Annual Report - Whanganui · 2019-03-22 · Wanganui District Council Annual Report for the year...

Annual Report For the year ended 30 June 2013

Wanganui District Council Annual Report for the year ended 30 June 2013

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Contents

Page

Message from the Mayor 4-5

Organisational structure 6

Committee structure 7

Message from the Chief Executive 8-9

Statement of compliance and responsibility 10

Statement of comprehensive income 11

Statement of changes in equity 12

Statement of financial position 13

Statement of cash flows 14

Funding Impact Statement 15

Statement of accounting policies 16-32

Notes to the financial statements 33-74

Council’s vision, mission and values 75-76

Our plans and our reporting 77-78

Groups of activities 79-83

Progress made towards the achievement of the community outcomes 84-109

Funding impact statements; significant acquisitions or replacements of assets; activity scorecards

Water supply group 110-115

Stormwater group: 116-119

Flood protection and control group 120-122

Wastewater group 123-127

Roads, footpaths and pathways group 128-132

Parks and recreation group 133-140

Community and cultural group: 141-147

Economic development group 148-151

Community facilities and services group 152-161

Transportation group 162-166

Investments group 167-170

Corporate group 171-177

Council Controlled Organisations 178-184

Equal employment opportunities report 185

Working with Maori 186

Audit Report


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101 Guyton Street P O Box 637, Wanganui 4500 Phone: (06) 349 0525 Fax: (06) 349 1653 Email: [email protected]

A message from Mayor Annette Main: Annual Report 2012/13 It’s been a difficult year for your Council as we faced issues of increasing debt, failing infrastructure and the true costs of looking after our community’s investments. Our high level of debt remains a major concern and needs to be addressed. Currently, our debt is projected to peak at $126M in 2016/17, meaning there are huge interest costs in the next few years which are impacting on rates. The Council will review its activities before the next financial year to bring us to a level of financial sustainability. It will be a challenge to balance the need to provide essential services, protect our assets and pay off debt against more difficult economic times with affordability. The failure of our wastewater treatment plant was the other issue which dominated Council business this year. While the plant had never consistently worked properly, the problems at the end of 2012 demonstrated just how inadequate the original design was for dealing with our district’s wastewater. We are pursuing legal action against the consultant engineers involved in the concept and final designs of the plant. Meanwhile, we are moving ahead with a proven and robust design to upgrade the treatment plant so it can deal with our district’s domestic and industrial waste. Despite these challenges, there has also been good news. Prudent management of our operating expenditure resulted in an operating rates surplus for 2012/13. While part of the surplus has been carried over to 2013/14, the remainder has been applied to loan balances for our parks and reserves, community development, Council freehold property, waterways and natural drainage and economic development activities. In May 2013, the Council accepted an unsolicited offer of $13.65 million plus $1.5M of working capital from TrustPower Limited to buy the assets of Energy Direct NZ Limited (EDNZ), the retail trading arm of Wanganui Gas. The Council believed that selling EDNZ was in the best interests of the community, reducing the risks associated with the Council owning an energy trading company and allowing the proceeds to be used to repay debt across the Group. TrustPower has retained the EDNZ staff and has undertaken to maintain the same scale of operations in our district for the next two years. The Council has retained GasNet, the pipeline infrastructure trading arm of Wanganui Gas. We continued to work toward securing the future of the Sarjeant Gallery, which is one of our earthquake-prone buildings and in need of better conditions in which to store and exhibit its nationally-significant collection and provide services to the community. We are applying for government and philanthropic funding to enhance the existing gallery by providing better public and education facilities, appropriate storage and environmental controls, and earthquake


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strengthening work. The Ministry for Culture and Heritage has indicated its willingness to provide substantial financial support for the Sarjeant Gallery redevelopment plan. We are seeking external match funding for this government support. On 30 August 2012, the Crown and negotiators for Whanganui Iwi signed a framework agreement - Tūtohu Whakatupua - setting out certain key elements that will form the basis for a settlement of Whanganui Iwi’s historical claims relating to the Whanganui River. This is an interim agreement and we look forward to the parties reaching a full deed of settlement. A focus on partnerships saw the Council working with Tupoho Whanau Trust and Sustainable Whanganui to develop the Whanganui Resource Recovery Centre concept and secure government funding to establish the centre. We established a joint taskforce with UCOL to work together on key tertiary education issues for our district. Following community concerns about changes and cuts to UCOL’s programmes, the Council has sought a strategic partnership with UCOL to ensure the continuance of a strong and viable tertiary institution within our district and to monitor progress on the taskforce recommendations. During the year we continued our focus on digital initiatives, with the aim of retaining our competitive advantage from the early roll out of ultrafast broadband (UFB). In a significant achievement, we were the first community in New Zealand to be acknowledged by the Intelligent Communities Forum, making it into the Smart21 Communities of the Year for 2013. The Intelligent Communities Forum is a global movement which celebrates and supports communities which demonstrate the positive ways in which they have embraced the challenges of broadband, and adapted and developed strategies to use this new technology to the benefit of their residents. The wide range of successful community events the Council has an involvement in - from the New Zealand Masters Games to the inaugural Vintage Weekend, TechEx 2012 and 2013 technology expos, Volunteer (Kaituao) Recognition Awards, opening of the Community Technology Centre at Castlecliff, the Billy Webb rowing regatta, Whanganui Festival of Cultures - assists our national profile and involves those across our community. Our focus needs to be on continuing to work together to ensure we can continue to provide the services our community needs while managing our finances and ensuring our district is promoted positively to the rest of New Zealand.

Annette Main Mayor of Wanganui


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Organisational structure as at 30 June 2013

Mayor and Councillors

Wanganui Rural Community Board Members

Mayor Annette Main

Deputy Mayor Cr Rangi Wills

Chairman Mr Alan Taylor

Deputy Chair Mr David Matthews

Cr Allan Anderson

Cr Philippa Baker-Hogan

Cr Jack Bullock

Mr Bill Ashworth

Mr Andrew Collins

Cr Randhir Dahya

Cr Nicki Higgie

Cr Michael Laws

David Johnston

Mr Mark Lourie

Cr Hamish McDouall

Cr Clive Solomon

Cr Ray Stevens

Mr Darrell Monk

Councillors Higgie and McDouall are appointed by the Council to the Wanganui Rural Community Board

Cr Rob Vinsen

Cr Sue Westwood


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Governance structure As at 30 June 2013 Council Presiding – Mayor Annette Main

Deputy Mayor – Cr Rangi Wills Committees Chair Deputy chair Strategy and Finance Cr Rob Vinsen Cr Sue Westwood Infrastructure and Property Cr Ray Stevens Cr Allan Anderson Community and Environment Cr Philippa Baker-

Hogan Cr Rangi Wills

Hearings and Regulatory Cr Sue Westwood Cr Nicki Higgie Youth Cr Jack Bullock (Co-deputy chairs)

Yth Crs Renee Harrison and Raphael Solomon

Joint Committee Wanganui District Councils’ Forestry Joint Committee

Cr Nicki Higgie Cr Don Cameron (Ruapehu/South Taranaki Member)

Subcommittees, working parties etc

Chair

Tupoho working party Decided at each meetingTamaupoko Link Daryn Te UamairangiCommunity Taskforce on Youth

Wellbeing (Co-chair)Cr Philippa Baker-Hogan

District Plan Review working party Cr Sue WestwoodWhanganui Digital Leaders Forum Mayor Annette MainWaste Minimisation working party Cr Rob VinsenDigital Communities (Digicom) Cr Jack Bullock Rural Community Board Wanganui Rural Community Board Mr Alan Taylor Mr David Matthews


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Message from the Chief Executive The 2012/13 year required a huge focus on our infrastructure and ‘bricks and mortar’, with our wastewater treatment plant suffering major failures in late 2012 and earthquake-prone buildings presenting health and safety challenges for the organisation. Wastewater treatment plant We have been unable to consistently meet our consent conditions since the wastewater treatment plant began operating in 2007 and we had started a programme to remedy compliance issues with our resource consent from Horizons Regional Council. Sewage build-up had lessened capacity to absorb large industrial discharges and since October 2012 we had been focussing on reducing the sludge levels. However, in December 2012 the situation worsened following unexpected large discharges of trade waste into the system. The treatment plant could not cope, the small gains we had made since October were lost and unacceptable odour affected parts of the district at times. We implemented short-term measures to deal with the odour problem and comply with an abatement notice from Horizons Regional Council for objectionable odour beyond the boundary of the treatment plant. We commissioned a report from internationally-recognised wastewater specialists Cardno BTO on how to deal effectively with our wastewater in the future, with the report independently peer reviewed by AECOM. The report recommended a significant upgrade of the wastewater plant, using parts of the existing infrastructure, and this design has been approved by the Council. Construction of the upgraded plant is scheduled to begin in May 2014 and be completed in December 2014. Earthquake-prone buildings Earthquake-prone buildings are a key challenge facing the Council and private property owners. Wanganui has a large number of potentially earthquake-prone buildings and our district’s buildings of heritage significance are often old unreinforced masonry buildings. A number of the Council’s own buildings are rated as earthquake-prone, including the Sarjeant Gallery which has been assessed as a significant risk to staff, public and the nationally-significant collection in the event of a major earthquake. As Chief Executive, I have obligations for staff safety under the Health and Safety in Employment Act and in early 2014 we will temporarily relocate the Sarjeant Gallery staff, operations and collection to another site until the earthquake issues with the current building are resolved. We are continuing to lobby central government to give pragmatic directions on a way forward. Changes to local government Working together with other local authorities and groups is increasingly important. We are continuing a programme of regional co-operation and collaboration with neighbouring councils, including the Manawatu Wanganui Local Authority Shared Services (MW-LASS) model.


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We are working our way through the implications of the December 2012 amendment to the Local Government Act. The new local government purpose statement is: “To enable democratic local decision-making and action by, and on behalf of communities; and to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.” We have carried out an initial review of our current services and believe that on an activity by activity basis they comply with the new purpose statement. However, we need to do more detailed work on how what we do matches up with the Local Government Act amendments. We await further information and decisions on the next phases of the Better Local Government reforms. There is no doubt in my mind that there will need to be significant changes to the shape and functions of local government in New Zealand into the future. Looking ahead In the coming year, there are some significant challenges for us and some hard decisions to be made. We simply cannot afford to continue to operate our organisation at its current level. We will have to fund both earthquake-prone buildings (estimated $20 million) and the wastewater plant (estimated $25 million +/- 30%) over the next few years but the Council does not have an unlimited capacity to borrow and ratepayers do not have an unlimited capacity to repay debt and interest costs. We are intending to replace the 2014/15 Annual Plan with a 2014-2017 Three-Year Plan. This plan will aim for zero borrowings in 2016/17 and a maximum rate increase of 5% per year. To achieve this, we will need to cut $6.9M from the budget over the three years. This means there will need to be cost savings across our activities and some reductions in service level, particularly in non-core activities. An internal project team has been set up to begin working on sustainable funding and will make recommendations to the new Council following the 2013 triennial election. I would like to thank all staff and elected members for their contributions during the past year and the 2010-2013 triennium.

Kevin Ross Chief Executive


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Statement of compliance and responsibility For the year ended 30 June 2013 Compliance The Council and management of Wanganui District Council confirm that all the statutory requirements in relation to the Annual Report, as outlined in the Local Government Act 2002, have been complied with. Responsibility The Council and management accept responsibility for the preparation of the annual financial statements and non-financial information and the judgements used in them. They also accept responsibility for establishing and maintaining a system of internal controls designed to provide reasonable assurance as to the integrity and reliability of financial reporting. In the opinion of the Council and management, the annual financial statements for the year ended 30 June 2013 fairly reflect the financial position, results of operations and service performance achievements of Wanganui District Council. Signatures

Mayor Annette Main

Chief Executive Kevin Ross


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Statement of comprehensive income For the year ended 30 June 2013

Budget Council Group2013 2013 2012 2013 2012

Note $000 $000 $000 $000 $000IncomeRates (other than a targeted rate for water supply) 1 43,754 44,269 41,346 44,269 41,346Finance income 2 659 397 425 386 490Development and financial contributions 132 240 76 240 76Other revenue: 3Subsidies and grants 9,636 7,806 11,143 7,806 11,143User fees and other income 12,907 12,872 14,457 15,110 16,948Gains 4 959 1,967 (713) 2,437 (601)

Total income 68,047 67,551 66,734 70,248 69,402

ExpenditurePersonnel costs 5 14,098 14,086 13,757 15,317 14,969Depreciation and amortisation expense 6 14,958 14,497 14,948 15,531 15,435Finance costs 2 7,086 6,024 6,096 7,174 7,375Other expenses 7 30,965 32,965 37,417 33,307 38,254

Total operating expenditure 67,107 67,572 72,218 71,329 76,033

Total operating surplus/(deficit) before earthquake impairments 940 (21) (5,484) (1,081) (6,631)

Impairment of earthquake prone buildings 38 - 146 (7,560) 146 (7,560)

Operating surplus/(deficit) 940 125 (13,044) (935) (14,191)

Share of associate surplus/(deficit) - (1) (15) (1) (15)

Surplus/(deficit) before tax 940 124 (13,059) (936) (14,206)

Income tax expense 8 - (63) (28) 105 (267)

Surplus/(deficit) after tax from continuing operations 940 187 (13,031) (1,041) (13,939)

Discontinued operationsProfit after tax from discontinued operations 36 - - - 15,980 2,974

Surplus/ (deficit) after tax 940 187 (13,031) 14,939 (10,965)

Surplus/deficit attributable to:Wanganui District Council 940 187 (13,031) 14,939 (10,965)

Other comprehensive incomeGain/(loss) on property plant & equipment revaluations 2,869 (1,925) 11,742 5,743 11,742Impairment of earthquake prone buildings - - (5,776) - (5,776)Gain/(loss) on carbon credits revaluation - (36) 159 (36) 159Financial assets at fair value through other comprehensive income - (12) 20 (7) 18Tax expense on other comprehensive income - - - (2,147) -

Total other comprehensive income 2,869 (1,973) 6,145 3,553 6,143

Total comprehensive income 3,809 (1,786) (6,886) 18,492 (4,822)

Total comprehensive income attributable to:Wanganui District Council 3,809 (1,786) (6,886) 18,492 (4,822)

3,809 (1,786) (6,886) 18,492 (4,822)

Explanations of major variances against budget are detailed in note 41.

The accompanying notes form part of these financial statements.


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Statement of changes in equity For the year ended 30 June 2013


Note $000 $000 $000 $000 $000

Balance at 1 July 791,654 781,758 788,644 785,516 790,352Adjustment to opening equity - - - - -Adjusted equity at 1 July 791,654 781,758 788,644 785,516 790,352

Total comprehensive income for the year 3,809 (1,786) (6,886) 18,492 (4,822)

Total recognised income and expense 3,809 (1,786) (6,886) 18,492 (4,822)

Attributable to:Wanganui District Council 3,809 (1,786) (6,886) 18,492 (4,822)

Adjustment to equity from CCO's - - - () (14)

Balance at 30 June 25 795,463 779,972 781,758 804,008 785,516




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Statement of financial position As at 30 June 2013


Note $000 $000 $000 $000 $000AssetsCurrent assetsCash and cash equivalents 9 3,694 2,246 7,148 6,225 16,253Debtors and other receivables 10 7,000 6,876 5,662 24,562 10,292Other financial assets 11 - 315 779 315 779Inventories 12 100 91 71 292 277Non-current assets held for sale 13 900 543 823 543 823Taxation - - - 137 136Total current assets 11,694 10,071 14,483 32,074 28,560

Non-current assetsDerivative financial instruments 14 - - - - -Investments in associates 15 - 83 84 83 84Other financial assets 11 14,841 14,664 14,255 2,181 1,816Property, plant and equipment 16 853,171 830,701 836,362 864,298 862,183Intangible assets 17 518 596 611 10,900 11,159Forestry assets 18 4,241 4,280 3,205 4,280 3,205Investment property 19 25,538 23,059 24,406 22,233 23,737Total non-current assets 898,309 873,383 878,923 903,975 902,184

Total assets 910,003 883,454 893,406 936,049 930,744

LiabilitiesCurrent liabilitiesCreditors and other payables 21 8,000 6,422 6,682 12,333 18,264Derivative financial instruments 14 - - - - -Borrowings 22 1,829 21,264 27,188 24,264 28,438Employee entitlements 23 1,800 1,998 1,950 2,164 2,094Provisions 24 - 21 - 21 -Total current liabilities 11,629 29,705 35,820 38,782 48,796

Non-current liabilitiesDerivative financial instruments 14 5,000 6,965 9,991 8,191 11,800Borrowings 22 96,861 65,864 64,815 79,864 81,565Employee entitlements 23 450 396 407 396 407Contracts for Differences (CFDs) - - - - 68Deferred tax liability 8 600 552 615 4,808 2,592Total non-current liabilities 102,911 73,777 75,828 93,259 96,432

Total liabilities 114,540 103,482 111,648 132,041 145,228

Net assets 795,463 779,972 781,758 804,008 785,516

Equity 25Retained earnings 534,483 516,549 516,845 535,087 520,631Restricted reserves 49,325 54,303 53,812 54,303 53,812Revaluation reserves 211,655 208,884 210,817 214,403 210,815Other reserves - 236 284 215 258Total equity attributable to WDC 795,463 779,972 781,758 804,008 785,516

Total equity 795,463 779,972 781,758 804,008 785,516

Investments in CCOs and similar entities 39 15,646 15,650




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Statement of cash flows For the year ended 30 June 2013


Note $000 $000 $000 $000 $000Cash flows from operating activitiesReceipts from rates revenue 43,969 43,917 40,926 43,917 41,432Interest received 659 387 418 384 491Dividends received - - - - -Receipts from other revenue 22,460 19,934 26,151 59,709 69,008Payments to suppliers (30,965) (31,959) (32,178) (72,771) (66,308)Payments to employees (14,098) (14,048) (13,657) (15,296) (16,737)Goods and services tax (net) - (210) (40) 202 16Interest paid (7,086) (6,204) (6,124) (7,332) (7,733)Income tax paid - - - 1 137Net cash from operating activities 26 14,939 11,817 15,496 8,814 20,306

Cash flows from investing activities

Receipts from sale of property, plant and equipment - 840 295 840 381Purchase of property, plant and equipment (17,816) (12,456) (17,427) (13,592) (18,587)Acquisition of investments - (399) (191) (377) (490)Maturity of investments - 448 - 448 -Purchase of intangible assets - (277) (235) (286) (288)Net cash from investing activities (17,816) (11,844) (17,558) (12,967) (18,984)

Cash flows from financing activitiesProceeds from borrowings 4,893 30,900 18,000 30,900 18,000Contributions from owners - - - - -Repayment of borrowings (1,769) (35,775) (14,547) (36,775) (16,065)Net cash from financing activities 3,124 (4,875) 3,453 (5,875) 1,935

Net (decrease)/increase in cash and cash equivalents 247 (4,902) 1,391 (10,028) 3,257Cash and cash equivalents at the beginning of the year 3,447 7,148 5,757 16,253 12,996Cash and cash equivalents at the end of the year 9 3,694 2,246 7,148 6,225 16,253




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Funding Impact Statement for the Whole of Council For the year ended 30 June 2013

LTP Actual Annual plan Actual

2013 2013 2012 2012$000 $000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 23,412 23,707 22,626 22,700Targeted rates (other than a targeted rate for water supply) 20,557 20,562 18,550 18,646Subsidies and grants for operating purposes 3,938 4,055 3,653 3,971Fees, charges, and targeted rates for water supply 10,465 9,944 10,742 9,980Interest and dividends from investments 659 371 620 875Local authorities fuel tax, fines, infringement fees and other receipts 2,089 2,494 2,051 3,092

Total operating funding (A) 61,120 61,133 58,242 59,264

Application of operating fundingPayments to staff and suppliers 45,063 45,270 42,762 44,519Finance costs 7,086 6,024 6,853 6,096Other operating funding applications 0 0 0 0

Total application of operating funding (B) 52,149 51,294 49,615 50,615

Surplus (deficit) of operating funding (A - B) 8,971 9,839 8,627 8,649

Sources of capital fundingSubsidies and grants for capital expenditure 5,698 3,751 4,779 7,173Development and financial contributions 132 240 160 76Increase (decrease) in debt 3,124 (676) 5,588 1,256Gross proceeds from asset sales 0 295 0 121Lump sum contributions 139 185 191 131

Total sources of capital funding (C) 9,093 3,795 10,718 8,757

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0 0-to improve the level of service 6,468 4,009 8,651 4,467-to replace existing assets 11,349 8,989 10,289 13,006Increase (decrease) in reserves 247 636 405 (67)Increase (decrease) of investments 0 0 0 0

Total application of capital funding (D) 18,064 13,634 19,345 17,406

Surplus (deficit) of capital funding (C - D) (8,971) (9,839) (8,627) (8,649)

Funding balance ((A - B) + (C - D)) 0 0 0 0


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Statement of accounting policies For the year ended 30 June 2013

REPORTING ENTITY Wanganui District Council is a territorial local authority governed by the Local Government Act 2002 and is domiciled in New Zealand. The Wanganui District Council group (WDC) consists of the ultimate parent Wanganui District Council and its subsidiaries, Wanganui District Council Holdings Limited (100% owned) which in turn owns 100% of Wanganui Gas Limited (WGL) and its subsidiaries, Wanganui District Councils’ Forestry Joint Committee (95.09%), Wanganui Airport Joint Venture (50%), Cooks Gardens Trust Board and Wanganui Incorporated. Its 49% equity share of New Zealand Masters Games Limited, its 33% interest in the Ruapehu, Wanganui, Rangitikei Economic Development Trust, its 15% interest in the Manawatu Wanganui LASS Limited and its 33% interest in the Whanganui River Enhancement Trust are equity accounted. All WDC subsidiaries and associates are domiciled in New Zealand. The primary objective of WDC is to provide goods or services for the community or social benefit rather than making a financial return. Accordingly, WDC has designated itself and the group as public benefit entities for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). The financial statements of WDC are for the year ended 30 June 2013. The financial statements were authorised for issue by Council on 30 October 2013. BASIS OF PREPARATION Statement of compliance The financial statements of WDC have been prepared in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP). These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities. Measurement base The financial statements have been prepared on a historical cost basis, modified by the revaluation of land and buildings, certain infrastructural assets, investment property, forestry assets, certain intangible assets and certain financial instruments (including derivative instruments). Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of WDC is New Zealand dollars. Changes in accounting policies There have been no changes in accounting policies.


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There have been no revisions to accounting standards during the financial year which have had an effect on Council’s financial statements. Standards, amendments and interpretations issued that are not yet effective and have not been early adopted Standards, amendments and interpretations issued but not yet effective that have not been early adopted, and which are relevant to the Council 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 main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology, and Phase 3 Hedge Accounting. Phase 1 on the classification and measurement of financial assets has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured 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 financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the surplus/deficit. The new standard is required to be adopted for the year ended 30 June 2016. However, as a new Accounting Standards Framework will apply before this date, there is no certainty when an equivalent standard to NZ IFRS 9 will be applied by public benefit entities.

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 classified as a Tier 1 reporting entity and it will be required to apply full Public Benefit 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 financial 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 benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefit entities. Therefore, the XRB has effectively frozen the financial reporting requirements for public benefit entities up until the new Accounting Standard Framework is effective. Accordingly, no disclosure has been made about the new or amended NZ IFRS that exclude public benefit entities from their scope. SIGNIFICANT ACCOUNTING POLICIES Basis of consolidation The purchase method is used to prepare the consolidated financial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line-by-line basis. All significant intragroup balances, transactions, income and expenses are eliminated on consolidation. Subsidiaries WDC consolidates as subsidiaries in the group financial statements all entities where WDC has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the entity. This power exists where WDC controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by WDC or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary.


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Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The consideration transferred in an acquisition of a subsidiary reflects the fair value of the assets transferred by the acquirer and liabilities incurred by the acquirer to the former owner. Any excess of the cost of the business combination over WDC’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised as goodwill. If WDC’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised exceeds the cost of the business combination, the difference will be recognised immediately in the surplus or deficit. Investments in subsidiaries are carried at cost in WDC’s own “parent entity” financial statements. Associates WDC accounts for investments in associates in the group financial statements using the equity method. An associate is an entity over which the WDC has significant influence and that is neither a subsidiary nor an interest in a joint venture of WDC. The investment in an associate is initially recognised at cost and the carrying amount is increased or decreased to recognise WDC’s share of the surplus or deficit of the associate after the date of acquisition. WDC’s share of the surplus or deficit of the associate is recognised in WDC‘s statement of comprehensive income. Distributions received from an associate reduce the carrying amount of the investment. If WDC’s share of deficits of an associate equals or exceeds its interest in the associate, WDC discontinues recognising its share of further deficits. After WDC’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that WDC has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, WDC will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where WDC transacts with an associate, surplus or deficits are eliminated to the extent of WDC’s interest in the relevant associate. Dilution gains or losses arising from investments in associates are recognised in the surplus or deficit. Investments in associates are carried at cost in WDC’s own “parent entity” financial statements. Joint ventures A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. For jointly controlled assets, WDC recognises in its financial statements its share of jointly controlled assets, the liabilities and expenses it incurs, its share of liabilities and expenses incurred jointly, and income from the sale or use of its share of the output of the joint venture. Revenue Revenue is measured at the fair value of consideration received or receivable. Rates revenue Rates are set annually by a resolution from Council and relate to a financial year. All ratepayers are invoiced within the financial year to which the rates have been set. Rates revenue is recognised when payable. Revenue from water rates by meter is recognised on an accrual basis. Unbilled usage, as a result of unread meters at year-end, is accrued on an average usage basis.


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Gas Revenue is derived from gas network distribution services and the sale of energy. Such revenue is recognised when earned and is reported in the financial period to which it relates. Energy sales include an accrual for energy supplied but not billed at the end of the financial period. Government grants WDC receives government grants from Land Transport New Zealand, which subsidises part of WDC’s costs in maintaining the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled. Provision of services Revenue from the rendering of services is recognised by 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. Vested assets Where a physical asset is acquired for nil or nominal consideration, the fair value of the asset received is recognised as income. Assets vested in WDC are recognised as income when control over the asset is obtained. Sale of goods Revenue from sales of goods is recognised when a product is sold to the customer. Traffic and parking infringements Traffic and parking infringements are recognised when tickets are issued. Interest and dividends Interest income is recognised using the effective interest method. Interest income on an impaired financial asset is recognised using the original effective interest rate. Dividends are recognised when the right to receive payment has been established. Development contributions Development and financial contributions are recognised as revenue when the council provides, or is able to provide, the service for which the contribution was charged. Otherwise development and financial contributions are recognised as liabilities until such time the Council provides or is able to provide, the service. Borrowing costs WDC has elected to defer the adoption of NZ IAS 23 Borrowing Costs (Revised 2007) in accordance with its transitional provisions that are applicable to public benefit entities. Consequently, all borrowing costs are recognised as an expense in the period in which they are incurred. Grant expenditure Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received.


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Discretionary grants are those grants where WDC has no obligation to award on receipt of the grant application and are recognised as expenditure when a successful applicant has been notified of the WDC’s decision. Income Tax Income tax expense is the aggregate of current period movements in relation to both current and deferred tax. Current tax is the amount of income tax payable based on the taxable surplus for the current year, plus any adjustments to income tax payable in respect to prior years. Current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted at 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 financial statements and the corresponding tax bases used in the computation of taxable surplus. Deferred tax is measured at the tax rates that are expected to apply when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at balance date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities. 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 surpluses 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 surplus nor taxable surplus. Deferred tax is recognised on taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the company can control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Current and deferred tax is recognised against the surplus or deficit for the period, except to the extent that it relates to a business combination, or to transactions recognised in other comprehensive income or directly in equity. Leases Finance leases A finance 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, WDC recognises finance 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 finance charge is charged to the surplus or deficit over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability.


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The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether WDC will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life. Operating leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. Debtors and other receivables Short-term debtors and other receivables are recorded at their face value, less any provision for impairment. Impairment of a receivable is established when there is objective evidence that the Council will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership or liquidation, and default in payments are considered indicators that the debt is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the surplus or deficit. When the receivable is uncollectible, it is written off against the allowance account for receivables. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Derivative financial instruments WDC uses derivative financial instruments to hedge exposure to interest rate risks arising from financing activities. In accordance with its treasury policy, WDC does not hold or issue derivative financial instruments for trading purposes. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at each balance date. The associated gains or losses of derivatives that are not hedge accounted are recognised in the surplus or deficit. Electricity Contracts for Differences (CFDs) CFDS are not traded on an active market so the fair values of CFDs are based on the discounted values of future cash flows with assumptions based on publically available forecasted prices and models maintained by an external consultant. Changes in the fair values of CFDs are recognised in the Statement of Comprehensive Income within the Operating Profit. Other financial assets Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit.


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Purchases and sales of financial assets are recognised on trade-date, the date on which WDC commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the WDC has transferred substantially all the risks and rewards of ownership. WDC classifies its financial assets into the following categories:

fair value through surplus or deficit; loans and receivables; held-to-maturity investments; and fair value through other comprehensive income. The classification of a financial asset depends on the purpose for which the instrument was acquired. Management determines the classification of its investments at initial recognition. Financial assets at fair value through surplus or deficit Financial assets at fair value through surplus or deficit include financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term. Derivatives are also categorised as held for trading unless they are designated as hedges. WDC’s financial assets at fair value through surplus or deficit include derivatives that are not designated as hedges. Financial assets acquired principally for the purpose of selling in the short-term are classified as a current asset. After initial recognition they are measured at their fair values with gains or losses on remeasurement are recognised in the surplus or deficit. Loans and receivables These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. WDC’s loans and receivables comprise cash and cash equivalents, debtors and other receivables, term deposits, community and related party loans, long term receivables and hire purchase long term debtors. After initial recognition they are measured at amortised cost using the effective interest method less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit. Loans to community organisations made by WDC at nil, or below-market interest rates are initially recognised at the present value of their expected future cash flows, discounted at the current market rate of return for a similar financial instrument. The loans are subsequently measured at amortised cost using the effective interest method. The difference between the face value and present value of expected future cash flows of the loan is recognised in the surplus or deficit as a grant. Held to maturity investments Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that WDC has the positive intention and ability to hold to maturity. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. WDC’s held to maturity investments include interest bearing bonds and deposits and sinking funds.


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After initial recognition they are measured at amortised cost using the effective interest method less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit. Fair value through other comprehensive income Financial assets at fair value through other comprehensive income are those that are designated into the category at initial recognition or are not in any of the other categories above. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance date or it the debt instrument is not expected to be realised within 12 months of balance date. WDC’s financial assets at fair value through equity comprise investments in quoted and unquoted shares. WDC includes in this category:

investments that it intends to hold long-term but which may be realised before maturity; and shareholdings that it holds for strategic purposes.

WDC’s investments in its subsidiary and associate companies are not included in this category as they are held at cost (as allowed by NZ IAS 27 Consolidated and Separate Financial Statements and NZ IAS 28 Investments in Associates) whereas this category is to be measured at fair value. After initial recognition these investments are measured at their fair value, with gains and losses recognised in other comprehensive income, except for impairment losses, which are recognised in the surplus or deficit. On derecognition the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the surplus or deficit. Fair value The fair value of financial instruments traded in active markets is based on quoted market prices at the balance date. The quoted market price used is the current bid price. Impairment of financial assets At each balance date WDC assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the surplus or deficit. Loans and receivables, and held-to-maturity investments Impairment of a loan or a receivable is established when there is objective evidence that WDC will not be able to collect amounts due according to the original terms. Significant financial difficulties of the debtor/issuer, probability that the debtor/issuer will enter into bankruptcy, and default in payments are considered indicators that the asset is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. For debtors and other receivables, the carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the surplus or deficit. When the receivable is uncollectible, it is written off against the allowance account. Overdue receivables that have been renegotiated are reclassified as current (i.e. not past due). For term deposits, local authority stock, government stock and community loans, impairment losses are recognised directly against the instruments carrying amount. Impairment of term deposits, local authority, government stock, and related party and community loans is established when there is objective evidence that the WDC will not be able to collect amounts due to the original terms of the instrument. Significant financial difficulties of the issuer, probability the issuer will enter into bankruptcy, and default in payments are considered indicators that the instrument is impaired.


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Quoted and unquoted equity investments For equity investments classified as fair value through other comprehensive income, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. If such evidence exists for investments at fair value through other comprehensive income, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive income is reclassified from equity to the surplus or deficit. Impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit. If in a subsequent period the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit. Inventories Inventories (such as spare parts and other items) 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, adjusted when applicable, for any loss of service potential. Where inventories are acquired at no cost or for nominal consideration, the cost is the current replacement cost at the date of acquisition. WGL inventories (comprising network and retail) are valued at the lower of cost or net realisable value after making provision for damaged or obsolete items. Cost is determined by the weighted average method of valuation. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down. Non-current assets held for sale Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets held for sale are recorded at lower of their carrying amount and fair value less costs to sell. Any impairment losses for write-downs of non-current assets held for sale are recognised in the surplus or deficit. Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Property, plant and equipment Property, plant and equipment consists of: Operational assets – these include land, buildings, motor vehicles, plant and equipment and library books. Restricted assets – these include artworks, cultural assets and parks and reserves. These assets provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions. Infrastructure assets – these include the fixed utility systems comprising the roading, airport runway, water reticulation and drainage systems, and infrastructure land (including land under roads). Each asset type includes all items that are required for the network to function.


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The gas distribution network and gas measurement systems are valued at optimised depreciated replacement cost, adjusted by additions (at cost), disposals and depreciation. Revaluations are carried out every three years and are independently reviewed. Property, plant and equipment is shown at cost or valuation, less accumulated depreciation and impairment losses. Revaluation Land, buildings (operational and restricted) and infrastructural assets (except land under roads) are revalued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value and at least every three years. All other asset classes are carried at depreciated historical cost. WDC assesses the carrying values of its revalued assets annually to ensure that they do not differ materially from the assets’ fair values. If there is a material difference, then the off-cycle asset classes are revalued. WDC accounts for revaluations of property, plant and equipment on a class of asset basis. The net revaluation results are credited or debited to other comprehensive income and are accumulated to an asset revaluation reserve in equity for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive income but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income. Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to WDC and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated. 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. Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds. Depreciation Depreciation is provided on a straight-line basis on all property, plant and equipment other than land and art works, 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:


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Asset type Useful life Depreciation rate Land (including Restricted properties) Not a Depreciable item Buildings and leasehold improvements (including Restricted properties)

5 to 50 years 2-20%

Plant, vehicles and equipment 3 to 20 years 5-33% Furniture & Fittings 5 to 10 10-20% Library books 10 years 10% Art Works Not a Depreciable item Infrastructural assets Roading network 50 to 100 years 1% - 2% Wastewater system 20 to120 years 1.2% - 5% Water system 9 to 100 years 1% - 11.1% Gas distribution network mains and services 7 to 100 years 1% - 15% Gas distribution network condition renewals 50 years 2% Gas measurement systems and distribution network customer stations

10 to 100 years

1% - 10%

Airport runway 50 years 2% The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end. Intangible assets Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of WDC’s share of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary/associate at the date of acquisition. Goodwill on acquisition of subsidiaries is included in “intangible assets”. Goodwill on acquisition of associates is included in “investments in associates” and is tested for impairment as part of the overall balance. Separately recognised goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed. Goodwill is allocated to cash generating units for the purposes of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination, in which the goodwill arose. Carbon credits Carbon credits are initially recognised at cost. After initial recognition, all carbon credits are measured, annually, at fair value. The net revaluation result is credited or debited to other comprehensive income and is accumulated to fair value through general reserve. Where this results in a debit balance in the reserve, this balance is not recognised in other comprehensive income but is recognised in the surplus or deficit. Any subsequent increase in revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income.


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Software acquisition and development Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs that are directly associated with the development of software for internal use by WDC, are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised in the surplus or deficit when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Customer list WGL has capitalised the cost of the acquisition of the gas and electricity customers gained during the financial year. These are valued at cost. Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Asset type Useful life Amortisation rate Computer software 3-10 years 10%-33% Customer list 5 years 20% Impairment of property, plant and equipment and intangible assets Intangible assets that have an indefinite useful life, or not yet available for use, are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When there is an indicator of impairment the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds it recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is depreciated, replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits or service potential. The value in use for cash-generating assets and cash generating units is the present value of expected future cash flows. 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 for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.


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The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously recognised in surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit. For assets not carried at a revalued amount (other than goodwill) the reversal of an impairment loss is recognised in the surplus or deficit. Forestry assets Standing forestry assets are independently revalued annually at fair value less estimated costs to sell for one growth cycle. Fair value is determined based on the present value of expected net cash flows discounted at a current market determined pre-tax rate. This calculation is based on existing sustainable felling plans and assessments regarding growth, timber prices, felling costs, and silvicultural costs and takes into consideration environmental, operational and market restrictions. Gains or losses arising on initial recognition of biological assets at fair value less estimated costs to sell and from a change in fair value less estimated costs to sell are recognised in the surplus or deficit. The costs to maintain forestry assets are included in the surplus or deficit when incurred. Investment property Properties leased to third parties under operating leases are classified 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 its cost, including transaction costs. After initial recognition, WDC measures all investment property at fair value as determined annually by an independent valuer. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit. Creditors and other payables Short-term creditors and other payables are recorded at their face value. Borrowings Borrowings are initially recognised at their fair value net of transaction costs incurred. After initial recognition, all borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless WDC has an unconditional right to defer settlement of the liability for at least 12 months after the balance date or if the borrowings are expected to be settled within 12 months of balance date. Employee entitlements Short-term employee entitlements Employee benefits that WDC expects to be settled within 12 months of balance date are measured at nominal 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.


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WDC recognises a liability for sick leave to the extent that compensated 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 WDC anticipates it will be used by staff to cover those future absences. WDC recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation. Long-term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of the period in which the employee renders the related service, 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, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and

the present value of the estimated future cash flows. Presentation of employee entitlements Sick leave, annual leave, vested long service leave, and non-vested long service leave and retirement gratuities expected to be settled within 12 months of balance date, are classified as a current liability. All other employee entitlements are classified as a non-current liability. Superannuation schemes Defined contribution schemes Obligations for contributions to defined contribution superannuation schemes are recognised as an expense in the surplus or deficit as incurred. Equity Equity is the community’s interest in WDC and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are: retained earnings restricted reserves asset revaluation reserves general reserves

Restricted reserves Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by WDC. Restricted reserves are those subject to specific conditions accepted as binding by WDC and which may not be revised by WDC without reference to the Courts or a third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met. Also included in restricted reserves are reserves restricted by Council decision. The Council may alter them without references to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council. WDC’s objectives, policies and processes for managing capital are described in note 39.


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Goods and Service Tax (GST) All items in the financial 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 receivables 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 financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. Budget figures The budget figures are those approved by the Council in its 2012-2022 Ten Year Plan. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted by WDC for the preparation of the financial statements. Cost allocation WDC has derived the cost of service for each significant activity of WDC using the cost allocation system outlined below. Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs which cannot be identified in an economically feasible manner with a specific significant activity. Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such operating expenditure net of NZTA subsidies. Critical accounting estimates and assumptions In preparing these financial statements WDC has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions 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 have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: WDC infrastructural assets There are a number of assumptions and estimates used when performing DRC valuations over infrastructural assets. These include:

the physical deterioration and condition of an asset, for example the Council could be carrying an asset at an amount that does not reflect its actual condition. This is particularly so for those assets which are not visible, for example stormwater, wastewater and water supply pipes that are underground. This 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; estimates are made when determining the remaining useful lives over which the asset will be

depreciated. These estimates can be impacted by the local conditions, for example weather patterns and traffic growth. If useful lives do not reflect the actual consumption of the benefits of the asset, then WDC could be over or under estimating the annual depreciation charge recognised as an expense in the surplus or deficit. To minimise this risk, WDC’s infrastructural asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group, and have been adjusted


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for local conditions based on past experience. Asset inspections, deterioration and condition modelling are also carried out regularly as part of the WDC’s asset management planning activities, which gives WDC further assurance over its useful life estimates.

Experienced independent valuers perform or review the Council’s infrastructural asset revaluations. WGL infrastructural assets At each balance date WGL reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires WGL to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by WGL, and expected disposal proceeds from the sale of the asset. An incorrect estimate of the useful life or residual value will impact on the depreciable amount of an asset, therefore impacting on the depreciation expense recognised in the surplus or deficit, and carrying amount of the asset in the statement of financial position. WGL minimises the risk of this estimation uncertainty to its infrastructure assets by:

an annual review by an independent contractor of the value of the infrastructure assets to determine if any material changes exist.

physical inspection of assets asset replacement programs review of second hand market prices for similar assets analysis of prior assets sales; and completing a revaluation of the infrastructure assets every third year

WGL has not made significant changes to past assumptions concerning useful lives and residual values. WGL’s customer acquisition programme has incurred unprecedented costs during the year relating to the marketing and switching activities. Accordingly WGL has chosen to value these customers as an intangible asset at the cost of acquisition less amortisation at the rate of 20% per annum. An incorrect estimate of the residual value will impact on the amortisable amount of an intangible asset impacting on the amortisation expense recognised in the surplus or deficit and the carrying amount of the intangible asset in the statement of financial position. WGL minimises the risk of this estimation uncertainty to its intangible assets by:

an annual review of the value of the intangible assets to determine if any material changes exist. a review of any prices for trades of similar intangible assets. an annual review of the appropriateness of the amortisation rate. analysis of prior intangible asset sales.

Impairment of earthquake prone buildings WDC has assessed a number of its buildings as being earthquake prone. These buildings fall within the categories of Property, Plant & Equipment and Investment Properties. WDC has assessed the likely cost of bringing these buildings to within 67% - 100% of the building code. These remedial costs have formed the basis of the impairment, which has been reflected through both other comprehensive income and surplus and deficit (note 37). WDC has minimised the risk of this estimation uncertainty through the use of independent consultants. Critical judgements in applying WDC’s accounting policies Management has exercised the following critical judgements in applying the WDC’s accounting policies for the period ended 30 June 2013:


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Classification of property WDC owns a number of properties, which are maintained primarily to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding these properties. These properties are held for service delivery objectives as part of the Council’s social housing policy. These properties are accounted for as property, plant and equipment. Critical judgements in impairment of shares in subsidiary Management reviews its share investment in its subsidiary and has made estimates and assumptions concerning the future. These estimates and assumptions include revenue growth, future cash flows and future economic and market conditions. These estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. WDC minimises the risk of this estimation uncertainty by annually reviewing the value of its share investment.


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Notes to the financial statements For the year ended 30 June 2013

1. Rates (other than a targeted rate for water supply) Council Group2013 2012 2013 2012$000 $000 $000 $000

CBD rate 513 507 513 507General rate 10,173 9,822 10,173 9,822Roading and footpath rates 6,132 5,636 6,132 5,636Community facilities rate 13,674 13,036 13,674 13,036Stormwater rate 3,852 3,699 3,852 3,699Wastewater rate 3,537 3,305 3,537 3,305Water charge 4,495 4,300 4,495 4,300Fire capacity rate 1,125 1,041 1,125 1,041Debt retirement rate 556 - 556 -Earthquake strengthening rate 212 - 212 -

Total rates (other than a targeted rate for water supply) 44,269 41,346 44,269 41,346

Total rates revenue includes $1.2M (2012 $1.1M) for rates paid by WDC on properties owned by Council

WDC is required by the LGFA Guarantee and Indemnity Deed to disclose in its financial statements (or notes) its annual rates income.That Deed defines annual rates income as an amount equal to the total revenue from any funding mechanism authorised by the LocalGovernment (Rating) Act 2002 together with any revenue received by the Council from other local authorities for services providedby the Council for which those other local authorities rate. The annual rates income of WDC for the purposes of the LGFA Guarantee and Indemnity Deed disclosure is shown below:

Council2013 2012$000 $000

Total rates (other than a targeted rate for water supply) 44,269 41,346Tradewaste fees 1,483 1,450Water supply charges 1,631 1,576

Total annual rates income 47,383 44,372

Rates remissionsRates revenue is shown net of rates remissions and includes penalties. WDC's rates remission and postponement policies allows WDC to remit rates on conditions of a ratepayer's extreme financial hardship, and only for those ratepayers of residential properties. The Council considers all applications on a case by case basis. There were no rates remissions in the 2013 financialyear (2012 nil).

Non-rateable landUnder the Local Government (Rating) Act 2002 certain properties cannot be rated for general rates. These properties includeschools, places of religious worship, public gardens and reserves. These non-rateable properties may be subject to targeted ratesin respect of sewerage, water, refuse and sanitation. Non-rateable land does not constitute a remission under WDC's ratesremission policy.


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2. Finance income and finance costs Council Group2013 2012 2013 2012$000 $000 $000 $000

Finance incomeInterest income: - money market and term deposits 112 180 280 421 - related party loans 206 207 - - - community loans 37 2 37 2 - other 42 36 68 67Dividend income - - 1 ()Total finance income 397 425 386 490

Finance costsInterest expense: - interest on bank borrowings 6,006 6,109 7,156 7,388 - interest on finance leases 38 34 38 34 - discount on long term receivable (20) (47) (20) (47)Total finance costs 6,024 6,096 7,174 7,375

Net finance costs 5,627 5,671 6,788 6,885

3. Other revenue Council Group2013 2012 2013 2012$000 $000 $000 $000

Tradewaste fees 1,483 1,450 1,483 1,450Water supply charges 1,631 1,576 1,631 1,576Other user charges 3,935 3,979 3,934 3,979New Zealand Transport Agency subsidies 6,930 10,334 6,930 10,334Regulatory revenue 1,591 1,511 1,591 1,511Rental from investment properties 1,748 1,798 1,748 1,798Infringements and fines 601 471 601 471Rendering of services 578 550 578 550Petrol tax 292 286 292 286Vested assets - - - -Lotteries Grant - Krupp Gun - 17 - 17Other government grants 876 792 876 792Forestry revenue 248 1,229 248 1,229Other (includes trading income from Wanganui Gas Limited) 765 1,607 3,004 4,098

Total other revenue 20,678 25,600 22,916 28,091

There are no unfulfilled conditions and other contingencies attached to New Zealand Transport Agency subsidies or any government grant recognised (2012 nil).


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4. Gains Council Group2013 2012 2013 2012$000 $000 $000 $000

Non-financial instrumentsInvestment property revaluation gains/(losses) (note 19) 200 (713) 88 (601)Gain/(loss) arising from physical change of forestry assets 512 - 512 -Gain/(loss) arising from change in fair value of forest assets 772 - 772 -Decreases due to harvest of forest assets (209) - (209) -Change in fair value of property, plant and equipment (2,334) - (2,335) -Total non-financial instruments gains (1,059) (713) (1,172) (601)

Financial instrumentsGains from derivative financial instruments 3,026 - 3,609 -Total financial instruments gains 3,026 - 3,609 -

Total gains 1,967 (713) 2,437 (601)

5. Personnel costs Council Group2013 2012 2013 2012$000 $000 $000 $000

Salaries and wages 14,054 13,732 15,417 15,018Employer contributions to superannuation - - - 47Increase/(decrease) in employee entitlements/liabilities 32 25 (100) (96)

Total personnel costs 14,086 13,757 15,317 14,969

6. Depreciation and amortisation expense by group of activity Council2013 2012$000 $000

Water supply 1,927 1,872Storm water 1,534 1,522Flood protection and control 102 102Wastewater 3,354 3,309Roads, footpaths and pathways 4,789 5,110Parks and recreation 779 850Community and cultural 693 827Economic development 21 38Community facilities and services 348 332Transportation 72 76Investments 30 29Corporate 848 881

Total depreciation and amortisation expense 14,497 14,948


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7. Other expenses Council Group2013 2012 2013 2012$000 $000 $000 $000

Fees to auditors: - fees to Audit New Zealand for financial statement audit 156 153 268 260 - fees to Audit New Zealand for 10-Year Plan audit - 90 - 90 - fees to Audit New Zealand for audit related fees for disclosure regulations - - 17 17 - fees to Audit New Zealand for joint venture financial statement audit 7 - 7 - - other audit fees 47 24 47 24Donations 1 2 1 2General grants 782 785 782 785Contractors 12,566 11,928 12,575 12,003Maintenance 2,518 1,815 2,527 1,820Electricity 2,123 2,289 2,123 2,289Planned maintenance 941 845 941 845Insurance premiums 867 896 867 896Directors' fees - - 140 214Consultants and legal fees 1,770 2,783 1,792 2,877Rates Expense 1,280 1,195 1,280 1,195(Gain)/loss arising from physical change of forestry assets - (561) - (561)(Gain)/loss arising from change in fair value of forest assets - 447 - 447Decreases due to harvest of forest assets - 1,150 - 1,150Employer contributions to defined contribution plans 381 348 405 348Property, plant and equipment losses on disposal 1,343 502 1,343 498Losses from derivative financial instruments - 4,380 (583) 5,095Impairment of receivables (note 10) 316 477 316 667Minimum lease payments under operating leases 116 75 195 265Forestry expenditure 438 738 438 738Other operating expenses 7,313 7,056 7,826 6,290

Total other expenses 32,965 37,417 33,307 38,254


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8. TaxCouncil Group

2013 2012 2013 2012$000 $000 $000 $000

Components of tax expenseCurrent tax expense - - - -Deferred tax expense (63) (28) 70 282Income tax expense (63) (28) 70 282

Relationship between tax expense and accounting profitSurplus/(deficit) from continuing operations 124 (13,059) (936) (14,206)Surplus/(deficit) from discontinued operations - - 15,945 3,523Surplus/(deficit) before tax 124 (13,059) 15,009 (10,683)Tax at 28% 35 (3,656) 4,202 (2,991)Non-deductible expenditure (158) 3,562 (4,185) 3,249Loss not recognised 58 67 - 67Prior year adjustment to deferred tax 2 (1) 20 (43)Deferred tax adjustment - - 33 -

Total tax expense (63) (28) 70 282

Tax expense on continuing operations (63) (28) 105 (267)Tax expense on discontinued operations - - (35) 549Total tax expense (63) (28) 70 282

CouncilA deferred tax asset has not been recognised in relation to tax losses of $5,800,000 (2012 $5,400,000). Tax losses have been recognised at group level.

Deferred tax liability Property,plant and Financial Employee

equipment instruments Tax losses entitlements TotalCouncil $000 $000 $000 $000 $000Balance 1 July 2011 1,223 - (574) (6) 643Charged to profit and loss (8) - (19) (1) (28)Charged to equity - - - - -Balance 30 June 2012 1,215 - (593) (7) 615Charged to profit and loss (32) - (28) (3) (63)Charged to equity - - - - -Balance 30 June 2013 1,183 - (621) (10) 552

GroupBalance 1 July 2011 6,197 (366) (3,390) (131) 2,310Charge/(credit) to income (110) (205) 598 (1) 282Charge/(credit) to equity - - - -Balance 30 June 2012 6,087 (571) (2,792) (132) 2,592Charged to profit and loss (86) 172 (14) (3) 69Charged to equity 2,147 - - 2,147Balance 30 June 2013 8,148 (399) (2,806) (135) 4,808

9. Cash and cash equivalents Council Group2013 2012 2013 2012$000 $000 $000 $000

Cash at bank and on hand 2,246 7,148 6,225 16,253Term deposits with maturities less than 3 months - - - -

Total cash and cash equivalents 2,246 7,148 6,225 16,253

The carrying value of cash at bank and term deposits with maturities less than three months approximate their fair value.

The total value of cash and cash equivalents that can only be used for a specific purpose as outlined in the relevant trust deeds is $nil (2012 $nil).


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10. Debtors and other receivables Council Group2013 2012 2013 2012$000 $000 $000 $000

Rates receivables 3,669 3,274 3,669 3,274Other receivables: - related party receivables (note 29) 62 143 - - - New Zealand Transport Agency subsidies 212 573 212 573 - interest receivable 6 6 6 6 - other 4,841 3,265 22,747 8,159Gross debtors and other receivables 8,790 7,261 26,634 12,012

Less provision for impairment (1,914) (1,599) (2,072) (1,720)

Total debtors and other receivables 6,876 5,662 24,562 10,292

Fair valueDebtors and other receivables are non-interest bearing and receipt is normally on 30-day terms, therefore the carrying value ofdebtors and other receivables approximate their fair value.

ImpairmentWDC does not provide for any impairment on rates receivable (except Maori land) 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 repayment plans are in place, debts are discounted to their present value of future payments if theimpact of discounting is material.

These powers allow WDC to commence legal proceedings to recover any rates that remain unpaid 4 months after the due datefor payment. If payment has not been made within 3 months of the Court's judgement, then WDC can apply to the Registrarof the High Court to have the judgement enforced by sale or lease of the rating unit.

The status of receivables as at 30 June 2013 and 2012 are detailed below:

2013Gross Impairment Net

$000 $000 $000CouncilNot past due 4,336 - 4,336Past due 1-60 days 199 - 199Past due 61-120 days 63 - 63Past due > 120 days 4,192 (1,914) 2,278Total 8,790 (1,914) 6,876


$000 $000 $000CouncilNot past due 2,863 - 2,863Past due 1-60 days 441 - 441Past due 61-120 days 138 (1) 137Past due > 120 days 3,819 (1,598) 2,221Total 7,261 (1,599) 5,662


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$000 $000 $000GroupNot past due 21,810 - 21,810Past due 1-60 days 322 - 322Past due 61-120 days 293 (155) 138Past due > 120 days 4,209 (1,917) 2,292Total 26,634 (2,072) 24,562


$000 $000 $000GroupNot past due 7,233 - 7,233Past due 1-60 days 557 - 557Past due 61-120 days 380 (117) 263Past due > 120 days 3,842 (1,603) 2,239Total 12,012 (1,720) 10,292

All receivables greater than 30 days in age are considered to be past due.

The impairment provision has been calculated based on expected losses for WDC's pool of debtors. Expected losses have been determined based on an analysis of WDC's losses in previous periods, and review of specific debtors as detailed below:

Council Group2013 2012 2013 2012$000 $000 $000 $000

Individual impairment 45 130 202 248Collective impairment 1,869 1,469 1,870 1,472Total provision for impairment 1,914 1,599 2,072 1,720

Individually impaired receivables have been determined to be impaired because of the significant financial difficulties being experienced by the debtor. An analysis of these individually impaired debtors are as follows:

Council Group2013 2012 2013 2012$000 $000 $000 $000

Not past due - - - -Past due 1-60 days - - - -Past due 61-120 days - 1 156 117Past due > 120 days 45 129 46 131Total individual impairment 45 130 202 248

Movements in the provision for impairment of receivables are as follows:Council Group

2013 2012 2013 2012$000 $000 $000 $000

At 1 July 1,599 1,339 1,720 1,454Additional provisions made during the year 396 381 622 487Provisions reversed during the year (80) (35) (81) (34)Receivables written-off during period (1) (86) (189) (187)At 30 June 1,914 1,599 2,072 1,720

WDC holds no collateral as security or other credit enhancements over receivables that are either past due or impaired.


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11. Other financial assets Council Group2013 2012 2013 2012$000 $000 $000 $000

Current portionSinking funds 66 65 66 65Loans to related parties (note 29) 7 10 7 10Long term receivables 242 704 242 704Total current portion 315 779 315 779

Non-current portionCommunity loans 35 35 35 35Long term receivables 234 220 234 220Loans to related parties (note 29) 2,750 2,750 - -Hire purchase long term debtors - - - 3Government Indexed Bonds 738 733 738 733NZ Local Government Funding Agency borrower notes 308 - 308 -Unlisted shares in NZ Local Government Insurance Corporation Limited 341 355 341 355Unlisted shares in NZ Local Government Funding Agency Limited 96 - 96 -Sarjeant Gallery NJ Young Fund with ABN Amro - - 429 448Listed shares in Vector Limited - - - 14Listed shares in NZ Windfarm Limited - - - 8Shares in subsidiary (at cost - WDCHL) 10,162 10,162 - -Total non-current portion 14,664 14,255 2,181 1,816

Total other financial assets 14,979 15,034 2,496 2,595

Fair value

Term DepositsThe carrying amounts of term deposits approximates their fair value of $nil (2012 $nil).

Government stockThe fair value of government stock is its carrying value.

Community loansThe fair value of community loans is their carrying value of $35,000 (2012 $35,000). The terms of the loans may be discretionary as a result of a Council decision.

Loans to related partiesThe fair value and carrying amount of loans to related parties is $6,960 (2012 $10,000).

Unlisted sharesThe unlisted shares in NZ Local Government Insurance Corporation Limited are valued using the net assets of the company. Council considers this to be fair value at 30 June 2013.

Due to the immaterial size and nature of the Council’s investment in the NZ Local Government Funding Authority Limited ("LGFA"),WDC has estimated the fair value of this investment based on the LGFA’s net asset backing as at 30 June.

Quoted sharesThe fair values of listed shares are determined by reference to published current bid price quotation in an active market.

Sinking fundsSinking funds are put aside for the repayment of loans and are held by the Wanganui District Council Sinking Fund Commissioners. Sinking fund investments are restricted in use to the repayment of associated borrowings.

The Sarjeant Gallery NJ Young Fund with ABN Amro is valued at market value. Council considers this to be fair value at 30 June 2013.

ImpairmentThere were no impairment provisions for other financial assets. None of the financial assets are either past due or impaired.


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12. Inventories Council Group2013 2012 2013 2012$000 $000 $000 $000

Held for distribution/Commercial inventoriesInventory 91 71 91 71Network - - 201 198Appliances - - - 8

Total inventories 91 71 292 277

Network Inventories are pledged as security for liabilities - $201,497 (2012 $198,580). There has been no write-down of commercial inventories to net realisable value (2012 $nil).

13. Non-current assets held for sale

Non-current assets held for sale at 30 June are: 3 Kotuku Street, 1 Indus Street, 152 Somme Parade & 16 Windsor Terrace.

Council Group2013 2012 2013 2012$000 $000 $000 $000

Land 497 792 497 792Buildings 46 31 46 31

Total non-current assets held for sale 543 823 543 823

14. Derivative financial instrumentsCouncil Group

2013 2012 2013 2012$000 $000 $000 $000

Current asset portionInterest rate swaps - fair value hedges - - - -

- - - -

Non-current asset portionInterest rate swaps - fair value hedges - - - -

- - - -Total derivative financial instrument assets - - - -

Current liability portionInterest rate swaps - fair value hedges - - - -

- - - -

Non-current liability portionInterest rate swaps - fair value hedges 6,965 9,991 8,191 11,800

6,965 9,991 8,191 11,800Total derivative financial instrument liabilities 6,965 9,991 8,191 11,800

Fair valueThe fair values of interest rate swaps have been determined using a discounted cash flows valuation technique based on quoted market prices.

Interest rate swapsThe notional principal amounts of the outstanding interest rate swap contracts for WDC were $67,000,000 (2012 $67,000,000) and for the WDC group were $82,500,000 (2012 $82,500,000).


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Notes to the financial statements For the year ended 30 June 2013 15. Investments in associates

2013 2013 2013 2013$000 $000 $000 $000

Ruapehu, Wanganui, Rangitikei Economic Development Trust (RED Trust) (4) (3) (4) (3)Whanganui River Enhancement Charitable Trust (WRET) 75 70 75 70New Zealand Masters Games Limited (NZMGL) 6 16 6 16Manawatu Wanganui Local Advisory Shared Services (MW LASS) 6 1 6 1

Total investments in associates 83 84 83 84

Summarised financial information of associate entitiesRED Trust2013 2012$000 $000

Assets 1 3Liabilities 13 12Revenues - 65Surplus/(deficit) (3) (1)Group's interest 33% 33%

WRET2013 2012$000 $000

Assets 413 383Liabilities 187 174Revenues 139 139Surplus/(deficit) 5 (41)Group's interest 33% 33%

NZMGL2013 2012$000 $000

Assets 87 36Liabilities (74) 2Revenues 16 19Surplus/(deficit) (16) (18)Group's interest 49% 49%

MW LASS2013 2012$000 $000

Assets 271 255Liabilities 226 246Revenues 549 384Surplus/(deficit) 36 1Group's interest 14% 14%

All associates are not listed companies and, accordingly, there are no published price quotations to determine the fair value of the investments.

Wanganui-Manawatu LASS Limited This company was set up in 2008 by seven Local Councils to investigate the possibilities of economies of scale by joint procurement.

Council Group


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16. Property, plant and equipment

Movements for each class of property, plant and equipment are as follows:

Cost/ revaluation

Accumulated depreciation

and impairment

chargesCarrying amount

Current year additions

Current year disposals


eliminated on disposals /

revaluationsCurrent year depreciation

Current year Impairment

charges TransfersRevaluation

surplusCost/

revaluation


and impairment


Council 2013 1/7/2012 1/7/2012 1/7/2012 30/6/2013 30/6/2013 30/6/2013$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operational assetsLand 54,483 - 54,483 - (48) - - - 1,803 3,024 59,262 - 59,262Buildings 63,824 (14,125) 49,699 962 (1,684) 14,060 (1,013) 56 39 (14,959) 48,182 (1,022) 47,160Plant, equipment and motor vehicles 10,406 (8,398) 2,008 965 (444) 432 (851) - - - 10,927 (8,817) 2,110Leased equipment 1,160 (702) 458 18 - (201) - - - 1,178 (903) 275Furniture and fittings 2,875 (1,998) 877 66 (7) 7 (112) - - - 2,934 (2,103) 831Library books 3,904 (2,329) 1,575 320 - - (298) - - - 4,224 (2,627) 1,597Artworks 28,957 - 28,957 28 - - - - - (6,899) 22,086 - 22,086Capital work in progress 214 - 214 103 - - - - (200) - 117 - 117Total operational assets 165,823 (27,552) 138,271 2,462 (2,183) 14,499 (2,475) 56 1,642 (18,834) 148,910 (15,472) 133,438

Infrastructural assetsWastewater system 249,001 (4,919) 244,082 1,872 - - (4,962) - - - 250,873 (9,881) 240,992Water system 74,513 (2,971) 71,542 2,006 - - (1,909) - - - 76,519 (4,880) 71,639Roading network 354,518 - 354,518 6,273 - - (4,789) - - - 360,791 (4,789) 356,002Land under roads 8,050 - 8,050 - - - - - - - 8,050 - 8,050Airport runway 2,063 (28) 2,035 - - - (28) - - - 2,063 (56) 2,007Total infrastructural assets 688,145 (7,918) 680,227 10,151 - - (11,688) - - - 698,296 (19,606) 678,690

Restricted assetsLand 13,870 - 13,870 - - - - - - 888 14,758 - 14,758Buildings 5,087 (1,093) 3,994 115 - 1,039 (78) - 61 (1,316) 3,947 (132) 3,815Total restricted assets 18,957 (1,093) 17,864 115 - 1,039 (78) - 61 (428) 18,705 (132) 18,573

Total property, plant and equipment 872,925 (36,563) 836,362 12,728 (2,183) 15,538 (14,241) 56 1,703 (19,262) 865,911 (35,210) 830,701


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Cost/ revaluation


and impairment









surplusCost/

revaluation


and impairment


Group 2013 1/7/2012 1/7/2012 1/7/2012 30/6/2013 30/6/2013 30/6/2013$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operational assetsLand 54,522 - 54,522 - (48) - - - 1,803 3,024 59,301 - 59,301Buildings 64,482 (14,313) 50,169 993 (1,753) 14,107 (1,046) 56 865 (14,959) 49,628 (1,196) 48,432Plant, equipment and motor vehicles 12,653 (9,530) 3,123 1,096 (554) 662 (985) - (587) - 12,608 (9,853) 2,755Leased equipment 573 (573) - 18 - (129) (201) - 587 - 1,178 (903) 275Furniture and fittings 2,930 (2,039) 891 66 (24) 22 (115) - - - 2,972 (2,132) 840Library books 3,904 (2,329) 1,575 320 - - (298) - - - 4,224 (2,627) 1,597Art work 28,957 - 28,957 28 - - - - - (6,899) 22,086 - 22,086Capital work in progress 213 - 213 103 - - - - (200) - 116 - 116Total operational assets 168,234 (28,784) 139,450 2,624 (2,379) 14,662 (2,645) 56 2,468 (18,834) 152,113 (16,711) 135,402

Infrastructural assetsWastewater system 249,001 (4,920) 244,081 1,872 - - (4,961) - - - 250,873 (9,881) 240,992Water system 74,513 (2,971) 71,542 2,006 - - (1,909) - - - 76,519 (4,880) 71,639Roading network 354,518 - 354,518 6,273 - - (4,789) - - - 360,791 (4,789) 356,002Land under roads 8,050 - 8,050 - - - - - - - 8,050 - 8,050Airport runway 2,063 (28) 2,035 - - - (28) - - - 2,063 (56) 2,007Gas network infrastructure 27,072 (3,209) 23,863 950 - 4,055 (847) - - 3,612 31,634 (1) 31,633Total infrastructural assets 715,217 (11,128) 704,089 11,101 - 4,055 (12,534) - - 3,612 729,930 (19,607) 710,323

Restricted assetsLand 14,310 - 14,310 - - - - - (441) 887 14,756 - 14,756Buildings 5,427 (1,093) 4,334 115 - 1,039 (78) - (277) (1,316) 3,949 (132) 3,817Total restricted assets 19,737 (1,093) 18,644 115 - 1,039 (78) - (718) (429) 18,705 (132) 18,573

Total property, plant and equipment 903,188 (41,005) 862,183 13,840 (2,379) 19,756 (15,257) 56 1,750 (15,651) 900,748 (36,450) 864,298


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Cost/ revaluation


and impairment








charges TransferRevaluation

surplusCost/

revaluation


and impairment


Council 2012 1/7/2011 1/7/2011 1/7/2011 30/6/2012 30/6/2012 30/6/2012$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operational assetsLand 54,350 - 54,350 201 (68) - - - - - 54,483 - 54,483Buildings 63,428 (1,320) 62,108 1,014 (618) 24 (1,295) (11,534) - 63,824 (14,125) 49,699Plant, equipment and motor vehicles 10,033 (7,644) 2,389 519 (146) 145 (899) - - - 10,406 (8,398) 2,008Leased equipment 573 (573) () 587 (129) - 1,160 (702) 458Furniture and fittings 2,809 (1,882) 927 67 (1) 1 (117) - - - 2,875 (1,998) 877Library books 3,584 (2,038) 1,546 320 - - (291) - - - 3,904 (2,329) 1,575Artworks 28,806 - 28,806 123 - - - - 28 - 28,957 - 28,957Capital work in progress 242 - 242 - - - - - (28) - 214 - 214Total operational assets 163,825 (13,457) 150,368 2,831 (833) 170 (2,731) (11,534) - 165,823 (27,552) 138,271

Infrastructural assetsWastewater system 246,479 - 246,479 2,522 - - (4,919) - - - 249,001 (4,919) 244,082Water system 73,199 - 73,199 1,314 - - (1,862) (1,109) - - 74,513 (2,971) 71,542Roading network 350,436 (14,103) 336,333 10,413 - 19,213 (5,110) - - (6,331) 354,518 - 354,518Land under roads 8,056 - 8,056 - (6) - - - - - 8,050 - 8,050Airport runway 2,063 - 2,063 - - - (28) - - - 2,063 (28) 2,035Total infrastructural assets 680,233 (14,103) 666,130 14,249 (6) 19,213 (11,919) (1,109) - (6,331) 688,145 (7,918) 680,227

Restricted assetsLand 15,193 - 15,193 - - - - - (1,323) - 13,870 - 13,870Buildings 5,077 (104) 4,973 10 - - (102) (887) - - 5,087 (1,093) 3,994Total restricted assets 20,270 (104) 20,166 10 - - (102) (887) (1,323) - 18,957 (1,093) 17,864

Total property, plant and equipment 864,328 (27,664) 836,664 17,090 (839) 19,383 (14,752) (13,530) (1,323) (6,331) 872,925 (36,563) 836,362


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Cost/ revaluation


and impairment









surplusCost/

revaluation


and impairment


Group 2012 1/7/2011 1/7/2011 1/7/2011 30/6/2012 30/6/2012 30/6/2012$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operational assetsLand 54,389 - 54,389 201 (68) - - - - - 54,522 - 54,522Buildings 64,086 (1,469) 62,617 1,015 (619) 24 (1,334) (11,534) - 64,482 (14,313) 50,169Plant, equipment and motor vehicles 11,500 (8,536) 2,964 1,338 (185) 155 (1,149) - - - 12,653 (9,530) 3,123Leased equipment 573 (573) () - - - - - - - 573 (573) ()Furniture and fittings 2,864 (1,916) 948 67 (1) 1 (124) - - - 2,930 (2,039) 891Library books 3,584 (2,038) 1,546 320 - - (291) - - - 3,904 (2,329) 1,575Art work 28,806 - 28,806 123 - - - - 28 - 28,957 - 28,957Capital work in progress 241 - 241 - - - - - (28) - 213 - 213Total operational assets 166,043 (14,532) 151,511 3,064 (873) 180 (2,898) (11,534) - 168,234 (28,784) 139,450

Infrastructural assetsWastewater system 246,479 (1) 246,478 2,522 - - (4,919) - - - 249,001 (4,920) 244,081Water system 73,199 - 73,199 1,314 - - (1,862) (1,109) - - 74,513 (2,971) 71,542Roading network 350,435 (14,103) 336,332 10,414 - 19,213 (5,110) - - (6,331) 354,518 - 354,518Land under roads 8,056 - 8,056 - (6) - - - - - 8,050 - 8,050Airport runway 2,063 - 2,063 - - - (28) - - - 2,063 (28) 2,035Gas network infrastructure 26,191 (2,383) 23,808 881 (826) 27,072 (3,209) 23,863Total infrastructural assets 706,423 (16,487) 689,936 15,131 (6) 19,213 (12,745) (1,109) - (6,331) 715,217 (11,128) 704,089

Restricted assetsLand 15,633 - 15,633 - - - - - (1,323) - 14,310 - 14,310Buildings 5,417 (104) 5,313 10 - - (102) (887) - 5,427 (1,093) 4,334Total restricted assets 21,050 (104) 20,946 10 - - (102) (887) (1,323) - 19,737 (1,093) 18,644

Total property, plant and equipment 893,516 (31,123) 862,393 18,205 (879) 19,393 (15,745) (13,530) (1,323) (6,331) 903,188 (41,005) 862,183


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16. Property, plant and equipment (continued)

Valuation

Operational and restricted land and buildingsAt fair value as determined from market-based evidence by an independent valuer. The most recent valuation was performed by Mr KD Pawson, Morgans Property Advisors, Valuers and the valuation is effective as at 31 July 2012. Forestry land has been valued by M RN Goudie, Goudie & Associates, Valuers and the valuation is effective as at 30 June 2013.

Infrastructural asset classes: roads, airport runway, water system, sewerage reticulation, stormwater system and gas distribution networkAt fair value determined on a depreciated replacement cost basis by an independent valuer. At balance date WDC assesses the carrying values of its infrastructural assets to ensure that they do not differ materially from the assets’ fair values. If there is a material difference, then the off-cycle asset classes are revalued. The most recent valuation of roading assets was performed by Robin Mackie (an employee of WDC), NZCE, Member of NZWWA, as at 30 June 2012. John Vessey, of Opus International Consultants (Wellington), has confirmed the methodology.

The valuation of the water reticulation, wastewater reticulation and stormwater systems and airport assetswas undertaken by Robin Mackie (an employee of WDC), NZCE, Member of NZWWA, at 30 June 2011. John Vessey, of Opus International Consultants Ltd (Wellington), has confirmed the methodology. It is WDC’s policy to revalue roading and airport infrastructure assets every three years and the water reticulation, wastewater reticulation and stormwater systems annually, but is only booked if the movement is greater than 10% of the carrying value of the assets at balance date.

The distribution network of WGL was valued at using a discounted cash flow model, as at 30 June 2013 by Geoff Evans, BE (Mech), Network Manager and reviewed in accordance with NZ IAS 16 by Jeff Whitlock CA (PP), B.BS, of Moore Stephens Markhams. The network is revalued on a three yearly cycle.

Land under roadsLand under roads was valued at 30 June 2003 and this valuation is considered deemed cost. Under NZ IFRS WDC has elected to use the fair value of land under roads as at 30 June 2003 as deemed cost. Land under roads is no longer revalued. Subsequent additions are shown at cost.

Art collectionThe art collection of the Sarjeant Gallery has been valued by Mr James Parkinson of Art + Object and Christies of London on 30 June 2013. This is considered deemed cost. Subsequent additions are shown at cost.

ImpairmentA part reversal of the impairment loss on earthquake prone buildings is disclosed in note 38. There have been no other impairments for the year ended 30 June 2013 (2012 $1.109m relating to the Abelard water bore)

Work in progressThe total amount of property, plant and equipment in the course of construction is $315,000 (2012 $214,000).

LeasingThe net carrying amount of plant and equipment held under finance leases is $275,000 (2012 $458,000).


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17. Intangible assets Councilcomputer Council Council Group Group Groupsoftware other total other goodwill

$000 $000 $000 $000 $000 $000Movements for each class of intangible asset are as follows:

Balance at 1 July 2012Cost 2,647 159 2,806 1,847 10,226 14,879Accumulated amortisation and impairment (2,195) - (2,195) (1,525) - (3,720)Opening carrying amount 452 159 611 322 10,226 11,159

Year ended 30 June 2013Additions 277 - 277 42 - 319Amortisation charge (256) - (256) (253) - (509)Disposals/Transfers - - - (1,573) - (1,573)Amortisation charge eliminated on disposal - - - 1,540 - 1,540Revaluation increment - (36) (36) - - (36)Closing carrying amount 473 123 596 78 10,226 10,900

Year ended 30 June 2013Cost 2,924 123 3,047 316 10,226 13,589Accumulated amortisation and impairment (2,451) - (2,451) (238) - (2,689)Closing carrying amount 473 123 596 78 10,226 10,900

Balance at 1 July 2011 -Cost 2,412 - 2,412 1,801 10,226 14,439Accumulated amortisation and impairment (1,999) - (1,999) (1,169) - (3,168)Opening carrying amount 413 - 413 632 10,226 11,271

Year ended 30 June 2012Additions 235 235 53 - 288Amortisation charge (196) - (196) (356) - (552)Disposals/Transfers - - - (7) - (7)Amortisation charge eliminated on disposal - - - - - -Revaluation increment - 159 159 - - 159Closing carrying amount 39 159 198 (310) - (112)

Year ended 30 June 2012Cost 2,647 159 2,806 1,847 10,226 14,879Accumulated amortisation and impairment (2,195) - (2,195) (1,525) - (3,720)Closing carrying amount 452 159 611 322 10,226 11,159

Council other intangible assets relate to WDCFJC's holdings of Carbon Credits under the Emissions Trading Scheme.There are no restrictions over the title of WDC's intangible assets, nor are any intangible assets pledged as security for liabilities.

Impairment

GoodwillGoodwill arises on consolidation of Wanganui Gas Limited in the books of Wanganui District Council Holdings Limited.


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18. Forestry assets Council Group2013 2012 2013 2012$000 $000 $000 $000

Balance at 1 July 3,205 4,241 3,205 4,241Increases due to purchases - - - -Gain/(loss) arising from physical change 512 561 512 561Gain/(losses) arising from changes in fair value 772 (447) 772 (447)Decreases due to harvest (209) (1,150) (209) (1,150)Other changes - - - -

Balance at 30 June 4,280 3,205 4,280 3,205

Through its investment in the Wanganui District Councils' Forestry Joint Committee, WDC owns 1,205 hectares of pinus radiata forest, which are at varying stages of maturity ranging up to 28 years.

Valuation assumptionsIndependent registered valuers Alan Bell and Associates have valued forestry assets as at 30 June 2013. The following valuation assumptions have been adopted in determining the fair value of forestry assets: - a discount rate of 7% (2012 7%) has been used in discounting the present value of expected after tax cash flows; - notional land rental costs have been included for freehold land; - the forest has been valued on a going concern basis and only includes the value of the existing crops on a single rotation basis; - no allowance for inflation has been provided; - costs are current average costs. No allowance has been made for cost improvements in future operations; and - log prices are based on a 3 year historical rolling average.

Financial risk management strategiesWDC is exposed to financial risks arising from changes in timber prices. WDC is a long-term forestry investor and does not expect timber prices to decline significantly in the foreseeable future, therefore, has not taken any measures to manage the risks of a decline in timber prices. WDC reviews its outlook for timber prices regularly in considering the need for active financial risk management.

Fire - All forest estate is insured for loss from fire based on the latest valuation from Alan Bell, Registered Forest Consultant. On site mitigation includes updating the Rural Fire Authority and neighbours on access and risk issues, contacts and procedures. It also includes maintaining maps of water supplies and access to such. During the Fire Season (1 October to 30 April) the Fire Weather Index is monitored and on site operations curtailed or cancelled depending on extent of risk. All contractors must have operative fire plans and be fully covered for insurance.

Tree Health - Regular surveillance with a defined procedure to have samples analysed at ENSIS (Forest Research) for any suspicious fungal or insect damage.

Pestilence - Control of animal and plant pests is ongoing. Uncontrolled, they can cause damage or mortality to the crop. Animal control is focused on goats and hares at establishment and possums in mid rotation. Plant pests are focused on new "invaders" with liaison and reporting to the Regional Council's Plant Pest division.

Security - All properties have secured access available only to registered key holders. Contractors and other forest users are given full briefings for health and safety reasons and to avoid any third party claims.

Harvesting - Local, national and international prices, transport costs and supply and demand are monitored to be aware of impending sudden decreases or potential increases in prices. If the latter occurs, production levels may be increased. All contracts have a 3 month exit clause or sooner by agreement. Access roads are established at least 6 months in advance of harvesting to allow them to stabilise in order to prevent collapse during operations. If this happens, timber may be isolated and lose quality. A bond is held with BNZ for the current harvesting agent, John Turkington Limited, to cover one month's harvesting if payment is in default. At present this is $50,000 (2012 $50,000).


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19. Investment property Council Group2013 2012 2013 2012$000 $000 $000 $000

Balance at 1 July 24,406 24,579 23,737 23,799Additions from acquisitions 8 151 8 151Disposals/Transfers (1,645) 1,305 (1,690) 1,303Fair value gains/(losses) on valuation 200 (713) 88 (600)Fair value of Investment properties (before impairment) 22,969 25,322 22,143 24,653Less Impairment of earthquake prone buildings 90 (916) 90 (916)Balance at 30 June 23,059 24,406 22,233 23,737

WDC's investment properties are valued annually at fair value effective 30 June. All investment properties were valued based on open market evidence. The valuation was performed by Morgans Property Advisers (Morgans). Morgans is an experienced valuer with extensive market knowledge in the types of investment properties owned by WDC.

The fair value of investment property has been determined using the capitalisation of net income and discounted cash flow methods. These methods are based upon assumptions including future rental income, anticipated maintenance costs, and appropriate discount rates.

Council Group2013 2012 2013 2012$000 $000 $000 $000

Rental income 1,748 1,798 1,748 1,798Expenses from investment property generating income (671) (714) (671) (714)Expenses from investment property not generating income - - - -Contractual obligations for capital expenditure - - - -Contractual obligations for operating expenditure - - - -

20. Joint ventures

WDC has a 50/50 joint venture with the Crown to operate the Wanganui Airport. WDC's interest in the jointly controlled operation is as follows:

Council and Group2013 2012$000 $000

Current assets 54 55Non-current assets 5,573 5,691Current liabilities 102 67Non-current liabilities 554 616Income 217 222Expenses 339 317


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WDC has an interest in the Wanganui District Councils' Forestry Joint Committee. WDC's share is 95.09%. WDC's interest in the jointly controlled operation is as follows:

Council and Group2013 2012$000 $000

Current assets 795 968Non-current assets 7,513 5,677Current liabilities 62 74Non-current liabilities - -Income 2,147 1,279Expenses 438 1,773

Joint venture commitments and contingenciesDetails of any commitments and contingencies arising from the group's involvement in the joint ventures are disclosedseparately in notes 27 and 28.

21. Creditors and other payables Council Group2013 2012 2013 2012$000 $000 $000 $000

Trade payables 3,917 3,990 9,573 15,286Deposits and bonds 627 730 627 730Accrued expenses 150 127 176 140Amounts due to related parties (note 29) - 8 - -Rates in advance 349 356 349 356Other payables 150 154 150 154Accrued interest payable 631 810 860 1,091Revenue in advance 598 507 598 507

Total creditors and other payables 6,422 6,682 12,333 18,264

Creditors 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.

22. Borrowings Council Group2013 2012 2013 2012$000 $000 $000 $000

Current portionSecured loans 21,050 27,000 24,050 28,250Finance leases 214 188 214 188Total current portion 21,264 27,188 24,264 28,438

Non-current portionSecured loans 65,800 64,550 79,800 81,300Finance leases 64 265 64 265Total non-current borrowings 65,864 64,815 79,864 81,565

Total borrowings 87,128 92,003 104,128 110,003

Secured loansWDC's secured debt of $86,850,000 (2012 $91,550,000) is mostly issued at floating rates of interest. For floating rate debt, the interest rate is reset quarterly based on the 90-day bill rate plus a margin of 0.45-2.25% for credit risk.

There is a multi option credit facility of $15,000,000 (2012 $20,000,000) available with Westpac. At year end there had been drawdowns of $10,300,000 (2012 $8,000,000) on this facility. In addition WDC has loan facilities of $20,000,000 available with ANZ. At year end there had been drawdowns of $10,000,000 (2012 $20,000,000). It also has a $75,000 credit card facility with ANZ Bank. At June 2013 $2,874 was owing on this facility (2012 $7,244).

WDC has debt raised with the New Zealand Local Government Funding Agency. At 30 June 2013, $19,000,000 is outstandingwith maturities from 2017 to 2019.


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SecurityCouncil loans are secured over rates revenue or property. There has been no variation to the Liability Management Policy duringthe 2012/13 year.

Stock security certificates pursuant to a general security arrangement for $32,000,000 (2012 $22,000,000) are held by Westpac.

Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

Fair values of non-current borrowingsThe carrying amounts and the fair values of non-current borrowings are as follows:

Carrying amounts Fair values2013 2012 2013 2012

Secured loans (Council) 65,800 64,550 56,805 57,863

The fair values are based on cash flows discounted using a rate based on the borrowing rates ranging from 3.12% to 10.50%(2012 2.74% to 10.50%).

The carrying amounts of borrowings repayable within one year approximate their fair value, as the impact of discounting is notsignificant.

Analysis of finance leases Council Group2013 2012 2013 2012$000 $000 $000 $000

Total minimum lease payments are payableNot later than one year 232 225 232 225Later than one year and not later than five years 65 283 65 283Later than five years - - - -Total minimum lease payments 297 508 297 508Future finance charges (20) (55) (20) (55)Present value of minimum lease payments 277 453 277 453

Present value of minimum lease payments payableNot later than one year 214 188 214 188Later than one year and not later than five years 64 265 64 265Later than five years - -Total present value of minimum lease payments 278 453 278 453

Represented by:Current 214 188 214 188Non-current 64 265 64 265Total finance leases 278 453 278 453

Description of material leasing arrangementsWDC has entered into finance leases for various items of plant and equipment. The net carrying amount of the leased items within each class of property, plant and equipment is shown in note 16.

The finance leases can be renewed at WDC's option, with rents set by reference to current market rates for items of equivalentage and condition. WDC does have the option to purchase the asset at the end of the lease term.

There are no restrictions placed on WDC by any of the finance leasing arrangements.


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23. Employee entitlements Council Group2013 2012 2013 2012$000 $000 $000 $000

Current portionAccrued pay 541 537 642 681Annual leave 1,227 1,213 1,290 1,213Retirement and long service leave 214 185 216 185Sick leave 16 15 16 15Total current portion 1,998 1,950 2,164 2,094

Non-current portionRetirement and long service leave 396 407 396 407Total non-current portion 396 407 396 407

Total employee entitlements 2,394 2,357 2,560 2,501

The present value of retirement and long service leave obligations depend on a number of factors that are determined on an actuarial basis. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will affect the carrying amount of the liability.

Expected future payments are discounted using forward discount rates derived from the yield curve of New Zealand government bonds. The discount rates used are from 2 year, 5 year and 10 year bond yields. The salary inflation factor has been determined after considering historical salary inflation patterns. An average discount rate of 3.46% (2012 2.91%) and an inflation factor of 3.2% (2012 3.2%) were used.

24. Provisions Council Group2013 2012 2013 2012

Legal claims $000 $000 $000 $000Provision at 1 July - - - -Additional provisions made in year 21 - 21 -

Provision at 30 June 21 - 21 -

Legal claimsOn 26 April 2013, proceedings were filed under Part 1 of the Judicature Amendment Act 1972 alleging that WDC had made a number of errors when granting a consent under the Resource Management Act 1991. The case was heard on 5 June 2013 and on 10 June 2013 the Court quashed the Council’s notification decision and consent and remitted the mater back to the Council to determine afresh. A provision has been recognised at 30 June 2013 based on WDC's estimates of it's share of the costs.


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Notes to the financial statements For the year ended 30 June 2013 25. Equity Council Group

2013 2012 2013 2012$000 $000 $000 $000

Retained earningsBalance at 1 July 516,845 518,957 520,631 520,688Asset adjustment to equity 1 July - - - -Transfers (to)/from restricted reserves (491) 10,282 (491) 10,282Adjustment to equity from CCO's - - (11)Transfers from property revaluation reserves on disposal 8 637 8 637Surplus/(deficit) for the year 187 (13,031) 14,939 (10,965)

Balance at 30 June 516,549 516,845 535,087 520,631

Restricted reservesBalance at 1 July 53,812 64,096 53,812 64,096Transfers (to)/from retained earnings 491 (10,284) 491 (10,284)

Balance at 30 June 54,303 53,812 54,303 53,812

Asset revaluation reservesBalance at 1 July 210,817 205,487 210,815 205,487Revaluation gains/(losses) (1,925) 11,743 5,743 11,741Impairment of earthquake prone buildings - (5,776) - (5,776)Transfer to accumulated funds on disposal of property (8) (637) (8) (637)Tax on property revaluations - - (2,147) -

Balance at 30 June 208,884 210,817 214,403 210,815

Asset revaluation reserves consist of:Operational assets: - land 37,684 35,464 37,684 35,464 - buildings - - - - - Artworks - 4,763 - 4,763Infrastructural assets: - wastewater system 90,846 90,846 90,846 90,843 - water system 11,481 11,481 11,481 11,481 - roading network 49,185 49,185 49,185 49,185 - Airport runway - - - - - gas network infrastructure - - 5,519 -Restricted assets: - land 17,420 16,533 17,420 16,533 - buildings 2,268 2,545 2,268 2,546

208,884 210,817 214,403 210,815

Council Group2013 2012 2013 2012$000 $000 $000 $000

Other reservesBalance at 1 July 284 104 258 81Valuation gains/(losses) taken to equity (12) 21 (7) 18Carbon credits (36) 159 (36) 159

Balance at 30 June 236 284 215 258

Other reserves consist of: - Fair value through equity - Carbon credit reserve


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Restricted Reserves consists of:

Reserve Activities to which the reserve relates Purpose of the reserveBalance at 1 July 2013

Transfers into fund

Transfers out of fund

Balance at 30 June 2013

$000 $000 $000 $000

Self funding insurance All activities To set aside funds to cover insurance excesses 892 143 (16) 1,019City Endowment Investments To provide alternative income for funding of Council activities 20,309 737 (723) 20,323Harbour Endowment Investments To provide funds for operation and maintenance of the Port 24,741 175 (528) 24,388Henry Sarjeant Bequest Community & cultural To fund the purchase of artworks 292 36 (34) 294Hutton Estate Community & cultural To fund Sarjeant Gallery expenditure 3 - - 3Arts Conservation Project Community & cultural Government grant to fund arts conservation projects 2 - (2) -Robertson Art Prize Fund Community & cultural To fund art competitions and grants 10 - - 10Krupp Gun Community & cultural Government grant to fund restoration of the Krupp Gun 3 - (3) -Grave maintenance bequests Community facilities and services Maintenance of specific grave sites 17 1 - 18Cemetery Surplus Community facilities and services To fund capital expenditure on cemeteries 141 58 - 199Waste minimisation levy Community facilities and services To fund waste minimisations services 178 164 (320) 22CBD parking fund Community facilities and services To fund CBD parking infrastructure 311 193 - 504MA Larsen Bequest Parks and recreation To finance improvements at the Bason Reserve 482 22 - 504Kowhai Park Improvements fund Parks and recreation To fund improvements to Kowhai Park 16 1 - 17T Waight Park fund Parks and recreation For improvements at Thomas Waight Park 34 2 - 36Fairbridge Bequest Parks and recreation For upgrading work at the Winter Gardens 8 - - 8Vera Thrush Donation Parks and recreation To improve Virginia Lake access 17 1 - 18Dovey Gazebo fund Parks and recreation For Bason Reserve maintenance 7 - - 7Birch Reserve Fund Parks and recreation To provide funds for maintenance of parks and reserves 87 4 - 91Kai Iwi Trust Parks and recreation Council is trustee for Maori land at Kai Iwi 58 3 - 61J McLean Bequest Parks and recreation Reserve created on historic bequest 9 - - 9Crown and other trusts' properties Parks and recreation Properties adminstered on behalf of third parties 5,508 580 (61) 6,027Rural road special rate - Whangaehu No 1 Roads, footpaths and pathways Rural rates specifically collected for future works 116 16 - 132Rural road special rate - Whangaehu No 2 Roads, footpaths and pathways Rural rates specifically collected for future works 69 12 - 81Rural road special rate - River Road Roads, footpaths and pathways Rural rates specifically collected for future works 111 23 - 134CUVL renewals fund Economic development To fund renewals of community under-veranda lighting 160 7 - 167Sinking Funds Corporate To match fund loans 53 2 - 55The Waitotara Centennial Fund Corporate To fund Outward Bound trips for approved people 31 1 - 32Business Continuity Plan fund Corporate To fund standby generator 26 1 - 27Aged Citizens Benefit Trust Corporate To benefit aged citizens 4 - - 4Tram Fund Community & cultural To fund the Tram project 18 - (8) 10Creative NZ Grant fund Community & cultural To fund local community-based arts activities - 4 - 4For Our Kids Grant fund Community & cultural To fund the For Our Kids Program 31 1 (4) 28LI Smith Bequest Community & cultural To fund an arts award 68 3 - 71

53,812 2,190 (1,699) 54,303


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Reserve Activities to which the reserve relates Purpose of the reserveBalance at 1 July 2011

Transfers into fund

Transfers out of fund

Balance at 30 June 2012

$000 $000 $000 $000

Self funding insurance All activities To set aside funds to cover insurance excesses 1,031 41 (180) 892City Endowment Investments To provide alternative income for funding of Council activities 20,539 40 (270) 20,309Harbour Endowment Investments To provide funds for operation and maintenance of the Port 34,730 140 (10,129) 24,741Henry Sarjeant Bequest Community & cultural To fund the purchase of artworks 305 24 (37) 292Hutton Estate Community & cultural To fund Sarjeant Gallery expenditure 3 - - 3Arts Conservation Project Community & cultural Government grant to fund arts conservation projects 19 1 (18) 2Robertson Art Prize Fund Community & cultural To fund art competitions and grants 10 - - 10Krupp Gun Community & cultural Government grant to fund restoration of the Krupp Gun 5 - (2) 3Sculpture project Community & cultural To fund acquisitions of sculptures 34 - (34) -Grave maintenance bequests Community facilities and services Maintenance of specific grave sites 16 1 - 17Cemetery Surplus Community facilities and services To fund capital expenditure on cemeteries 88 53 - 141Waste minimisation levy Community facilities and services To fund waste minimisations services 116 62 - 178CBD parking fund Community facilities and services To fund CBD parking infrastructure 332 14 (35) 311MA Larsen Bequest Parks and recreation To finance improvements at the Bason Reserve 460 22 - 482Kowhai Park Improvements fund Parks and recreation To fund improvements to Kowhai Park 31 1 (16) 16T Waight Park fund Parks and recreation For improvements at Thomas Waight Park 32 2 - 34Fairbridge Bequest Parks and recreation For upgrading work at the Winter Gardens 8 - - 8Vera Thrush Donation Parks and recreation To improve Virginia Lake access 16 1 - 17Dovey Gazebo fund Parks and recreation For Bason Reserve maintenance 7 - - 7Birch Reserve Fund Parks and recreation To provide funds for maintenance of parks and reserves 83 4 - 87Kai Iwi Trust Parks and recreation Council is trustee for Maori land at Kai Iwi 55 3 - 58J McLean Bequest Parks and recreation Reserve created by historic bequest 9 - - 9Crown and other trusts' properties Parks and recreation Properties adminstered on behalf of third parties 5,508 - - 5,508Rural road special rate - Whangaehu No 1 Roads, footpaths and pathways Rural rates specifically collected for future works 100 16 - 116Rural road special rate - Whangaehu No 2 Roads, footpaths and pathways Rural rates specifically collected for future works 80 12 (23) 69Rural road special rate - River Road Roads, footpaths and pathways Rural rates specifically collected for future works 89 22 - 111CUVL renewals fund Economic development To fund renewals of community under-veranda lighting 153 7 - 160Sinking Funds Corporate To match fund loans 51 2 - 53Business Continuity Plan fund Corporate To fund standby generator - 26 - 26The Waitotara Centennial Fund Corporate To fund Outward Bound trips for approved people 30 1 - 31Aged Citizens Benefit Trust Corporate To benefit aged citizens 4 - - 4Tram Fund Community & cultural To fund the Tram project 51 1 (34) 18Creative NZ Grant fund Community & cultural To fund local community-based arts activities - - - -For Our Kids Grant fund Community & cultural To fund the For Our Kids Program 36 1 (6) 31LI Smith Bequest Community & cultural To fund an arts award 65 3 - 68

64,096 500 (10,784) 53,812


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26. Reconciliation of net surplus/(deficit) after tax to net cash flow from operating activities

Council Group2013 2012 2013 2012$000 $000 $000 $000

Surplus/(deficit) after tax 187 (13,031) 14,939 (10,965)Add/(less) non-cash itemsShare of associate surplus/(deficit) 1 15 1 15Interest credited directly to investments (9) - (9) -Depreciation and amortisation expense 14,497 14,948 15,766 16,296Impairment of earthquake prone buildings (146) 7,560 (146) 7,560Vested assets - - - -(Gains)/losses in fair value of biological assets (1,075) 1,036 (1,075) 1,036Movement in fair value of investment property (200) (713) (88) (601)(Gains)/losses on derivative financial instruments (3,026) 4,380 (3,606) 5,095(Gains)/losses from held-to-maturity investments - - - -(Gains)/losses in fair value of plant, property and equipment 2,334 - 2,334 -Increase/(decrease) in deferred tax (63) (28) 69 283(Gains)/losses on other investments - - - -

12,313 27,198 13,246 29,684

Add/(less) items classified as investing or financing activities(Gains)/losses on disposal of property, plant and equipment 1,343 502 (13,646) 498

1,343 502 (13,646) 498

Add/(less) movements in working capital itemsAccounts receivable (1,213) 1,933 2,281 1,523Inventories (20) 28 (13) 35Accounts payable (782) (1,085) (8,004) (420)Employee benefits (11) (49) 11 (49)

(2,026) 827 (5,725) 1,089

Net cash inflow/(outflow) from operating activities 11,817 15,496 8,814 20,306

27. Capital commitments and operating leases Council Group2013 2012 2013 2012$000 $000 $000 $000

Capital commitmentsProperty, plant and equipment 4,343 5,164 4,343 5,164Intangible assets - - - -Investment property - 91 - -

Total capital commitments 4,343 5,255 4,343 5,164

There are no capital commitments in relation to the WDC's interest in the Forestry joint venture or Airport joint venture.


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Operating leases as lesseeWDC leases property, plant and equipment in the normal course of its business. The majority of these leases have a non-cancellable term of 60 months. The future aggregate minimum lease payments payable under non-cancellable operatingleases are as follows:

Council2013 2012 2013 2012$000 $000 $000 $000

Not later than one year 126 72 126 72Later than one year and not later than five years 415 76 415 76Later than five years - - - -

Total non-cancellable operating leases 541 148 541 148

The total minimum future sublease payments expected to be received under non-cancellable subleases at balance date is $nil (2012 $nil).

Lease can be renewed at WDC's option, with rents set by reference to current market rates for items of equivalent age and condition. WDC does not have the option to purchase the asset at the end of the lease term.

There are no restrictions placed on WDC by any of the leasing arrangements.

WDC's financial statements include lease expenditure of $101,682 (2012 $72,861). The lease expenditure is for photocopiers, water coolers, and Eftpos terminals.

Operating leases as lessorWDC leases its investment property under operating leases. These leases have a varying non-cancellable terms.The future aggregate minimum lease payments to be collected under non-cancellable operating leases are as follows:

Council Group2013 2012 2013 2012$000 $000 $000 $000

Not later than one year 1,757 1,714 1,757 1,714Later than one year and not later than five years 4,867 5,000 4,867 5,000Later than five years 6,849 6,044 6,849 6,044

Total non-cancellable operating leases 13,473 12,758 13,473 12,758

No contingent rents have been recognised in the statement of financial performance during the period.


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28. Contingencies Council Group2013 2012 2013 2012$000 $000 $000 $000

Litigation - - - -Building Act claims 150 110 150 110

Total contingent liabilities 150 110 150 110

RiskPool InsuranceWanganui District Council obtained public liability and professional indemnity insurance cover from New Zealand Mutual Liability RiskPool up to and including the 30th June 2009. From the 1st July 2009, Wanganui District Council has obtained public liability and professional indemnity insurance from QBE. RiskPool operates as mutual fund where each member makes an annual contribution to obtain cover however should claims exceed contributions then calls can be made on the members of that fund year for the shortfall amount. RiskPool have advised that further calls may be made to the Council for past pool periods. Wanganui District Council has budgeted monies in its current LTP to cover these calls.

Defined Benefit Plan Contributors SchemeWanganui District Council is a participating employer in the Defined Benefit Plan Contributors Scheme (the scheme), which is a multi-employer defined benefit scheme. If the other participating employers cease to participate in the scheme, Wanganui District Council could be responsible for any deficit of the scheme. Similarly, if a number of employers cease to participate in the scheme, the Wanganui District Council could be responsible for an increased share of any deficit.

Financial Assistance PackageWanganui District Council will be a participating territorial authority to the Financial Assistance Package (FAP) scheme recently passed into legislation by the Weathertight Homes Resolutions Services (Financial Assistance Package) Amendment Act 2011. The scheme is optional to the homeowner. In signing up to the scheme, WDC is committing to funding 25 per cent of eligible claims. It is a five-year commitment, with a review period in 2014. There is currently one property which Wanganui District Council has provisionally agreed meets the requirements of the FAP.

New Zealand Local Government Funding AgencyWDC is a guarantor of the New Zealand Local Government Funding Agency Limited (NZLGFA). The NZLGFA was incorporated in December 2011 with the purpose of providing debt funding to local authorities in New Zealand and it has a current credit rating from Standard and Poor’s of AA+.

WDC is one of 30 local authority shareholders and 8 local authority guarantors of the NZLGFA. In that regard it has uncalled capital of $100,000. When aggregated with the uncalled capital of other shareholders, $20m is available in the event that an imminent default is identified. Also, together with the other shareholders and guarantors, WDC is a guarantor of all of NZLGFA’s borrowings. At 30 June 2013, NZLGFA had borrowings totalling $2,497m (2012: $835m).

Financial reporting standards require WDC to recognise the guarantee liability at fair value. However, the Council has been unable to determine a sufficiently reliable fair value for the guarantee, and therefore has not recognised a liability. TheWDC considers the risk of NZLGFA defaulting on repayment of interest or capital to be very low on the basis that:

- we are not aware of any local authority debt default events in New Zealand; and - local government legislation would enable local authorities to levy a rate to recover sufficient funds to meet any debt obligations if further funds were required.


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29. Related party transactions

Wanganui District Council is the ultimate parent of the group and controls six entities, being Wanganui District Council Holdings Limited, Wanganui Incorporated, Wanganui Airport Joint Venture, Cooks Gardens Trust Board, The Sarjeant Gallery Trust and Wanganui District Councils' Forestry Joint Committee. Wanganui District Council Holdings Limited in turnowns Wanganui Gas Limited. Wanganui Gas Limited in turn owns Energy Direct NZ Limited and GasNet Limited.Wanganui District Council has significant influence over the following as associates: the Ruapehu Wanganui Rangitikei Economic Development Trust, the Wanganui River Enhancement Charitable Trust, the New Zealand Masters Games Limited, and the Manawatu Wanganui LASS Limited.

Council2013 2012$000 $000

Wanganui Gas LimitedServices provided by WDC 166 166

Energy Direct NZ LimitedServices provided by WDC 106 101Services provided to WDC 62 65Accounts payable to WDC - 10Accounts receivable from WDC - 8

GasNet LimitedServices provided by WDC 134 174Accounts payable to WDC 10 11

Wanganui District Council Holdings LimitedServices provided by WDC 402 606Services provided to WDC 42 92Interest paid to WDC 206 206Management fee paid to WDCHL 60 60Accounts payable to WDC - 54Loans payable to WDC 2,750 2,750

Wanganui IncorporatedServices provided by WDC 4 4Services provided to WDC 95 95Loans payable to WDC 8 (13)

Wanganui Joint Venture Airport (50% JV)Services provided by WDC 61 61Services provided to WDC 7 7Assets Purchased by WAJV 13 -Loans payable to WDC 30 46Accounts payable to WDC 57 -Capital contribution by WDC 20 21

Sarjeant Gallery Trust BoardAccounts payable to WDC (includes WDC current account) - 45


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Council2013 2012$000 $000

Wanganui District Council Forestry Joint Committee (95.09% JV)Services provided by WDC 25 25Loans payable to WDC 1 5

Whanganui River Enhancement Charitable Trust (33% associate)Contribution from WDC - -

New Zealand Masters Games Limited (49% associate)Contribution from WDC - 13

Manawatu Wanganui LASS Limited (14.28% associate)Contributions made to LASS projects 21 33

Transactions with key management personnel

During the year Councillors and key management, as part of a normal customer relationship, were involved in minor transactions with the WDC (such as payment of rates, purchase of rubbish bags etc).

WDC purchased gift vouchers from The Flying Fox, which Mayor Annette Main's spouse owns. The value of these services was $nil (2012 $740). These services were supplied on normal commercial terms. There is a balance of $nil (2012 $nil) outstanding for unpaid invoices at year end. WDC reimbursed Just Looking, which Councillor Rob Vinsen owns foradvertising in the paper relating to the Wanganui festival weekend $nil 2013 (2012 $1,393). There is a balance of $nil (2012 $nil) outstanding for unpaid invoices at year end. Councillor Rob Vinsen also received $10,000 as a board member of WDCHL (2012 $10,000).

No provision has been recognised for impairment of receivables for any loans or other receivables to related parties(2012 $nil).

Key management personnel compensation Council Group2013 2012 2013 2012$000 $000 $000 $000

Salaries and other short term employee benefits 1,865 1,835 1,873 1,842Post-employment benefits - - - -Other long-term benefits - 72 - 72Termination benefits - - - -

Total key management personnel compensation 1,865 1,907 1,873 1,914

Key management personnel include the Mayor, Councillors, Chief Executive and other senior management personnel.


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30. RemunerationGroup

Chief Executive 2013 2012The Chief Executive received the following remuneration: $000 $000

Salary 247 244Vehicle (market value plus FBT) 26 28Parking (market value plus FBT) - -Medical insurance (market value plus FBT) - -Superannuation subsidy 10 10

Total remuneration 283 282

In terms of his contract, the Chief Executive also received professional subscriptions of $305 (2012 $nil).

Elected representatives Council WGL/WDCHL2013 2012 2013 2012

Elected representatives received the following remuneration: $000 $000 $000 $000Council as elected on 9 October 2010Mayor Annette Main (includes car) 100 95 - -Councillor Allan Anderson 27 28 - -Councillor Philippa Baker-Hogan 30 30 - -Councillor Jack Bullock 28 27 - -Councillor Randhir Dahya 27 27 - -Councillor Nicki Higgie 27 27 - -Councillor Michael Laws 26 26 - -Councillor Hamish McDouall 27 27 - -Councillor Clive Soloman 26 27 - -Councillor Ray Stevens 30 31 - -Councillor Rob Vinsen 31 31 10 10Councillor Sue Westwood 29 29 - -Councillor Rangi Wills 29 30 - -

Rural Community Board as elected on 9 October 2010Bill Ashworth 5 5 - -Andrew Collins 5 5 - -Dave Johnston 5 5 - -Mark Lourie 6 6 - -David Matthews 6 6 - -Darrell Monk 6 6 - -Alan Taylor 8 8 - -

478 476 10 10


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Employee staffing levels and remuneration

As at 30 June, the number of employees receiving total annual remuneration and other benefits within specifiedbands were as follows:

Council2013 2012$000 $000

$0 - $59,999 203 230$60,000 - $79,999 56 50$80,000 - $99,999 18 19$100,000 - $119,999 9 6$120,000 - $219,999 6 6$220,000 - $299,999 1 1

Total number of employees as at 30 June 293 312

At 30 June, WDC employed 165 (2012 171) full time employees, with the balance of staff representing 50 (2012 53)full-time equivalent employees. A full-time equivalent employee is determined on the basis of a 40 hour working week.

31. Severance payments

Severance payments were made to two employees during the year. The payment amount totalled $65,000 (2012 two payments totalling $14,000).

The value of each of the severance payments was $56,000 and $9,000 (2012 $10,000 and $4,000).

32. Events after the balance date

There are no material events after the balance date (2012 nil)


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33. Financial instruments

Financial instrument categoriesThe accounting policies for financial instruments have been applied to the line items below:

Council Group2013 2012 2013 2012$000 $000 $000 $000

Financial assets

Loans and receivablesCash and cash equivalents 2,246 7,148 6,225 16,253Debtors and other receivables 6,876 5,662 24,562 10,292Loans to related parties 2,757 2,760 7 10Community loans 35 35 35 35Long term receivables 476 925 476 3,675

Fair value through other comprehensive incomeOther financial assets: - unlisted shares 437 355 437 355 - listed shares - - - 22LGFA borrower notes 308 - 308 -Government Indexed Bonds 738 733 738 733Sinking funds 66 65 66 65

Financial liabilities

Fair value through surplus or deficitDerivative financial instrument liabilities 6,965 9,991 8,191 11,868

Financial liabilities at amortised costCreditors and other payables 6,422 6,682 12,333 18,264Borrowings: - secured loans 86,850 91,550 103,850 109,550

34. Fair value hierarchy disclosures

For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy: - Quoted market price (level 1) - Financial instruments with quoted prices for identical instruments in active markets - Valuation technique 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 financial instruments valued using models where all significant inputs are observable - Valuation techniques with significant non-observable inputs (level 3) - Financial instruments valued using models where one or more significant inputs are not observable


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The following table analyses the basis of the valuation of classes of financial instruments measured at fair value in the statement offinancial position

TotalQuoted

market priceObservable

inputs

Significant non-

observable inputs

$000 $000 $000 $00030 June 2013 - CouncilFinancial assetsUnlisted shares 436 436LGFA borrower notes 308 308Government indexed bonds 738 738Sinking funds 66 66

Financial liabilitiesDerivatives 6,965 6,965

30 June 2013 - GroupFinancial assetsShares unlisted 437 437LGFA borrower notes 308 308Government indexed bonds 738 738Sinking funds 66 66NJ Young bequest with ABN Amro 429 429


30 June 2012 - CouncilFinancial assetsShares unlisted 355 355Government indexed bonds 733 733Sinking funds 65 65


30 June 2012 - GroupFinancial assetsShares unlisted 355 355Government indexed bonds 733 733Sinking funds 65 65NJ Young bequest with ABN Amro 448 448


There were no transfers between the different levels of the fair value hierarchy

Valuation technique


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35. Financial instrument risks

WDC has a series of policies to manage the risks associated with financial instruments. WDC is risk averse and seeks to minimise exposure from its treasury activities. WDC has established Council approved Liability Management and Investment policies. Thesepolicies do not allow any transactions that are speculative in nature to be entered into.

Market riskPrice riskPrice risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. WDC is exposed to equity securities price risk on its investments, which are classified as financial assets held at fair value through equity. This price risk arises due to market movements in listed securities. This price risk is managed by diversification of WDC’s investment portfolio in accordance with the limits set out in WDC’s Investment Policy.

Currency riskCurrency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. WDC is not exposed to currency risk, as it does not enter into foreign currency transactions.

Fair value interest rate riskFair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowing issued at floating rates exposes WDC to fair value interest rate risk. WDC’s Liability Management Policy outlines the level of borrowing that is to be secured using fixed rate instruments. Floating to fixed interest rate swaps are entered into to hedge the fair value interest rate risk arising where WDC has borrowed at floating rates. In addition, investments at fixed interest rates expose the WDC to fair value interest rate risk. If interest rates on investments at 30 June 2013 had fluctuated by plus or minus 0.5%, the effect would have been to decrease/increase the fair value through equity reserve by $3,695 (2012 $3,666). If interest rates on borrowings at 30 June 2013 had fluctuated by plus or minus 0.5%, the effect would have been to decrease/increase the surplus after tax by $99,000(2012 $460,000) as a result of higher/lower interest expense on floating-rate borrowings.

Cash flow interest rate riskCash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose WDC to cash flow interest rate risk. WDC manages its cash flow interest rate risk on borrowings by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings at floating rates and swaps them into fixed rates that are generally lower than those available if WDC borrowed at fixed rates directly. Under the interest rate swaps, WDC agrees with other parties to exchange, at specified intervals, the difference between fixed contract rates and floating-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 WDC, causing WDC to incur a loss. WDC has no significant concentrations of credit risk, as it has a large number of credit customers, mainly ratepayers, and WDC has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers. WDC invests funds only in deposits with registered banks and local authority stock and its Investment Policy limits the amount of credit exposure to any one institution or organisation. Investments in other Local Authorities are secured by charges over rates. Other than other local authorities, the group only invests funds with those entities which have a Standard and Poor’s credit rating of at least A2 for short term and A- for long-term investments. Accordingly, the group does not require any collateral or security to support these financial instruments.

The Council and group holds no other collateral or credit enhancements for financial instruments that give rise to credit risk.


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Maximum exposure to credit riskWDC's maximum credit exposure for each class of financial instrument is as follows:

Group2013 2012 2013 2012$000 $000 $000 $000

Cash at bank, term deposits and sinking funds 2,312 7,148 6,225 16,253Debtors and other receivables 6,876 5,662 24,562 10,292Government bonds and LGFA borrower notes 1,046 733 1,046 733Long term receivables and related party loans 3,269 3,720 519 970Total credit risk 13,503 17,263 32,352 28,248

WDC is exposed to credit risk as a guarantor of all of the LGFA's borrowings. Information about this exposure is explained in note 28

Credit quality of financial assetsThe credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor'scredit ratings (if available) or to historical information about counterparty default rates:

Group2013 2012 2013 2012

Counterparties with credit ratings $000 $000 $000 $000

Cash at bank, term deposits and sinking funds:AA - - - -AA- 2,312 7,148 6,225 16,253Total cash at bank, term deposits and sinking fund 2,312 7,148 6,225 16,253

Government bonds and LGFA borrower notes:AA 1,046 733 1,046 733AA- - - - -Total Government bonds and LGFA borrower notes: 1,046 733 1,046 733

Counterparties without credit ratings

Long term receivables and related party loans:Existing counterparty with no defaults in the past 3,269 3,720 519 970Existing counterparty with defaults in the past - - - -Total long term receivables and related party loans 3,269 3,720 519 970

Debtors and other receivables mainly arise from WDC's statutory functions, therefore there are no procedures in place tomonitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings.WDC has no significant concentrations of credit risk in relation to debtors and other receivables, as it has a large numberof credit customers.

Liquidity riskManagement of liquidity riskLiquidity risk is the risk that Council will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient 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 flexibility in funding by keeping committed credit lines available. In meeting its liquidity requirements, Council maintains a target level of investments that must mature withinthe next 12 months. Council manages its borrowings in accordance with its funding and financial policies, which includes a LiabilityManagement Policy. These policies have been adopted as part of the Council’s 10-Year Plan. The maturity profiles of the Council’s interest bearing investments and borrowings are disclosed in notes 14 and 22 respectively.

Contractual maturity analysis of financial liabilitiesThe table below analyses WDC's financial liabilities into relevant maturity groupings based on the remaining period at the balance dateto the contractual maturity date. Future interest payments on floating rate debt is based on the floating rate on the instrument at the balance date. The amounts disclosed are the contractual undiscounted cash flows.

Council

Council


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Carryingamount contractual Less than More than

cash flows cash flows 1 year 1-2 years 2-5 years 5 years$000 $000 $000 $000 $000

Parent 2013Creditors and other payables 6,422 6,422 6,422 - - -Secured loans 86,850 100,354 26,062 21,156 38,576 14,560Total 93,272 106,776 32,484 21,156 38,576 14,560

Group 2013Creditors and other payables 12,333 12,333 12,333 - - -Secured loans 103,850 130,526 41,580 21,156 53,230 14,560Total 116,183 142,859 53,913 21,156 53,230 14,560

Parent 2012Creditors and other payables 6,682 6,682 6,682 - - -Secured loans 91,550 104,295 32,381 32,116 39,798 -Total 98,232 110,977 39,063 32,116 39,798 -

Group 2012Creditors and other payables 18,264 18,264 18,264 - - -Secured loans 109,550 104,295 32,381 32,116 39,798 -Total 127,814 122,559 50,645 32,116 39,798 -

The table below analyses WDC's derivative financial instruments that will be settled on a gross basis into relevant maturity groupingsbased on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed are the contractualundiscounted cash flows.

Liability Betweencarrying Contractual Less than 1 and 2 More thanamount cash flows 6 months years 2 years

$000 $000 $000 $000 $000Parent and group 2013Contracts: - net 8,191 8,191 - 67 8,124

Parent and group 2012Contracts: - net 11,868 11,868 - - 11,868

WDC is exposed to liquidity risk as a guarantor of all of the LGFA's borrowings. This guarantee becomes callable in the event of the LGFAfailing to pay its borrowings when they fall due. Information about this exposure is explained in note 28.


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Contractual maturity analysis of financial assetsThe table below analyses WDC's financial assets into relevant maturity groupings based on the remaining period at the balancedate to the contractual maturity date.

Carryingamount andcontractual Less than More thancash flows 1 year 1-2 years 2 years

$000 $000 $000 $000Parent 2013Cash and cash equivalents 2,246 2,246Debtors and other receivables 6,876 6,876Other financial assets: - term deposits - - - related party loans 2,757 7 2,750 - community loans 35 35 - long term loans 476 242 234Total 12,390 9,406 234 2,750

Group 2013Cash and cash equivalents 6,225 6,225Debtors and other receivables 24,562 24,562Other financial assets: - term deposits - - - related party loans 7 7 - community loans 35 35 - long term loans 476 242 234Total 31,305 31,071 234 -

Parent 2012Cash and cash equivalents 7,148 7,148Debtors and other receivables 5,662 5,662Other financial assets: - term deposits - - - related party loans 10 10 - community loans 35 35 - long term loans 3,675 704 2,971Total 16,530 13,559 - 2,971

Group 2012Cash and cash equivalents 16,253 16,253Debtors and other receivables 10,292 10,292Other financial assets: - term deposits - - - related party loans 10 10 - community loans 35 35 - long term loans 924 704 220Total 27,514 27,294 - 220


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Sensitivity analysisThe tables below illustrate the potential profit and loss and equity (excluding retained earnings) impact for reasonably possible marketmovements, with all other variables held constant, based on WDC's financial instrument exposures at the balance date.

Parent

2013 $000 - 100bps + 100bpsOther Other

Interest rate risk Profit Equity Profit Equity

Financial assetsCash and cash equivalents (22) 22Other financial assets: ()

Financial liabilitiesBorrowings: - bank overdraft - - - term loans 733 (733) - Derivatives (670) 670

Total sensitivity to interest rate risk 41 - (41) -

Parent



Financial assetsCash and cash equivalents (71) 71Other financial assets: () -

Financial liabilitiesBorrowings: - bank overdraft - - - term loans (916) 916 - derivatives (100) 100

Total sensitivity to interest rate risk (1,087) - 1,087 -


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Group



Financial assetsCash and cash equivalents (62) 62Other financial assets:

Financial liabilitiesBorrowings: - bank overdraft - - - term loans 906 (906) - derivatives (825) 825

Total sensitivity to interest rate risk 19 - (19) -

Group



Financial assetsCash and cash equivalents (163) 163Other financial assets: - -

Financial liabilitiesBorrowings: - bank overdraft - - - term loans (843) 843 - derivatives (118) 118

Total sensitivity to interest rate risk (1,124) - 1,124 -

Explanation of interest rate sensitivityThe interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis points (bps) movement. For example, a decrease in 50 bps is equivalent to a decrease in interest rates of 0.5%.

The sensitivity for derivatives (interest rate swaps) has been calculated using a derivative valuation model based on a parallel shift in interest rates of -100bps/+100bps (2012 -100bps/+100bps).


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36. Discontinued operation

a) On 30 June 2013, TrustPower Limited acquired the assets and liabilities of Energy Direct NZ Limited (EDNZ) including its customers. The purchase price was paid after 30 June 2013. The results of EDNZ have been classified as a discontinued operationas at 30 June 2013. The 2012 comparatives have been represented to reflect the discontinued operation.

The Balance Sheet at 30 June 2013 includes the impact of TrustPower Limited's purchase of the assets of EDNZ at that date.The amount receivable by the Group is included in Debtors and Other Receivables.

The profit after tax from discontinued operations for the year ended 30 June 2013 of $15.901m includes the allocated reduction in theselling price of $1.35m which takes into account any liability in relation to the Nga Awa Purao Contract for Differences by TrustpowerLimited and a termination fee of $0.982m for four Contracts for Differences held with Contract Energy Limited at 30 June 2013.

The profit before tax also reflects the gain on disposal of the assets of EDNZ of $14.922m

b) Financial Performance of Energy Direct NZ Limited until discontinued.Council Group

2013 2012 2013 2012$000 $000 $000 $000

Sales - - 36,602 40,384Cost of sales - - 29,315 32,117Gross profit from trading - - 7,287 8,267

Finance income - - 8 8Other revenue - - 1 4Gain/loss on disposal of assets - - (84) -Gain on disposal of intangible assets - - 15,006 -Total income - - 22,218 8,279

ExpensesPersonnel costs - - 2,018 1,795Depreciation and amortisation expense - - 235 861Net change in fair value of CFDs - - 2,264 68Other expenses - - 1,756 2,032Total expenses - - 6,273 4,756

Surplus/(deficit) - - 15,945 3,523

Income tax expense/(benefit) (35) 549

Surplus/(deficit) after tax from discontinued operations - - 15,980 2,974

Net cash flows from discontinued operationsOperating activities - - (5,652) 2,041Investing activities - - (13) (14)Financing activities - - 5,583 (2,089)Total net cash flows from discontinued activities - - (82) (63)

37. Reclassification of comparatives

WDC has changed the presentation of items within income to comply with the new presentation requirements of the LocalGovernment (Financial Reporting) Regulations 2011. The regulations require that income from Development and Financial Contributions and Subsidies and Grants are shown separately on the Statement of Financial Performance. WDC's 2012 Annual Report included this income in Other Revenue of $25,676,000 and therefore this has been reclassified for comparative purposes in the Statement of Financial Performance.


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38. Impairment of earthquake prone buildings

During 2012, Council assessed a number of its buildings as being earthquake prone and consequently recognised an impairment for these buildings. The impairment was based on the estimated remedial costs of bringing the buildings to a standard of between 67% - 100% of the building code. During 2013 a small change has been made to the estimates usedleading to a reversal of the impairment of $146,000.

WDC's assessment of the remedial costs of bringing the buildings up to the above standard was based on informationprovided by independent quantity surveyor Mr K Saunders ANZIQS, Saunders Stevenson Limited. Mr K Saundersestimated these costs using information provided to him by structural engineers from BPL Group, MWH New Zealand Ltd and Opus International Consultants Limited as commissioned by WDC.

The following are the categories of assets impaired as at 30 June 2013:

Category of assetTotal

Impairment

Impairment through the revaluation

reserve

Impaired through

surplus or deficit

$000 $000 $000

Property Plant & Equipment - operational 11,388 4,890 6,498Property Plant & Equipment - restricted 887 887 -Investment Property 915 - 915Total 13,190 5,777 7,413

39. Investments in CCOs and similar entities

Section 4(3) of the Local Government (Financial Reporting) Regulations 2011 requires the Council to present a single CouncilControlled Organisation (CCO) investment figure in the Statement of Financial Position. As Council is also required to complywith IAS 1, Presentation of Financial Statements, Council has decided to disclose the total CCO investment amount as a footnote to the Statement of Financial Position

40. Capital management

The Council's capital is its equity (or ratepayers' funds), which comprises retained earnings and reserves. Equity is represented bynet assets. The Local Government Act 2002 (the Act) requires the Council to manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayers' funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings. The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by the Council. Intergenerational equity requires today's ratepayers to meet the costs of utilising the Council's assets and not expecting them to meet the full cost of long term assets that will benefit ratepayers in future generations. Additionally, the Council has in place asset management 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 the Council to make adequate and effective provision in its Long Term Plan (LTP) and in itsAnnual Plan (where applicable) to meet the expenditure needs identified in those plans. The Act also sets out the factors thatthe 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 Council's LTP.

Council has the following Council created reserves:- reserves for different areas of benefit;- self-insurance reserves; and- trust and bequest reserves.

Reserves for different areas of benefit are used where there is a discrete set of rate or levy payers as distinct from the general rate. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves. Self-insurance reserves are built up annually from general rates and are made available for specific unforeseen 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.


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41. Explanation of major variances to budget

Statement of comprehensive income

IncomeRates revenue is 1.0% higher due to rates penalties being budgeted as other income. Finance income is below budget by 39.7% ($262,000) due to a change in the way Council manages its working capital as detailed below.

Other revenue is 8.3% lower than expected due to work on the Heads Road roundabout and river road reseal not taking placeleading to funding from the New Zealand Transport Agency (NZTA) being below budget by $1.7M.

Net gains for the financial year are $1M higher than budget due to unbudgeted non cash movements arising from the revaluationgains of forestry and the derivative financial instruments offset by a revaluation loss on the art collection.

ExpenditureDepreciation and amortisation expense is 3.1% lower than budget. The variance is due capital expenditure being below budget.

Finance costs were 15% ($1M) less than budget due to general market conditions providing lower interest rates and savings from the timing of borrowings. Council practices pro active interest rate risk management and has changed the wayit manages its short term cash position which has resulted in lower working capital being held.

Other expenses are 6.4% ($2M) higher than budget due to unbudgeted forestry costs, electricity charges being below budgetand an overspend on repairs and maintenance expenditure and a loss on disposal of rural halls.

Statement of financial position

AssetsCash and cash equivalents are $1.4M below the budget due a change in the way Council manages its working capital. Thisallows for a reduction in the amount of cash held at the bank and a corresponding reduction in Council's borrowings.

Debtors and other receivables fluctuate regularly due to the timing of invoicing and workloads.

Total non-current assets were $25M less than budgeted due to downwards revaluations and impairments not budgeted forin addition to budgeted capital expenditure not being carried out during the year. Significant capital projects are detailed in pages110-177 of the annual report with explanations of the major variances. Total non-current assets are similar to 2012 levels with a variance of 0.6%.

LiabilitiesBorrowings were 12% below budget due to capital expenditure being delayed as detailed above. Movements in the value of derivative financial instruments and the deferred tax liability were not budgeted for.

Creditors and other payables fluctuate regularly due to the timing of invoicing and workloads.

The higher than expected balance of employee entitlements was due to additional annual leave provisions not budgeted for.

Statement of cash flows

Operating activities

Cash flows from operating activities is an indication of whether an entity is able to finance its normal operations from short-term funds. Council generated a $11.8M cash surplus from operating activities. This is a negative variance to budget of 21% due tothe delay in tradewaste fee payments and other income being below budget and other expenses being above budget as detailed above. The variance is due mainly to timing issues between invoicing and receiving/making payment.

Investing activities

Cash flows from investing activities show asset purchases to be $6M under budget (a 34% variance). Variances to budget for significant projects are disclosed on pages 110-177 of the annual report.

Financing activities

Cash flows from financing activities is $8M under budget arising from reduced capital expenditure outlined above.


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Council’s vision, mission and values Council’s vision Family-friendly Wanganui: the best place to live in New Zealand

Enjoyed for its lifestyle and sense of community Celebrated for its liveability, culture and heritage Shaped by our river and environment On the path of sustainability and prosperity Loved by those who live here

Principle The guiding principle is one of working in partnership with the community.

Council’s mission

To partner with the community to create a flourishing and family-friendly environment. .

Council’s values

Leadership – to provide leadership for the community and to advocate on its behalf Community stewardship – to effectively and efficiently manage community facilities and

resources Participatory democracy – to consult with the community to identify needs and determine

priorities for allocating resources Regional cooperation – to work with our regional partners Accountability to ratepayers – to balance the provision of services with the community’s ability

to pay

Wanganui’s future – Family-friendly Wanganui

Outcomes

Strategies

1. Economic prosperity 1.1. To partner with business and industry to facilitate economic growth.

1.2. To ensure infrastructure meets the needs of current users and future development.

1.3. To facilitate the provision of enhanced communication networks and enable efficient movement of people and goods.

1.4. To enable residents to achieve success through life-long learning opportunities.

1.5. To promote and market Wanganui to attract visitors and businesses and instill pride in our community.

1.6. To support initiatives and events which benefit the community and economic wellbeing.

1.7. To ensure the city environment is visually attractive with quality urban design.


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2. Community partnerships 2.1 To effectively lead and govern in consultation with the community.

2.2 To prepare the community for, and support each other during, emergency events.

2.3 To ensure we are connected to each other, New Zealand and the world.

2.4 To partner with the community on initiatives which benefit the community and social wellbeing.

2.5 To partner with other agencies to improve outcomes for children and young people.

2.6 To partner with other agencies and value older people in our community.

2.7 To partner with Iwi to continue to build strong relationships.

2.8 To encourage ethnic diversity and support new immigrants.

3. A safe and healthy community 3.1 To continue to work collaboratively to ensure a safer community.

3.2 To provide a safe transportation network that meets the needs of all users.

3.3 To set standards for social behaviour to avoid nuisance.

3.4 To improve people’s health, safety and welfare through provision of regulatory activities, water and other services.

3.5 To support and collaborate with the health services to retain access to trusted health services.

4. Active and culturally rich community

4.1 To enable active and healthy lifestyles through the provision of sporting and recreational facilities.

4.2 To develop a vibrant central city and riverfront for the enjoyment of the community.

4.3 To support and promote our vibrant arts community.

4.4 To value and reflect our cultural heritage. 4.5 To provide cultural facilities to support

cultural wellbeing. 4.6 To provide education, literacy and self-

improvement opportunities. 5. Environmental sustainability 5.1 To minimise the impact of waste on the

environment. 5.2 To protect and enhance our natural assets

including the River and coastline. 5.3 To enhance the liveability of our built

environment. 5.4 To advance environmentally sustainable

practices and green technologies.


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Our plans and our reporting We are accountable to the people of the District for the achievement of our objectives and we are required to report to the public each year on our performance. We also work to achieve a satisfactory audit report from Audit New Zealand on our Annual Report. Under the Local Government Act 2002 (the Act), we are required to adopt a 10-Year Plan every three years. In the year in which a 10-Year Plan is prepared, the first year of the Plan becomes the Annual Plan for that year. In the intervening years, years two and three after the 10-Year Plan is adopted, an Annual Plan must be produced.

The 10-Year Plan 2012-2022 This Annual Report is reporting on year one of the 10-Year Plan 2012-2022 – the 2012/13 year. We received 245 submissions to the draft 10-Year Plan 2012-2022 and on 11 and 12 June 2012 heard more than 60 of these. All submissions, both written and oral, were considered by the Council at its deliberation meeting on 13 June 2012, with the 10-Year Plan 2012-2022 adopted on 28 June 2012.

Annual Report The Annual Report is required under section 98 of the Local Government Act 2002. The purpose of the Annual Report is to:

Compare actual activities and actual performance with the intended level of activity and performance as set out in the 10-Year Plan and Annual Plan.

Promote accountability of the local authority to the community for decisions made throughout the year.

The report must contain: In relation to each group of activities:

The activities included within the group. The community outcomes to which the group of activities

primarily contributes. The result of any measurement undertaken during the year

on progress towards the achievement of those outcomes. A description of any identified effects that any activity

within the group has had on the community. An audited statement comparing the capital expenditure

budgeted for the financial year with the actual amount spent. This statement must show separately the amount of funds that Council intended to spend and the amount spent to:

meet additional demand for a group of activities; and

improve the level of performance in relation to a group of activities; and

replace existing assets. An audited statement of service provision, comparing

intended levels with actual levels in relation to the


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performance targets set and giving the reasons for any significant variance between actual and intended levels.

An audited funding impact statement identifying the amount of funds produced from each source of funding, how the funds were applied and how this compares with the information included in the 10-Year Plan.

A statement of the amount of internal borrowing used for the purpose of the group of activities, including the amount of funds borrowed and repaid during the year and the amount of interest (if any) paid in relation to the internal borrowing.

A report on each Council Controlled Organisation including:

The extent to which each Council Controlled Organisation has attained the Council’s policies and objectives.

A comparison between the actual and intended nature and scope of the organisation.

A comparison between actual performance and key performance targets.

Audited financial statements for core and consolidated Council.

An audited funding impact statement for the financial year to which the report relates.

Identification and detail regarding each reserve fund set aside by the Council

Remuneration paid to elected representatives and the chief executive.

A report on employee staffing levels and remuneration.

Information relating to severance payments to the chief executive and any other staff.

A statement that the requirements of the Act in relation to the Annual Report have been complied with.

A report on the activities the Council has undertaken to establish and maintain processes to provide opportunities for Maori to contribute to the decision-making process of Council.


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Groups of activities Overview Changes to legislation have resulted in more groups of activities, although the number of activities we perform remains the same. Our activities now fall into twelve groups:

1. Water supply 2. Stormwater 3. Flood protection and control 4. Wastewater 5. Roads, footpaths and pathways 6. Parks and recreation 7. Community and cultural 8. Economic development 9. Community facilities and services 10. Transportation 11. Investments 12. Corporate

Water supply Safe drinking water is a fundamental requirement for public health. Water systems play a vital role in ensuring the health and safety of communities, a productive economy and a healthy environment. The activities included in the group are: Water supply Community Outcomes to which the group primarily contributes The Water supply group contributes to: A safe and healthy community Economic prosperity

Stormwater Stormwater collection and its disposal are necessary in order in protect the health and safety of people and their land and property. By managing the stormwater network from point source, to discharge, to natural environment, a degree of protection is applied to land, property, the receiving environment and life. The activities included in the group are: Stormwater Community Outcomes to which the group primarily contributes The Stormwater group contributes to: A safe and healthy community Environmental sustainability


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Flood protection and control This group ensures natural water systems are managed to meet environmental and amenity standards for the district’s wellbeing. The activities included in the group are: Waterways and natural drainage

Community Outcomes to which the group primarily contributes The Flood protection and control group contributes to: A safe and healthy community Environmental sustainability

Wastewater As well as providing a convenience to households by enabling easy sewage disposal, the collection, treatment and disposal of wastewater is also important to maintain public and environmental health, as well as the quality of our natural environment, e.g. waterways. The activities included in the group are:

Wastewater Community Outcomes to which the group primarily contributes The Wastewater group contributes to: A safe and healthy community Environmental sustainability

Roads, footpaths and pathways This group manages the district’s roads, bridges, traffic management and control systems and streetlights and contributes to our economic and social enhancement. The activities included in the group are: Roading Footpaths and berms Community Outcomes to which the group primarily contributes The Roads, footpaths and pathways group contributes to: Economic prosperity A safe and healthy community


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Parks and recreation This group of activities includes services and facilities that underpin the maintenance of a family-friendly district – including the provision of parks, open spaces, reserves, sportsgrounds and swimming pools which contribute to the health and social fabric of the community. The activities included in the group are: Parks and reserves Swimming pools Community Outcomes to which the group primarily contributes The Parks and recreation group contributes to: Active and culturally rich community Economic prosperity A safe and healthy community

Community and cultural This group of activities includes services and facilities that support the community and promote social and cultural enrichment. It includes iconic venues that make up our cultural precinct and create the heart of Wanganui. The facilities attract visitors and provide residents with a deep sense of pride and identity. It also includes community development initiatives such as youth services and community support addressing issues around safety, health and youth wellbeing. The activities included within this group are: Community development Libraries Sarjeant Gallery Royal Wanganui Opera HouseWar Memorial Centre Whanganui Regional Museum Community Outcomes to which the group primarily contributes The Community and cultural group contributes to: Community partnerships A safe and healthy community Active and culturally rich community Economic prosperity


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Economic development This group of activities promotes and supports the economic prosperity of the community – making Wanganui a great place to live and visit. The activities included in the group are: Economic development CBD maintenance Community Outcomes to which the group primarily contributes The Economic development group contributes to: Economic prosperity Community partnerships Active and culturally rich community A safe and healthy community

Community facilities and services This group of activities includes services and facilities that underpin the maintenance of a family-friendly district. Some of these activities are required by legislation and others respond to community need and demand. The activities included in the group are: Cemeteries Waste minimisationPensioner housing Community buildingsEmergency management Regulatory services (including animal

control, building control, environmental health, parking services, resource management and environmental policy)

Community Outcomes to which the group primarily contributes The Community facilities and services group contributes to: A safe and healthy community Economic prosperity Active and culturally rich community Environmental sustainability Community partnerships

Transportation Transport provides and maintains connections both within the district and beyond and is essential for economic prosperity and social connectedness. The activities included in the group are: Airport Sea portDurie Hill elevator


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Community Outcomes to which the group primarily contributes The Transportation group contributes to: Economic prosperity A safe and healthy community Community partnerships Active and culturally rich community

Investments This group intends to enhance the development of Wanganui and provide an acceptable financial return to the Wanganui community. The activities included in the group are: Investments: Wanganui District Council Holdings Limited Wanganui District Councils’ Forestry Joint Committee Harbour Endowment property portfolio City Endowment property portfolio Quarry Community Outcomes to which the group primarily contributes The Investments group contributes to: Economic prosperity

Corporate This group of activities provides support for Council staff and elected members to work together for the benefit of the community. The activities included in the group are: Governance Corporate managementCommunity and operational property (formerly City Freehold property portfolio) Community Outcomes to which the group primarily contributes The Corporate group contributes to: Community partnerships Economic prosperity A safe and healthy community Active and culturally rich community


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Progress made towards the achievement of the Community Outcomes The following indicators have been developed to assess achievement of our Community Outcomes (what we call our Family-friendly Strategy) as identified in the 10-Year Plan 2012-2022. These outcomes serve as a guide for shaping our future and reflect our overall aspirations for the city. While changes to the Local Government Act mean that Community Outcomes now constitute the outcomes that Council will aim to achieve in order to meet the current and future needs of our community for good quality local infrastructure, local public services and performance of regulatory functions, we still intend to work with our community partners to achieve common goals together. We reviewed our strategic direction in the lead up to the development of the 10-Year Plan 2012-2022 with the hosting of both Council and community visioning exercises. The ideas generated at these meetings were then incorporated into a revised Family-friendly Strategy. Over time we expect to see improvement across all areas. In order to accurately monitor this progress, each outcome has been assigned a number of monitoring indicators. Data collection is an ongoing process and is recorded in our Interplan database. The reporting for this Annual Report is based upon both the updated statistics gathered and the contribution we have made towards the achievement of these outcomes through our work programmes.


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Community Outcomes indicators

Indicators of economic prosperity Indicators Commentary ResultNumber of guest nights

The number of guest nights dropped from 174,718 in 2011/12 to 167,414 in 2012/13 – mirroring a trend of decline reflected nationwide. (Source: Statistics NZ)

Tonnes of product through the Port

There were 21,711 tonnes of product processed through Wanganui Port in 2012/13. Although this represented a substantial increase of 13,836 tonnes on the previous period, it should be noted that the 2011/12 year was impacted by the temporary closure of the Kapuni plant. These gains did also trump the 2010/11 period though – seeing activity grow by 3,608 tonnes over the last two years. (Source: Wanganui Port)

Deprivation profile At an average of 6.2, Wanganui's level of deprivation is just above the national average of 6. This decile number is based on household income, car and telephone access, household crowding, employment, home ownership status and people <60 in a single parent family. This index categorises communities from one (least deprived) to decile ten (most deprived). Within our District Health Board area, 60% of suburbs recorded a decile rating greater than five. St John’s Hill is the only suburb to score one, while Castlecliff, Mosston and Central Wanganui are equally ranked the most deprived, all recording a score of ten. (Source: Whanganui DHB)

Number of events supported

We measured the number of events supported through the Impact Fund for the first time in 2012/13. There were nine events funded, including Wanganui Opera Week, Festival of Glass and the Artists Open Studios. (Source: Wanganui District Council)

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Perception as a tourism destination

In 2013 nearly one-third of respondents (32%) to our National Perceptions Survey identified Wanganui as a tourism destination. This was in line with responses from 2011 and 2009. This did not meet the longer term target of 50%. The survey will next be undertaken in the 2014/15 year. (Source: Independent National Perceptions Survey)


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Council actions that have contributed to ‘Economic prosperity’

TechEx

A free three-day technology expo was hosted by the Wanganui Digital Leaders Forum in July 2012 and again in June 2013. This innovative and interactive event was about capitalising on the benefits that early rollout of ultrafast broadband has provided to Wanganui and demonstrating to the whole community how technology can benefit them now and in the future.

Sale of Energy Direct New Zealand Ltd (EDNZ)

After receiving advice from Pricewaterhouse Coopers, Wanganui Gas and Wanganui District Council Holdings Ltd (WDCHL) directors, the Council decided to sell the asset of energy trading company EDNZ for $13.65M plus $1.5M of working capital. The deal ensured that, at a minimum, the purchaser TrustPower would retain staff jobs and remain in the region for the next two years.

Limited Service Volunteers

The Mayor hosted six young Limited Service Volunteer (LSV) graduates at the Council Chambers in August 2012 for a special morning tea. The graduates had recently returned from the LSV course – a six week programme for young people aged between 17 – 24 years. It aims to increase the numbers of young New Zealanders entering employment or further training by giving them the skills and attitude they need to succeed.

Whanganui Digital Leaders Forum

The Whanganui Digital Leaders Forum worked hard to ensure that our diverse communities were empowered and equipped to make the most of the advantages that ultrafast broadband offers. The forum represents 10 key focus areas across education, business, health, the environment, sports, creative industries, Tangata Whenua, the rural sector, the community and Council. A draft strategic plan has now been developed.

Computers in Homes graduates In 2012/13 The Wanganui Computers in Homes (CiH) programme entered its seventh year of operation and helped over 100 families to become digitally literate. Participation in


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CiH involves parents and caregivers undertaking 20 hours training covering basic computer and internet use. They then receive a refurbished computer and software to use at home. The programme is for under-served families with children at school who cannot afford to have a computer and internet connection at home.

INTRANZ graduates Twenty two cadets successfully completed the 26 week foundation course – obtaining the National Certificate in Mechanical Engineering (Level 2). INTRANZ was set up by Wanganui industry with support from YMCA Central and the Council’s Economic Development Office specifically to cater for the employment needs of local industry. Currently 85% of cadets are offered employment upon graduation.

UFB rollout

Rollout of Wanganui’s ultrafast broadband network continued during 2012/13, with this expected to be completed in 2016. Fibre optic cables have been deployed throughout the urban area, through underground piping ducts and overhead lines. To date 87km of fibre optic cable has been laid underground, 105km overhead and more than 10,000 Wanganui premises passed.

Intelligent Community

In 2012 Wanganui was named as one of the international Smart21 Communities of the Year. The Intelligent Communities Forum is a global movement which celebrates and supports communities which demonstrate the positive ways in which they have embraced the challenges of broadband, and adapted and developed strategies to use this new technology to the benefit of their residents. Wanganui is the first New Zealand community to be included in the Smart21 list.

Alliance contract

In late 2012 Council signed a contract for the continued delivery of services through the Wanganui Maintenance Alliance. The principles behind the Alliance continue to be delivery of a flexible, project focused and efficient way of working – which ultimately means better value for money for the ratepayer.

Chinese education delegation

Council’s economic development team coordinated a visit from a Chinese delegation to learn more about the education opportunities available in the district.

Computer Clubhouse

The Computer Clubhouse continued to provide a creative and safe after-school learning environment for young people aged 10 to 18 years. The Clubhouse has 16 iMacs, two Mac laptops, a recording studio with musical instruments, digital and video cameras, a telescope, LEGO, Vex and We Do Robotics, a big screen TV and more. During 2012/13 young people used the Clubhouse for a range of creative endeavors including photography workshops and music production. Nearly 700


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young people have joined the Clubhouse since it opened in May 2010.

Visitors from Toowoomba In February 2013 Council hosted a civic delegation from our Australian sister city Toowoomba. During their stay they met with Wanganui District Councillors, local business leaders and organisations to further develop relationships and stimulate economic and tourism opportunities between our two cities.

Property divestment One of our functions is to ensure that our assets have a tangible benefit for ratepayers and residents. When properties are no longer required for our use and are surplus to requirements they are approved for divestment. If they are sold, the proceeds are then used to pay back debt. During the year we sold three properties (25 Tawa Street, 8B Bryce Street and 76D Koromiko Street).

Whanganui River Road seal extension

In October the NZ Transport Agency (NZTA) confirmed additional funding to complete the final section of sealing of the Whanganui River Road. The sealing work will be finished by May 2014 and, as a result the targeted rate applied to residents of the Whanganui River Road will cease from 2013/14. The balance of the funding remaining will be used for work on Morikau Road.

Enhanced connectivity in the CBD

A formal link was created between the War Memorial Centre Forecourt and Majestic Square to enhance the connectivity of this area with Queens Park. The project was provided a kickstart with a donation from the Majestic Square Trust and enabled achievement of the original plan’s vision – something set in place when the town centre was upgraded around 20 years ago.

Free wi-fi In April 2013 Council partnered with Inspire Net to begin providing a free wi-fi network at a number of locations in the urban area. This service offers visitors and residents up to 100MB of free data per month for their wi-fi enabled devices and supports Council’s goal of ‘100% connectivity’.

Economic Impact Fund

In 2012/13 the Impact Fund allocated money to a range of events including Wanganui Opera Week, Festival of Glass and the Artists Open Studios.

National perceptions of Wanganui

We conducted our third national perceptions survey to assess how Wanganui’s image has shifted over the last two years. Respondents to the 2013 survey responded more positively to almost all the perception statements measured – with the biggest increases around our lack of traffic congestion, our culture and heritage and access to quality healthcare.

Castlecliff Community Technology Centre (CTC)

On 25 July 2012 the Mayor officially opened the Castlecliff Community Technology Centre – providing an opportunity for local people to get connected, develop digital literacy and take advantage of technology on their doorstep. This is based at the


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Ake Ake Centre in Rangiora Street and is a partnership effort between the Yes to Youth Trust (Y2Y) and Council’s Digital Communities Group.

Council/UCOL taskforce Following concerns about the changes and cuts made by UCOL to its programmes in Wanganui we established a joint taskforce to strengthen our relationship with UCOL and help us work together on key tertiary education issues for our district.

New lights at the airport Airways New Zealand’s plans to upgrade Wanganui Airport were progressed with the installation of new approach lights. This was part of a ‘whole of service’ upgrade of the aviation lighting system and Wanganui is the first airport in New Zealand to make use of new LED technology. Other upgrade work includes new wiring, an automatic weather broadcast system and refurbished glide slope indication equipment – all contributing to Wanganui’s ability to operate commercial passenger and aero medical services in all but the most extreme of weather conditions.

Whanganui and Partners Whanganui and Partners continued to promote partnerships with key stakeholders from across the community on prioritised projects. It emerged as an initiative from the Economic Development Strategy and during 2012/13 maintained its focus on implementation of this vision.

Vision Manawatu We worked alongside Vision Manawatu, the entity responsible for delivery of the Regional Business Partnership Network. Visits were undertaken by Vision Manawatu on an ‘as required’ basis and funding in the form of vouchers was distributed to purchase business-focused training. In addition, there were 18 business assessments completed and 48 engagements with New Zealand Trade and Enterprise.

Business assistance We worked with Ministry of Science and Innovation funding consultants, ‘the BCC Ltd’, to assist a range of Wanganui companies. These projects included development of an optically perfect eye shield to satisfy legislative changes in the American fire safety market and a plastic plough blade for New Zealand’s diverse soil conditions. We have also contributed to the BCC Innovate programme – a competition designed to identify innovative ideas and take them through to commercialisation. This year, 182 entries were accepted and it was the first time that Wanganui was involved.

Economic development for the rural sector

We continued to work with Rural Community Board members and local rural business people on the Rural Enterprise project. Although this project is close to being handed over to the businesses involved, links will be maintained to assist as required.


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Five years of connectivity! In 2012/13 the Wanganui District Library celebrated five years of delivering the ‘Aotearoa People’s Network Kaharoa’ to the community – providing a suite of computers with free access to a wide variety of applications and connection to the internet. More than 375,000 user sessions have been recorded since the service started in May 2008 – close to 1,500 sessions a week.

Indicators of community partnerships

Indicators Commentary ResultSatisfaction with governance

The 2013 Community Views Survey revealed that 48% of people rated the performance of the Mayor and councillors as ‘good’ or ‘very good’. This represented a significant decrease in confidence on the previous year where 55% of respondents were satisfied with this performance. In addition, provision of sufficient information, the quality of this information, responsiveness to community needs and issues and community involvement in decision making were also canvassed. All of these measures recorded less positive results than the year before, with 56% of people considering that ‘enough’ or ‘more than enough’ information had been supplied (63% in 2012); 44% believing that the Council had responded ‘very well’ or ‘well’ to community needs and issues (59% in 2012); 45% noting satisfaction with the community’s involvement in decision making (52% in 2012); and 58% stating that the information supplied by Council ‘told them what they needed to know’ (65% in 2012). (Source: Independent Community Views Survey)

Preparation for an emergency event

Overall, 62% of people have an emergency response plan that they have discussed with members of their household. This was a slight increase on the previous year (59%). (Source: Independent Community Views Survey)


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Number of community partnerships

We measured the number of formal community partnerships for the first time in 2012/13. We have 36 Memorandums of Understanding (MoUs) with external agencies across a range of activities and provided 27 grants to community groups through our Community Contracts scheme. These partnerships enhance our ability to develop Wanganui as a great place to live, work and visit. (Source: Wanganui District Council)

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Council actions that have contributed to ‘Community partnerships’

Positive Ageing Forum This forum met regularly during the year to progress issues of

significance for older people in our community. This included review of the Supergold Card programme, consideration of the NZ Longitudinal Study on Ageing and appropriate funding of health transport services. The Wanganui Positive Ageing Strategy was also reviewed.

Sister Cities involvement and 60 year anniversary

Wanganui’s sister city relationships with Toowoomba, Australia and Nagaizumi-cho, Japan continued to be supported during the year, with 2012 marking the 60th anniversary of diplomatic relations between Japan and New Zealand. A programme of celebratory events was held over Labour Weekend to recognise this special occasion.

International students We welcomed a number of international school groups to Wanganui during the year including visitors from Xu Zhou (China) and Wakayama, Kobe and Nagaizumi (Japan)

Representation review We reviewed our representation arrangements in accordance with section 19Y of the Local Electoral Act 2001 and after a public consultation process decided to retain the current electoral arrangements.

Community meetings A number of ‘community conversation’ meetings took place during the year – providing an opportunity for residents to engage with the Mayor, councillors and Council representatives. These meetings were also supported by Safer Wanganui.

International Day of Peace The Library worked with other community organisations to signify the 10th anniversary of the Handspan peace sculpture in


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Queens Park and celebrate the 2012 International Day of Peace. Events were held and members of the public were invited to sign a page demonstrating their commitment to promote a culture of peace.

For Our Kids coordinator appointed

A new coordinator of the For Our Kids programme was appointed in September. This is a joint Council and community initiative that emerged from the Community Taskforce on Youth Wellbeing. It provides adults in our community with support to actively engage with our young people through positive relationships and activities.

Youth Committee Our Youth Committee continued to provide a powerful vehicle for young people to speak up, speak out and be heard. Issues considered by the committee during 2012/13 included the Annual Plan, an anti-bullying campaign and youth recreation and ‘place making’. The Committee also staged a youth art competition, attended the National Youth Forum on Cultural Diversity and held events such as Picnic in the Park.

Youth Committee $300ships The Youth Committee continued to provide funding for young people to help them reach their potential. ‘$300ships’ are available to Wanganui residents between 12 and 24 years of age to support personal development in any arena. Recipients during 2012/13 received funding for a diverse range of activities across arts, sport, philanthropy and education.

Community Views Survey 2013 Our annual Community Views Survey seeks feedback on satisfaction with Council services and facilities while also assessing general perceptions on quality of life, community engagement and wellbeing. This year’s results saw significant decreases in positive ratings across a number of measures; however, this was particularly apparent in relation to Council governance, quality of life, belonging and the provision of Council services and facilities. Despite these declines there were also some gains. The following measures either achieved their targets or demonstrated improvement on the previous year: walkway use; footpaths and berms; public toilets; animal control; safety in the CBD at night; and public art.

Rural Community Board Representative rural community governance was provided by the Rural Community Board. Public meetings were held and the Board pursued additional efforts to connect with its constituents through initiatives such as its newsletter ‘Hotwire’, articles in ‘On the Land’ and the hosting of ‘community conversation’ meetings in the rural area. The Board also worked to increase economic opportunities for rural land use through the Wanganui Rural Enterprise Project, gained both speaking and voting rights on Council committees and speaking rights at full Council meetings and advocated for the rural community through the District Plan review.


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Rural Community Best Practice Award

The Board’s work on the effects of forestry on rural roads won the supreme award at the 2013 New Zealand Community Boards Conference – representing the most innovative project or initiative that has resulted in the greatest community value. In addition, its efforts with rural broadband secured a win in the ‘leadership’ category.

Volunteer (Kaituao) Awards We partnered with Volunteer Wanganui to host these awards in December in order to recognise our local volunteer heroes. A total of 25 individual and 12 team nominations were received, with the Tawhero School breakfast programme taking away the supreme award.

Nationally recognised customer service

Two of our staff led the field in the 2012 ALGIM Customer Services Awards – with Diana Doyle named Local Government Customer Service Representative of the Year and Raewyne Johnson placing as the joint runner-up in the Customer Services Representative of the Year category. Customer service is a key focus for Council and this was the fourth consecutive year that we have received national recognition for our efforts.

Community Contracts Funding was available to support community groups and organisations in the delivery of community based projects or events. Thirty one applications were received for the formal 2012/13 Community Contracts funding round and 27 contracts were approved.

Tamaupoko and Tupoho meetings

We continued to meet separately with two of the Atihaunui-A-Paparangi Runanga, Tupoho and Tamaupoko on a six-weekly basis as per our relationship documents. Six Tamaupoko Link meetings and eight Tupoho Working Party meetings took place during the 2012/13 year.

Local government reform In December 2012 the Local Government Act was amended, with a number of substantial changes introduced including adoption of a new local government purpose statement. We performed a review of our current services and believe that our activities comply – however, this will require ongoing focus and attention which will be further developed during 2013/14.


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Indicators of a safe and healthy community

Indicators Commentary ResultNumber of road crashes

The target of less than 20 reported injury crashes (fatal or serious) on Council’s local roads was achieved. The actual result was 10 during the 2012/13 year. Three of these were fatalities (there were two in 2011/12) – however the overall number of fatal / serious crashes was down on the previous year from 13. (Source: NZTA)

Perceptions of safety Perceptions of safety at home in the evening remained fairly consistent – moving from 97% to 95%. Similarly, there was little change in many of the other safety measures tracked. However, perceptions of property security when away from home dropped by 5% to 87%, while feelings of safety in the CBD at night increased by 5% to 50%. This was canvassed via the annual Community Views Survey. (Source: Independent Community Views Survey)

Safer Whanganui improvements

Safer Whanganui has seven priority focus areas – alcohol and other drugs, education, family violence, justice, safety and wellbeing, emergency planning and road safety. The target for 2012/13 was to demonstrate improvement across 40% of these result cards. The actual result was 55%. (Source: Safer Whanganui Steering Group)

Drinking water quality

The target of 100% was achieved. The Council received confirmation of an Aa grading from the Ministry of Health following satisfaction of all testing and reporting requirements. This covers the Wanganui urban area. Ministry of Health grading is a measure of confidence that drinking water supplies will remain uncontaminated. (Source: Ministry of Health)


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Council actions that have contributed to ‘A safe and healthy community’ Wastewater Treatment Plant

In October 2012 we advised the community that our wastewater treatment plant was not currently operating effectively and as a result, was not complying with the limits set in its resource consent from Horizons Regional Council. We began a programme to remedy the compliance issues and worked with Horizons to achieve this. This included implementing short-term measures to deal with the odour problem and comply with an abatement notice from Horizons for objectionable odour beyond the boundary of the treatment plant. In order to help us approach the longer-term issue of dealing with our wastewater we commissioned a report from internationally-recognised wastewater specialists Cardno BTO and this was then independently peer reviewed by AECOM. The report recommended a significant upgrade of the wastewater plant using parts of the existing infrastructure. It is estimated that this will cost $24M capital and we have included $9M additional capital and $3M additional operating expense in our Annual Plan 2013/14. These estimated costs assume that upgrade of the plan will be completed by December 2014 – with $15M in capital costs in the 2014/15 financial year.

Wastewater and stormwater network assessment

We have discovered that improvements need to be made to the asset condition data that we hold. As a result, the infrastructure team has initiated a project to collect new and more accurate information on network performance and condition for stormwater and wastewater. This project includes network modeling, data verification, CCTV work and inflow and infiltration investigations. The aim is to complete the project in time for the next 10-Year Plan in 2015 so that we can pursue the most critical and urgent network replacements and capital works.

Exercise ShakeOut We participated in the national earthquake drill, ‘Exercise ShakeOut’ on 26 September 2012. This provided us with a great opportunity to examine and review our own emergency preparedness arrangements.

Liquor seminars Two liquor seminars for licencees, managers and staff were held in July to address host responsibility, how to manage intoxication and trespass, understanding licence provisions and the Alcohol Reform Bill.

Sarjeant Gallery earthquake issues

The Sarjeant Gallery has been assessed as an earthquake-prone building with significant risk to staff, public and the collection in the event of a major earthquake. We are applying for government and philanthropic funding to enhance the existing gallery by providing better public and education facilities,


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appropriate storage and environmental controls and earthquake strengthening work. We have identified a suitable interim location at 38 Taupo Quay to house the Sarjeant Gallery activity and its collection until earthquake issues have been addressed. The move to Taupo Quay is planned for March 2014. In the meantime, we will manage our Health and Safety in Employment Act responsibilities at the Sarjeant Gallery through a mixture of risk mitigation measures. This will include reducing the amount of time employees and students are in the building, providing alternative accommodation nearby and the use of earthquake-proof furniture.

Earthquake-prone buildings We made a strong submission to the government’s earthquake-prone buildings (EQPB) policy proposal, including attending a number of sector group meetings to voice our concerns. We also invited Hon. Maurice Williamson (Minister of Building and Housing) to Wanganui to discuss these proposals. We are now awaiting the government’s response to the public consultation process and will make further submissions as the proposed Bill progresses. In terms of our own buildings, we have used a risk assessment formula for identifying priority upgrades. This has resulted in the Sarjeant Gallery and the Royal Wanganui Opera House being assessed as priority buildings for seismic upgrade and risk mitigation work.

Earthquake-prone Buildings Community Taskforce

The taskforce continued to advocate for the community in relation to EQPB issues. This taskforce is commissioned by Council and met regularly during the year to develop policy responses to government and to also commission studies and work streams. This enhanced our ability to deal with our EQPBs in an innovative and cost effective way.

Roading projects

We continued to work on road safety issues with the New Zealand Police, Horizons Regional Council, NZTA and ACC through a Road Safety Action Plan group. Projects of note during the year included approval for Westmere School to be gazetted as a ‘variable speed limit’ zone, safety improvements to the London Street / Halswell Street intersection (with London Street closed on the Aramoho side to prevent traffic travelling straight along London Street to Victoria Avenue) and significant changes to the Victoria Avenue / London Street intersection in line with the Urban Transportation Strategy.

Dublin Street Bridge underpass The Dublin Street Bridge underpass was completed and is now fully accessible for people on mobility scooters as well as for walkers and cyclists.


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Building Inspectors out and about

Our Building Inspectors manned a stall at the Home Show in November. The inspectors were available for building related queries and provided information regarding the consent process.

Fire hydrant testing award Our innovative multi-agency asset management project for fire hydrant testing with the New Zealand Fire Service saw us win the 2012 ALGIM Collaboration Award. The project has resulted in a more effective and efficient approach to data capture using digital solutions.

Community Safety Group A Community Safety Group was formed in September to develop a coordinated approach by key agencies, on behalf of the community, to deal with concerns about the release of Stewart Murray Wilson in the Wanganui district. This group worked within the Safer Whanganui framework and held several meetings before reporting back to the Council.

Safer Whanganui The Safer Whanganui steering group continued to work hard to take action on Wanganui’s health and safety issues, with a focus on the seven priority streams of alcohol and other drugs; education; family violence; justice; safety and wellbeing; emergency planning; and road safety. Issues and projects covered over the last year included ‘Safe Homes and Streets’, river safety, suicide prevention, sexual violence and accessibility.

SCADA (Supervisory Control and Data Acquisition) system

The SCADA and telemetry system was completed during the 2012/13 year. This will enable us to operate and monitor water and wastewater operations remotely. It also logs data required by Horizons Regional Council and provides the ability to send out alarms to on-call staff when breakdowns occur.

Water renewals / upgrades The following renewals / upgrades were completed in 2012/13:

Renewal in Mission Road. Replacement of variable speed drive at No. 2 bore Kai

Iwi. Laying water main in Landguard Road and connecting

Airport supply to city. Replacing 320m of Castlecliff main. Renewal of water main between Mt View Road and

Durie Vale Road. Renewal of Dublin Street water main. Replacement of balustrades in Bastia Hill water tower.

Local Alcohol Policy We resolved to develop a Local Alcohol Policy for Wanganui and decided to conduct alcohol perception surveys in early 2013/14. It is expected that the policy will be adopted in April 2014.

Community Taskforce on Youth Wellbeing

The Taskforce is one of the largest forums of its kind in Wanganui and is jointly chaired by Whanganui Iwi and the Council. In 2012/13 its work included a focus on youth


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transitioning into employment.Graffiti management We continued our partnership with the Wanganui Resene

Paintwise Programme to clean up the city and support community groups. People were encouraged to return unwanted paint which was then mixed into varying shades of grey and donated to community organisations. Graffiti management was also supported by our ‘Graffiti Hotline’ and the Graffiti Team.

Hazards / site features project The hazards / site features project has been refined with a number of modifications and improvements made during the 2012/13 year. Most of the site features (about 24) have now been transferred into the GIS layers system.

Emergency management training activities

There were a number of introductory sessions for the new national Emergency Management Information System (EMIS) and 17 staff were able to test their EMIS skills with participation in the national exercise ‘Shake Out’ in September. In February the emergency operations centre (EOC) team reviewed its processes and the setup of its physical equipment and resources. This was followed in April with testing of the Council Chambers as an alternate venue. The team also reviewed its use of the national Coordinated Incident Management System and the mobility capability of the EOC’s resources.

Responses to significant events While our EOC was not fully activated during the year there were a number of events which required monitoring and the issuance of advice and media releases:

July 2012: 7.0 Richter earthquake off Opunake followed by a rise of the Whanganui River to a level of 10.5m at Pipiriki. This was monitored overnight.

August 2012: Eruption of Mt. Tongariro. November 2012: Eruption of Mt. Ruapehu. June 2013: Staff on standby for possible activation for

a severe storm. A number of Tsunami Advisory messages were also supervised by the on-call Emergency Management Duty Officer from earthquakes in the Philippines, Costa Rica and the Solomon Islands.

Whanganui Navigation and Water Safety Group

Meetings continued to be held with representatives from Horizons Regional Council, Royal Life Saving Society and Iwi. During 2012/13 a ‘Be Safe, Be Seen’ project was pursued and the group participated in river user consultation meetings led by the Whanganui River Māori Trust Board in respect to the river claim.


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Indicators of an active and culturally rich community Indicators Commentary ResultNumber of people visiting our cultural facilities

Overall participation in our cultural facilities remained strong – with visitor numbers totaling 572,711 across the 2012/13 year. This figure now includes physical visits as well as unique website hits and, as a result, is not directly comparable to results for the 2011/12 period. Visitor counts are taken across the Sarjeant Gallery, Whanganui Regional Museum, Royal Wanganui Opera House and the district libraries. (Source: Wanganui District Council)

-

Satisfaction with the CBD

The target of 90% was not achieved. The actual result was 71% of residents were satisfied with the contribution the CBD makes to their lifestyle and the image of Wanganui. This was a decrease of 5% on the previous year where 76% was achieved. (Source: Independent Community Views Survey)

Recreational participation

The community’s level of participation in sport and recreational activities was canvassed by the Community Views Survey 2013. The vast majority of respondents to this survey (93%) had participated in at least one of the activity options over the last year; however, this was a decrease of 4% on the year before. (Source: Independent Community Views Survey)

Perception of our arts and cultural offerings

The national perception that there are lots of arts and cultural activities available in Wanganui increased by 10% between 2011 and 2013 (from 33% to 43%). In addition, 66% of respondents indicated that Wanganui has a rich culture and heritage – an increase of 14% on the last reporting period. (Source: Independent National Perceptions Survey)


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Council actions that have contributed to an ‘Active and culturally rich community’

Festival of Cultures

A celebration of Wanganui’s diverse cultural makeup was held on 22 September at Majestic Square, with a range of international foods, demonstrations, music and dance performances on offer. Visitors to the event were also provided with information about a wide range of activities and services particularly suited to newcomers to Wanganui.

Creative Communities Funding for local community-based arts activities was again available through the Creative Communities Scheme. This scheme aims to increase participation in the arts at a local level and increase the range and diversity of arts available to communities – with the fund administered by Council in partnership with Creative New Zealand. The successful applicants covered a broad programme of arts events and training and included a 40th anniversary concert celebration, a performance series at the Royal Wanganui Opera House, Chinese and Korean New Year celebrations, a website for AWA events and a marketing campaign for the Community Education Service.

Family history month August is family history month and the Wanganui District Library and the Wanganui Branch of the New Zealand Society of Genealogists held events throughout the month at the Alexander Heritage Research Library.

Books for babies Books for babies was launched in August and received funding from the Whanganui Community Foundation. All newborn babies now receive a black and white board book containing a special invitation to visit the Davis, Gonville Café Library or the Mobile Library to sign up for a free membership and receive a further gift, a black and white baby mobile. The project is supported by local midwives, Plunket and other parent support services and promotes the importance of connecting babies to learning opportunities from birth.

Sports Hall of Fame The purpose of the Sports Hall of Fame is to recognise sporting achievements by athletes and coaches who have made a significant impact on Wanganui’s sporting heritage, with new


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inductees appointed each year. In 2012/13 seven members of the McIntyre family were recognised for their significant achievements in a range of sports including golf, hockey, softball and tennis. Charles Seeling (a Wanganui-born member of the 1905-06 “Originals” All Blacks side) and Richard Tonks (an Olympic silver medalist rower) were also appointed.

Skate park upgrade The skate park at Kowhai Park underwent an upgrade as part of a joint project between the Youth Committee and our parks team, with assistance from locally-based skate park design company ‘Custom Skate Parks’. The upgrade included the addition of a ‘pyramid’ jump and replacement of the half-pipe.

New playground at Mowhanau Visitors to Mowhanau beach now have a great new playground to enjoy. While the playground kept some of its much loved features – such as the flying fox, the witch’s hat and the pirate ship – additional play equipment was also added. This included new swings, a rope climbing frame with crow’s nest at the top and a rope see-saw that can accommodate lots of children playing on it at one time.

No. 12 Tram Tracks were laid along Moutoa Quay for the No. 12 Tram as part of the Tram Project Stage 1. At the same time, provision was made for additional lighting along the riverfront by doubling up the support posts for the overhead catenary wire of the tram as light posts. Work is currently underway by our partner, the Tramways Wanganui Trust (TWT), on a special safety case for the tram operations. This will ensure public safety when the tram is up and running alongside the area used by the River Traders and Whanganui Farmers Market. Once this has been completed, the TWT would be lodged with NZTA for a licence to operate the tram on the new tram tracks. We are currently also restructuring the ownership of the No. 12 Tram to ensure its safekeeping for future generations.

All Blacks at the Library Visitors to the Davis Library received a special treat in October when four members of the All Blacks squad called in for a flying visit. Aaron Cruden and Ali Williams joined in a special ‘Reading, Rhythm and Rhyme’ session while Charlie Faumuina and Tony Woodcock led a ‘skills and drills’ session outside.

Public Art Steering Group As part of our implementation of the Public Art Strategy, the Public Art Steering Group met regularly to advise on and select art initiatives for Wanganui’s public spaces. These meetings were held during 2012/13 and included representation from local iwi; artists / curators; the wider community and the Council.

Architectural award for the Sarjeant Gallery

The Sarjeant Gallery was the winner of the ‘enduring architecture’ category in the 2012 Western Architecture Awards – covering the area from New Plymouth to Levin and inland to Ohakune. In bestowing this honour it was noted that


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the gallery is: “…a wonderful testament to and validation of a city’s architectural ambition.”

Aon Billy Webb Challenge Weekend

We yet again played host to Olympic heroes during the Aon Billy Webb Challenge – providing an action packed weekend on the water and a fantastic opportunity to watch our very own Olympic gold medalists fight it out against some of the world’s best.

Celebrating Wanganui’s Olympians and Paralympians

Wanganui’s sports stars were recognised at a special dinner during the Aon Billy Webb Challenge weekend in December. This was a fundraising event to launch the ‘Future Champions Trust’ which will support Wanganui’s next tier of champions to progress to the elite level in their chosen sport.

Picnic in the Park The Youth Committee hosted its hugely popular annual Picnic in the Park for young people and their families at Kowhai Park on 1 December. Attendees enjoyed entertainment such as face-painting, a clown, the titanic slide, a fire-dance performance, a fencing display, local bands, mad scientist fun from the library and a huge free sausage sizzle.

Zest – Music on the streets We have worked with Palmerston North City Council to ensure arts and cultural collaboration between our two cities. In 2012/13 this saw us partner with them to deliver a Zest Music Festival in Wanganui (following the success of the event in Palmerston North). The Youth Committee took the lead on this project and it was staged in February, with the talents of local musicians showcased at nine locations along Victoria Avenue.

Thousand Stars campaign launched

The Thousand Stars programme was launched in December and encourages people and businesses to support the ongoing legacy of the gallery and continue Henry Sarjeant’s vision while responding to the present day challenges of earthquakes and modern gallery standards. The goal of a Thousand Stars is to contribute $1M over the next four years towards the redevelopment of the gallery. In 1912 Henry Sarjeant left his fortune to found a gallery – ‘for the inspiration of ourselves and those who come after us’.

Parks Week We celebrated Parks Week in March to recognise the important role that parks play in contributing to the social, cultural and environmental health of our communities.

Kowhai Park celebrations In March the Wanganui Lions Club celebrated the 50th

anniversary of both the Tot Town Railway and the annual Teddy Bears’ picnic. These milestones were marked by a bouncy castle, sausage sizzle, face painting, lolly scramble and an official cake cutting ceremony.

Artists Open Studios The 13th annual Whanganui Artists Open Studios took place during March – providing a unique opportunity to visit artists in their own studios and watch their work in action. Thirteen


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years of operation has seen the event grow into a major highlight of the Wanganui cultural calendar – with it attracting visitors from across New Zealand. In 2013 over 60 studios and galleries and 100 artists participated.

Waitahinga Trails open The Waitahinga Trails were officially opened in May. Waitahinga is situated 12km past Bushy Park and is the site of the Waitahinga Dam which was built in 1904 and supplied Wanganui’s water until it was decommissioned in the late 1990s. This land is owned by the Council and the Wanganui Tramping Club has developed a series of trails for public use.

Splash Centre maintenance Maintenance work at the Splash Centre was completed during the year. This included painting of the leisure pool, upkeep of the hydrotherapy pool, re-lamping the lights, cleaning of the pool drainage channels and improvements to the acoustics in the newer part of the complex.

Puanga celebrations A number of events were held during May to August to celebrate Puanga, the Māori New Year. This included a dawn Puanga blessing, the creation of artworks around Puanga kaupapa, a fashion show, the Cosmodome (astral navigation) and a traditional kai evening.

Archaeological information In an attempt to avoid unexpected archaeological discoveries and damage we have been sending out information to land owners with known or strongly suspected sites on their property. Because of our long history of human occupation, the Wanganui district has many known archaeological sites, legally defined as places occupied prior to 1900. These sites range from middens (discarded rubbish such as shells or bottles down old wells) through to pa, redoubts, homesteads, kumara pits and factory sites.

Parks and property general General improvement work was undertaken in the parks and property area during 2012/13, for example:

A new BBQ and planting at Bason Botanic Gardens. Progressing plans for redevelopment of the Wharf

Street boat ramp and Aramoho Cemetery extension. Tidying up vegetation at Hipango Park and William

Birch Pool. Track upgrades at Virginia Lake. Paving at the cemetery house in Papaiti Road. Safety improvements at Kowhai Park.

The Bason Botanic Gardens Trust also prepared a strategic plan to guide development at the site over the next 8-10 years.

Whanganui Literary Festival We continued to support iconic events, including the biennial Whanganui Literary Festival. Although 2012 was an ‘off-year’ the profile of literary arts in our community was maintained through events such as a celebration of the life and works of James K Baxter on the 40th anniversary of his death.


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Festival of Glass Our annual Festival of Glass offered a range of opportunities to view the very best of glass art in New Zealand – with total visitor numbers to the exhibition over its 14 day run topping 2,000. The National Glass Artists Conference ‘Generate’ was also held at the same time.

Masters Games Over 5,000 people signed up for the 2013 Masters Games, participating in a number of events over nine days in February.

Indicators of environmental sustainability

Indicators Commentary ResultVolume of waste recycled

There was 21,904m³ of waste recycled during 2012/13. This was an increase of 603m³ on the previous year. (Source: Wanganui District Council)

Quality of effluent from treatment plant

The quality of effluent discharge from the wastewater treatment plant was measured across the 2012/13 year. The consent condition target was 98%; however, the plant only achieved 41% compliance – a decrease of 5% on the previous year’s result. These consent conditions are about making sure discharges do not exceed set standards – for example in relation to grease, faecal coliforms and suspended solids. We are working with Horizons Regional Council to remedy our compliance issues and will be undertaking a significant upgrade of our wastewater plant, using parts of the existing infrastructure. (Source: Wanganui District Council)

Beach water quality Water quality was tested throughout the 2012/13 year at both South Beach and Castlecliff Beach, with compliance achieved 100% of the time. This matched the previous year’s result. (Source: Wanganui District Council)


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Council actions that have contributed to ‘Environmental sustainability’

District Plan online After a year of operation we wanted to find out how the

District Plan online was working for our customers. People were asked to fill in a quick survey on the Shaping Wanganui website, with this information then used to make improvements to the interactive web-based Plan.

Shaping Wanganui Phased review of the District Plan (‘Shaping Wanganui’) remained a priority. We have now completed, or are part-way through, reviews of Phase 1 City Centre and Riverfront; Phase 2 Residential; Phase 3 Built Heritage; Phase 4 Rural; and Phase 5 Archaeology and Protected Trees.

Recycling of electronic waste We introduced a new user-pays e-waste recycling service at the Peat Street Recycling Centre in October. This enabled people to dispose of unwanted electrical items in a safe and responsible way prior to the opening of the new Resource Recovery Centre.

Resource Recovery Centre We are establishing a Resource Recovery Centre to enhance the community’s ability to deal with waste in a sustainable manner. This is due to open in August 2013 and will replace the Peat Street Recycling Centre. It will be governed and managed by a charitable trust set up as a partnership between Tupoho Whanau Trust, Council and Sustainable Whanganui. It has been established through waste levies and external funding.

Recycling trailer for events A mobile recycling trailer was made available for event hire by groups and organisations looking to recycle their waste responsibly. The trailer has six slots for recycling plastic bottles, paper and cans and is ideal for outdoor fairs, school galas and sporting events.

Enviro-award received Our i-SITE Visitor Information Centre was awarded an Enviro Silver Award as part of the Qualmark rating system in recognition of the Centre’s high levels of environmental and social responsibility. The awards take account of energy efficiency, waste management, water conservation, community activities and conservation initiatives.

‘Whole of River’ agreement In August a signing ceremony for the Whanganui River Agreement - Tûtohu Whakatupu was held at Parliament. This


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agreement between the Crown and Whanganui Iwi on the Whanganui River and its tributaries confirms the importance of the river to this region and provides a process for working together with other catchment stakeholders to safeguard and ensure the river’s future health and wellbeing. It also recognises the status of the river as Te Awa Tupua (an integrated, living whole) and enables the river to have legal standing in its own right.

Taking action on illegal rubbish dumping

We considered the problem of illegal rubbish dumping during 2012/13 and discussed measures to deal with it, including surveillance. Every litter related complaint is investigated by the litter team and we keep an eye on dumping ‘hot spots’.

Waste Minimisation Fund The purpose of this fund is to provide financial assistance for initiatives that further Wanganui’s waste minimisation goals. The fund is made available by the landfill levy money we receive from the New Zealand Waste Authority. During 2012/13 this money was put towards the capital build of the new Resource Recovery Centre and waste minimisation education programmes.

Natural Burials The natural burials area was completed and there was one burial as well as several enquiries. Natural burials provide an alternative way of laying people to rest in an environmentally friendly way.

Integrated Catchment Management

Integrated catchment management was progressed during the year. Implementation of this plan is about clarifying ownership and maintenance responsibilities, signaling a necessary change in direction for how waterways are to be engineered, encouraging catchment residents to improve the quality of stormwater being discharged to the Whanganui River and promoting implementation of ‘soft’ engineering solutions where practicable.


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Community Outcomes and identified effects on community wellbeing Economic prosperity Groups that are primarily linked:

Water supply Roads, footpaths and pathways Parks and recreation Community and cultural Economic development Community facilities and services Transportation Investments Corporate

We focused on connectivity and collaboration during 2012/13 in line with our continued efforts to position Wanganui as a great place to live, visit and do business. As a result, we partnered with key stakeholders, enhanced our digital capability and profile, facilitated the provision of iconic events, improved our transport networks and supported our community’s business efforts. Although economic indicators largely lagged, the port’s performance was a standout. Indicators and actions generally signify support for the fostering of a prosperous community. Community partnerships Groups that are primarily linked:

Community and cultural Economic development Community facilities and services Transportation Corporate

The social fabric of our community continued to be supported and the value of diverse voices recognised. This inclusiveness was achieved through the provision of a number of ‘community participation’ platforms, including the Youth Committee and Positive Ageing Forum and via the provision of social support functions such as For Our Kids. In 2012/13 we also forged stronger relationships with our international partners and received national acknowledgement of our successful Rural Community Board. However, our indicators were less constant, with positive perceptions of Council leadership down, emergency preparedness up and an inaugural measure for community partnerships lodged. Indicators and actions reveal a commitment to enhancing community partnerships through efforts that champion inter-sector collaboration and widespread public engagement.


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A safe and healthy community

Water supply Stormwater Flood protection and control Wastewater Roads, footpaths and pathways Parks and recreation Community and cultural Economic development Community facilities and services Transportation Corporate

We remained committed to working in conjunction with the community to advance the health and safety of our district. These efforts continued to be driven by Safer Whanganui – a cornerstone example of positive community partnership in action. During 2012/13 the future of our earthquake-prone buildings and the wastewater treatment plant were highlighted as key issues and we progressed a number of roading safety improvements. In addition, our health and safety statistics revealed a continued decline in the number of fatal or serious injury crashes and perceptions of safety remained high. Indicators and actions demonstrate a largely positive impact on the health and safety of our community. Active and culturally rich community

Parks and recreation Community and cultural Economic development Community facilities and services Transportation Corporate

A wide array of cultural and recreational opportunities were developed and enhanced during 2012/13. These positioned Wanganui as an increasingly vibrant hub and included celebration of our diverse cultural makeup, the staging of events for (and by) young people, progression of the No. 12 Tram project and maintenance and improvement work at our parks. Indicators were slightly more mixed, with significant gains in external perceptions of our arts and cultural base, a slight decrease in our community’s recreational participation and failure to achieve the satisfaction target set for our CBD. The number of people visiting our cultural facilities remained steady. Indicators and actions denote that our community is continuing to foster and promote its recreational and cultural offerings. Environmental sustainability

Stormwater Flood protection and control Wastewater Community facilities and services


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We continued to prioritise sustainable and efficient use of the district’s resources throughout 2012/13 and progressed or participated in a number of significant actions to achieve this. These included pursuit of integrated catchment management, construction of an enhanced Resource Recovery Centre, completion of a natural burials site and advancement of the district-wide Shaping Wanganui project. Although our indicators reflected a reasonable gain in recyclable material and 100% compliance with water quality at our beaches, issues with our wastewater treatment plant prevented us from fulfilling our consent conditions as set by Horizons Regional Council. Indicators and actions illustrate commitment to enhancing our community’s environmental sustainability.


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Water supply groupFunding impact statementFor the year ended 30 June 2013

Annual plan LTP Actual

2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 0 0 0Targeted rates (other than a targeted rate for water supply) 5,221 5,627 5,641Subsidies and grants for operating purposes 0 0 0Fees, charges, and targeted rates for water supply 1,831 1,679 1,668Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 0 0 5

Total operating funding (A) 7,052 7,306 7,314

Application of operating fundingPayments to staff and suppliers 3,008 3,210 2,910Finance costs 1,107 1,131 1,088Internal charges and overheads applied 594 626 622Other operating funding applications 0 0 0

Total application of operating funding (B) 4,709 4,967 4,620

Surplus (deficit) of operating funding (A - B) 2,343 2,339 2,694

Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 20 34 70Increase (decrease) in debt (412) (346) (776)Gross proceeds from asset sales 0 0 32Lump sum contributions 116 64 78

Total sources of capital funding (C) (276) (248) (596)

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 154 371 368-to replace existing assets 1,913 1,720 1,730Increase (decrease) in reserves 0 0 0Increase (decrease) of investments 0 0 0

Total application of capital funding (D) 2,067 2,091 2,098

Surplus (deficit) of capital funding (C - D) (2,343) (2,339) (2,694)

Funding balance ((A - B) + (C - D)) 0 0 0


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Water supply group Capital expenditure The following table shows the significant expenditure on capital work for the Water supply Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Water supply Capital acquisition. Languard Road 225 202 Other capital acquisition projects 146 166 Capital expenditure to replace existing assets : Water Supply Capital replacement. Connections 227 213 Capital replacement. Mission Road 305 254 Capital replacement. Bastia Hill tower 340 268 Capital replacement. Castlecliff main 175 164 Capital replacement. Symes Road 254 0 Vehicles replacement 0 77 Other capital replacement projects 420 753 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Water supply

The capital acquisitions budget was $371k with no opening carry overs. Actual expenditure for the year was $368k. Thus expenditure was on budget, although some jobs were repriortised during the year.

During the year $150,000 was forecast as an additional cost for a generator at the No2 Bore, this will be carried forward to 2013/14.

The capital replacements Annual Plan budget was $1.721M. Actual expenditure for the year of $1.730M was close to this budget. As with capital acquisitions , some jobs were repriortised during the year.

Vehicle replacements cost was $77k. These were partially financed from an opening carry over of $30k, and a budget transfer from Infrastructure Administration of $29k. The additional costs are due to both vehicles being kept longer than originally budgeted (as a result of a Council decision), and the carry over budget being net of trade-ins.


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Internal borrowings 2013 $000 Brought forward 905,171 Borrowings raised 14,497 Borrowings repaid 0 Interest paid 51,917 Carried forward 971,585


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Activity scorecards These scorecards track the Council’s performance against its measures and targets. A variance of 5% is applied – this means that an indicator might attain an amber traffic light where the result is close to being achieved.

Water supply group

Statement of service performance Scorecard Name: Date From Date To WATER SUPPLY 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of complaints received about water pressure

# <50 8 New measure

Comment: The target of less than 50 was achieved. The actual result was eight complaints about water pressure received during the 2012/13 year. The number of planned and unplanned water supply outages lasting more than eight hours in the urban area

# <3 0 New measure

Comment: The target of less than three was achieved. During the year there were 49 planned and 80 unplanned water supply outages in the urban area. None of these lasted more than eight hours. The percentage of high priority water supply repairs commenced within six hours of notification

% 100 93.29 100

Comment: The result shown is for the 6 month period from January 2013 which is due to the council changing their contractor. The target of 100% was not achieved. In total there were 164 high priority water jobs conducted during the 6 months from January 2013. In the prior year, there were 84 jobs over 12 months compared to 164 jobs carried out in six months in the current year. This increase in jobs is due to significant third party damage caused through installation of ultra-fast broadband which increased the number of callouts and caused a decrease in the number of repairs commenced within the targeted timeframes. The percentage of hydrants tested by the New Zealand Fire Service that comply with the New Zealand Fire Service’s code of practice for water supply and pressure

% 95 99 0


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Comment: The target of 95% was exceeded. The actual result was 99% of hydrants tested complied with the New Zealand Fire Service’s code of practice for water supply and pressure. This was unable to be measured last year due to industrial action by the New Zealand Fire Service which caused subsequent disruption to its testing programme. The percentage of time Horizons Regional Council consent conditions are complied with (or mitigation undertaken if issues occur)

% 100 100 100

Comment: The target of 100% was achieved. All consent conditions were complied with.These set limits on maximum daily quantities and abstraction rates and impose reporting requirements. This matched the previous year’s result. The percentage of water supply repairs completed within agreed timeframes

% 90 91.45 91

Comment: The result shown is for the 6 month period from January 2013 which is due to the council changing their contractor. The target of 90% was achieved. The target of 100% was not achieved. In total there were 983 high priority water jobs conducted during the 6 months from January 2013. In the prior year, there were 1,432 jobs over 12 months compared to 983 jobs carried out in six months in the current year. This increase in jobs is due to significant third party damage caused through installation of ultra-fast broadband which increased the number of callouts. Call outs across the water supply activity were made in response to hydrant faults, valve faults, water leaks, water quality and ‘locates’ (requests from contractors and customers to locate the positions of water pipes, connections and tobies). The percentage of time the Council delivers an Aa grade water supply in the urban area

% 100 100 100

Comment: The target of 100% was achieved. We received confirmation of an Aa grading from the Ministry of Health following satisfaction of all testing and reporting requirements. This covers the Wanganui urban area. Ministry of Health grading is a measure of confidence that drinking water supplies will remain uncontaminated. ‘A’ means completely satisfactory with an extremely low level of risk at source and plant and ‘a’ similarly means completely satisfactory with an extremely low level of risk. The big ‘A’ represents the source and treatment and the little ‘a’ is the reticulation. Rural water supplies are not graded as they are considered small.


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The percentage of time the Council complies with the Drinking Water Standards for New Zealand (this means there is a level of confidence that the water supply will not become contaminated)

% 100 100 100

Comment: The target of 100% was achieved for Wanganui’s urban area. We complied with the Drinking Water Standards for New Zealand 2005 (revised 2008). These Standards provide requirements for drinking water safety by specifying the maximum amounts of substances, organisms, contaminants and residues that may be present. In the rural area there was one transgression for the year at Fordell. However, correct procedures were followed as prescribed by the Drinking Water Standards and the matter was resolved within three days.


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Stormwater groupFunding impact statementFor the year ended 30 June 2013

Annual plan LTP* Actual

2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 0 0 0Targeted rates (other than a targeted rate for water supply) 3,746 4,394 4,387Subsidies and grants for operating purposes 0 0 0Fees, charges, and targeted rates for water supply 100 75 0Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 0 0


Application of operating fundingPayments to staff and suppliers 546 684 531Finance costs 2,642 2,646 2,284Internal charges and overheads applied 108 157 156Other operating funding applications 0 0 0


Surplus (deficit) of operating funding (A - B) 550 982 1,416

Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 0 4 1Increase (decrease) in debt 3,300 (536) (1,149)Gross proceeds from asset sales 0 0 0Lump sum contributions 0 0 37

Total sources of capital funding (C) 3,300 (532) (1,111)

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 3,850 375 285-to replace existing assets 0 75 20Increase (decrease) in reserves 0 0 0Increase (decrease) of investments 0 0 0

Total application of capital funding (D) 3,850 450 305

Surplus (deficit) of capital funding (C - D) (550) (982) (1,416)


*LTP budget restated to include the Debt retirement rate


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Stormwater group Capital expenditure The following table shows the significant expenditure on capital works for the Stormwater Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Stormwater Connections 75 24 Separation completion 100 172 City wide stormwater hotspots 50 5 Inflow and infiltration investigations 100 0 Capital expenditure to replace existing assets : Stormwater Network replacements 75 20 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Stormwater

Connections costs were well under budget due to lesser public demand. These costs are matched by lesser revenue.

The Annual Plan budget of $100k for the separation of stormwater from sewage was increased by an opening carry over of $3.4M. With only $172k spent this year, the remaining balance will be carried over to 2013/14.

The reason for the delay on this project this year was research on low impact development designs have only recently been completed, and a revised project scope has been developed to improve the level of stormwater service. The costing and staging of the implementation is currently being finalised, and physical works are expected to commence next year.

The other projects listed above are all well behind budget, and $200k will be carried forward to 2013/14. These jobs fell within the wastewater and stormwater asset condition assessment, and was finalised in May between Council staff and outside consultants. It is essentially a road map providing new data for future works. This planning phase took longer than expected, but is now well underway.


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Internal borrowings 2013 $000 Brought forward 1,979,028 Borrowings raised 31,697 Borrowings repaid 0 Interest paid 113,508 Carried forward 2,124,233


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Stormwater group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To STORMWATER 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of instances per year of water entering residential houses at floor level (up to a one in 10 year storm event) reported to Council

# <10 0 0

Comment: The target of less than 10 was achieved. There were no instances of flooding reported to us during 2012/13. This matched the previous year’s result. The percentage of stormwater repairs completed within agreed timeframes

% 90 91.49 Average across high priority1 and

routine priority2:

95.52 Comment: The result shown is for the 6 month period from January 2013 which is due to the council changing their contractor. The target of 90% was achieved. There were 94 repairs conducted from January 2013 and call outs across the stormwater activity were made in response to blocked drains, flooding investigations, pipe repairs, ‘miscellaneous’ and ‘locates’ (requests from contractors and customers to locate the positions of pipes etc.). In the prior year, there were 136 jobs over 12 months compared to 94 jobs carried out in six months in the current year. This increase in jobs is due to significant third party damage caused through installation of ultra-fast broadband which increased the number of callouts and caused a decrease in the number of repairs commenced within the targeted timeframes.

1 High priority repairs are characterised as those that involve problems with the stormwater network that have the potential to cause damage to private property or pose public

health risk. This is the first year we have combined the completion rate for high priority and routine priority repairs into one measure. 2 Routine priority repairs are characterised as those that involve problems with the stormwater network that are unlikely to cause damage to private property or to pose public

health risk.


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Flood protection and control groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 729 803 802Targeted rates (other than a targeted rate for water supply) 0 0 0Subsidies and grants for operating purposes 0 0 0Fees, charges, and targeted rates for water supply 0 0Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 0 0 0

Total operating funding (A) 729 803 802

Application of operating fundingPayments to staff and suppliers 571 640 507Finance costs (11) (11) (23)Internal charges and overheads applied 113 149 148Other operating funding applications 0 0 0

Total application of operating funding (B) 673 778 632

Surplus (deficit) of operating funding (A - B) 56 25 170

Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 0 0 0Increase (decrease) in debt (6) 250 (134)Gross proceeds from asset sales 0 0 0Lump sum contributions 0 0 0

Total sources of capital funding (C) (6) 250 (134)

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 50 260 36-to replace existing assets 0 15 0Increase (decrease) in reserves 0 0 0Increase (decrease) of investments 0 0 0

Total application of capital funding (D) 50 275 36

Surplus (deficit) of capital funding (C - D) (56) (25) (170)



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Flood protection and control group Capital expenditure The following table shows the significant expenditure on capital works for the Flood Protection and Control Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Waterways and natural drainage Report on natural drains and easements 50 0 Turoa Road natural drainage

improvements 100 0 Whanganui River erosion control 50 0 Navigation markers 25 0 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Waterways and natural drainage

Some work was undertaken on the report on natural drains and easements, and charged to the Stormwater Activity. This work will increase next year as resources allow.

The Turoa Road natural drainage improvements budgeted for $100k was not undertaken this year due to lack of resources. This $100k has been carried forward to 2013/14 and added to next year’s budget of $50k, to give a total budget available of $150k for next year. These funds will be used for improvements to the upstream attenuation dam.

Whanganui River erosion control work was not undertaken this year due to the original tenders being too high. This $50k will be carried forward to 2013/14 and added to next year’s budget of $100k, to give a total budget available of $150k for next year. This work will be done in conjunction with Horizons.

The navigation markers budget of $25k was not required this year. This work was undertaken by the Port Company with costs being shared by Horizons and the Whanganui River Enhancement Trust.

Internal borrowings The flood protection group has no internal borrowings.


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Flood protection and control group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To WATERWAYS AND NATURAL DRAINAGE 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The Whanganui River Flood Action Plan is followed if activated

% 100 100 New measure

Comment: The target of 100% was achieved. The Whanganui River Flood Action Plan was not activated during the 2012/13 year.


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Wastewater groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 0 0 0Targeted rates (other than a targeted rate for water supply) 3,321 3,552 3,552Subsidies and grants for operating purposes 0 0 0Fees, charges, and targeted rates for water supply 1,450 1,600 1,483Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 0 0 24


Application of operating fundingPayments to staff and suppliers 3,037 3,457 4,210Finance costs 692 754 706Internal charges and overheads applied 600 671 668Other operating funding applications 0 0 0


Surplus (deficit) of operating funding (A - B) 442 270 (525)

Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 46 26 60Increase (decrease) in debt 1,202 1,104 2,002Gross proceeds from asset sales 0 0 14Lump sum contributions 75 75 70

Total sources of capital funding (C) 1,323 1,205 2,146

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 775 1,145 1,064-to replace existing assets 990 330 557Increase (decrease) in reserves 0 0 0Increase (decrease) of investments 0 0 0


Surplus (deficit) of capital funding (C - D) (442) (270) 525



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Wastewater group Capital expenditure The following table shows the significant expenditure on capital works for the Wastewater Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Wastewater Treatment Plant. Short term mitigation 420 762 City wide pump station upgrades 325 239 Flow measurement of gravity network 125 0 CCTV work 100 0 Network modelling 100 0 Capital expenditure to replace existing assets : Wastewater Sundry capital replacement projects 330 467 Vehicle replacement 0 90 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Wastewater

Additional expenditure was incurred with the operational problems experienced with the Treatment Plant. These additional costs were reported to Council. Capital costs totalled $762k which was $342k more than budgeted. Further significant operational costs were also incurred.

Other capital acquisition projects from the Annual Plan totalled $650k. Actual expenditure was only $239k, with the unspent balance being carried over to 2013/14. These and other jobs fell within the wastewater and stormwater asset condition assessment, and was finalised in May between Council staff and outside consultants. It is essentially a road map providing new data for future works. This planning phase took longer than expected, but is now well underway.

Capital replacement projects from the Annual Plan totalled $330k. 2011/12 carry overs of $345k gave a total budget available of $675k. Actual expenditure was less at $481k. The acquascreen project has started, and unspent funds of $187k has been carried over to 2013/14, with the delay due to using less expensive internal resources when possible.

During the year two vehicles were replaced for a total cost of $90k. This cost was partially funded by a 2011/12 carry over of $60k. Both vehicles additional costs are due to keeping these vehicles longer than originally budgeted (as a result of a Council decision), and the carry over budget being net of trade-ins.


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Page 126 of 186

Wastewater group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To WASTEWATER 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of time that waste leaves the treatment plant in good quality condition (resource consent conditions complied with)

% 50(98)

41 46

Comment: Although the target contained in the 10-Year Plan 2012-2022 is 50% we have chosen to measure ourselves instead on the actual consent condition set by Horizons Regional Council (98%). During 2012/13 waste left the treatment plant in good quality condition, in compliance with resource consent conditions, on average 41% of the time. This was a decrease on the result from the previous year where 46% was achieved. These consent conditions are about making sure discharges do not exceed set standards – for example in relation to grease, faecal coliforms and suspended solids. We are working with Horizons Regional Council to remedy our compliance issues and will be undertaking a significant upgrade of our wastewater plant, using parts of the existing infrastructure. For more detail please see the wastewater and stormwater network assessment information in the ‘Community Outcomes indicators’ section. The percentage of time that wastewater is pumped out to sea instead of to the plant for treatment first (this might happen when it rains and the pumps can’t work fast enough)

% <10(0.37)

3 7.30

Comment: Although the target as contained in the 10-Year Plan 2012-2022 (<10%) was met, we have chosen to measure ourselves instead on the actual consent limit set by Horizons Regional Council (0.37%). As a result, we have failed to meet this requirement. Wastewater was pumped out to sea, instead of to the plant for treatment first, on average 3% of the time during 2012/13. This was an improvement on the year before where 7.30% was achieved. Officers note that the improved performance was not due to any changes made to the network, but rather to a drier summer and winter with less rainfall compared to previous years. As a result, the bypass to the sea was used less often. For more detail please see the wastewater and stormwater network assessment information in the ‘Community Outcomes indicators’ section.


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The percentage of wastewater repairs completed within agreed timeframes

% 90 88.72 Average across high

priority3 and

routine priority4:

95.19 Comment: The result shown is for the 6 month period from January 2013 which is due to the council changing their contractor. The target of 90% was not achieved. There were 266 repairs conducted from January 2013. Call outs across the wastewater activity were made in response to blocked drains, flooding, investigations, pipe repairs, ‘miscellaneous’ and ‘locates’ (requests from contractors and customers to locate the positions of pipes etc.). In the prior year, there were 368 jobs over 12 months compared to 266 jobs carried out in six months in the current year. This increase in jobs is due to significant third party damage caused through installation of ultra-fast broadband which increased the number of callouts and caused a decrease in the number of repairs commenced within the targeted timeframes.

3 High priority repairs are those that involve any blockage or problem within the network with the potential to cause damage to private property or to pose public health risk. This

is the first time we have combined the completion rate for routine and high priority repairs into one measure. 4 Routine priority repairs are those that involve any blockage or problem within the network without the risk of causing damage to private property or the posing of public health

risk.


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Roads, footpaths and pathways groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 0 0 0Targeted rates (other than a targeted rate for water supply) 5,751 6,255 6,255Subsidies and grants for operating purposes 3,052 3,289 3,179Fees, charges, and targeted rates for water supply 13 20 19Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 263 410 469





Sources of capital fundingSubsidies and grants for capital expenditure 4,780 5,698 3,751Development and financial contributions 94 67 109Increase (decrease) in debt 865 724 175Gross proceeds from asset sales 0 0 0Lump sum contributions 0 0 0

Total sources of capital funding (C) 5,739 6,489 4,035

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 1,771 3,387 1,000-to replace existing assets 5,830 5,418 5,273Increase (decrease) in reserves 0 0 35Increase (decrease) of investments 0 0 0




*LTP budget restated to include the Debt retirement rate


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Roads, footpaths and pathways group Capital expenditure The following table shows the significant expenditure on capital works for the Roads, footpaths and pathways Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Roading Whanganui River Road seal extension 1,228 198 Heads Road roundabout 1,300 0 Minor safety projects 810 747 Capital expenditure to replace existing assets : Roading Pavement rehabilitation 500 278 Sealed road resurfacing 2,000 2,115 Drainage renewals 1,050 989 Footpaths and Berms Renewals 305 475 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Roading

The Whanganui River Road seal extension was delayed this year due to problems in sourcing aggregate metal supplies. The unspent funding has been carried over to next year, and the multi-year project will be completed next year.

Funding for the Heads Road roundabout project has been carried forward to next year. As the result of a Council decision, those funds have been diverted and repriortised to partially fund the Wyley’s Bridge replacement.

Pavement rehabilitation expenditure was down with the Warrengate Road job not being done. The funding available this year wasn’t sufficient to carry out the job properly, so the work will be done next year with more funding.


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Footpaths and berms

Capital renewal expenditure exceeded budget by $170k. This overspend was matched by reductions in operational costs. When repairs are carried out it quite often requires renewal work to be undertaken instead. Renewal work is recorded in Council’s asset register.



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Roads, footpaths and pathways group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To ROADING 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of reported injury crashes on local roads is below the national average

# <20 10 13

Comment: The target of less than 20 was achieved. The actual result was 10 reported injury crashes (fatal or serious) on local roads during the 2012/13 year. Three of these were fatalities (there were two in 2011/12) – however the overall number of fatal / serious crashes was down on the previous year from 13. We use the information we collect regarding crash locations to prioritise and action roading improvements. We measure reported injury crashes on local authority roads in order to track whether we are keeping the community safe and to ultimately mitigate the social / economic costs of road crashes. This measurement also supports the objectives of the Government’s Policy Statement on Transport. We have worked hard alongside our enforcement and education partners to reduce the severity of injury crashes in our district. This measure has been amended in the Annual Plan 2013/14 to clarify that we are referring to the number of reported ‘fatal or serious’ injury crashes. The percentage of roading requests actioned within five working days

% >90 99 96.50

Comment: The target of greater than 90% was achieved. There were 920 roading requests during the year, of which 912 were actioned within the time frame set, with an average completion time of 1.19 days. 99% of roading requests were actioned within five working days – an increase on the previous year where 96.50% was achieved. The percentage of roads with roughness below the national average (this is measured by ‘bumps’ on the road)

% >90 94 94

Comment: The target of greater than 90% was achieved. The actual result saw 94% of roads in the district with a roughness level below the national average as measured by NAASRA. This matched the previous year’s result. NAASRA stands for the ‘National Association of Australian State Roading Authorities’ and this count is the standard measure for road roughness. Road roughness is an important contributor to Vehicle Operating Costs (VOC) and road roughness is measured as NAASRA counts/km (bumps/km). The national benchmark is that 90% of roads should be below 180


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NAASRA counts/km and roads in the Wanganui district are continuing to remain stable at around 94%. The percentage of residents satisfied with the local roading network

% >65 53 54

Comment: The target of greater than 65% was not achieved. The actual result was 53% satisfaction with the local roading network – this was in line with the previous year’s result. While residents’ satisfaction with the network has not met the target set, the actual measured condition of the roading network indicates that it is in its best state in over a decade. This measure was canvassed via the externally-delivered annual Community Views Survey.

Scorecard Name: Date From Date To FOOTPATHS AND BERMS 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of footpath requests actioned within five working days

% >90 99 New measure

Comment: The target of greater than 90% was achieved. The actual result saw 99% of footpath requests actioned within five working days. The percentage of the community satisfied with footpath surfaces

% >50 46 42

Comment: The target of greater than 50% was not achieved. The actual result was 46% satisfaction with footpath surfaces – an increase of 4% on the previous year. Although the target was not met, a condition rating survey of actual defects has revealed that the city’s footpaths are in the best state since monitoring began 10 years ago. This measure was canvassed via the externally-delivered annual Community Views Survey.


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Parks and recreation groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 7,042 7,109 7,107Targeted rates (other than a targeted rate for water supply) 0 0 0Subsidies and grants for operating purposes 130 142 129Fees, charges, and targeted rates for water supply 180 187 177Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 61 65 107





Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 0 0 0Increase (decrease) in debt 380 (146) (366)Gross proceeds from asset sales 0 0 146Lump sum contributions 0 0 0

Total sources of capital funding (C) 380 (146) (220)






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Parks and recreation group Capital expenditure The following table shows the significant expenditure on capital works for the Parks and recreation Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Parks and reserves Riverfront precinct development 0 358

Sportsgrounds. Springvale Park land purchase 200 0

Swimming Pools Splash. HVAC modifications 0 19 Capital expenditure to replace existing assets : Parks and reserves Ikitara Road walkway 40 0 Vehicle replacements 15 60 Bason Reserve. Sundry projects 53 67 Premier Parks. Kowhai Park 30 0 Premier Parks. Virginia Lake 40 66 Premier Parks. Castlecliff roading 27 0

Cooks Gardens. St Hill St Ladies restrooms 150 9

Cooks Gardens. Velodrome trusses 45 0 Swimming pools Splash. Acoustic improvements 0 70 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Parks and reserves The Riverfront precinct project was mostly completed during the year. Funding came from a 2011/12 carry over of $402k. The remaining unspent balance of $44k will be carried over to 2013/14 to complete outstanding kerb and channel work. The land purchase programme re Springvale Park is currently in arbitration, with unspent funds of $200k carried over to 2013/14.


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The Ikitara Road walkway was commenced in June 2013 and not completed until July. The budget of $40k was carried forward to 2013/14.

The litter team vehicle replacement cost was $30k. This was financed mainly from a 2011/12 carry over of $20k. Another Parks vehicle was also replaced at a cost of $30k, compared to the budget of $15k. Both vehicles additional costs are due to keeping these vehicles longer than originally budgeted (as a result of a Council decision), and the budgets are net of trade-ins.

Additional non-budgeted Bason Reserve expenditure of $23k was for kerbing, that was funded from savings in operational costs.

Work at Kowhai Park involving the bridge, moat and new piping budgeted at $30k has been carried forward to 2013/14. Work was delayed due to reasons like sourcing materials from overseas, coordinating volunteer groups, and working around school holidays. Work has commenced early 2013/14.

Work at Virginia Lake exceeded budget by $26k. This was mainly the result of additional expenditure being required for work on the Winter Gardens. Once the project was started, it was necessary to do both sides of the supporting beams (budget was to do one side). These additional costs were covered by repriortising other project work.

The Castlecliff roading work was held over this year, but will be done out of next year’s budget.

The refurbishment of the ladies restrooms in St Hill Street budgeted at $150k was commenced in late June 2013. This work will continue in 2013/14 with the remaining budget of $141,000 being carried over to fund this work. The delay was due to further investigations carried out in getting plans and the tenders contract ready. Work is due to be completed early next year.

Work on the velodrome subfloor trusses budgeted at $45k did not happen this year. Funds of $16k will be carried over to 2013/14 to do painting and sanding.

Swimming Pools

The HVAC modifications project at the Splash Centre continues to be delayed. Budgeted funds of $552k had been carried over from 2011/12, with planned work not commencing until June 2013. The remaining unspent budget of $533k will be carried forward to 2013/14. The project includes a heat pump upgrade that will facilitate energy cost savings.

Acoustic improvements at the Splash Centre were completed during 2013. These improvements were funded from a $70k budget carry over from 2011/12.


Page 136 of 186



Page 137 of 186

Parks and recreation group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To PARKS AND RESERVES 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of safety checks carried out on playground equipment each year

# 12 12 12

Comment: The target of 12 was achieved. All scheduled safety checks were carried out on playground equipment. These were carried out on a monthly basis and covered 16 playgrounds. Kowhai Park and Virginia Lake are also checked weekly by the maintenance contractor. In addition, mowing contractors and the public alert us to issues noticed in other areas between inspections The percentage of maintenance inspections per year that are rated ‘good’ (for example, grounds are mown, weeds are controlled etc)

% 95 89 95.50

Comment: The target of 95% was not achieved. The actual result was 89% of maintenance inspections were rated ‘good’. This also represented a decrease on the previous year where 95.50% was achieved. Contractors are rated monthly based on performance scores which are part of the contract specification. Contractors are aiming to get 600 points (‘good’) or more each month. This year the target was not achieved because one contractor obtained 598-599 points over a six-month period. During the year issues with inspections were mainly due to the timeliness of work. The percentage of time that the Coastguard can launch when needed from the Wharf Street ramp (or the secondary Putiki slipway) 24 hours a day, seven days a week

% 100 100 100

Comment: The target of 100% was achieved. The Coastguard was able to launch at all times when needed. The percentage of people using walkways along the river and throughout the parks network

% 65 78 New measure

Comment: The target of 65% was exceeded. The actual result was 78% of people used the walkways along the river and throughout the parks network. This measure was canvassed via the externally-delivered annual Community Views Survey.


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The percentage of sportsground licence holders who are satisfied that the ground conditions are fit for purpose

% 100 80 100

Comment: The target of 100% was not achieved. The actual result was 80% satisfaction with the ground conditions. However, it should be noted that this result is for the summer season only due to difficulties in getting all licence holders to respond to the survey. Four out of five summer licence holders were satisfied overall. There were some issues with weeds in the outfield at Victoria Park but this has now been addressed in consultation with the club. The percentage of the community satisfied with our parks and reserves

% 90 82 87

Comment: The target of 90% was not achieved. The actual result was 82% satisfaction with our parks and reserves. This was a 5% decrease on the previous year. This measure was canvassed via the externally-delivered annual Community Views Survey. However, it should be noted that the independent ParkCheck Survey of users of our parks revealed 100% satisfaction – placing Wanganui first out of the 11 other councils assessed.

The percentage of the community satisfied with the district’s sportsgrounds

% 90 72 New measure

Comment: The target of 90% was not achieved. The actual result was 72% satisfaction with our sportsgrounds. This measure was canvassed via the externally-delivered annual Community Views Survey. However, it should be noted that the independent ParkCheck Survey of users of our parks revealed 100% satisfaction – placing Wanganui first out of the 11 other councils assessed.

The percentage of the community satisfied with Wanganui’s ‘premier parks’


Comment: The target of 95% was exceeded. The actual result was 100% satisfaction with our ‘premier parks’. These parks are termed destination parks and are of special value and significance. They have high recognition and use within the community, and are an attraction for out of town visitors. Wanganui’s ‘premier parks’ are Virginia Lake Reserve and Winter Gardens, Bason Botanic Gardens, Queens Park, Kowhai Park, Castlecliff Domain and Majestic Square. This result was obtained through the independent ParkCheck survey of visitors to our parks. The percentage of the community who have used or visited a sportsground over the last year

% 65 55 New measure

Comment: The target of 65% was not achieved. The actual result was 55% of the community having used or visited a sportsground over the last year. This measure was canvassed via the externally-delivered annual Community Views Survey.


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The percentage of the public satisfied with the cleanliness and provision of public toilets

% 40 45 48

Comment: The target of 40% was exceeded. The actual result was 45% satisfaction with the cleanliness and provision of public toilets; however, this was a slight decrease on the previous year. This measure was canvassed via the externally-delivered annual Community Views Survey.

Scorecard Name: Date From Date To SWIMMING POOLS 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of Splash Centre pool users

# 220000 196590 214984

Comment: The target of 220,000 was not achieved. The actual result was 196,590 users. Although this was a decrease on the previous year (214,984 visitors), officers note that the recreational side of the complex was closed for a period of eight weeks for repainting and acoustic installation and this had a notable impact on admission numbers. The number of times that pool temperatures at the Splash Centre fall outside the target range (+/- 2%) for longer than an hour and a half

# <5 0 New measure

Comment: The target of less than five was achieved. The pool operated within the target range at all times during the 2012/13 year. The number of Wanganui East Pool users

# 16000 18436 10654

Comment: The target of 16,000 was exceeded. The actual result was 18,436 visitors to the Wanganui East Pool during its season. Officers note this number was higher than predicted due to free admission for children and a particularly hot summer. The percentage of users satisfied with the Splash Centre

% 90 87 New measure

Comment: The target of 90% was not achieved. The actual result was 87% satisfaction with the Splash Centre. This was the first time users of the Splash Centre had been canvassed; previous monitoring had focused on the wider community’s satisfaction with swimming pools in general. This was achieved through an on-site survey of visitors to the facility conducted between May and June 2013. Seventy three people responded to this survey. However, it should be noted that the survey period coincided with the closure of the recreational side of the complex for repainting and acoustic installation and this was likely to have had a bearing on the results.


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The percentage of users satisfied with the Wanganui East Pool

% 90 - - New measure

Comment: This indicator was not measured during the 2012/13 year. An on-site survey of visitors to the pool will be undertaken during the 2013/14 summer season. The retention of ACC Pool Safe accreditation (for example, life guards are on duty and water quality tests are passed)


Comment: The target of 100% was achieved – ACC Pool Safe accreditation was attained.


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Community and culture groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 6,026 6,456 6,454Targeted rates (other than a targeted rate for water supply) 0 214 213Subsidies and grants for operating purposes 428 478 481Fees, charges, and targeted rates for water supply 596 510 550Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 55 106 50


Application of operating fundingPayments to staff and suppliers 5,271 5,785 5,922Finance costs 216 379 204Internal charges and overheads applied 1,041 1,125 1,119Other operating funding applications 0 0 0



Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 0 0 0Increase (decrease) in debt 788 2,055 (14)Gross proceeds from asset sales 0 0 0Lump sum contributions 0 0 0

Total sources of capital funding (C) 788 2,055 (14)

Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 790 75 159-to replace existing assets 595 2,475 374Increase (decrease) in reserves (20) (20) (44)Increase (decrease) of investments 0 0 0

Total application of capital funding (D) 1,365 2,530 489



*LTP budget restated to include the Earthquake Strengthening rate


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Community and cultural group Capital expenditure The following table shows the significant expenditure on capital works for the Community and Culture Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Libraries Office equipment and furniture 40 6 Capital expenditure to replace existing assets : War Memorial Hall – Conference and Convention Centre Windows refurbishment, cladding , etc 96 15 Whanganui Regional Museum Switchboard and rewire 49 0 Sarjeant Gallery Earthquake Strengthening 2,000 132 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service.

Libraries

Expenditure for office and computer equipment, furniture and fittings for the Library business unit, was well under the budget. Expenditure is closely monitored, especially with earthquake assessments currently underway.

War Memorial Hall – Conference and Convention Centre

The 2012/13 budget of $99k for windows refurbishment, cladding etc., was increased by a 2011/12 carry over of $147k. This resulted in a total available budget of $246k. Actual expenditure was only $15k. This underspend was as a result of delays due to earthquake risk assessment work currently being


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undertaken. Council has decided to carry over $101k to 2013/14 for this project. Any further capital expenditure above this carry over will be required to go through a different approval process.

Whanganui Regional Museum

Savings were made on the switchboard and rewiring, with actual cost of $19k being well below the budgeted of $49k. The actual costs were transferred to planned maintenance as operating expenditure.

Sarjeant Gallery

The earthquake strengthening project was budgeted at $2.0M from loan funds for earthquake assessment and remedial work on Council buildings. Actual expenditure was $132k, with most of this expenditure being incurred on the Sarjeant Gallery project. The remaining budget of $1.865M will be carried over to 2013/14, with the majority of this being for the Gallery relocation and development project.



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Community and cultural group

Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To COMMUNITY DEVELOPMENT 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of areas of ‘joint effort’ the Council works with Iwi on

# 15 16 New measure

Comment: The target of 15 was exceeded. The actual result was 16 areas of joint effort that we worked with Iwi on. During the 2012/13 year this included a number of meetings with Tamaupoko and Tupoho. The percentage of community groups satisfied with their working relationship with Council

% 90 - - New measure

Comment: This indicator was not formally measured during the 2012/13 year. We continue to work closely with our community partners. The number of local youth aged between 10-18 years who are Computer Clubhouse members

# 400 705 New measure

Comment: The target of 400 was exceeded. There were 705 Computer Clubhouse members as at the end of the year. The number of Youth Committee meetings held each year

# 7 7 7

Comment: The target of seven was achieved. There were seven formal Youth Committee meetings held during 2012/13. . The percentage of result cards demonstrating improvement (Safer Whanganui)

% 40 55 New measure

Comment: The target of 40% was exceeded. The actual result saw 55% of Safer Whanganui’s result cards demonstrating improvement. Safer Whanganui has seven priority focus areas – alcohol and other drugs, education, family violence, justice, safety and wellbeing, emergency planning and road safety. The percentage of households with access to the internet

% 55 53 53


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Comment: The target of 55% was not achieved. The actual projected result from Statistics NZ was 53% of households with access to the internet. Access to the internet is an important measure of social connectedness – providing the means to stay in touch as well as to obtain necessary information. This figure will be confirmed following the release of Census 2013 data in late 2013. The percentage of initiatives contained within the Arts Policy and Public Arts Strategy that are funded and implemented

% 80 80 New measure

Comment: The target of 80% was achieved. Progress in relation to the Arts Policy and Public Arts Strategy has been solid and is exceeding expectations in some areas. There have been a number of new initiatives launched (including the Whanganui Film Society), existing events have been very popular (such as Wanganui Opera Week) and increasing contact is being received from overseas artists with an interest in Wanganui.

Scorecard Name: Date From Date To LIBRARIES 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of items in the collection (meeting the Library and Information Association of New Zealand standard of 3.5 items each year per person)

# 122000 121303 119982

Comment: The target of 122,000 was not achieved. The actual result was 121,303 items in the collection. This reflected a continued increase in items (a gain of 1,321 since last year). An active de-selection programme is underway to refresh and update library stock. The number of people visiting our libraries

# 415000 383338 New measure

Comment: The target of 415,000 was not achieved. The actual result was 383,338 visitors. This is attributed to a slight reduction in tourist numbers, a flow-on effect from the earthquake-prone building status of other Queens Park buildings and biennial events not occurring this year. Wanganui’s libraries have introduced a number of new services and delivery methods which are expected to have a positive impact on visitor figures. The percentage of items ‘turned over’ each year

% 5 5.2 New measure

Comment: The target of 5% was achieved – 5.2% of items were ‘turned over’ during 2012/13. The percentage of library users satisfied with the service provided

% 90 85 89


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Comment: The target of 90% was not achieved. The actual result was 85% of Library users were satisfied with the service provided. This was a decrease of 4% on the previous year. This measure was canvassed via the externally-delivered annual Community Views Survey.

Scorecard Name: Date From Date To SARJEANT GALLERY 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of events held at the gallery

# 60 58 70

Comment: The target of 60 was not achieved. The actual result was 58 events held at the gallery during 2012/13 – a reduction of 12 on the year before. The number of items in the collection catalogued to best practice international standards


Comment: The target of 155 was exceeded. The actual result was 238 items in the collection catalogued to best practice international standards. However, as there is currently no Curator of Collections this indicator was unable to be measured in the fourth quarter. The number of visitors to exhibitions and gallery events

# 44290 50993 29851

Comment: The target of 44,290 was exceeded. The actual result was 50,993 visitors to exhibitions and gallery events. This total now includes visitors to the Quay Gallery as well as unique website hits in line with standard gallery practice across the country and, as a result, cannot be directly compared to figures for the previous year. The percentage of visitors satisfied with the gallery’s exhibitions

% 90 99 97.70

Comment: The target of 90% was exceeded. The actual result was 99% satisfaction with the gallery’s exhibitions. This was a slight increase on the year before where 97.70% was achieved. This measure was canvassed via the Sarjeant Gallery’s daily customer satisfaction surveys. The percentage of visitors satisfied with their gallery experience

% 90 99 97.35

Comment: The target of 90% was exceeded. The actual result was 99% satisfaction with the gallery’s exhibitions. This was a slight increase on the year before where 97.35% was achieved. This measure was canvassed via the Sarjeant Gallery’s daily customer satisfaction surveys.

Scorecard Name: Date From Date To ROYAL WANGANUI OPERA HOUSE 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of days each year that the Royal Wanganui Opera House hosts events

# 125 63 59


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Comment: The target of 125 was not achieved. The actual result was 63 days of event hosting – an increase of four days on the year before. The lack of occupancy days was primarily due to a loss of bookings brought about by the Opera House’s earthquake-prone building status. When the Opera House is not hosting events it is staging rehearsals, hosting tours, performing maintenance and selling tickets for other venues. The number of patrons who attend shows at the Royal Wanganui Opera House each year

# 25000 20435 20854

Comment: The target of 25,000 was not achieved. The actual result was 20,435 patrons attending shows during 2012/13. This was a slight decrease on the previous year where 20,854 patrons were hosted. The percentage of patrons satisfied with the Royal Wanganui Opera House

% 90 67 84

Comment: The target of 90% was not achieved. The actual result was 67% of users were satisfied with the Royal Wanganui Opera House. This was a 17% decrease on the previous year where 84% was achieved. This measure was canvassed via the externally-delivered annual Community Views Survey.

Scorecard Name: Date From Date To WAR MEMORIAL CENTRE 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of people attending functions and visiting the War Memorial Centre each year


Comment: The target of 23,200 was exceeded. The actual result was 45,613 people attending functions or visiting the War Memorial Centre during the 2012/13 year. The retention of Category 1 heritage status

% 100 100 100

Comment: The target of 100% was achieved. Category 1 heritage status was retained. The percentage of the community satisfied with the War Memorial Centre

% 75 61 63

Comment: The target of 75% was not achieved. The actual result saw 61% of the community satisfied with the War Memorial Centre. This was a slight decrease on the previous year where 63% was achieved. This measure was canvassed via the externally-delivered annual Community Views Survey.


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Economic development groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 2,534 2,444 2,445Targeted rates (other than a targeted rate for water supply) 510 515 514Subsidies and grants for operating purposes 0 0 0Fees, charges, and targeted rates for water supply 20 47Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 51 73 35












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Economic development group Capital expenditure There was no capital expenditure budgeted or expended for the year.

Internal borrowings 2013 $000 Brought forward 24,777 Borrowings raised 397 Borrowings repaid 0 Interest paid 1,421 Carried forward 26,595


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Economic development group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To ECONOMIC DEVELOPMENT 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The average spend per transaction at the i-Site each year

$ 19.00 32.08 New measure

Comment: The target of $19.00 was exceeded. The actual result was an average spend of $32.08 per transaction during the 2012/13 year. The number of visitors to Wanganui track in line with national trends (as a share of national visitor figures)

% 0.524 0.53 New measure

Comment: The target of 0.52% was exceeded. The actual result was 0.53% - meaning that the number of visitors to Wanganui tracked in line with national trends (as a share of national visitor figures). The percentage of customers who consider their contact with economic development to be good or very good

% 60 75 72

Comment: The target of 60% was exceeded. The actual result was 75% satisfaction with the economic development services provided. This was a slight increase on the previous year where 72% was achieved. This measure was canvassed via an annual Council-delivered customer survey. The percentage of local people who think the quality of life in Wanganui is better or the same as the year before

% 90 79 New measure

Comment: The target of 90% was not achieved. The actual result saw 79% of respondents state that the quality of life in Wanganui was better or the same as the year before. This was a decrease of 11% on the year before where 90% of people believed this. This measure was canvassed via the externally-delivered annual Community Views Survey.

The percentage of people in New Zealand who consider Wanganui to be a tourism destination

% 50 32 New measure


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Comment: The target of 50% was not achieved. The actual result saw 32% of people in New Zealand consider Wanganui to be a tourism destination. This measure was canvassed via an externally-delivered National Perceptions Survey. The percentage score given by the Qualmark Endorsement Assessment Report (measuring elements such as customer service, the facilities and cultural considerations)

% 91 88 New measure

Comment: The target of 91% was not achieved. The actual result was assessed at 88%. A silver Enviro Award was achieved. There is an increasing trend amongst Wanganui businesses in the uptake and business use of UFB

% 4 - - New measure

Comment: This indicator was not able to be measured during 2012/13 due to the inability of Ultrafast Fibre to provide individual uptake numbers by region. This will be surveyed during 2013/14.

Scorecard Name: Date From Date To CBD MAINTENANCE 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of complaints about the cleanliness or hygiene of public toilets reported to Council

# <12 4 0

Comment: The target of less than 12 was achieved. There were four complaints about the cleanliness or hygiene of public toilets during the 2012/13 year. Most of the complaints received related to vandalism. Boards have now been installed for cleaners to record their last visit and the contractor is also subject to random checks on a monthly basis. The percentage of residents satisfied with the contribution the CBD makes to their lifestyle and the image of Wanganui

% 90 71 76

Comment: The target of 90% was not achieved. The actual result was 71% of residents were satisfied with the contribution the CBD makes to their lifestyle and the image of Wanganui. This was a decrease of 5% on the previous year where 76% was achieved. This measure was canvassed via the externally-delivered annual Community Views Survey. The percentage of people satisfied with the cleanliness of the CBD

% 90 81 New measure

Comment: The target of 90% was not achieved. The actual result was 81% satisfaction with the cleanliness of the CBD. This measure was canvassed via the externally-delivered annual Community Views Survey.


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Community facilities groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 3,270 3,452 3,450Targeted rates (other than a targeted rate for water supply) 0 0 0Subsidies and grants for operating purposes 0 0 173Fees, charges, and targeted rates for water supply 4,013 3,939 3,722Internal charges and overheads recovered 4 7 0Local authorities fuel tax, fines, infringement fees and other receipts 923 858 1,127


Application of operating fundingPayments to staff and suppliers 6,129 6,192 6,188Finance costs 360 345 353Internal charges and overheads applied 1,215 1,384 1,370Other operating funding applications 0 0 0



Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 0 0 0Increase (decrease) in debt (130) 390 91Gross proceeds from asset sales 0 0 52Lump sum contributions 0 0 0

Total sources of capital funding (C) (130) 390 143






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Community facilities and services group Capital expenditure The following table shows the significant expenditure on capital works for the Property and Facilities Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Cemeteries New cemetery design and extension 400 0 Waste minimisation New Resource Centre 0 302

Regulatory services Environmental Policy. Aerial photography 0 63

Capital expenditure to replace existing assets : Pensioner housing Building improvements 50 0 Regulatory services Building Control. Vehicle replacements 65 102 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Cemeteries

The new cemetery design and extension project was delayed due to the project being assessed as to whether it should go ahead this year. With space due to run out within two to three years, the unspent funds will be carried forward to 2013/14 and the project will now commence as the weather allows.

Waste minimisation

During the year a new Resource Recovery Centre was commenced, with the Centre due to be opened in August 2013. Costs of $302k were incurred this year, and was funded from Government grants. This project started after the Annual Plan budget was completed.


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Regulatory services

The budget for aerial photography was $100k, but was included in the budget as photography costs, an operating cost. For our asset register purposes, the $63k expenditure has been reclassified as an intangible asset.

During the year four building control vehicles were replaced. Actual costs of $102k was ahead of the net budget of $65k. This was due to the vehicle replacement programme being delayed longer than originally budgeted as result of a Council decision. Also the budget is net of trade-ins.

Pensioner Housing

The capital budget of $50k has no expenditure. There was $33k expenditure reclassified as planned maintenance, an operating cost. Combined total maintenance expenditure was under budget for the year.



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Community facilities and services group

Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information.

Scorecard Name: Date From Date To CEMETERIES 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of official cemetery records available on the Council website


Comment: The target of 35,000 was not achieved. The actual result was 18,049 official cemetery records available on the Council website. There have been difficulties with the design of the database and technical changes are required. The number of official cemetery records available is made up of entries by the Sexton and by the Wanganui Branch of the NZ Society of Genealogists. The total number of records to be entered is an estimate based on the average number of entries in a sample of cemetery record books.

The number of plots available for burial or cremation

# 700 2399 2255

Comment: The target of 700 was exceeded. The actual result was an average of 2,399 plots across the 2012/13 year. These figures are based on all available land left in the cemetery for the purposes of plots according to the proposed layout. Officers note that the number of plots available has increased following an audit to obtain more exact figures. Revised figures include all ash and burial plots as well as plots available at rural cemeteries and specific allocations for Muslim and RSA burials.

The percentage of people satisfied with cemetery facilities (including shade and seating)


Comment: The target of 90% was exceeded. The actual result was 100% satisfaction with the cemetery facilities. This result was obtained through the independent ParkCheck survey of visitors to our cemeteries.

Scorecard Name: Date From Date To COMMUNITY BUILDINGS 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of customers satisfied with the Council’s maintenance of community buildings

% 90 89 New measure


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Comment: The target of 90% was not achieved. The actual result was 89% satisfaction with the Council’s maintenance of community buildings. This measure was canvassed via an internally-delivered customer satisfaction survey. However, it should be noted that this was drawn from a small sample size of nine. There was a 100% response rate with four ‘very satisfied’, four ‘satisfied’ and one ‘neither satisfied nor dissatisfied’.

Scorecard Name: Date From Date To EMERGENCY MANAGEMENT 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of emergency management calls responded to within 15 minutes


Comment: The target of 100% was achieved. All emergency management calls were responded to within 15 minutes during the 2012/13 year. The percentage of rural fire calls responded to within 10 minutes

% 100 100 100

Comment: The target of 100% was achieved. All rural fire calls were responded to within 10 minutes during the 2012/13 year. The percentage of time that Civil Defence sirens operate when tested


Comment: The target of 100% was not achieved. The actual result saw sirens operate 95% of the time on average when tested during 2012/13. The monthly testing process ensures that we can rectify any failures promptly. Officers note that councils in other areas only conduct tests once or twice a year. The failures recorded were due to mechanical faults; however, repairs were completed within one week and were then successfully re-tested. The percentage of the community indicating they are prepared to be self-sufficient for at least three days during an emergency event

% >80 79 85

Comment: The target of greater than 80% was not achieved. The actual result was 79% of the community could go without outside assistance for three days or more. This was a decrease on the previous year where 85% of people believed they were adequately prepared. This measure was canvassed via the externally-delivered annual Community Views Survey.

Scorecard Name: Date From Date To PENSIONER HOUSING 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of pensioner housing units occupied

% 95 94 88


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Comment: The target of 95% was not achieved. The actual result was an average of 94% occupancy during the 2012/13 year. However, this was an increase of 6% on the previous period. We have a total of 259 units. The percentage of tenants satisfied or very satisfied with welfare services

% 90 74 New measure

Comment: The target of 90% was not achieved. The actual result was 74% satisfaction with the pensioner housing welfare service. An additional 23% were ‘neither satisfied nor dissatisfied’. This result was canvassed via an internally-delivered survey of pensioner housing tenants. The percentage of tenants who rate their level of satisfaction as good or very good

% 90 86 90.60

Comment: The target of 90% was not achieved. The actual result was 86% of tenants were satisfied with their housing. No residents stated that the service was below adequate. This survey was last conducted in 2010/11 (where 90.60% satisfaction was achieved) but is now being undertaken annually.

Scorecard Name: Date From Date To REGULATORY SERVICES 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

Animal control The percentage of known dogs that are registered (or enforcement action taken)

% 98 96 98

Comment: The target of 98% was not met. The actual result was 96% of known dogs were registered or enforcement action was taken. Failure to attain the target is due to an element of flexibility provided, for example dogs loaded in June do not incur charges as it is so close to the beginning of the registration year (which begins on 1 July) and there is a one month grace period for owners to register their dogs before they are infringed. However, this year’s result was a decrease on the previous period where 98% was achieved. The percentage of the community satisfied with the animal control services provided

% 60 63 60

Comment: The target of 60% was exceeded. The actual result was 63% of the community were satisfied with the animal control services provided. This was an improvement on the previous year where 60% was achieved. This indicator was canvassed via the externally-delivered annual Community Views Survey.


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Building control The percentage of building consents processed within 20 working days (the statutory timeframe)

% 100 97 99.43

Comment: The target of 100% was not achieved. The actual result was 97% of building consents were processed within the statutory timeframe. This was slightly down on the previous year where 99.43% was achieved. There were 716 consents processed. The maintenance of building consent authority accreditation status


Comment: The target of 100% was achieved. Building consent authority accreditation status was maintained.

The percentage of customers satisfied with the building consent services provided

% 90 85 97

Comment: The target of 90% was not achieved. The actual result was 85% satisfaction with the building consent services provided. This was a decrease on the previous year where 97% was achieved. This measure was canvassed via an annual Council-delivered customer satisfaction survey. Environmental health The percentage of excessive noise complaints investigated within 30 minutes

% 95 93 70

Comment: The target of 95% was not achieved. The actual result was an average of 93% of excessive noise complaints investigated within 30 minutes. There were 1,988 complaints made during the year. Vast improvements were made throughout 2012/13 in reducing the number of discrepancies, with this result representing a 23% improvement on the 2011/12 period. The percentage of food and other premises inspected at least once a year

% 75 99 New measure

Comment: The target of 75% was exceeded. The actual result has seen 99% of food and other premises inspected during 2012/13. There were 285 premises inspected during the year – these included food outlets, camping grounds, hairdressers, offensive trades and funeral directors. The percentage of customers satisfied with the environmental health services delivered

% 90 81 76


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Comment: The target of 90% was not achieved. The actual result was 83% satisfaction with the environmental health services provided. However, this was an increase on the previous year where 76% was achieved. This measure was canvassed via an annual Council-delivered customer satisfaction survey. Environmental policy The percentage of the District Plan review completed

% 57 48 34

Comment: The target of 57% was not achieved. The actual result was 48% completion of the District Plan review. Phase 1 (CBD) is now complete and hearings have been held for Phases 2 (residential) and 3 (heritage). Phases 4 (rural) and 5 (archaeology) are at the policy drafting stage and Phase 6 (river valley) has had preliminary consultation only and has been put on hold due to funding constraints. Phase 8 (industrial / manufacturing) was planned to have been initiated during the 2012/13 year but has now been delayed. While the District Plan review is currently behind schedule, a new project plan has been developed for the 2013/14 year onwards. Parking services The number of non-compliant vehicles in the CBD

# <2180 1657 New measure

Comment: The target of less than 2,180 was achieved. The actual result was 1,657 non-compliant vehicles in the CBD. Officers note that they are successfully working with the public to reduce the number of non-compliant vehicles and contribute to a safer community. The percentage of infringements issued correctly

% 98 94 New measure

Comment: The target of 98% was not achieved. Infringements have been issued correctly 94% of the time on average this year. This is due to a lower result in the second quarter following a change to manual infringement books. In the third and fourth quarters officers were back to achieving 98% compliance. The percentage of time that parking officers are present Monday to Saturday (excluding public holidays)

% 98 99 New measure

Comment: The target of 98% was exceeded. Parking officers were present 99% of the time, on average, during the 2012/13 year.

The percentage of the community satisfied with the service offered by parking staff

% 90 51 New measure

Comment: The target of 90% was not achieved. The actual result was 51% satisfaction with the service offered by parking staff. Parking officers have been in the ambassadorial role for over two years, assisting out of town groups visiting Wanganui with large scale parking and ensuring events held in the CBD have a strong safety focus by making sure that free parking is available for large vehicles. They continue to assist in suburban areas but this level of satisfaction may indicate they need to promote themselves more when providing this service


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so the focus can be shifted from negative infringement to good news. This indicator was canvassed via the externally-delivered annual Community Views Survey. Resource management The percentage of resource consents monitored within two years of being issued

% 100 98 100

Comment: The target of 100% was not achieved. The actual result saw 98% of resource consents being monitored within two years of issue. This was due to a backlog of 22 resource consent applications requiring monitoring in the fourth quarter. Staff have been assigned to each of the outstanding consents and monitoring dates have been inputted into our Property & Rating system as a prompt. The percentage of resource consents processed within 20 working days

% 100 100 98.50

Comment: The target of 100% was achieved. All resource consents were processed within statutory timeframes during the 2012/13 year. Officers note that any resource consents processed outside of the 20 working day timeframe were subject to section 37 of the Resource Management Act. There were 108 land use consents processed during this period and 61 subdivision consents. The percentage of customers satisfied with the resource management services provided

% 90 68 90

Comment: The target of 90% was not achieved. The actual result was 68% satisfaction with the resource management services provided. This was a decrease of 22% on the previous year where 90% was achieved. This measure was canvassed via an annual Council-delivered customer satisfaction survey.

Scorecard Name: Date From Date To WASTE MINIMISATION 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The amount of product recycled through the centre each year

m³ >20000 21904 21301

Comment: The target of greater than 20,000m³ was achieved. The actual result was 21,904m³, which was a slight increase on the previous year. The amount of waste land filled each year

Tonnes <21000 - - New measure

Comment: This KPI was unable to be measured across the entire year as the landfill owners will no longer release this information to us. The result until the end of March 2013 was 13,957 tonnes of waste landfilled, meaning that this KPI was on track to meet its target.


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The average daily number of users of the Recycling Centre

# >340 355 381

Comment: The target of greater than 340 was achieved. The actual result was 355 users of the Recycling Centre, on average, per day during the 2012/13 year. However, this was a decrease on the previous year, where the average was 381. The number of complaints received about Council’s waste services

# <6 2 2

Comment: The target of less than six was achieved. The actual result was two complaints about Council’s waste services. This matched the previous year’s result.


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Transportation groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 247 337 337Targeted rates (other than a targeted rate for water supply) 0 0 0Subsidies and grants for operating purposes 43 29 28Fees, charges, and targeted rates for water supply 218 217 206Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 17 16 11

Total operating funding (A) 525 599 582

Application of operating fundingPayments to staff and suppliers 333 342 338Finance costs 73 81 80Internal charges and overheads applied 66 124 123Other operating funding applications 0 0 0

Total application of operating funding (B) 472 547 541


Sources of capital fundingSubsidies and grants for capital expenditure 0 0 0Development and financial contributions 0 0 0Increase (decrease) in debt (50) 20 (31)Gross proceeds from asset sales 0 0 0Lump sum contributions 0 0 0

Total sources of capital funding (C) (50) 20 (31)






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Transportation group Capital expenditure The following table shows the significant expenditure on capital works for the Transportation Services Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to replace existing assets : Airport Street lighting project 30 0 Electrical supply panel 20 0 Durie Hill elevator Upgrade video equipment 11 0 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Airport

The street lighting project commence late in the 2013 financial year. Council’s half-share unspent budget of $30k has been carried forward to 2013/14. Similarly the unspent $20k budget for the electrical supply panel has also been carried forward to 2013/14. The jobs have been carried over due to a delay in the tendering process.

Durie Hill elevator

The upgrade of the video equipment was delayed pending further studies. The work was not completed until July 2013. Funds were carried forward to complete this project.


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Transportation group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To AIRPORT 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The airport will be safe as demonstrated by receipt of CAA Part 139 Certification (assessing runway maintenance, security, safety, and emergency and management systems and procedures)

% 100 100 100

Comment: The target of 100% was achieved. Civil Aviation Authority Part 139 certification was complied with. The overall income from commercial activities meets the Airport’s operational and capital requirements


Comment: The target of 100% was not achieved. The actual result met 79% of the airport’s operational and capital requirements. This was due to a general downturn in the economy and losses incurred by the café; however, this is now in-hand and is expected to be the reverse in 2014. This result excludes depreciation expense. The target to achieve both operational and capital funding is a long-term one, particularly the capital aspect. This is still a work in progress and the plan to implement was stalled by our partner Ministry of Transport. The plan is currently under consideration and given the likely review of the joint venture by the Crown, this target will need to be reassessed. The percentage of users satisfied with the terminal facilities and other passenger services

% 90 86 88

Comment: The target of 90% was not achieved. The actual result was 86% satisfaction with the terminal facilities and other passenger services. This was in line with the previous year’s result and was canvassed via the externally-delivered annual Community Views Survey.


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Scorecard Name: Date From Date To DURIE HILL ELEVATOR 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The elevator receives its annual safety certificate of inspection

% 100 100 100

Comment: The target of 100% was achieved. The elevator received its annual safety certificate of inspection. The percentage of users satisfied with the Durie Hill elevator

% 90 99.50 New measure

Comment: The target of 90% was exceeded. The actual result was 99.50% satisfaction with the Durie Hill elevator. This measure was canvassed via an on-site survey of elevator users.

Scorecard Name: Date From Date To SEA PORT 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The number of commercial vessel visits per year

# 25 41 11

Comment: The target of 25 was exceeded. The actual result was 41 commercial vessel visits to the port during 2012/13. This was an increase on the previous year where 11 visits were made – a lower than expected result due to the temporary closure of the Kapuni Plant.


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Investments groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties (231) (208) (208)Targeted rates (other than a targeted rate for water supply) 0 0 0Subsidies and grants for operating purposes 0 0 0Fees, charges, and targeted rates for water supply 2,111 2,053 1,883Internal charges and overheads recovered 0 0 0Local authorities fuel tax, fines, infringement fees and other receipts 395 375 465




Surplus (deficit) of operating funding (A - B) 274 (39) 346



Application of capital fundingCapital expenditure-to meet additional demand 0 0 0-to improve the level of service 207 0 66-to replace existing assets 72 3 4Increase (decrease) in reserves (105) (138) 186Increase (decrease) of investments 0 0 0

Total application of capital funding (D) 174 (135) 256

Surplus (deficit) of capital funding (C - D) (274) 39 (346)



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Investments group Capital expenditure

The following table shows the significant expenditure on capital works for the Investments Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Investments City Endowment 0 61 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service.

City Endowment

During the year the Council approved alterations to be done on the first floor at 31 Taupo Quay. The cost of $61k was financed from the City Endowment special fund.



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Investments group

Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To INVESTMENTS 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The forecast net income from Council’s City Endowment property portfolio

% 6 8.21 New measure

Comment: The target of 6% was exceeded. The actual result was 8.21% net income from the City Endowment property portfolio. Officers note that while we are operating in a difficult market, overall performance has been ahead of target. This result is due to a combination of rent reviews and ensuring that operating expenses are fully recovered in accordance with individual leases. The forecast net income from Council’s Harbour Endowment property portfolio

% 6.50 7.87 New measure

Comment: The target of 6.50% was exceeded. The actual result was 7.87% net income from the Harbour Endowment property portfolio. Officers note that while we are operating in a difficult market, overall performance has been ahead of target. This result is due to a combination of rent reviews and ensuring that operating expenses are fully recovered in accordance with individual leases. The forecast net income from Council’s shell rock quarry

% 7.5 - - New measure

Comment: This indicator was not measured during the 2012/13 year.

The forecast return for Wanganui District Council Holdings Limited

Breakeven – no

dividend paid to

shareholder

495000 New measure

Comment: The target to breakeven with no dividend paid was exceeded with the forecast net income for the company being $495,000. This includes a non-cash revaluation of derivatives of $583K. After receiving advice from Pricewaterhouse Coopers, Wanganui Gas and Wanganui District Council Holdings Ltd (WDCHL) directors, we decided to sell the asset of energy trading company EDNZ for $13.65M plus $1.5M of working capital. The deal ensured that, at a minimum, the purchaser TrustPower would retain staff jobs and remain in the region for the next two years.


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Please refer to the Council Controlled Organisations (CCO) section of the Annual Report for more information on the CCO’s performance. The forecast return for Wanganui District Council’s Forestry Joint Committee

% Return on investment

between 5% and 8% over the 27

year lifecycle

8.3 New measure

Comment: The target of between 5% and 8% was exceeded. The actual average return on investment was 8.3% over the 27 year life of the forest based data from 1980 to the present day. An operating deficit of approximately $180,000 was incurred against a programmed $280,000 loss for the year. A dividend of $250,000 to the participating councils has been approved from reserves currently held.


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Corporate groupFunding impact statementFor the year ended 30 June 2013


2012 2013 2013$000 $000 $000

Sources of operating fundingGeneral rates, uniform annual general charges, rates penalties 3,008 3,018 3,321Targeted rates (other than a targeted rate for water supply) 0 0 0Subsidies and grants for operating purposes 0 0 65Fees, charges, and targeted rates for water supply 211 185 189Internal charges and overheads recovered 6,811 7,112 6,901Local authorities fuel tax, fines, infringement fees and other receipts 906 845 571


Application of operating fundingPayments to staff and suppliers 8,946 8,995 9,236Finance costs 100 216 (60)Internal charges and overheads applied 743 662 485Other operating funding applications 0 0 0










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Corporate group Capital expenditure The following table shows the significant expenditure on capital works for the Corporate Group. Significant variations to the Annual Plan are discussed below if necessary. Activity Item Budget Actual $000 $000 Capital expenditure to improve the level of service : Governance Stained glass windows 20 0 Corporate Management Intangible asset additions 110 161 Customer Services. Reception

improvements 0 19 Capital expenditure to replace existing assets : Corporate Management Administration. Furniture and fittings 30 0 Computer equipment replacement 295 314 Community and operational property Council chambers. Lift upgrade 105 55 Council chambers. Re-roof 43 25 Work was planned to maintain the service capacity of the Council facilities and to deal with the expected demands on the service. Governance

The stained glass window work is an on-going project spread over many years. Work this year halted with no windows being completed as there were no donations received.

Corporate Management

The intangible asset budget for IT of $110k was increased by a 2011/12 carry over of $120k, giving a total budget available of $230k. Actual expenditure of $161k was for a new Electronic Document and Records Management System project being introduced.

Computer replacements expenditure of $314k was a little ahead of the budget of $295k, but was covered by savings in the computer acquisitions area.


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No expenditure was incurred on the Administration furniture and fittings budget of $30k, as all potential expenditure was subject to close scrutiny.

Community and operational property

The lift upgrade cost for the Council building was budgeted at $105k. The actual cost of $55k was a lot lower as Council was able to secure a lift previously destined for Christchurch pre-earthquake.

The reroof for the Council building budgeted at $43k was in progress at the end of the 2013 financial year. The remaining budget of $18k will be carried over to meet costs incurred in 2013/14.



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Corporate group Statement of service performance Please see the activity scorecard information on page 113 of the Annual Report for further information. Scorecard Name: Date From Date To GOVERNANCE 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of Council and committee agendas made available to the public two working days before the meeting


Comment: The target of 100% was achieved. All our Council and committee agendas were made available to the public on time. The percentage of people who consider that Council has responded well or very well to community needs and issues

% 65 44 59

Comment: The target of 65% was not achieved. The actual result was 44% of the community were satisfied that we had responded ‘very well’ or ‘well’ to community needs and issues. This represented a decrease of 15% on the year before where 59% was achieved. We are undertaking a review of our communication in the 2013/14 year. This measure was canvassed via the externally-delivered annual Community Views Survey. The percentage of people who rate the performance of the Mayor and Councillors as good or very good

% 60 48 55

Comment: The target of 60% was not achieved. The actual result was 48% of the community rated the performance of the Mayor and Councillors as ‘good’ or ‘very good’. This represented a decrease of 7% on the previous period where 55% was achieved. This measure was canvassed via the externally-delivered annual Community Views Survey.

The percentage of rural people who rate the performance of the Rural Community Board as good or very good

% 60 32 47

Comment: The target of 60% was not achieved. The actual result was 32% of the rural community rated the performance of the Rural Community Board as ‘good’ or ‘very good’. While the 2011/12 year reflected an increase in satisfaction, the 2012/13 year saw this drop by 15%. This measure was canvassed via the externally-delivered annual Community Views Survey.


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Scorecard Name: Date From Date To CORPORATE MANAGEMENT 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

Communications The percentage of people satisfied that the information provided by Council is telling them what they need to know

% 90 58 New measure

Comment: The target of 90% was not achieved. The actual result saw 58% of people satisfied that the information we provided was telling them what they needed to know. We are undertaking a review of our communication in the 2013/14 year. This measure was canvassed via the externally-delivered annual Community Views Survey. Customer frontline services The percentage of customers satisfied with the contact and service received from the frontline team

% 90 93 94

Comment: The target of 90% was exceeded. The actual result saw 93% of our customers satisfied with the contact and service received from the frontline team to date. This was in line with the result from the previous year. This measure was canvassed via a Council-delivered customer satisfaction survey. The percentage of the community rating the performance of Council staff as good or very good

% 60 56 61

Comment: The target of 60% was not achieved. The actual result was 56% of the community rated the performance of our staff as ‘good’ or ‘very good’. This was also a decrease on the previous year where 61% was achieved. This is measured through the annual Community Views Survey and does not necessarily reflect those people who have had contact with Council. Customers who have had direct contact with us report a 93% satisfaction rating. We are continuing to implement our Customer Care Strategy across the organisation. Finance The documents we have audited receive an unmodified audit opinion

% 100 100 100

Comment: The target of 100% was achieved. A clear audit opinion was achieved for audited documents. Human resources The number of workplace accidents for Council employees

# <55 42 38

Comment: The target of less than 55 was achieved. The actual result was 42 accidents for ouremployees. This was a slight increase on the previous year where 38 reports were made.


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Information services The percentage of archives requests responded to within 24 hours


Comment: The target of 80% was exceeded. All archives requests were responded to within 24 hours. Officers note that all archive requests (both public and staff) are acknowledged immediately upon receipt. All requests are then researched and answered within 24 hours. Strategy and policy The percentage of Annual Plan or 10-Year Plan submission decisions provided within 10 working days of the adoption of the Plan


Comment: The target of 100% was not achieved. The actual result was 57% of decisions were supplied within 10 working days of the adoption of the Plan. Delays were caused by resourcing issues and the need for officer comments in relation to key aspects. By the eleventh day 73% had been supplied and all submitters were responded to within that week. A total of 88 submissions were received. The percentage of bylaws reviewed five years after they are made (and then 10 years after that)

% 100 56 80

Comment: The target of 100% was not achieved. The actual result was 56% compliance with review timelines. A prioritised programme of review is in place for the 2013/14 year.

The percentage of people satisfied with their level of involvement in the decision making process

% 60 45 New measure

Comment: The target of 60% was not achieved. The actual result saw 45% of people satisfied with their level of involvement in the decision making process. This measure was canvassed via the externally-delivered annual Community Views Survey.

Scorecard Name: Date From Date To COMMUNITY & OPERATIONAL PROPERTY 01-Jul-2012 30-Jun-2013 Linked items Unit Target Actual

Indicator

Prior year

The percentage of community organisation tenants on the maximum subsidy (meaning that they offer maximum benefit to the community)

% 75 76 New measure

Comment: The target of 75% was exceeded. The actual result was 76% of community organisation tenants on the maximum subsidy. We have a total of 59 community organisation tenants.


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The percentage of Council owned buildings with a current, annually audited, Building Warrant of Fitness

% 100 100 100

Comment: The target of 100% was achieved. All Council owned buildings had a current, annually audited Building Warrant of Fitness.


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Council Controlled Organisations

Wanganui District Council Holdings Limited (WDCHL) and Wanganui Gas Limited (WGL) WDCHL was formed in March 2002 to provide a commercial overview to the Council’s investment portfolio. It owns 100% of the shares in Wanganui Gas Limited and its subsidiaries and provides a monitoring service to Council for the following activities: Council’s investment properties Wanganui District Councils’ Forestry Joint Committee Wanganui Airport Joint Venture Wanganui Gas Limited Inland Port/Sea Port Quarrying

WDCHL was formed to oversee individual investments and to advise Council on: The mix of investments in the portfolio; The risk of investments in the portfolio; The management of individual investments in the portfolio; The overall strategy for investments in the portfolio; To identify opportunities to enhance investments and returns; To identify potential new investments that meet Council investment objectives; To identify appropriate structures that may better enhance focus and management of particular

investments. Monitoring of these investments has been carried out and questions regarding the future strategies, mix, prospects and risks of these investments have been addressed. The Board meets monthly except January. The Council objectives for the ownership of the Company are being met.

Objective

The Board intends to operate as a successful business in relation to its investments to the monitoring roles assigned to it under contract by WDC.

Performance targets

To break-even for the financial year

Budget2012/13

Actual2012/13

Actual 2011/12

Surplus/(deficit) before tax $(54,274) $495,000 $(403,000) Dividend received $0 $200,000 $100,000 Dividend paid $0 $0 $0

Variance between actual and budget for 2013 was mainly the result of the revaluations of derivative financial instruments.


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To facilitate Wanganui Gas Limited to achieve the performance targets identified in its Statement of Intent The directors have closely monitored the Wanganui District Council’s investment in Wanganui Gas Limited, with the Chairman of WDCHL sitting on the Wanganui Gas Limited’s Board. The Board has facilitated the continuance of the Council’s investment with variances to performance targets being monitored.

Objectives

The company aims to improve the long term value and financial return that WDC receives from its trading undertakings.

Wanganui Gas Limited has reported an improved financial performance over the financial year. WDCHL’s directors have continued to closely monitor the company’s progress and have aggressively advised on implementing new income streams and have taken advantage of risk mitigating courses of action.

Optimise financial and physical resources through close scrutiny of potential areas of inefficiency, waste or under–utilisation of capital.

The Directors all have extensive and varied commercial experience which when combined provides a wide set of skills that can provide solutions to issues of inefficiency or under-utilisation of capital. This has been evidenced by our involvement in the shellrock venture at Waitaihanga, and working alongside Iwi to co-develop the shellrock reserve at Kaiwhiaki..

Provide prudent management of investments and timely, constructive professional advice regarding its position as shareholder in Wanganui Gas Limited, and any other subsidiary companies or undertakings.

The Chairman of WDCHL sits on the Wanganui Gas Limited’s Board. This has provided for timely involvement in the company and in the management of Council’s investment. In addition, WDCHL’s directors sit on the Airport Management Board, worked along side external contractors with the Forestry portfolio, worked along side WDC staff with regard to property matters, including monitoring the newly acquired Port operations, and investigated new commercial projects such as property development opportunities, shell rock extraction agreements.

Meet the expectations of WDC for quality, competitively priced strategic planning advice on investments and trading undertakings.

The Board has met monthly to discuss its portfolio performance and the Chairman has reported to Council every meeting to update the Council on matters.

Review and advise on the strategies and plans of any subsidiary company, business unit or asset as requested by WDC.

Board meetings are held on a monthly basis and include the Chief Executive of the Council which enables open communication regarding matters concerning the Council. Monthly Board papers include reports on each area under WDCHL’s governance portfolio.

Be a good corporate citizen and exercising the appropriate level of social responsibility toward the community and the environment, consistent with the conduct of a sustainable and profitable business.


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WDCHL’s Directors are experienced directors who have had significant training and experience in the operations of a Board and the concept of governance. The directors are aware of the Purpose of Local Government as defined by the Local Government Act 2002 and carry out their decision making with the benefits to the ratepayers of the Wanganui District in the forefront.

Wanganui Gas Limited

Actual2011/12

Budget2012/13

Actual 2012/13

Net surplus/(deficit) after tax and subvention payment to average ordinary shareholders funds

17.1% 12.2% (1.1)%

Earnings before interest and tax to average Assets. 10.3% 9.1% 1.7% Statement of Intent Wanganui Gas Limited (the company) is a Council Controlled Trading Organisation established under the Local Government Act 2002. The Statement of Intent for 2012/13 sets out the overall intentions and objectives of Wanganui Gas Limited for the two financial years beginning 1 July 2012.

Objectives The Directors intend that the Company operate as a successful business and be at least as profitable and efficient as other energy companies. The Company aims to achieve a reasonable rate of return from its subsidiary companies (GasNet Limited and Energy Direct NZ Limited) and to provide a satisfactory dividend to its shareholder after retaining adequate earnings for future business requirements.

Activities During the year, the Company's core businesses were those of providing gas traders with safe, efficient and reliable gas distribution services through the Company's networks and the retailing of energy to our customers. Following the sale of EDNZ, the Company ceased its energy retailing business with effect from 1 July 2014. Performance targets and assessment The performance of the Company will be judged against the following measures: Strategic Plan Develop and annually review an outline on the future direction of the Company and the strategies required to achieve it. Reporting To provide timely monthly reports to management and the Shareholder covering the trading activities undertaken by the Company. To provide an unaudited interim financial statement for the six months to 31 December to the Shareholder by the end of February. To provide an audited Annual Report to the Shareholder by the end of September.


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Wanganui Airport Joint Venture (WAJV) The primary objectives of the airport operation are to:

Provide high quality facilities and service commensurate with existing levels of aviation activity and in accordance with all the appropriate Acts, Regulations and Rules pertaining to airport and aviation operations in line with the size of Wanganui Airport.

Operate the airport in a sound and business like manner. Improve the long term value and financial performance of the airport while improving the economic

value of the airport to Wanganui. The objectives of the Wanganui Airport Joint Venture for this financial year and the following two financial years are clearly specified in the statement of intent which was approved by the joint partners. These objectives are listed below with the relevant targets and measure(s) of performance, and the performance achieved during the financial year. Objective Operate the airport in a sound and business like manner. Performance measure Reduction of the current loss position to ‘break even’ or to a level acceptable to Council in light of the CCO's economic value to Wanganui. Achievement

2009 2010 2011 2012 2013 Net Profit/(Loss) -208,000 -133,000 -25,000 -136,000 -176,000

The airport was operated in a business like manner. Although cost control was a major focus again this year, there were increases in a number of costs, such as insurance, maintenance, energy and vehicle expenses. In addition, income was slightly under budget in landing fees and café sales. Although the deficit has increased compared to last year, it is acceptable to the Joint Venture Partners. Objective Provide high quality facilities and service commensurate with existing levels of aviation activity and in accordance with all the appropriate Acts, Regulations and Rules pertaining to airport and aviation operations of the size of Wanganui Airport. Performance measure Compliance with all aspects of Part 139 of Civil Aviation Rules with a minimum of one requirement per inspection. Achievement Full compliance with Civil Aviation Rules Part 139 was achieved.


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Objective Improve the long term value and financial performance of the airport along with improving the economic value of the airport to Wanganui. Performance measure Delivery of an activity plan and subsequent achievement of the individual targets outlined within that plan. Achievement The deficit exceeded that outlined in the business plan as discussed above. The Joint Partners continue to investigate ways of improving revenue streams as well as controlling costs. Directors meet on a six-weekly cycle to monitor the performance of the Airport. Positive development continues with the direction being taken by the airport aimed at increasing user satisfaction.

Wanganui Incorporated (WINC) The objective of Wanganui Incorporated is to improve the co-ordination of economic development and promotional agencies in Wanganui and to align relevant programmes and capabilities with Council in order to deliver on the Economic Development Strategy. Council brought many activities in house on 1 July 2007 however this charitable trust works in tandem with the Council’s economic development activity. Key performance targets are measured and reported as part of the Council’s Statements of Service Performance.

Ruapehu, Wanganui, Rangitikei Regional Economic Development Trust (RED Trust) The objective of the Ruapehu, Wanganui, Rangitikei Regional Economic Development Trust is the promotion and implementation of regional development initiatives that may be identified by the trustees or the community in general, that benefit communities within New Zealand but primarily within the territorial authority districts of Ruapehu, Wanganui and Rangitikei. The Trust was established on 4 May 2006. The Ruapehu, Wanganui, Rangitikei Regional Economic Development Trust (RED Trust) has been exempted according to section 7 of the Local Government Act 2002 (the Act). It is therefore not a Council Controlled Organisation for the purposes of the Act.


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Cooks Gardens Trust Board The Cooks Gardens Trust Board was initially established to undertake the development of Cooks Gardens including construction of a new all-weather athletics track, a new velodrome and a new grandstand. With the community investment in this facility, Council believes the use of the facility should be as high as possible while not causing excessive wear or damage to the assets. Cooks Gardens is a premier sporting facility and the Trust has met the Council objectives of developing the facility and increasing its use. The Cooks Gardens Trust Board has been exempted according to section 7 of the Local Government Act 2002 (the Act). It is therefore not a Council Controlled Organisation for the purposes of the Act.

Whanganui River Enhancement Charitable Trust The purposes of the Whanganui River Enhancement Charitable Trust are to promote the enhancement of the quality of the waters and catchment of the Whanganui River; to encourage other parties to promote the enhancement of the quality of the waters and catchment of the Whanganui River; to make funds available to allow river enhancement projects (social, economic and environmental) to be undertaken; to contribute to public education about the health and wellbeing of the Whanganui River; and to assist in the education of students engaged in full-time tertiary study, where that study is relevant to the Whanganui River. Although Council appoints two of the six Trustees (two also appointed by Ruapehu District Council) they do not exercise significant influence over the Trust. Genesis contributes all revenue, and provides management and accounting personnel. The life of the Trust is linked to the resource consents of Genesis’s Tongariro Power Development. The Whanganui River Enhancement Charitable Trust has been exempted according to section 7 of the Local Government Act 2002 (the Act). It is therefore not a Council Controlled Organisation for the purposes of the Act.

Sarjeant Gallery Trust Board The purpose of the Sarjeant Gallery Trust Board is to promote and foster the interests of the Wanganui Sarjeant Gallery and the interests of Wanganui’s art and artists. The Wanganui Sarjeant Gallery provides a nationally recognised art experience for both residents of Wanganui and visitors. In addition to providing up-to-date exhibitions, it facilitates educational talks and forums, as well as providing artists a platform for displaying local art. The Sarjeant Gallery Trust Board has been exempted according to section 7 of the Local Government Act 2002 (the Act). It is therefore not a Council Controlled Organisation for the purposes of the Act.


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Manawatu-Wanganui Local Authority Shared Services Limited (MW LASS Ltd) MW LASS Ltd was formed in October 2008 to provide an ‘umbrella vehicle’ for the councils of the Manawatu-Wanganui region to investigate, procure, develop and deliver shared services. Such services will be initiated under the umbrella of MW LASS Ltd where a business case shows that they provide benefits to the council users by either improved levels of service, reduced costs, improved efficiency and/or increased value through innovation. Current feasibility studies being undertaken include GIS, Aerial photography and Joint procurement.


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Equal employment opportunities (EEO) report Over the past year the attainment of EEO goals has been sought through: Making EEO information more readily available on the intranet, policies and through discussions

of matters that impacted on our EEO policy and goals at senior management meetings, staff committee meetings and the union/employer working party meetings.

Giving staff the opportunity to express their views through the annual staff survey and

addressing issues that arose.

Giving staff the opportunity to feed issues to senior management through a Staff Committee structure.

The continuation of the conduct of Treaty of Waitangi training seminars for all newly appointed

staff. Having in place an Employees Assistance Programme which includes: Staff support procedures which were adopted to assist employees to resolve concerns and

difficulties before they became costly in terms of personal distress or work efficiency. Access to an independent counselling service.

Adopting health and safety initiatives and supporting wellness programmes through: Appointing a Health and Safety Advisor. Reviewing, rewriting, endorsing and implementing the current health and safety policy and

procedure manual. The establishment of an independent staff health and safety committee. The continuance of the influenza inoculation programme which was extended to provide

alternative anti-flu medications. The subsidisation of fees programme for medical health and eye checks.


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Working with Maori The Wanganui District Council continues to meet separately with two of the Atihaunui-A-Paparangi Runanga, Tupoho and TamaUpoko, on a six-weekly basis as per our relationship documents. Six Tamaupoko Link meetings and eight Tupoho Working Party meetings took place during the 2012/13 year. Iwi, the Council and the Crown continued administration of Moutoa Gardens / Pakaitore through the Pakaitore Historic Reserve Board. Three meetings and the AGM were held during the year. Although relationship documents have not been developed with the two adjoining Iwi, Nga Rauru and Ngati Apa, contact has continued on an as-required basis. Council employs an Iwi Liaison officer on a halftime contract basis. Officers continue to carry out consultation with Iwi on specific issues. Council officers have been working with Iwi, the Crown and other local authorities on matters related to the impending Whanganui River Treaty of Waitangi claim. On 30 August 2012, the Crown and negotiators for Whanganui Iwi signed a framework agreement - Tūtohu Whakatupua - setting out certain key elements that will form the basis for a settlement of Whanganui Iwi’s historical claims relating to the Whanganui River. This is an interim agreement and we look forward to the parties reaching a full deed of settlement. A focus on partnerships also saw the Council working with Tupoho Whanau Trust and Sustainable Whanganui to develop the Whanganui Resource Recovery Centre concept and secure government funding to establish the centre.

Annual Report - Whanganui · 2019-03-22 · Wanganui District Council Annual Report for the year...

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