napier city council 2021/22 amendment · napier city council . ... detailed business case was also...

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Napier City Council

Ten Year Plan 2012/13 – 2021/22 Amendment

To Provide for the Marine Parade Redevelopment

The following Amendment to the Napier City Council 2012/13 Ten Year Plan was

adopted at the Council Meeting on 17 December 2014.

Consultation Process

The Statement of Proposal was adopted by Council at the City Development

Committee Meeting on 15 October 2015. This Statement of Proposal was prepared in

accordance with sections 83, 87, 93A, 93B, 93D, 93F and 93G of the Local

Government Act 2002. The Marineland buildings are listed as a strategic asset in

Council’s Policy on Significance and the proposed investment into the redevelopment

of Marine Parade required an amendment to the Long Term Plan.

Note – this amendment relates only to the changes to the Long Term Plan 2012/13-

2021/22 for the Marine Parade Redevelopment and does not include any other

changes that have been adopted by Council as part of its Annual Plan process in the

intervening years.

The Submissions were received from 18 October 2014 to noon 19 November 2014.

Submitters were given the opportunity to speak in support of their submissions.

The Hearings Committee heard and considered the submissions at a meeting on 4

December 2014.

Council adopted the following Statement of Proposal as presented with no changes.

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STATEMENT OF PROPOSAL

Introduction

The Napier City Council proposes to redevelop the current Marineland site and

carpark area to the north of the site into a roller sports venue adjacent to an

interactive water-play recreation area (Reef Garden) and carpark, and a grassed

amphitheatre which links to the southern end of the sunken gardens. Preliminary

concept plans (Appendix I, Page 24) have been developed which provide a general

impression of the proposed development. Detailed planning and design is yet to be

carried out.

The proposal is supported by a feasibility study which was carried out to confirm that

the proposal will meet the investment objectives of securing Napier’s future as a key

tourism destination, providing a multipurpose recreation facility, complete the Marine

Parade revitalisation, and is a strategic and cost-effective reuse of ageing

infrastructure. It is intended that the feasibility study will support funding

applications to external funding providers for part of the capital expenditure. A

detailed business case was also carried out to identify options for the Marine Parade

redevelopment and ascertain that the preferred option is supported by a robust case

for change, optimises value for money, is commercially viable, and is achievable.

(Copies of the business case are available on the Council website, Reception or at the

Public Library).

A rough order of costs of the redevelopment has been estimated to be $5.7 million.

It is proposed to raise external funding of $300,000 towards the proposal. The

proposal therefore seeks to allocate $5,400,000 from Council reserves over the

2014/15 and 2015/16 financial years.

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Background

With the necessary closure of Marineland in 2008, numerous options for an

alternative use have been brought before the Council. As Marineland is identified

as a strategic asset and is an iconic facility, Council sought to investigate its

redevelopment in light of other proposed developments on the Marine Parade. The

Marine Parade Redevelopment Group was therefore established to take a more

holistic approach to the Marine Parade developments to ensure that developments

were not planned in isolation of each other or in taking an ad hoc approach.

The Marine Parade Redevelopment Group was tasked with addressing the Napier

Skating Club’s 2013/14 Annual Plan request to expand Skate Zone and develop a

skate bowl and dedicated junior scootering area. In this regard options for

relocating the Napier Skating Club’s facilities to Marineland were investigated along

with the revitalisation of the area north of Marineland being the carpark and Skate

Zone.

At present Skate Zone is isolated from the other active recreation activities

(playgrounds, cycle track) along the Parade by the large car parking area and is

situated alongside a high profile passive recreation area being the sunken gardens.

From an urban design and best practice planning perspective it is considered that

utility will be maximised by having the active recreation activities clustered together

towards the south of the car park. This will provide the opportunity to demolish the

current Skate Zone building and external wall structures which are currently having a

detrimental impact on the amenity of a high profile destination waterfront area.

Concept drawings and plans have been developed for these areas which see

Marineland modified to a skate park catering for a wider variety of roller sports.

The grandstand will be retained in any future redevelopment. The carpark is

proposed to be reduced to cater for 140 leased car parks while the balance of the

area is proposed to be developed into an interactive water playground and a

sculptural civic area that appeals to both Napier residents and visitors to the

region. To the north of this area it is proposed to develop an amphitheatre over

the split level between the sunken gardens and where Skate Zone currently exists.

To meet current demand for additional car parking during peak times at the

Marine Parade playground it is proposed to develop 25 new carparks on the

southern end of the current Marineland site.

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Since the development of the concept plans, informal consultation with the wider

community has occurred by way of a survey and the establishment of a Facebook

page dedicated to the proposed developments. Of more than 400 respondents to

the survey, 77% reported that they were in favour of converting the Marineland site

to a skate park with 19% not in support. Forty-nine percent of respondents had

visited the current Skate Zone in the past year and 80% said they would visit the

new park and visit more often. Sixty per cent of respondents were prepared to pay

an entry fee to the skate park with most willing to pay approximately $5 to $10 per

entry. The survey reported that 75% of people liked the plans to develop the

proposed Reef Garden and amphitheatre.

The Community Development Department has consulted specifically with Skate

Zone users and school groups at their request. A scale model of the skate park was

constructed to be used for consultation. The model has been on display with the

survey and has been taken into schools, to Skate Zone and to the “Holiday Hang

Out” run by Napier’s Youth Council.

The Facebook page has provided the opportunity to inform the social media

community of Council’s plans and allowed people’s views, concerns and questions

to be broadcast online. This medium has also identified a number of roller sports

minority groups such as inline hockey (Napier Sharks) and artistic/figure skater

interest groups to come forward to express their interest in being part of the

proposed development.

Feedback from the survey, Facebook and in general has been overall positive with a

number of ideas of how the planned developments could be improved or enhanced.

Concerns have been raised about loss of the Marineland mammals, the current

Skate Zone facility, and the ice cream parlour (Lick This). The Marineland mammals

are currently in the process of being relocated to facilities where they will be of

greater community benefit. Council officers will work closely with the Napier

Skating Club and “Lick This” in the design and development of the proposed facility.

The next stage in the project will be the detailed planning and design where input

will be sought from all affected and interested parties and the wider community.

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Feasibility of the proposal

The feasibility study was carried out alongside the detailed business case to provide

information to the Council and potential external funders on how feasible the

proposed development is in terms of aligning with Council’s strategic objectives and

policy, and community outcomes.

Council’s Youth Policy identifies the need for safe venues and facilities in the City as

a key issue facing young people in Napier. The proposed skate park and buildings

as well as the proposed Reef Garden and amphitheatre have the potential and

capacity to cater for a much wider demographic of young people and a more diverse

range of activities close to the CBD.

In addition to responding to the needs of young people and families, the proposed

development is also well placed to enhance the experience of visitors to the City

particularly when the majority of overnight stays are by visiting friends and family

(76%) or for general holiday and leisure (17%). The feasibility study acknowledges

that it is difficult to sensibly quantify or estimate any potential increase in tourist or

visitor numbers as a result of these figures however it is more likely that the

development will form an additional component of a broader offering that is Marine

Parade in its entirety, making Napier a destination of choice, and increasing the

potential for return visits. It is considered that the revitalisation of Marine Parade

will form an important part of the sustainability of the Napier tourist/visitor market

into the future. The feasibility study identifies that the proposed development

maximises the reuse of the Marineland facility and existing structures, which has

both financial and community benefit. It will provide a multifunction sport and

recreation facility for the enjoyment of Napier’s young people and families, and for a

range of visitors and events.

The main benefits of the proposal have been identified as follows;

Increased amenity and experience – the wider Napier Community and visitors

will benefit by enhancements to the amenity of the place (the way it looks and

feels) and will increase the ways that people of all ages can enjoy the space.

Increased community pride and lifestyle factors – enhanced amenity and

lifestyle opportunities contribute greatly to community pride and a sense of

belonging.

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Safety for young people – the provision of a central and visible venue enables

young people to congregate and play in a safe, supervised and non-

threatening environment.

Community health – the provision of a multifunction recreation facility and the

broader offerings on Marine Parade enable the community to participate in

healthy activity. This may have long-term health benefits for people of all

ages.

Improved outcomes for young people – youth facilities and services are an

important part of ensuring that young people are supported, connected and

provided opportunities to reach their full potential.

Capacity to host events – tourism providers, competitors, local retailers,

and recreation and sporting groups may directly benefit from the potential of

large events to draw competitors and spectators from around the country.

The numbers of people using the facility for these events will increase visitor

numbers which will benefit tourism and hospitality providers and retailers.

The hosting of large events will generally derive some benefit in terms of

revenue generation for the use of the facility which could potentially

contribute to the ongoing operational costs.

Completion of upgrades to increase tourism – increased visitation

attracted from both Napier residents and tourists will directly benefit

tourism and hospitality providers and retailers. Tourism generation also

has wider regional and national economic benefits in terms of travel and

other attractions and experiences in the wider Hawke’s Bay area.

Strategic reuse of Marineland facility – particularly the reuse of the iconic

grandstand, means that the facility is back in community use at a smaller

cost than would be involved in full redevelopment. There are ongoing

operational and maintenance costs for the facility, which do not return

current community or economic benefit. This would not be the case under

the proposal.

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Business case for the proposal

An indicative business case was carried out to assess a number of options available

to Council, including the status quo, to determine the preferred option and whether

it met Council’s identified investment options so it could proceed to a detailed

business case.

The options initially assessed were:

Option 1: do nothing assuming Marineland is vacant (i.e. no remaining animals)

Option 1(a): do nothing assuming Marineland continues with remaining animals

as is currently the case

Option 2: redevelopment of Marineland to a different use

Option 3: development of a recreation facility at an alternative location

Option 4: restore Marineland to previous use

Option 5: commercial lease of the existing Marineland site

Option 6: redevelopment of Marineland, Skate Zone and the car park in to a

multipurpose recreation facility, interactive Reef Garden and amphitheatre

Options 4 and 5 were discounted as viable due to their inconsistency with the

strategic investment objectives. The only commercially viable operation of Option 4

would involve captive dolphins, which is contrary to the Government’s policy.

The strategic investment objectives of this proposal that aim to respond to the

needs of the community were identified as being;

1. Securing Napier’s future as a key tourism destination

2. Providing a multipurpose recreation facility

3. Completing Marine Parade’s revitalisation and establish it as the “kid’s

capital”

4. Strategic and cost-effective reuse of ageing infrastructure

The indicative business case confirmed the proposal met these objectives and

subsequently the detailed business case was completed. The detailed business

case followed the Better Business Case process and was organised around five case

models to systematically ascertain that the investment proposal;

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is supported by a robust case for change – the ‘strategic case’;

optimises value for money – the ‘economic case’;

is commercially viable – the ‘commercial case’;

is financially affordable – the ‘financial case’; and

is achievable – the ‘management case’.

The detailed business case identified that the proposal to convert Marineland to a

skate park and develop a Reef Garden and amphitheatre was the investment option

that optimised value for money, is commercially viable, and is achievable.

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Funding the proposal

The initial capital investment can largely be found from existing Council reserves

($5.4M). The balance is being sought through external funding sources such as the

Lottery Community Facilities Fund. The following outlines the breakdown of Total

Project funding:

Grants from external funders eg Lotteries $300,000

Council reserves (non-rate funded)* $5,400,000

Total Capital funding $5,700,000

*Council reserve funding is derived from Parklands Residential Development. This is a

Council operated activity. The housing subdivision arising from this activity is located

on the south side of Prebensen Drive and west of Tamatea Drive (an area of land

uplifted as a result of the 1931 earthquake). Income derived from the sale of sections

in the activity is applied to capital projects in accordance with Council policy. As a

result, the capital cost of projects such as this Marine Parade redevelopment can be

funded without seeking additional ratepayer funding.

The on-going operational costs of the facilities proposed are not significantly higher

than what the Council currently funds and future facility asset renewals will not have

a major impact on Council’s finances.

Council’s decision and approach in relation to the final design and operation of the

facility will influence costs. A number of assumptions were therefore necessary in

the development of the financial analysis model. The net cost of operations

(excluding depreciation) is calculated to be $3,512,000 over a 30 year period.

Modelling was based on the current prices paid by users of Skate Zone, lease and

rental income and from leased parking fees. The detailed business case considers

the proposed cost of the project provides value to the Napier community over the

expected lifespan of the contract.

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2012/13 to 2021/22 Long Term Plan Amendment

In preparing the Long Term Plan Amendment and the effects of redeveloping Marine

Parade, a number of financial assumptions have been made:

That the design work will be undertaken in 2014/15 and cost $300,000 with

the remainder of the work being completed in 2015/16

That $300,000 will be sourced from external grants and secured in 2015/16

The running of the Skate Park facility will provided for by Napier City Council

(although this has yet to be determined and used as an assumption only)

That the costs associated with the redevelopment have not been offset by any

potential savings elsewhere

That any potential event income and expenditure has not been included in the

amendment with the assumption that they will be cost neutral

CPI Long Term Plan estimates have been assumed for the amendment

Replacement car parking to be considered separately and included in the Long

Term Plan 2015/25

Depreciation has assumed to be non funded, in line with other similar projects

undertaken by Council

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Summary of Inflated changes to the Long Term Plan 2012/13-2022/23

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 TOTAL

$000 $000 $000 $000 $000 $000 $000 $000 $000

Planning and Regulatory Group

Reduced Income - Parking 0 57 27 28 28 29 30 31 231

Recreation Group

Skate Facility income - (143) (148) (153) (158) (164) (169) (175) (1,111)

Income - Grants - (300) - - - - - - (300)

Skate Park expenditure - 97 100 104 107 111 114 118 751

Leased Facilities - - (40) (42) (43) (45) (46) (48) (264)

Operating/Maintenance Reef garden

and Amphitheatre- 130 174 180 186 192 198 205 1,264

Building Maintenance - - 21 22 23 24 24 25 139

Depreciation - Skate Park Buildings - - 112 116 120 124 128 132 731

Depreciation - Reef Garden - - 92 95 98 101 105 108 599

Depreciation - Amphitheatre - - 10 10 10 11 11 11 63

TOTAL - (160) 346 358 370 383 396 409 2,102

Funding

Parking Account - 57 27 28 28 29 30 31 231

External Grants and Donations - (300) - - - - - - (300)

Rates - 84 107 110 114 118 122 126 780

Non Funded Depreciation - - 213 220 228 236 243 252 1,392

TOTAL - (160) 346 358 370 383 396 409 2,102

CapitalSkate Park / Buildings 300 2,983 - - - - - - 3,283

Reef Garden (includes Water play area) - 2,270 - - - - - - 2,270

Amphitheatre - 345 - - - - - - 345

Renewals - 21 22 23 24 24 25 139

TOTAL 300 5,598 21 22 23 24 24 25 6,037

Funding

External Grants and Donations - 300 - - - - - - 300

Capital Projects/Parklands Fund 300 5,298 - - - - - - 5,598

Rates - - 21 22 23 24 24 25 139

TOTAL 300 5,598 21 22 23 24 24 25 6,037

Operating

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Below is the Table identifying by page the changes to the Long Term Plan from

the original document and the proposed amendments.

Long Term Plan pages to

be amended

Page from original

Long Term Plan

Document

Volume from original

Long Term Plan

Document

Appendix in

Statement of

Proposal –

amendments

Financial Strategy –

Table 1 – Planned Rates

Levels 2012-22

27 Ten Year Plan –

Appendix A

A – Page 10

Financial Performance

Measures


Appendix A

B – Page 11

Prospective Statement of

Comprehensive Income


Appendix A

C – Page 12

Prospective Income

Statement

60-61 Ten Year Plan –

Appendix A

D –

Prospective Changes in

Equity


Appendix A

E – Page 14


Financial Position


Appendix A

F – Page 15


Cashflows


Appendix A

G – Page 16

Long Term Plan pages to

be amended

Page from original

Long Term Plan

Document


Long Term Plan

Document

Appendix in

Statement of

Proposal –

amendments

Funding Impact

Statements (Whole of

Council, Recreation and

Planning)

119

150-151

Ten Year Plan –

Appendix A

H – Page 17-19

Other consequential amendments without supplementary appendix

Amendment Page from

original Long

Term Plan

Document

Volume from

original Long

Term Plan

Document

Impact from

change

Funding

Add new line -

Prospective

Capital Plan

Reserves: Marine

Parade

Redevelopment


Appendix A

$4,665,000

2015/16

Capital

Projects

Add new line -

Prospective

Capital Plan

Reserves: Regional

Facilities


Appendix A

$735,000

2015/16

Capital

Projects

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Economic and Financial Performance Measure amendments

Amendment Page from original

Long Term Plan

Document


Long Term Plan

Document

Amended

2015/22 (average)

Economic and

Financial

Performance -

Recreation

116 – Cost per

rateable property

Ten Year Plan – main

document

$183

Economic and

Financial

Performance -

Recreation

116 – Operating cost

per hectare of reserve

Ten Year Plan – main

document

$11,920

Special consultative procedure

In adopting the Statement of Proposal for public consultation, including a draft

declaration indicating the proposed option, the Council is required to consider

whether the Statement of Proposal meets the requirements of section 87 of the

Local Government Act 2002. A statement of proposal must include:

A statement of the reasons for the proposal; and

An analysis of the reasonably practicable options, including the proposal;

and

Any other information that the local authority identifies as relevant.

The Council considers this Statement of Proposal meets these requirements.

Submissions

Submissions may be received from 18 October 2014 and until no later than noon on

19th

November 2014. Any person who wishes to speak in support of their

submission will be given the opportunity to be heard by the Council at a hearing on

4th

December 2014.

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Appendix A – Rating Impact

Rates Average 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Inflated rates increase excluding

household growth (existing

ratepayers) 3.2% 2.2% 3.8% 3.1% 4.5% 3.6% 3.0% 3.6% 3.3% 1.1% 3.9%

Forecast household growth 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%

Inflated rates increase including

household growth (existing and

new ratepayers) 3.4% 2.4% 4.0% 3.3% 4.7% 3.8% 3.2% 3.8% 3.5% 1.3% 4.1%

CPI (estimate) 3.3% 3.3% 3.6% 2.4% 3.2% 3.2% 3.4% 3.5% 3.4% 3.3% 3.3%

Variance (Inflated rates increase

excluding growth less CPI) -0.1% -1.1% 0.2% 0.7% 1.3% 0.4% -0.4% 0.1% -0.1% -2.2% 0.6%

Average increased rates cost per

ratepayer from Marine Parade

redevelopment (Inflated) 3.36$ 5.11$ 5.28$ 5.47$ 5.66$ 5.84$ 6.03$

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Appendix B

Financial Performance MeasuresAnnual Plan Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

44,379 Rates Revenue 45,466 47,273 48,846 51,135 53,086 54,776 56,838 58,849 59,588 62,053

21,056 Net Surplus 16,216 12,587 10,478 11,777 12,295 11,885 12,080 8,179 5,566 6,237

26,825 Working Capital 24,642 10,718 7,842 9,448 18,357 14,521 13,704 9,007 20,033 12,351

2,637 Net Public Debt (External) 2,020 12 4 - - - - - - -

34,311 Internal Debt 44,880 56,076 60,222 62,835 59,699 56,452 53,260 54,137 51,612 58,330

1,363,960 Total Assets 1,379,746 1,460,488 1,470,159 1,486,266 1,585,948 1,598,176 1,610,440 1,710,818 1,715,704 1,724,659

44.7% % Rates Revenue to Total Revenue 46.8% 48.2% 48.6% 48.6% 48.7% 48.3% 48.8% 53.2% 52.7% 52.8%

0.2%

Net Public Debt as a percentage of Total

Assets 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

11.4%

Proportion of Rates Revenue applied to

service Total Debt (%) 9.3% 10.2% 10.3% 10.6% 10.5% 10.2% 9.8% 9.5% 7.3% 6.7%

Rates increase to existing ratepayers year

on year * 2.2% 3.8% 3.1% 4.5% 3.6% 3.0% 3.6% 3.3% 1.1% 3.9%

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Appendix C

Prospect ive St at ement of Comprehensive Income 2012/13 t o 2012/22

Forecast for t he 10 years ending 30 June 2022

Annual

Plan

2011/12

$000

Forecast

2012/13

$000

Forecast

2013/14

$000

Forecast

2014/15

$000

Forecast

2015/16

$000

Forecast

2016/17

$000

Forecast

2017/18

$000

Forecast

2018/19

$000

Forecast

2019/20

$000

Forecast

2020/21

$000

Forecast

2021/22

$000

Income

44379 Rates revenue 45,466 47,273 48,846 51,135 53,086 54,776 56,838 58,849 59,588 62,053

1500 Finance income 1,657 882 720 750 1,089 1,461 1,799 1,862 2,140 2,048

2,280 Development and financial contributions 1,789 1,855 2,308 2,382 2,664 2,754 3,049 4,590 4,741 4,891

10,833 Subsidies and grants 7,238 4,637 4,169 4,603 4,450 4,596 4,748 4,908 5,082 5,266

39,770 Other revenue 39,620 42,319 43,375 45,319 46,587 48,479 48,789 39,144 40,236 41,716

1187 Other gains/(losses) 1,374 1,098 1,094 1,125 1,198 1,275 1,187 1,221 1,344 1,523

99,949 Tot al income 97,144 98,064 100,512 105,313 109,074 113,342 116,410 110,575 113,131 117,497

Expendit ure

24873 Employee benefit expense 25,513 26,360 27,026 27,751 28,419 29,158 29,916 30,635 31,341 32,156

22099 Depreciation and amortisation 20,835 22,255 25,131 26,373 27,536 30,088 31,533 33,162 36,477 38,015

31743 Other expenses 34,515 36,995 38,196 39,719 41,144 42,547 43,255 38,993 40,160 41,522

307 Finance costs 278 141 - - - - - - - -

79,022 Tot al expendit ure 81,141 85,751 90,353 93,843 97,099 101,793 104,705 102,790 107,979 111,693

20,927 Operat ing surplus/(deficit ) before t ax 16,003 12,313 10,159 11,470 11,975 11,548 11,705 7,784 5,152 5,804

129 Share of associate surplus/(deficit) 213 274 319 307 320 337 375 395 414 433

21,056 Surplus/(deficit ) before t ax 16,216 12,587 10,478 11,777 12,295 11,885 12,080 8,179 5,566 6,237

- Income tax expense - - - - - - - - - -

21,056 Surplus/(deficit ) aft er t ax 16,216 12,587 10,478 11,777 12,295 11,885 12,080 8,179 5,566 6,237

Ot her comprehensive income

- Valuation gains/(losses) taken to equity - 70,055 - - 87,778 - - 90,795 - -

21,056 Tot al comprehensive income 16,216 82,642 10,478 11,777 100,073 11,885 12,080 98,974 5,566 6,237

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Appendix D

Prospective Statement of Income 2012/13 to 2012/22

Forecast for t he 10 years ending 30 June 2022

Annual plan Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Tot al Operat ing Revenue (Act ivit y Cost of Service St at ement s)

8,997 Roading 5,852 6,097 6,542 6,902 7,231 7,598 7,971 9,065 9,379 9,707

4,739 Solid W aste 5,149 5,659 5,800 5,985 6,177 6,386 6,609 6,835 7,060 7,293

1,009 Stormwater 811 860 948 1,034 1,092 1,176 1,241 1,455 1,503 1,548

7,842 Sewerage 8,419 7,675 9,029 9,342 9,440 10,158 10,369 10,650 11,406 11,650

4,264 W ater Supply 4,435 4,641 4,979 5,167 5,308 5,608 5,778 6,055 6,424 6,589

2,640 Recreation 2,404 2,516 2,682 3,228 3,085 3,179 3,309 3,357 3,465 3,577

12,551 Social and Cultural 9,181 7,479 7,025 7,239 7,464 7,705 7,967 8,258 8,518 8,788

5,722 City Promotion 6,446 6,677 6,827 7,031 7,241 7,471 7,716 7,963 8,210 8,466

4,711 Planning and Regulatory 4,841 4,899 4,940 5,191 5,278 5,340 5,685 5,751 5,817 6,192

12,708 Property Assets 14,618 15,045 15,423 15,932 16,406 17,204 16,168 5,831 6,058 6,389

65,183 Tot al Operat ing Revenue 62,156 61,548 64,195 67,052 68,722 71,825 72,812 65,219 67,840 70,198

Ot her Income (as per St at ement of Comprehensive Income)

32,334 Non Targeted Rates 32,417 34,686 34,625 36,508 38,229 38,984 40,690 42,348 41,968 44,029

1,500 Interest Income 1,657 882 720 750 1,089 1,461 1,799 1,862 2,140 2,048

596 Rendering of Services 596 617 632 653 673 696 721 745 770 795

336 Other Income 318 331 340 351 361 375 388 400 413 427

99,949 Tot al income 97,144 98,064 100,512 105,313 109,074 113,342 116,410 110,575 113,131 117,497

Tot al Operat ing Expendit ure (Act ivit y Cost of Service St at ement s)

2,049 Democracy and Governance 2,105 2,177 2,232 2,304 2,380 2,464 2,553 2,643 2,735 2,829

16,530 Roading 14,128 15,409 16,732 17,977 19,164 20,218 21,433 23,448 24,882 26,270

4,996 Solid W aste 5,141 5,437 5,597 5,732 5,913 6,103 6,310 6,589 6,838 7,005

3,165 Stormwater 3,439 3,608 3,919 4,057 4,108 4,412 4,506 4,761 5,123 5,232

5,958 Sewerage 6,656 6,896 8,201 8,412 8,478 9,100 9,274 9,516 10,235 10,439

3,740 W ater Supply 3,995 4,183 4,479 4,622 4,733 4,991 5,139 5,394 5,741 5,884

10,456 Recreation 10,339 10,906 11,604 12,219 12,866 13,470 13,882 14,492 15,171 15,500

14,099 Social and Cultural 14,206 15,981 16,568 17,058 17,557 18,132 18,757 19,404 20,256 20,940

7,585 City Promotion 8,317 8,533 8,756 8,971 9,205 9,519 9,787 10,052 10,379 10,653

6,036 Planning and Regulatory 6,188 6,315 6,466 6,639 6,814 7,032 7,243 7,460 7,686 7,905

6,971 Property Assets 7,709 8,117 8,321 8,675 8,914 9,199 8,487 1,555 1,621 1,635

81,585 Tot al Operat ing Expendit ure 82,223 87,562 92,875 96,666 100,132 104,640 107,371 105,314 110,667 114,292

Ot her Expendit ure (as per St at ement of Comprehensive Income)

(3,559) Internal Expenditure (1,952) (2,624) (3,342) (3,597) (3,752) (3,534) (3,305) (3,081) (3,121) (2,940)

200 Rates Remissions 160 160 160 160 160 160 160 160 160 160

796 Other Expenses 710 653 660 614 559 527 479 397 273 181

79,022 Tot al expendit ure 81,141 85,751 90,353 93,843 97,099 101,793 104,705 102,790 107,979 111,693

20,927

Operat ing surplus/(deficit ) before t ax

(as per St at ement of Comprehensive

Income) 16,003 12,313 10,159 11,470 11,975 11,548 11,705 7,784 5,152 5,804

129 Share of associate surplus/(deficit) 213 274 319 307 320 337 375 395 414 433

21,056

Surplus/(deficit ) before t ax (as per

St at ement of Comprehensive Income) 16,216 12,587 10,478 11,777 12,295 11,885 12,080 8,179 5,566 6,237

- Income tax expense - - - - - - - - - -

21,056 Surplus/(deficit ) aft er t ax 16,216 12,587 10,478 11,777 12,295 11,885 12,080 8,179 5,566 6,237

Page | 18

Appendix E

PROSPECTIVE STATEMENT OF CHANGES IN EQUITY

Forecast for the 10 years ending 30 June 2022

Annual Plan Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

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

690,735 Retained earnings at beginning of period 709,780 731,702 743,873 754,271 765,447 777,605 789,233 800,852 808,570 813,674

21,056 Surplus/(Deficit) after tax 16,216 12,587 10,478 11,777 12,295 11,885 12,080 8,179 5,566 6,237

(526) Transfers to/from Restricted Reserves 5,706 -416 -80 4,940 -355 -483 -695 -703 -712 -715

711,265 Retained earnings at close of period 731,702 743,873 754,271 770,989 777,387 789,007 800,618 808,328 813,424 819,196

Other reserves

621,885 Revaluation reserves at beginning of period 620,898 620,898 690,953 690,953 690,953 778,731 778,731 778,731 869,526 869,526

7,977 Restricted reserves at beginning of period 8,890 3,184 3,600 3,680 4,038 4,393 4,876 5,571 6,274 6,986

111 Fair value through equity reserve at beginning of period -107 -107 -107 -107 -107 -107 -107 -107 -107 -107

629,973 Other reserves at beginning of period 629,681 623,975 694,446 694,526 694,884 783,017 783,500 784,195 875,693 876,405

Movements

- Valuation gains/(losses) on revaluation 0 70,055 0 0 87,778 0 0 90,795 0 0

526 Transfers to/from Retained earnings -5,706 416 80 358 355 483 695 703 712 715

526 Total movements in other reserves -5,706 70,471 80 358 88,133 483 695 91,498 712 715

621,885 Revaluation reserves at close of period 620,898 690,953 690,953 690,953 784,430 784,444 784,460 875,270 875,286 875,379

8,503 Restricted reserves at close of period 3,184 3,600 3,680 4,038 4,393 4,876 5,571 6,274 6,986 7,701

111 Fair value through equity reserve at close of period -107 -107 -107 -107 -107 -107 -107 -107 -107 -107

630,499 Other reserves at close of period 623,975 694,446 694,526 694,884 788,716 789,213 789,924 881,437 882,165 882,973

1,341,764 Total Equity 1,355,677 1,438,319 1,448,797 1,465,873 1,566,102 1,578,220 1,590,542 1,689,766 1,695,589 1,702,169

Page | 19

Appendix F

PROSPECTIVE STATEMENT OF FINANCIAL POSITION

Forecast for the 10 years ending 30 June 2022Annual plan Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

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

ASSETS

Current assets

6,798 Cash and cash equivalents 8,074 6,293 2,676 2,429 1,446 3,932 6,646 15,493 10,988 11,11411,333 Debtors and other receivables 11,874 12,249 12,450 12,840 13,195 13,597 13,013 6,134 6,260 6,4492,328 Inventories 3,683 4,662 4,662 4,662 4,162 2,997 340 340 340 340

344 Biological assets 300 300 300 200 200 200 200 200 200 20018,504 Other financial assets 20,000 5,000 5,033 5,928 15,625 10,383 9,981 4,417 18,832 13,15739,307 Total current assets 43,931 28,504 25,121 26,059 34,628 31,109 30,181 26,584 36,620 31,259

Non-current assets

1,274,871 Property, plant and equipment 1,285,221 1,375,197 1,393,216 1,408,438 1,499,768 1,500,478 1,496,878 1,593,853 1,586,555 1,593,357543 Intangible assets 792 789 811 839 864 884 899 910 917 929

1,892 Inventories 2,000 6,625 5,053 3,480 1,658 - - - - - 38,395 Investment property 36,614 37,712 38,806 39,931 41,129 42,404 43,591 44,812 46,156 47,6803,998 Investment in associates 4,313 4,587 4,906 5,213 5,533 5,870 6,244 6,640 7,054 7,4874,954 Other financial assets 6,875 7,074 2,246 2,306 2,368 17,431 32,647 38,019 38,402 43,947

1,324,653 Total non-current assets 1,335,815 1,431,984 1,445,038 1,460,207 1,551,320 1,567,068 1,580,259 1,684,234 1,679,084 1,693,400

1,363,960 Total assets 1,379,746 1,460,488 1,470,159 1,486,266 1,585,948 1,598,176 1,610,440 1,710,818 1,715,704 1,724,659

LIABILITIES

Current liabilities

9,613 Creditors and other payables 13,945 14,441 13,859 13,218 12,799 13,028 12,827 13,842 12,768 15,0932,861 Employee benefit liabilities 3,336 3,337 3,416 3,393 3,472 3,560 3,650 3,735 3,819 3,815

8 Borrowings 2,008 8 4 - - - - - - - 12,482 Total current liabilities 19,289 17,786 17,279 16,611 16,271 16,588 16,477 17,577 16,587 18,908

Non-current liabilities

2,169 Provisions 1,420 1,472 1,524 1,576 1,628 1,680 1,732 1,784 1,836 1,8881,901 Revenue Received in Advance 1,304 1,040 780 520 260 0 0 0 0 01,624 Employee benefit liabilities 2,044 1,867 1,779 1,686 1,687 1,688 1,689 1,691 1,692 1,6944,020 Borrowings 12 4 - - - - - - - - 9,714 Total non-current liabilities 4,780 4,383 4,083 3,782 3,575 3,368 3,421 3,475 3,528 3,582

22,196 Total liabilities 24,069 22,169 21,362 20,393 19,846 19,956 19,898 21,052 20,115 22,490

EQUITY

711,265 Retained earnings 731,702 743,873 754,271 770,989 777,387 789,007 800,618 808,328 813,424 819,196630,499 Other reserves 623,975 694,446 694,526 694,884 788,716 789,213 789,924 881,437 882,165 882,973

1,339,461 Total public equity 1,355,677 1,438,319 1,448,797 1,465,873 1,566,102 1,578,220 1,590,542 1,689,766 1,695,589 1,702,169

1,361,657 Total liabilities and equity 1,379,746 1,460,488 1,470,159 1,486,265 1,585,948 1,598,176 1,610,440 1,710,817 1,715,704 1,724,659

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Appendix G

PROSPECTIVE STATEMENT OF CASH FLOWS

Forecast for the ten years ending 30 June 2022

Annual Plan Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

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

Cash flows from operating activities

44,379 Receipts from rates revenue 45,446 47,240 48,818 51,095 53,051 54,746 56,800 58,814 59,575 62,008

1,500 Interest received 1,657 882 720 750 1,089 1,461 1,799 1,862 2,140 2,048

46,642 Receipts from other revenue 45,376 45,643 46,761 48,499 49,819 51,530 53,411 51,629 45,889 47,533

(55,945) Payments to suppliers and employees(61,543) (61,975) (64,188) (66,048) (66,939) (67,901) (69,940) (67,822) (71,764) (70,606)

(307) Interest paid (278) (141) - - - - - - - -

36,269 Net cash from operating activities30,658 31,649 32,111 34,296 37,020 39,836 42,069 44,483 35,840 40,983

Cash flows from investing activities

- Proceeds from sale of property, plant and equipment186 215 213 223 198 261 236 204 263 322

(345) Proceeds from withdrawal of investments40,004 20,000 5,000 5,033 5,184 15,339 10,499 10,514 5,380 20,241

(43,699) Purchase of property, plant, equipment and intangibles(43,545) (46,438) (40,728) (38,796) (27,984) (27,387) (24,360) (35,603) (25,364) (40,927)

6,840 Acquisition of investments (15,701) (5,199) (205) (1,000) (15,401) (25,563) (25,730) (10,752) (20,624) (20,493)

(37,204) Net cash from investing activities(19,056) (31,422) (35,720) (34,540) (38,003) (37,350) (39,355) (35,636) (40,345) (40,857)

Cash flows from financing activities

- Proceeds from borrowings - - - - - - - - - -

(8) Repayment of borrowings (2,008) (2,008) (8) (4) - - - - - -

(8) Net cash from financing activities(2,008) (2,008) (8) (4) - - - - - -

(943)

Net (decrease)/increase in

cash, cash equivalents

and bank overdrafts 9,594 (1,781) (3,617) (248) (983) 2,486 2,714 8,847 (4,505) 126

7,741

Cash, cash equivalents and bank overdrafts at the beginning of the period (1,520) 8,074 6,293 2,676 2,429 1,446 3,932 6,646 15,493 10,988

6,798

Cash, cash equivalents

and bank overdrafts at the

close of the period 8,074 6,293 2,676 2,429 1,446 3,932 6,646 15,493 10,988 11,114

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Appendix H (Whole of Council)

Funding Impact Statement

Financial Overview

Summary of Revenue and Financing MechanismsAnnual Plan

2011/12

$000

Forecast

2012/13

$000

Forecast

2013/14

$000

Forecast

2014/15

$000

Forecast

2015/16

$000

Forecast

2016/17

$000

Forecast

2017/18

$000

Forecast

2018/19

$000

Forecast

2019/20

$000

Forecast

2020/21

$000

Forecast

2021/22

$000

Sources of operating funding

32,334

General rates, uniform annual general charges,

rates penalties 32,417 34,687 34,625 36,507 38,229 38,984 40,691 42,349 41,968 44,030

12,045

Targeted rates (other than water by meter

charges) 13,049 12,586 14,222 14,627 14,856 15,793 16,147 16,501 17,620 18,023

2,387 Subsidies and grants for operating purposes 2,456 2,555 2,646 2,709 2,782 2,848 2,915 2,988 3,071 3,161

17,052

Fees, charges and targeted rates for water

supply 18,178 19,661 20,070 20,863 21,503 22,128 22,971 23,381 24,052 24,941

1,502 Interest and dividends from investments 1,659 884 722 752 1,091 1,463 1,801 1,864 2,142 2,050

16,927

Local authorities fuel tax, fines, infringement

fees, and other receipts 18,997 20,094 20,644 21,404 21,971 22,873 22,219 12,043 12,341 12,805

82,247 Total operating funding (A) 86,756 90,467 92,929 96,861 100,432 104,090 106,744 99,127 101,194 105,010

Applications of operating funding

56,420 Payments to staff and suppliers 59,854 63,180 65,046 67,295 69,388 71,528 72,994 69,451 71,323 73,499

289 Finance costs 278 141 - - - - - - - -

214 Other operating funding applications 174 175 175 175 176 176 177 178 178 179

56,923 Total applications of operating funding (B) 60,306 63,496 65,221 67,470 69,564 71,704 73,171 69,629 71,501 73,678

25,324 Surplus/(deficit) of operating funding (A - B) 26,450 26,971 27,708 29,391 30,868 32,385 33,573 29,497 29,693 31,332

Sources of capital funding

8,446 Subsidies and grants for capital expenditure 4,782 2,082 1,523 1,904 1,668 1,748 1,833 1,920 2,011 2,105

2,280 Development and financial contributions 1,789 1,855 2,308 2,382 2,664 2,754 3,049 4,590 4,741 4,891

1,262 Increase/(decrease) in debt 1,056 2,314 2,429 2,380 (1,460) (2,011) (2,028) 2,059 (972) 8,254

- Gross proceeds from sale of assets 186 6,784 212 221 198 261 199 204 263 322

- Lump sum contributions - - - - - - - - - -

11,988 Total sources of capital funding (C) 7,813 13,035 6,472 6,887 3,070 2,752 3,053 8,773 6,043 15,572

Application of capital funding

Capital expenditure

18,144 - to meet additional demand 5,906 7,949 10,753 10,647 10,624 6,374 6,945 7,399 7,047 7,279

11,276 - to improve the level of service 6,770 8,284 8,113 13,086 5,267 5,903 4,532 12,079 4,106 6,619

12,209 - to replace existing assets 14,574 15,296 14,449 14,079 14,704 15,584 16,120 17,640 18,050 28,999

(4,318) Increase/(decrease) in reserves 7,013 8,477 865 (1,534) 3,342 7,276 9,030 1,153 6,533 4,007

- Increase/(decrease) of investments - - - - - - - - - -

37,311 Total application of capital funding (D) 34,263 40,006 34,180 36,278 33,938 35,137 36,626 38,270 35,736 46,904

(25,324) Surplus/(deficit) of capital funding (C - D) (26,450) (26,971) (27,708) (29,391) (30,868) (32,385) (33,573) (29,497) (29,693) (31,332)

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

Note: Excluded from Above

22,099 Group Depreciation and Amortisation 20,835 22,255 25,131 26,373 27,536 30,088 31,533 33,162 36,477 38,015

-

Capital Items in progress consulted in prior years

plans, excluded from proposed prospective

capital plan 18,738 17,474 10,078 4,044 500 3,000 359 2,200 - 2,000

The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act. The FIS is intended to make the sources and applications of Council funds

more transparent manner than might be the case if only the usual GAAP financial statements were provided.

The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. It is therefore, by necessity, exempt from the GAAP requirements as

it follows the prescribed format required under the Act.

The FIS links the Council's Revenue and Financing Policy, the annual setting of rates, fees, development contributions and annual borrowing requirements. The FIS sets out the revenue and financing

mechanisms that will be used in each year along with an indicative level of rates, together with examples of the impact of rating proposals in year 1 of the LTP over a range of different categories of

property and a range of different values.

Page | 22

Appendix H (Planning)

Funding Impact Statement - Planning

Annual Plan

2011/12

$000

Forecast

2012/13

$000

Forecast

2013/14

$000

Forecast

2014/15

$000

Forecast

2015/16

$000

Forecast

2016/17

$000

Forecast

2017/18

$000

Forecast

2018/19

$000

Forecast

2019/20

$000

Forecast

2020/21

$000

Forecast

2021/22

$000


2,181 General rates, uniform annual general charges, 2,170 2,210 2,264 2,318 2,376 2,440 2,506 2,579 2,642 2,712

- Targeted rates (other than water by meter - - - - - - - - - -

- Subsidies and grants for operating purposes - - - - - - - - - -

3,782 Fees, charges and targeted rates for water 3,861 3,916 3,954 4,112 4,198 4,256 4,498 4,562 4,625 4,886

131 Internal charges and overhead recoveries 137 142 145 150 154 160 165 170 176 182

929 Local authorities fuel tax, fines, infringement 981 983 985 1,078 1,081 1,083 1,186 1,189 1,192 1,305




- Finance costs - - - - - - - - - -

2,406 Internal charges and overhead applied 2,419 2,473 2,524 2,593 2,667 2,748 2,834 2,936 3,023 3,112

- Other operating funding applications - - - - - - - - - -


1,267 Surplus/(deficit) of operating funding (A - B) 1,253 1,202 1,160 1,306 1,285 1,226 1,444 1,380 1,321 1,563


- Subsidies and grants for capital expenditure - - - - - - - - - -

- Development and financial contributions - - - - - - - - - -

- Increase/(decrease) in debt - - - - - - - - - -

- Gross proceeds from sale of assets - - - - - - - - - -


- Total sources of capital funding (C) - - - - - - - - - -


Capital expenditure

6,432 - to meet additional demand - 555 - - - - - - - -

- - to improve the level of service - - - - - 2,337 - 2,751 - 2,668

125 - to replace existing assets 120 176 127 131 136 140 145 150 155 160

(5,290) Increase/(decrease) in reserves 1,133 471 1,033 1,175 1,149 (1,251) 1,299 (1,521) 1,166 (1,265)



(1,267) Surplus/(deficit) of capital funding (C - D) (1,253) (1,202) (1,160) (1,306) (1,285) (1,226) (1,444) (1,380) (1,321) (1,563)



411 Group Depreciation and Amortisation 430 408 422 435 444 478 497 510 548 565

-



capital plan 253 - - - - 2,000 - 2,200 - 2,000

Page | 23

Appendix H (Recreation)

Funding Impact Statement - Recreation

Annual Plan

2011/12

$000

Forecast

2012/13

$000

Forecast

2013/14

$000

Forecast

2014/15

$000

Forecast

2015/16

$000

Forecast

2016/17

$000

Forecast

2017/18

$000

Forecast

2018/19

$000

Forecast

2019/20

$000

Forecast

2020/21

$000

Forecast

2021/22

$000


6,795 General rates, uniform annual general charges, 7,183 7,847 7,631 8,574 8,625 9,092 9,360 9,494 9,267 9,455

- Targeted rates (other than water by meter - - - - - - - - - -

24 Subsidies and grants for operating purposes 24 24 24 24 24 24 24 24 24 24

1,402 Fees, charges and targeted rates for water 1,434 1,466 1,495 1,673 1,760 1,811 1,865 1,660 1,714 1,771

217 Internal charges and overhead recoveries 196 206 208 214 221 229 208 10 10 11

535 Local authorities fuel tax, fines, infringement 569 632 698 752 775 801 829 856 884 913




- Finance costs - - - - - - - - - -

1,752 Internal charges and overhead applied 1,648 1,752 2,061 2,165 2,261 2,283 2,306 2,348 2,418 2,447

2 Other operating funding applications 2 2 2 2 2 2 2 3 3 3


173 Surplus/(deficit) of operating funding (A - B) 900 1,241 688 1,317 1,092 1,365 1,397 848 365 321


- Subsidies and grants for capital expenditure - - - 310 - - - - - -

366 Development and financial contributions 276 289 358 371 412 427 469 693 714 736

1,022 Increase/(decrease) in debt 765 1,571 3,503 3,548 - - 213 220 163 -

- Gross proceeds from sale of assets - - - - - - - - - -


1,388 Total sources of capital funding (C) 1,041 1,860 3,861 4,229 412 427 682 913 877 736


Capital expenditure

1,348 - to meet additional demand 1,272 1,445 1,992 2,192 4,960 117 469 703 129 133

823 - to improve the level of service 1,872 510 1,850 7,522 497 143 295 305 320 91

1,016 - to replace existing assets 1,464 1,968 2,512 1,568 1,310 2,073 1,747 1,451 1,498 1,547

(1,626) Increase/(decrease) in reserves (2,667) (822) (1,805) (5,736) (5,263) (541) (432) (698) (705) (714)



(173) Surplus/(deficit) of capital funding (C - D) (900) (1,241) (688) (1,317) (1,092) (1,365) (1,397) (848) (365) (321)



1,874 Group Depreciation and Amortisation 2,029 2,179 2,444 2,513 2,775 3,107 3,201 3,307 3,647 3,660

-



capital plan 578 2,947 - 3,544 - - - - - -

Page | 24

APPENDIX I – Preliminary Concept Plans

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Statement to the readers of

Napier City Council adopted amendment to the long-term plan on 17 December 2014

for the ten years commencing 1 July 2012

Purpose of Statement

The primary purpose of this statement is to inform readers that we have no role to report, and do not give an opinion, on Napier City Council’s adopted amendment, as described on pages 1 to 23 of the appended amendment.

This statement informs readers about the City Council’s process of amending its LTP for the ten years commencing 1 July 2012 and the extent, and limit, of our involvement in that process.

The City Council’s process of amending its LTP commencing 1 July 2012 and our involvement

The City Council adopted its LTP for the ten years commencing 1 July 2012 on 26 June 2012. The Auditor-General appointed Mark Maloney, using the staff and resources of Audit New Zealand, to report on her behalf on the LTP adopted on that date.

We expressed an unqualified opinion on the City Council’s LTP for the ten years commencing 1 July 2012 in our report dated 26 June 2012. We considered that the LTP adopted on 26 June 2012 provided a reasonable basis for long term integrated decision-making by the City Council and for participation in decision-making by the public and subsequent accountability to the community about the activities of the City Council.

In forming our overall opinion, we reported on specific matters required by section 94(1) of the Local Government Act 2002 (the Act).

In a Statement of Proposal dated 15 October 2015 the City Council proposed an amendment

to its LTP for the ten years commencing 1 July 2012 to include:

a proposed redevelopment of Marine Parade in 2014/15 and 2015/16 to include a reef garden, skate park and ampitheatre for an estimated cost of $5.7 million; and

an increase in rates from 2015/16 above the rates limit set in the 2012-2022 LTP to partially fund the new skate park management and maintenance costs of the new facilities.

We expressed an unqualified opinion on this Statement of Proposal in our audit report dated 15 October 2015.

We considered that the information within the Statement of Proposal, about the proposed amendment to the LTP and any consequential amendments to the LTP that would be required if it was amended in the manner proposed, was fairly presented, and that the City Council had complied with the applicable requirements of the Act in preparing the Statement of Proposal.

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In forming our overall opinion, we reported on specific matters required by section 84(4) of the Act.

On 17 December 2014 the City Council adopted the proposed amendment to its LTP for the ten years commencing 1 July 2012 as described in the Statement of Proposal mentioned above. The City Council has prepared the adopted amendment to reflect the amendments to the LTP adopted by the City Council on 17 December 2014 and any consequential amendments. The City Council has not prepared an amended LTP that incorporates the amendment adopted on 17 December 2014. Consequently, to form a view of the LTP of the City Council for the ten years commencing 1 July 2012, the content of the adopted amendment should be considered in conjunction with the LTP of the City Council adopted on 26 June 2012.

We do not give an opinion on the City Council’s adopted amendment. There is no legislative requirement for us to report on the adopted amendment by the City Council and we have not performed an audit of the adopted amendment. Consequently we have not updated our audit report that was attached to the LTP adopted on 26 June 2012.

S B Lucy Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand

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Matters relating to the City Council’s adopted amendment to the LTP subsequent to this report.

This report dated 26 June 2012 relates to the Long Term Plan (the LTP) for the 10 years commencing 1 July 2012, approved by the City Council on 26 June 2012. Subsequent to this, the City Council adopted an amendment to its LTP for the 10 years commencing 1 July 2012 to for the redevelopment of the marine parade on 17 December 2014. The City Council has not prepared an amended LTP that incorporates the amendment adopted on 17 December 2014. Consequently, to form a view of the LTP of the City Council, the content of the LTP to which this report relates should be considered in conjunction with the City Council’s adopted amendment. There is no legislative requirement for us to report on the adopted amendment and we have not done so.

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