has effectively frozen the fi nancial reporting requirements for public benefi t entities up until the new Accounting Standard Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefi t entities from their scope.

185

Audit�Report

Independent Auditor’s Report

To the readers of Buller District Council and group’s

annual report for the year ended 30 June 2012

The Auditor-General is the auditor of Buller District Council (the District Council) and group. The Auditor-General has appointed me, Scott Tobin, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements, non-financial performance information and other information required by schedule 10 of the Local Government Act 2002 (other information) of the District Council and group on her behalf.

We have audited:

the financial statements of the District Council and group on pages 113 to 183, that comprise the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies, explanatory information and particular information required by schedule 10 of the Local Government Act 2002; and

the non-financial performance information of the District Council and group on pages 31 to 112 that includes particular information required by schedule 10 of the Local Government Act 2002.

the other information that comprises the statement of compliance and responsibility and consultation with Maori on pages 15 and 29.

Opinion on the financial statements, non-financial performance information and other information

In our opinion:

The financial statements of the District Council and group on pages 113 to 183:

comply with generally accepted accounting practice in New Zealand; and

fairly reflect:

the District Council and group’s financial position as at 30 June 2012; and

the results of its operations and cash flows for the year ended on that date.

The non-financial performance information of the District Council and group on pages 31 to 112:

complies with generally accepted accounting practice in New Zealand; and

186


fairly reflects the District Council and group’s levels of service for the year ended 30 June 2012, including:

the levels of service as measured against the intended levels of service adopted in the long-term council community plan; and

the reasons for any significant variances between the actual service and the expected service.

The other information of the District Council and group in the financial statements and the non-financial performance information and on page 15 and 29 under the headings statement of compliance and responsibility and consultation with Maori, complies with the requirements of Schedule 10 of the Local Government Act 2002 applicable to the annual report and fairly reflects the required information.

Our audit was completed on 31 October 2012. This is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and explain our independence.

Basis of opinion

We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements, non-financial performance information and other information are free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements, non-financial performance information and other information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements, non-financial performance information and other information. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements, non-financial performance information and other information whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the District Council and group’s financial statements, non-financial performance information and other information that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the District Council and group’s internal control.

An audit also involves evaluating:

the appropriateness of accounting policies used and whether they have been consistently applied;

the reasonableness of the significant accounting estimates and judgements made by the Council;

the adequacy of all disclosures in the financial statements, non-financial performance information and other information;

187

determining the appropriateness of the reported non-financial performance information within the Council’s framework for reporting performance; and

the overall presentation of the financial statements, non-financial performance information and other information.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements, non-financial performance information and other information. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Council

The Council is responsible for preparing:

financial statements and non-financial performance information that:

comply with generally accepted accounting practice in New Zealand;

fairly reflect the District Council and group’s financial position, financial performance and cash flows;

fairly reflect its service performance, including achievements compared to its forecast; and

other information in accordance with Schedule 10 of the Local Government Act 2002 that fairly reflects the required information.

The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements, non-financial performance information and other information that are free from material misstatement, whether due to fraud or error.

The Council’s responsibilities arise from the Local Government Act 2002.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the financial statements, non-financial performance information and other information and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and section 99 of the Local Government Act 2002.

Independence

When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

188


Other thwith or i

Scott ToAudit NeOn behaChristch

han the audinterests in t

bin ew Zealandalf of the Auurch, New Z

it and carrythe District C

uditor-GeneZealand

ying out the Council or a

ral

audit of theny of its sub

e long term bsidiaries.

plan, we haave no relationship

2011/2012�Annual�Report Buller District Council

Onlin

e�Ver

sion:

To s

ave

on b

oth

cost

and

env

iron

men

tal i

mpa

ct,

this

rep

ort

has

been

cr

eate

d w

ith

onlin

e vi

ewin

g in

min

d.

Onl

y a

limit

ed n

umbe

r of

the

pri

nted

ver

sion

hav

e be

en p

rodu

ced.

ww

w.b

ulle

rdc.

govt

.nz