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CONTENTS

1 INTRODUCTION...................................................................................................................................... 1

1.1 From the Mayor and Chief Executive .................................................................................................... 1

1.2 An overview of our performance........................................................................................................... 4

1.3 Statement of Compliance and Responsibility ...................................................................................... 14

1.4 Report from the Auditor ...................................................................................................................... 15

2 OUR DIRECTION ................................................................................................................................... 18

2.1 Strategic Priorities ............................................................................................................................... 18

2.2 Organisational Performance ................................................................................................................ 24

3 WORKING TOGETHER .......................................................................................................................... 26

3.1 Regional Initiatives ............................................................................................................................... 26

3.2 Regional Governance Reform .............................................................................................................. 27

3.3 Collaborative Relationships in Porirua ................................................................................................. 28

3.4 Grants and Awards .............................................................................................................................. 30

4 SERVICES WE PROVIDE ........................................................................................................................ 32

4.1 Strategy and Planning .......................................................................................................................... 32

4.2 Stormwater .......................................................................................................................................... 50

4.3 Wastewater ......................................................................................................................................... 53

4.4 Water Supply ....................................................................................................................................... 59

4.5 Transport ............................................................................................................................................. 63

4.6 Solid Waste .......................................................................................................................................... 70

4.7 Community and Leisure ....................................................................................................................... 78

4.8 Environment and Regulatory ............................................................................................................... 96

4.9 Democratic Process ........................................................................................................................... 107

5 Financial Results ................................................................................................................................ 113

Glossary ............................................................................................................................................. 155

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1 INTRODUCTION

1.1 FROM THE MAYOR AND CHIEF EXECUTIVE

Nick Leggett Mayor of Porirua City

Gary Simpson Chief Executive

The Council’s work this year has focused on its four strategic priorities; a city of villages, a healthy and protected harbour, a growing city and a great city experience. We outline our achievements below:

A city of villages

· Major village centre upgrade work in Ranui ($165,000) and Cannons Creek ($30,000);

· 20 minor projects were completed across 12 villages, for example safety footpath and landscaping work at Pauatahanui, walkway and street map signage projects in Whitby and the new pathway diversion on Conclusion Walkway;

· Village Plans were updated for both Titahi Bay and Takapuwahia; and

· Ascot Park began the process of developing their first Village Plan.

A healthy and protected harbour

· Established the terms of reference and membership of the Te Awarua-o-Porirua Harbour and Catchment Joint Committee;

· Significant improvement in foreshore litter management;

· Completed significant stormwater upgrades ($921,000), including Pauatahanui sewer and water reticulation;

· Completed a cockle survey showing a significant increase in cockle numbers (87%) since surveys began in 1995, including a 21% increase since the last survey in 2010. This is the result of improved land use control and land management within the catchment by the Councils;

· Completed a draft whole of catchment sediment reduction plan; and

· Renewal of wastewater pipelines involving the recently adopted efficient practice of relining existing pipes rather than replacing them ($1,697,000) and renewals at the wastewater treatment plant ($624,000).

A growing city

· Employment increased by 1.3% in Porirua compared with 0.4% in the region and 0.8% across New Zealand;

· City centre revitalisation changed focus from large-scale design to partnership with private sector on specific developments, place making, and the upcoming removal and possible replacement of the canopies; and

· The Council purchased a shareholding in Capacity Infrastructure Services Limited to mitigate risk in the vital area of water and waste water asset management. The company, now known as Wellington Water following the merger of Capacity Infrastructure Services and Greater Wellington Regional Council’s water supply group, has responsibility for managing water, stormwater, wastewater as well as bulk water for the Wellington region. Greater Wellington Regional Council, Wellington, Porirua, Hutt, and Upper Hutt city councils are joint and equal owners of the company.

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A great city experience

· Of the Council’s 73 Long Term Plan performance measures, we met 75% of targets. Highlights included user satisfaction with landfill services at 82%, all water supply targets met, an increase in household preparedness for an emergency to 80%, and 285,498 visitors to Pataka;

· The Council maintained a high level of customer satisfaction across its services (82% up from 78%); and

· Accounting firm Grant Thornton undertook an Efficiency and Effectiveness Review (EER) of all the Council’s operations. Three streams of work were established to consider specific findings from the EER; procurement, revenue optimisation and internal alignment.

Financial management

· As part of its Long Term Financial Strategy, the Council has managed its finances based on a three pronged approach: that each generation pays its fair share for Council services; that the average rate increase is kept within the Council’s mandated limits; and that debt is kept within policy limits. Section 1.2 explains this in more detail;

· The Council achieved a net surplus of $7.0 million compared to a budgeted deficit of $3.6 million, largely as a result of favourable non-cash outcomes. These outcomes include vested assets $8.0 million higher than budgeted and development and financial contributions $4.0 million higher than budgeted;

· The Council’s expenditure was $73.9 million compared to a budgeted $73.0 million, as a result of the reduction in the net investment property valuations of $1.1 million;

· The Council has effectively managed its capital works programme to reflect its commitment to improve the city’s core infrastructure, spending $16.1 million on capital projects;

· The Council resolved to become a member of the Local Government Funding Agency to enable access to longer term funding at a cheaper rate; and

· The Council received a Standard and Poor’s credit rating of AA long term and A-1+ short term. The long term rating is equal to the best in the region and reflects the sound debt position of the Council with its comparatively low debt levels. The credit rating is good news for the city as it looks to minimise its cost of borrowing with major projects such as the Transmission Gully Highway connector roads.

Gigatown

· The Council committed itself to the Chorus Gigatown competition this year in an effort to bring ultra-fast broadband to Porirua. The Council invested $93,000 on the campaign to beat towns and cities across New Zealand and put Porirua into the top five. The campaign raised the Council’s national profile, generated significant "buzz" on social media, positive stories about Porirua, and engaged the wider community by getting people involved in activities such as the Gigatown video contests; and

· The Council narrowly fell short of the top five towns but the experience has opened a lot of opportunities to integrate ultra-fast broadband and the use of social media into improving employment and communication with residents of the city.

Ngāti Toa Rangatira – Treaty of Waitangi settlement with the Crown.

Many years have passed since the Ngāti Toa Rangatira Treaty of Waitangi claim was first lodged. It was very pleasing that earlier this year settlement between Ngāti Toa Rangatira and the Crown was finalised.

The agreement opens a number of opportunities for Ngāti Toa Rangatira to secure its financial future.

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The Council congratulates all involved in this historic agreement and looks forward to working with Ngāti Toa Rangatira as the Iwi works through its future strategies.

Other City-wide Achievements

On-going work to provide connector roads at Whitby and Waitangirua from the Transmission Gully Highway has continued. When the highway is completed it will improve travel times, benefit our harbour by diverting traffic and its associated contaminants away from the harbour edge, and improve connectivity, safety and the quality of life in our villages.

Work to create pleasant places across our city to improve local neighbourhoods has continued with new or upgraded walkways, parks, playgrounds and sports fields.

The wider region

The Council has worked with the councils of the Wellington region to identify and realise benefits to be gained from closer regional cooperation. Highlights have included:

· Progressing towards consolidating economic development activity at a regional level;

· Progressing tenders for the provision of shared infrastructure services across cooperating Councils; and

· Establishment of the Wellington Rural Fire Authority for all rural fire agencies across Porirua, the Upper Hutt, Hutt City, Wellington, and Kapiti Coast.

The Council agreed to support Greater Wellington Regional Council’s application to the Local Government Commission for a two-tier, one-Council model for the Wellington region. The Commission is expected to announce a decision on the application in October.

Finally on behalf of the elected members and staff of the Council our thanks go to all of the individuals, community groups and organisations who have worked with us over the past year to improve living, working, playing and raising families in our city.

Warm regards

Nick Leggett Gary Simpson Mayor of Porirua City Chief Executive

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1.2 AN OVERVIEW OF OUR PERFORMANCE

FINANCIAL PERFORMANCE

LONG T ER M F INA NC IAL STR AT E GY

The Council has adopted a three-pronged approach to its Long Term Financial Strategy:

· that each generation pays its fair share for Council services;

· that the average rate increase is kept within the Council’s mandated limits; and

· that debt is kept within policy limits.

The Council’s Long Term Plan 2012-2022 (LTP) focused on moving towards a balanced budget. The LTP forecast a net surplus in 2016/17 and saw a move away from high rate-dependency through increasing non-rate revenue.

While the Council has achieved a favourable result to that forecast in the Annual Plan 2013/14, it has been brought about by non-cash income, such as:

· income from vested assets of $8.0 million higher than forecast;

· unbudgeted gain on interest rate swaps of $0.8 million; and

· recognition of development and financial contributions $4.0 million higher than forecast.

If the impact of these non-cash items is excluded, the result would be a deficit in line with the Annual Plan 2013/14 of $3.6 million.

The graph below shows the Council’s actual results compared to the progress in achieving its goal.

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(6,000)

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2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

$000 Net Surplus / (Deficit)

Actual LTP 2012-22 Budget

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The third measure of the Long Term Financial Strategy is keeping debt levels within policy limits, as shown in the graph below:

NE T SU R P LU S

The Council achieved a net surplus of $7.0 million compared to a budgeted deficit of $3.6 million. However the net surplus included non-cash income such as income from vested assets.

INC OM E

The graph below shows the Council’s sources of income. The Council is heavily dependent on rates revenue. Income from non-cash sources such as vested assets, development and financial contributions and interest rate swaps account for 19% of all revenue.

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Rates60%

Fees and charges18%

Development and financial

contributions6%

Investment revenue0%

Subsidies and grants 3%

Net gain on interest rate swaps

1%

Income from vested assets

12%

Investment property revaluations

0%

Gain on sale of assets

0%

Where Funding Came From 2013/14

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The graph above highlights income exceeding budget significantly for income from vested assets $8.0 million, development and financial contributions $4.0 million, and gain on interest rate swaps of $0.8 million. Income from fees and charges was 2.5% under budget and continues to be an area of focus for the Council.

OPER A TIN G EXP EN DITU R E

Expenditure of $73.9 million exceeded budget by $0.9 million primarily because investment properties were devalued by $1.1 million. Excluding these non-cash items, expenditure was within budget. The graph below compares how actual expenditure compared against that budgeted.

Staff costs indicate direct staff costs were below budget due to a number of staff transferring to Capacity Infrastructure Services Ltd (Capacity) during the year.

Consulting and professional fees were higher than that budgeted due to the costs of the Capacity contract. Therefore there is a direct offset in the expenditure variance for staff costs and consulting and professional fees.

Other expenditure includes the investment property devaluation of $1.1 million which was unbudgeted expenditure.

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Fees andcharges

Developmentand financialcontributions

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swaps

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revaluations

$ millionComparison of Non Rates Revenue against Annual Plan

Actual Annual Plan

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$ millionComparison of Expenditure against Annual Plan

Actual Annual Plan

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The graph below provides a breakdown of Council expenditure.

Staff Costs29%

Interest5%

Consulting & Professional Fees

4%

Contracted Services20%

Depreciation26%

Fuel, Power & Gas3%

Insurance2%

Purchase of Materials1%

Repairs & Maintenance2%

Other8%

Operating Expenses of Council 2013/14

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SERVICE PERFORMANCE

The Council’s business is divided into nine Groups of Activities. Each Group of Activities has its own section in this report which describes services and performance for 2013/14.

The Council largely met its performance targets for 2013/14. Of the 73 non-financial performance measures in the Long Term Plan 2012-22, 55 performance measures (75%) were met and 18 performance measures (25%) were not met. Of those 18 performance measures not met, four were within 5% of meeting their target. This result is very similar to last year’s result when 76% of performance measures were met and 24% were not met. The graph below shows a summary of the results for each Group of Activities.

The Council uses a range of measures to monitor service performance. The measures cover attributes relating to outcomes and service delivery such as timeliness, responsiveness, safety, statutory compliance, project milestones and customer satisfaction.

A resident satisfaction survey is undertaken annually to help inform the Council on service delivery and progress towards the achievement of the Council’s strategic priorities. The mode of survey was changed this year to a phone survey, rather than a door-to-door survey approach used in previous years. Highlights from this year’s results included over three-quarters (77%) of residents surveyed being satisfied with the way the Council involves the public in the decisions it makes; almost three-quarters (73%) of residents are happy with the way the Council spends rates; and residents had a high level of satisfaction with most council services, facilities and performance areas (water supply, library services, Council swimming pools, Te Rauparaha Arena, and parks, public gardens and reserves all ranked 90% or above satisfaction).

HI GH L IG HT S

· User satisfaction with landfill services 82%;

· All water supply targets met;

· Pataka attracted 285,498 visitors, 125,498 visitors above target;

· 613,202 people used the Council’s indoor recreation facilities (Te Rauparaha Arena (including Fitness Gym), Aquatic Centre, Cannons Creek Pool), exceeding a target of 550,000; and

· An increase in household preparedness for an emergency to 80% up from 62% the previous year.

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Transport Solid Waste Communityand Leisure

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Performance Measure Results 2013/14

Met

Not met (within5% of target)

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DISCLOSURE STATEMENT

FOR TH E YEAR EN DED 30 JU N E 2014

The purpose of this statement is to disclose the Council’s financial performance in relation to various benchmarks to enable the assessment of whether the Council is prudently managing its revenues, expenses, asset, liabilities and general financial dealings.

This is a new section of reporting and reflects the requirement in the Local Government (Financial Reporting and Prudence) Regulations 2014 for the Council to include this statement in its annual report.

RATE S A FF OR DAB I LIT Y B ENC H MAR K

The Council meets the rates affordability benchmark if:

· Its actual rates income equals or is less than each quantified limit on rates (as set out in the LTP 2012-22); and

· Its actual rates increases are equal to, or are less than, each quantified limit on rates increases.

Rates income affordability

The following graph compares the Council’s actual rates income with a quantified limit on rates contained in the Long Term Financial Strategy included in the Council’s LTP 2012-22. The quantified limit is the total rates income measured in $ million.

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2009/10 2010/11 2011/12 2012/13 2013/14

$million

Year

Rates Income Affordability

Quantified limit onrates income

Actual rates income(at or within limit)

Actual rates income(exceeds limit)

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Rates increases affordability

The following graph compares the Council’s actual rates increases with a quantified limit on rates increases included in the Long Term Financial Strategy in the Council’s LTP 2012-22. The quantified limit is the average rates increase per rating unit and is measured as a percentage increase.

DEBT A FF OR DA BI LI TY BENC H MAR K

The Council meets the debt affordability benchmark if its actual borrowing is within the quantified limit on borrowing.

The following graph compares the Council’s actual borrowing with a quantified limit on borrowing stated in the Long Term Financial Strategy included in the Council’s LTP 2012-22. The quantified limit is based on total public debt and is measured in $ million.

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BALAN CE D BU D GE T BE N CH MAR K

The following graph displays the Council’s revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments and revaluations of property, plant and equipment) as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant and equipment). The Council meets this benchmark if its revenue equals or is greater than its operating expenses.

ES S ENT IA L S ER V I CE S B E NCH MAR K

The following graph displays the Council’s capital expenditure on infrastructure services as a proportion of depreciation on infrastructure services. The Council meets this benchmark if its capital expenditure on infrastructure services equals or is greater than depreciation on infrastructure services.

89.5%89.8%

87.4%

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2009/10 2010/11 2011/12 2012/13 2013/14

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81%

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Essential Services

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DEBT SER V IC IN G B ENC H MAR K

The following graph displays the Council’s borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant or equipment).

Statistics New Zealand projects the Council’s population will grow at a similar rate as the national population growth rate. The Council will meet the debt servicing benchmark if its borrowing costs are equal to, or are less than, 10% of its revenue.

The Council’s LTP 2012-22 included a debt servicing ratio. This has not been included as one of the quantified limits in the Debt Affordability Benchmark because it would have been duplicated.

DEBT C ONTR OL B EN CH MAR K

The following graph displays the Council’s actual net debt as a proportion of planned net debt. In this statement, net debt means financial liabilities less financial assets (excluding trade and other receivables).

The Council meets the debt control benchmark if its actual net debt is equal to, or is less than, its planned net debt.

4.8%

5.1%

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Borr

owin

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OPER A TI ON S CO NTR O L BENC H MAR K

This graph displays the Council’s actual net cash flow from operations as a proportion of its planned net cash flow from operations. The Council meets the operations control benchmark if its actual net cash flow from operations is equal to, or is greater than, its planned net cash flow from operations.

The 62% result in 2012/13 was mainly due to the actual cash applied to suppliers and employees being more than that budgeted for in the LTP. The 61% result in 2011/12 was mainly due to the Annual Plan 2011/12 not including cash applied for Greater Wellington Regional Council Rates which amounted to $6.9 million.

75%

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1.3 STATEMENT OF COMPLIANCE AND RESPONSIBILITY

COM PL IAN CE

The Council and management of Porirua City Council confirm that all the statutory requirements of the Local Government Act 2002 in relation to the Annual Report have been complied with.

RES PO NS IB IL IT Y

The Council and management of Porirua City Council accept responsibility for the preparation of the annual financial statements and the judgements used in them.

The Council and management of Porirua City Council accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

In the opinion of the Council and management of Porirua City Council, the annual financial statements of the year ended 30 June 2014 reflect the financial position and operations of Porirua City Council.

Nick Leggett Mayor of Porirua City 24 September 2014

Gary Simpson Chief Executive 24 September 2014

Roy Baker General Manager Corporate Services 24 September 2014

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1.4 REPORT FROM THE AUDITOR

Chartered Accountants

INDEPENDENT AUDITOR’S REPORT

TO THE READERS OF PORIRUA CITY COUNCIL’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

The Auditor-General is the auditor of Porirua City Council (the City Council). The Auditor-General has appointed me, Stuart Mutch, using the staff and resources of Ernst & Young to audit: - the financial statements of the City Council that comprise:

- the statement of financial position as at 30 June 2014 on page 115;

- the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ending 30 June

2014 on pages 113 to 114 and 116;

- the funding impact statement of the City Council on pages 153 to 154; - the notes to the financial statements that include accounting policies and other explanatory information about the financial

statements on pages 117 to 152; - the statement of service provision of the City Council (referred to as “Services We Provide”) which includes the funding impact statements in

relation to each group of activities of the City Council and the statements about budgeted and actual capital expenditure in relation to each group of activities of the City Council on pages 32 to 112; and

- the disclosures of the City Council that are required by the Local Government (Financial Reporting and Prudence) Regulations 2014 on pages 4 to 13.

In addition, the Auditor-General has appointed me to report on whether the City Council’s annual report complies with the Other Requirements of schedule 10 of the Local Government Act 2002, where applicable, by including: - information about:

- internal borrowing on page 149;

- reserve funds on pages 142 to 143;

- each group of activities carried out by the City Council on pages 32 to 112;

- remuneration paid to the elected members and certain employees of the City Council on pages 145 to 146;

- employee staffing levels and remuneration on pages 146 to 147;

- severance payments on page 146; - rating base units on page 127; and - insurance of assets on page 135;

- a report on the activities undertaken by the City Council’s to establish and maintain processes to provide opportunities for Maori to contribute

to the Council’s decision-making processes on page 28; and

- a statement of compliance signed by the Mayor of the Council, and by the City Council’s chief executive on page 14.

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Opinion Audited information In our opinion: - the financial statements of the City Council on pages 113 to 152:

- comply with generally accepted accounting practice in New Zealand; and - fairly reflect:

- the City Council’s financial position as at 30 June 2014; and

- the results of its operations and cash flows for the year ended on that date.

- the funding impact statement of the City Council on pages 153 to 154, fairly reflects the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s annual plan.

- the statements about budgeted and actual capital expenditure in relation to each group of activities of the City Council on pages 32 to 112,

fairly reflects by each group of activities the capital expenditure spent as compared to the amounts budgeted and set out in the City Council’s long-term plan or annual plan.

- the statement of service provision of the City Council on pages 32 to 112:

- complies with generally accepted accounting practice in New Zealand; and - fairly reflects the City Council’s levels of service for the year ended 30 June 2014, including:

- the levels of service as measured against the intended levels of service adopted in the long-term plan; and - the reasons for any significant variances between the actual service and the expected service.

- the funding impact statements in relation to each group of activities of the City Council on pages 32 to 112, fairly reflects by each group of

activities, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s long-term plan.

- the disclosures on pages 4 to 13 represent a complete list of required disclosures and accurately reflects the information drawn from the City

Council’s audited information. Compliance with the other requirements of schedule 10 In our opinion, which is not an audit opinion, the City Council’s annual report complies with the Other Requirements of schedule 10 that are applicable to the annual report. Our audit was completed on 24 September 2014. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the information we audited is free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and the statement of service provision. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the information we audited. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the information we audited, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the City Council’s preparation of the information we audited that fairly reflect the matters to which they relate.

We consider internal control in order to design procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the City Council’s internal control. An audit also involves evaluating: - the appropriateness of accounting policies used and whether they have been consistently applied; - the reasonableness of the significant accounting estimates and judgements made by the Council;

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- the adequacy of all disclosures in the information we audited; - determining the appropriateness of the reported statement of service provisions within the Council’s framework for reporting performance; and - the overall presentation of the information we audited. We did not examine every transaction, nor do we guarantee complete accuracy of the information we audited. When reporting on whether the annual report complies with the Other Requirements of schedule 10 of the Local Government Act 2002, our procedures were limited to making sure the information required by schedule 10 was included in the annual report, where relevant, and identifying material inconsistencies, if any, with the information we audited. This work was carried out in accordance with International Standard on Auditing (New Zealand) 720; The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. As a result we do not express an audit opinion on the City Council’s compliance with the requirements of schedule 10. We did not evaluate the security and controls over the electronic publication of the information we are required to audit and report on. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate evidence to provide a basis for our opinion. Responsibilities of the Council The Council is responsible for preparing: - financial statements and statement of service provision that:

- comply with generally accepted accounting practice in New Zealand; - fairly reflect the City Council’s financial position, financial performance and cash flows; - fairly reflect its service performance, including achievements compared to forecast;

- a funding impact statement that fairly reflects the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s annual plan;

- funding impact statements in relation to each group of activities that fairly reflects by each group of activities the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s long-term plan;

- statements about budgeted and actual capital expenditure in relation to each group of activities that fairly reflects by each group of activities the capital expenditure spent as compared to the amounts budgeted and set out in the City Council’s long-term plan or annual plan; and

- disclosures in accordance with the requirements of the Local Government (Financial Reporting and Prudence) Regulations 2014; and - the other information in accordance with the requirements of schedule 10 of the Local Government Act 2002.

The Council is responsible for such internal control as it determines is necessary to ensure that the annual report is free from material misstatement, whether due to fraud or error. The Council is also responsible for the publication of the annual report, whether in printed or electronic form. The Council’s responsibilities arise under the Local Government Act 2002.

Responsibilities of the Auditor We are responsible for expressing an independent opinion on, the information we are required to audit, and whether the Council has complied with the Other Requirements of schedule 10, and reporting that opinion to you. Our responsibility arises under section 15 of the Public Audit Act 2001 and section 99 of the Local Government Act 2002. Independence When carrying out this audit, which includes our report on the Other Requirements, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board. Other than this audit, which includes our report on the Other Requirements, we have no relationship with, or interests, in the City Council.

Stuart Mutch Ernst & Young On behalf of the Auditor-General Wellington, New Zealand

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2 OUR DIRECTION

2.1 STRATEGIC PRIORITIES

Following consultation with the Porirua community, the Council adopted four Strategic Priorities in its LTP 2012-22. These priorities set the direction for all of the Council’s decisions:

C ITY O F VI LLAGES Connected and distinctive villages, able to have their respective spaces and characters shaped by the people who live in them.

HEALTHY AN D PROT ECTED HA R BOU R At the heart of our city of villages, providing recreational, economic and cultural opportunities, now and in the future.

A GRO WIN G CIT Y Prosperity, growth and better opportunities for all Porirua residents through city centre revitalisation.

A GR EAT C ITY EX P ERI ENCE Quality, affordable and efficient services at every point enabling residents, businesses and visitors to make the most of their city experience.

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HOW DID WE DO?

C ITY OF V IL LA G E S

Performance Measure Target Actual Status Resident satisfaction with the village programme1, 2,

3 48% 54% Met

1. This is an annual survey of Porirua City residents.

2. This target is low as it relates to a random sample of residents, some of whom may live in an area that is not in the village programme and they therefore may not be aware of the programme.

3. Long term data results for this measure can be viewed in the Community Satisfaction Survey results on page 14.

Commenta ry The survey respondents were a random sample of residents from across the city. Resident satisfaction has improved noticeably from the result of 46% the previous year. The village planning programme delivers a series of targeted projects where communities have developed effective village plans. See the Village Planning activity (section 4.1) for more detail.

HEA LT HY HAR B OU R

Performance Measure Target Actual Status Reduce the sedimentation rate as measured by bathymetric survey every 5 years1,2

· Sediment and erosion control guideline documents reviewed, updated, produced and implemented.

· Education and awareness plan developed and implemented.

As per agreed programme (see commentary below)

Met

1. Performance measures as per Porirua Harbour and Catchment Strategy and Action Plan, 2012.

2. The focus of the strategy is initially on sedimentation rates and ecological restoration, then the focus will turn to reducing pollutants.

Commenta ry The primary source of excessive sedimentation in Porirua Harbour is the land, originating from erosion-prone rural land, streambank erosion, and development earthworks. Focus areas for reducing sedimentation are to improve land management and land-use practices, undertake catchment protection and re-vegetation, and improve localised management of marine sand banks and tidal flushing. Programmes advanced in 2013/14 have included:

· Bathymetric Survey: the next bathymetric survey of sedimentation levels in the harbour will be conducted over the 2014/15 summer season and are conducted every five years;

· Sediment Reduction Plan: completed a catchment-wide Sediment Reduction Plan; and

· Riparian planting and protection mitigation planting, as detailed on page 19, have also contributed to improvements in sedimentation rates.

Related initiatives included:

· Te Awarua-o-Porirua Harbour and Catchment Joint Committee: The Terms of Reference were agreed and members appointed. This committee will have governance oversight of the Porirua Harbour Strategy programme – which is jointly approved by Porirua City Council, Greater Wellington Regional Council and Wellington City Council; and

· Research and monitoring: A range of inter-agency initiatives were undertaken, such as completion of the cockle survey conducted every 5 years, and various mapping and modelling studies of different habitats.

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· Education and awareness:

o a baseline community survey was completed to assist education programme development and monitoring;

o a draft Community Education Plan was developed;

o a draft “Rural Guidelines” document was completed for community review; and

o a range of educational information was produced, including school education material and initiatives to support teaching, website material updated, street drain signage improved, a joint media protocol for Harbour Strategy activities, events, reports and media releases implemented.

Performance Measure Target Actual Status Reduce pollutant inputs as measured by faecal bacteria counts and toxicants in harbour sediments1, 2

· Recognised high-use recreational locations in the harbour have a 'Suitability for Recreation Beach Grade' of at least "Good"

· Target significant reduction from Porirua Stream and Semple Street stormwater outfall

As per agreed programme (see

commentary below)

Not applicable, as long term measure

1. Performance Measures as per Porirua Harbour and Catchment Strategy and Action Plan, 2012.

2. The focus of the strategy is initially on sedimentation rates and ecological restoration, then the focus will turn to reducing pollutants.

Commenta ry The focus of the Porirua Harbour and Catchment Strategy and Action Plan, 2012 is firstly to reduce sedimentation, restore ecological areas, and then work on reducing pollutants. The strategy is to identify and stop pollutants at their source, including reducing faecal inputs, capping nitrogen inputs, reducing toxicant inputs and additional litter management.

Currently the Council does not directly monitor water quality at the Porirua Stream and Semple Street sites stated in the target for this measure. However the Council has major network infrastructure programmes in place to improve the operation of the wastewater and stormwater networks, as outlined in sections 4.2 and 4.3 of this report. In summary, programmes advanced in 2013/14 that impact directly on harbour water quality included:

· Wastewater Network: relining, pump station upgrades, closed-circuit television (CCTV) inspections inside pipelines, real-time Flower Monitoring and Cross-connection detection programme and the Pauatahanui Village sewer reticulation scheme.

· Stormwater Network: Street sump maintenance and installation of new, high-capacity street sumps.

· Litter Management: Continual improvement in frequency of litter collection and reduction, including increased foreshore litter removal, prompt removal of high-visibility ‘Mega-litter’ such as road cones and shopping carts, and establishment of a Litter Working Group in the Council to address litter collection and education opportunities.

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Performance Measure Target Actual Status Ecological restoration as measured by whole-of-catchment and estuary re-vegetation1

· Porirua Harbour Catchment re-vegetation plan developed.

· Porirua Harbour Estuary restoration plan developed.

· Harbour and catchment planting programme implemented in accordance with approved revegetation and restoration plans.

As per agreed programme (see

commentary below)

Met

1. Performance Measures as per Porirua Harbour and Catchment Strategy and Action Plan, 2012.

Commenta ry Sedimentation, pollution and direct harbour edge modification have significantly destroyed areas of the original estuary habitat. Estuary and streambank re-vegetation and habitat enhancement are focuses of the strategy. Ecological restoration work advanced in 2013/14 included:

· Estuary Restoration Options: completed an assessment report for estuary restoration options and priorities;

· Porirua Stream Mouth Enhancement: completed draft Porirua Stream Mouth and Estuary Enhancement Plan (PSMEEP) with lead agency GWRC;

· Planting: over 31,000 trees involving several rural and urban environments;

· Riparian Protection: 1600m of Pauatahanui village and Horokiri Stream;

· Retirement: 12.5ha of regenerating forest have been cut down; and

· Mitigation Planting: included 42,000 native plants at Baxter’s Knob and Aotea Block Stage 10.

A GR O WIN G CIT Y

Performance Measure Target Actual Status Improve rate of growth of Porirua Gross Domestic Product1

1.5% 2.3% Met

1. Infometrics Annual Economic Profiles for Wellington region and Porirua City, 2013.

Commenta ry Gross Domestic Product (GDP) in Porirua City measured $1.457million in the year to March 2014, up 2.3% from a year earlier. Over the same period GDP increased by 2.0% for the Wellington region and by 2.6% for the whole of New Zealand (Infometrics Annual Economic Profiles for Wellington region and Porirua City, 2013).

Performance Measure Target 2014 Actual 2014 Status Improve rate of growth of Porirua employment1 0.5% 1.3% Met

1. Infometrics Annual Economic Profiles for Wellington region and Porirua City, 2013.

Commenta ry Total employment in Porirua city averaged 17,606 in the March 2013 year, up 1.3% from a year earlier. Over the same period employment increased by 0.4% for the Wellington region and by 0.8% for the whole of New Zealand (Infometrics Annual Economic Profiles for Wellington Region and Porirua City, 2013).

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Performance Measure Target Actual Status Porirua's market share of new movers within the region's metropolitan urban areas1

Number of new residents to meet or exceed 'high' population growth projection (55,020)

53,300 Not met

1. Infometrics Annual Economic Profile for Porirua City, 2013.

Commenta ry The resident population figure for Porirua city is an estimate (Infometrics Annual Economic Profile for Porirua City, 2013). The ‘high’ population growth projection for Porirua City for 2013 was 55,020, with ‘medium’ growth projected at 53,180 (LTP 2012-22 Population Data for Porirua City – background document).

A GR E AT C IT Y E XP ER I E NCE

Performance Measure Target Actual Status Maintain community satisfaction with levels of service across all groups of activities provided by the Council

For each service, maintain satisfaction compared to average of previous 3 surveys (77.9% for 2011-13)

82.2% satisfaction Met

Commenta ry On average across all services – community satisfaction has increased to 82.2% from the average of 77.9% across the previous three years. The margin of error for the survey was 5%. The following three service areas fell more than 5% compared to the average across the previous three years:

· Inner City (Canopies and Cobham Court): a drop to 54% satisfaction compared to 66% (average previous three years);

· Sewerage System: a drop to 82% satisfaction compared to 91% (average previous three years); and

· Maintenance of Street Footpaths: a drop to 71% satisfaction compared to 78% (average previous three years).

For more information about these two activity areas see City Centre Revitalisation (section 4.1), Wastewater (section 4.3) and Transport (section 4.5).

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CO MMU NI TY SAT I S FACT ION SU R V E Y

Results of the 2014 annual residents’ satisfaction survey across key services provided by the Council

Council Service 2014 Average (2011-13)

2013 2012 2011

Water Supply 91% 95% 93% 96% 95%

Sewerage System 82% 91% 89% 93% 91%

Sports Fields and Outdoor Courts 94% 86% 86% 86% 86%

Maintenance of Street Footpaths 71% 78% 79% 78% 78%

Refuse Tip (Spicer Landfill) 75% 73% 71% 71% 76%

Public Library Services 95% 87% 85% 87% 88%

Council Owned Public Halls 79% 59% 59% 59% 58%

Pataka Museum of Arts and Cultures 91% 87% 87% 86% 87%

Festivals and Events supported by Council 91% 83% 84% 81% 83%

Parks, Public Gardens and Reserves 91% 94% 93% 95% 93%

Te Rauparaha Arena 95% 83% 84% 84% 82%

Dog Control 74% 70% 70% 69% 72%

Council’s role in creating the right conditions for business

64% 53% 56% 45% 58%

Beach Maintenance 87% 86% 87% 85% 86%

Council Swimming Pools 91% 84% 82% 85% 84%

Recreational Cycleways and Walkways 88% 87% 86% 88% 87%

Burial and Cremation Facilities and Services 85% 63% 61% 63% 64%

Roads (excl. State Highways 1 and 58) 81% 78% 79% 78% 76%

Built Environment 85% 89% 89% 90% 88%

Inner City (Canopies and Cobham Court) 54% 66% 63% 71% 65%

Village Programme 54% 47% 46% 47% 48%

Natural Environment 78% 74% 78% 74% 71%

Playgrounds 89% 79% 78% 79% 80%

Household Rubbish Collection 80% 76% 75% 77% 75%

Recycling 87% 87% 85% 89% 87%

Graffiti Removal 82% 83% 82% 84% 84%

Litter Removal and Cleaning in Public Places 87% 87% 90% 86% 86%

Stormwater System 74% 73% 74% 71% 73%

Support to Community Groups 88% 61% 62% 61% 61%

TOTAL (Average) 82.2% 77.9% 77.7% 77.9% 78.0%

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2.2 ORGANISATIONAL PERFORMANCE

The Council has a strong focus on organisational performance to ensure that it delivers services to Porirua city in the most efficient and effective way possible.

A range of projects are scheduled over the course of the LTP to underpin improvements to service delivery across activities. Therefore the projects are not categorised to be funded under a specific activity, as with many other projects later in the plan. Major organisational performance projects are detailed below.

BU SI NE S S CO NTI NU I TY

Considerable effort has gone into looking at where best to locate an Emergency Operations Centre. The Council is currently investigating options that fulfil specific criteria around location and building strength and resilience.

In order to ensure that the Council can be operational quickly after any event we have undertaken a number of initiatives and based our focus on learnings from the Christchurch City Council. To ensure we are up and running quickly during an emergency event we need to access our data/information systems and our communication capability. The following steps were undertaken during the year:

· Upgrading our telephone system: the upgrade is scheduled to be completed by late 2014;

· Establishing an alternate site for Council operations: the Council determined that Te Rauparaha Arena could be used as an alternate site, should the Council’s administration building not be available following a disaster. The review identified that network access to the Arena would enable operation of at least 100 computer stations if necessary; and

· Shared Information Technology (IT) Services: the Council has arranged with Wellington City Council (WCC) to provide space on their computer servers, should the Council lose its IT machine room. This is a temporary arrangement with WCC. The Council had started looking at a Disaster Recovery (DR) site as part of the Wellington Regional IT Infrastructure project (of which the Council is one of four councils participating). DR involves a set of policies and procedures to enable the recovery or continuation of vital technology infrastructure and systems following a disaster.

The Council has not yet tested its ability to recover from a disruptive event, as stated in the Annual Plan 2013/14. This is now planned for 2014/15.

BU SI NE S S EXC E LL EN CE PR O GR A M ME

The organisation’s risk management framework and policy was reviewed and updated. Risks were identified as Strategic, Tactical and Operational. The revised framework provides staff with the tools to assess risk consequences, risk likelihood and risk control effectiveness. The framework has been applied to current planning documents. The Council’s Strategic Risks and actions to mitigate them are reported to the Audit & Risk Management Committee every six months.

A new business performance reporting and management software system is being implemented. The system will provide all staff with one location for viewing key performance results. The system identifies ownership of performance measures, targets, current and future results and results commentary. The system allows senior managers to review performance dashboards for a quick indication of performance against targets and enable investigation of poor performance. Reporting and management of long term plan measures has been implemented with finance and project dashboards to be added in the first quarter of 2014/15.

Initiatives have been undertaken to improve the cultural climate of the organisation and there has been an improvement in cultural survey scores. The latest survey data is being analysed to identify new initiatives to be considered and implemented for the coming year.

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EXP AN SI ON O F ON LI NE DEL IV ER Y OF SER V IC ES AND IN FOR MA TI ON

A strategy for the expansion of online delivery of Council services and information has been created for the next five years which will result in:

· Easier to use and wider coverage of Council’s interactive services and supporting information areas in ways accessible to all online users;

· More end-to-end transactions able to be completed any time from any place on any device;

· Deeper engagement from genuine two-way interaction on issues of the day through online consultation and social media;

· Useful, location-specific services designed for smart phones and mobile PCs; and

· Greater use of the online channel which is more cost-effective and has a lower carbon footprint than any other way to do business with the Council.

BU SI NE S S AP PL IC ATI ON S AND SY ST E M S

A continuation of the software maintenance and upgrade programme which will result in:

· A consistent regional approach to the delivery of Geospatial Information Systems (GIS) as part of the shared services programme;

· Business applications and supporting hardware that are capable of delivering mobile functionality for field staff, reducing double entry of data, greater accuracy, and quicker retrieval of information by both officers and ratepayers;

· A planned upgrade path for core business software that will reduce maintenance costs over time; and

· A software environment that is strategically placed to take advantage of shared service initiatives within local government.

NE W ZE AL AND LO CAL GOV ER N M ENT FU N DIN G AG ENC Y

The Council became a member of the Local Government Funding Agency during the year to enable access to longer term funding at a cheaper rate.

In June 2014, the Council sought a Standard & Poor’s credit rating. In early July 2014, Standard and Poor’s assigned an AA long-term credit rating for the Council. This rating was higher than expected and will enable the Council to fund on borrowings at a lower cost because of the confidence it gives to the market about the financial strength of the organisation.

REV I EW OF CO S TS A ND REV EN U E

During the year the Chief Executive commissioned the accounting firm Grant Thornton to undertake an Efficiency and Effectiveness Review (EER) of all the Council’s operations. The findings of the review were presented to Council in October 2013.

Early in 2014, three streams of work, procurement, revenue optimisation and internal alignment, were established to consider specific findings from the EER that were seen as appropriate first steps for further work. The findings from the procurement review have been operationalised, while findings on the other two work-streams are currently being considered.

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3 WORKING TOGETHER Our lives, activities and relationships are increasingly influenced by local, regional, national and international issues. Some change is rapid and some is slow and gradual. Many of the issues influencing Porirua, its residents, businesses and environment, are beyond the direct responsibility of the Council. For these reasons, the Council recognises the importance of working collaboratively, both locally and regionally.

3.1 REGIONAL INITIATIVES

More importance is being placed on strong connections with local authorities in the Wellington region to ensure good outcomes for each council and the region.

Proposed changes to the Local Government Act 2002 will require all councils in New Zealand to make greater efforts to work together. In the Wellington region, efforts are being made to make more use of the available pool of talent and resources, where possible, to take advantage of opportunities more strategically. A brief description of some of the more significant regional initiatives, either proposed or underway, is provided below.

WE LL IN GT ON REG IO NA L STR A TE G Y

Porirua City Council is one of nine councils in the Wellington region committed to working together to promote regional economic development through the Wellington Regional Strategy (WRS). The WRS focuses on achieving sustainable economic growth and development in the region.

During 2013/14, the Council has worked with the Greater Wellington Regional Council (GWRC) and the territorial authorities of the Wellington region to identify and realise benefits to be gained from closer regional cooperation. Highlights have included:

· Progress to consolidate economic development activity at a regional level under a joint WCC- GW umbrella;

· Capacity Infrastructure Services Limited taking responsibility for the three waters across Wellington City, Porirua City, Hutt City, Upper Hutt City and Greater Wellington Region (see below);

· Progressing tenders for provision of shared infrastructure services across cooperating Councils; and

· Shared spatial planning initiatives.

The Council has continued to work with the WRS Committee in its role of overseeing the decision-making and governance of the WRS, and with Grow Wellington as the delivery arm of the WRS, in implementing regional economic development initiatives. The Council and the Porirua Chamber of Commerce work together to deliver initiatives and programmes in Porirua.

The Genuine Progress Index monitors progress of the WRS. An updated report on the Wellington Region GPI can be found at www.gpiwellingtonregion.govt.nz.

PR OV IS IO N O F WA TER SU PP LY SER V IC E S

On 1 November 2013, the Council became a client and shareholder of Capacity Infrastructure Services Limited (Capacity). Capacity, now known as Wellington Water following the merger of Capacity Infrastructure Services and Greater Wellington Regional Council’s water supply group, has responsibility for managing water, stormwater, wastewater as well as bulk water for the Wellington region. Greater Wellington Regional Council, Wellington, Porirua, Hutt, and Upper Hutt city councils are joint and equal owners of the company, a move that is consistent with central government policy and the Wellington Regional Mayoral Forum's commitment to encourage more collaboration and shared services between local authorities.

Capacity was established in 2003 to provide integrated water service delivery for the greater Wellington metropolitan area. The original proposal envisaged managing both the bulk water network and local reticulation systems.

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Eleven council staff members have joined Capacity from Porirua. Four physically relocated to the Capacity offices in Petone, and another seven continue to be based at the Porirua wastewater treatment station. This movement of staff to Capacity has reduced the Council’s payroll costs. Joining Capacity with close to 80 staff has helped the Council manage some of the risks associated with having a comparatively small staff in the areas of water supply, wastewater and stormwater.

REG I ONA L RU R AL F IR E AU THOR IT Y

The Wellington Rural Fire Authority assumed responsibility for all rural fire responsibilities on 1 October 2013, in Porirua, the Upper Hutt, Hutt City, Wellington, and Kapiti Coast – including private forests and Greater Wellington Regional Council and Department of Conservation lands in these areas. Prior to this, each council was a rural fire authority in its own right. The new structure improves capability and capacity by pooling and sharing resources and expertise, clarifying accountabilities and responsibilities and reducing duplication. It also increases the safety of rural communities by providing better leadership and advice to land owners and the public through greater awareness of fire threats and risks. Overseeing the management of the service is a Board made up of six members (three officers from the local authorities) representing the organisations involved and an independent member and Chair of the Board.

SHAR ED IN F OR M ATI ON AND CO M MU NI CAT IO NS TECH NO LO G Y

The Council is part of a regional initiative involving Wellington City Council, Upper Hutt City Council and Greater Wellington Regional Council, for shared information and communications technology infrastructure services. The ability to deliver the required services and the cost is being tested in the market. A business case, developed from the responses, is expected to be completed in November 2014.

SMAR T LIBR AR IE S

Since 2011, the SMART regional library service has provided access to the resources of six library systems (four councils and two tertiary institutions) across the Wellington region. Porirua City Council, Hutt City Council, Kapiti Coast District Council, Whitireia New Zealand and Weltec (Wellington Institute of Technology) share information and the same database provider. Each organisation manages its own libraries, but work collaboratively. Residents can browse a net collection of over 600,000 items, reserve an item and pick it up at their local branch.

3.2 REGIONAL GOVERNANCE REFORM

There have been many discussions on regional governance over several years with the Mayoral Forum and subsequently with various groups of councils. Porirua City Council has endeavoured to participate in as many discussions as possible. For work during 2013/14, see section 4.1 Strategy & Planning.

Porirua City Council has worked with other councils on options for regional governance over several years and in particular:

· the Wellington Region Local Government Review Panel – established by Porirua City Council and the Greater Wellington Regional Council (GWRC) – and chaired by the Rt. Hon Sir Geoffrey Palmer QC (for more information see www.wellingtonreviewpanel.org.nz); and

· the Local Government Reform Working Party with the councils of GWRC, Porirua City, Kapiti Coast District and Wellington City – chaired by Cr Ken Douglas of Porirua City Council (for more information see www.regionalreform.org.nz).

On 19 June 2013, the Council agreed to support GWRC’s application to the Local Government Commission (the Commission) for a two-tier, one-council model for the Wellington region, with the caveat that the Commission is best placed to make the final decision on options for local government in Wairarapa.

In July 2013, the Commission called for alternative ideas and in August 2013 advised it had received 19 responses. The Commission then began considering the applications and alternatives, holding public meetings and requesting a range of information from councils. The Council provided the Commission with information on staffing, funding, finance and a wide range of infrastructural issues (roading, water supply, stormwater,

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wastewater, solid waste). The Council continued to host the websites for the Wellington Region Local Government Review Panel and the Local Government Reform Working Party. In June 2014, the Commission advised that no further announcements would be made on the three regional reorganisation assessment programmes (Northland, Hawke's Bay and Wellington) prior to the general election in September 2014.

3.3 COLLABORATIVE RELATIONSHIPS IN PORIRUA

TE RU NAN GA O TOA RA NGA TIR A

The Council has an established relationship with Ngāti Toa Rangatira (tangata whenua of Porirua) both at a governance and management level. The Council and Te Runanga O Toa Rangatira (the Runanga or business arm of Ngāti Toa) have a Charter of Understanding which sets out the principles of the relationship between the two organisations and the mechanisms by which the relationship will be supported.

The Council and Runanga officers liaise regularly on a wide range of strategic and local issues. Te Runanga o Toa Rangatira also provides the Council's cultural support. Mr Taku Parai of Ngāti Toa is the Council’s kaumatua and attends meetings of the Council with full speaking rights.

POR IR U A C IT Y YOU TH ADV I SOR Y GR OU P

The Porirua Youth Advisory Group (YAG) comprises young people from the Porirua area who represent the views of their respective communities. The role of YAG includes:

· Informing young people about council matters;

· Providing opportunities for other young people to have a say in council matters;

· Maintaining good networks with local schools and youth organisations;

· Assisting the Council to develop informed policies, strategies and initiatives that support young people; and

· Skills development (public speaking, project planning, writing for media, communicating with diverse audiences).

In 2013/2014, YAG was involved in the following activities:

· Expose: this was a major event held at Te Rauparaha Arena on 7th December 2013 by YAG in collaboration with the Council and community organisations that delivered youth services to promote and provide information and support to young people so that they were Informed, Connected and Engaged;

· Gigatown: Since 1 May 2014, YAG members have focussed on promoting Porirua’s Gigatown bid. They have encouraged and guided people through the sign-in process at various venues around the city including Saturday morning markets and Under the Canopies, North City Shopping Centre and Whitireia Polytechnic;

· REEL Film Competition: In May, the REEL film competition 2014 was held, an annual event celebrating Youth Week; and

· Local Government Workshop: The first of a series of local government workshops was held on 26 June 2014 for young people across Porirua to gain a better understanding of central and local government and how they can engage with both. It received very positive feedback from the 15 young people who attended, which included five YAG members. Further workshops will be held in 2014/2015.

As the result of a SWOT analysis completed in May 2014, YAG identified the need for some focused training on a range of topics and skill development, which will be undertaken in 2014/2015.

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POR IR U A FOU N DAT ION

The Porirua Foundation is a registered charity which supports community initiatives and projects by:

· Managing bequests and individual endowments; and

· Operating as an independent trust for receiving and distributing all monies on behalf of the Porirua City Partner Programme for Council projects.

POR IR U A CIT Y PAR TN E R PR O GR A MM E

For significant projects in the arts, environment and education areas, the Porirua Foundation, the Council and the Porirua City Partner Programme work together to raise funds. Partnerships comprise product, services or cash that is allocated to significant and relevant projects. In turn the businesses receive recognition and benefits which may vary depending on the project, the value of the contribution and the partner's funding strategy. This collaborative approach makes use of the expertise, resources and knowledge abundant in our business and civic community while minimising the cost to ratepayers.

For more information see www.poriruafoundation.org.nz.

SAF ER POR IR U A

Porirua is an International Safe Community based on the international Safe Community model and was originally accredited in 2008. In 2013/14, Porirua achieved reaccreditation as a Safe Community.

Safer Porirua is led by the interagency Safer Porirua Strategic Group, chaired by the Deputy Mayor ‘Ana Coffey. Membership of the Group includes the Council, ACC, Capital and Coast District Health Board, Housing New Zealand, Maraeroa Health Clinic, NZ Fire Service, NZ Police, Porirua Chamber of Commerce, Porirua Healthy Safer City Trust, Regional Public Health, Taeaomanino Trust, and Water Safety New Zealand.

The Council recognises its strategic city leadership role with this programme and its contribution to safety in the city and the four focus areas of injury prevention, crime prevention, road safety and emergency management. In 2013/14, the Safer Porirua Strategic Group coordinated the application and on 7 May 2014 was reaccredited at a formal signing ceremony, following a review by expert accreditors from around the world. The Safer Community Foundation New Zealand commented that Porirua is an outstanding example of a community that undertakes robust analysis of data and identifies best practice programmes and processes to include key stakeholders.

HEA LT H – IN TER A G EN C Y SO CI AL SEC TOR TR I A L TU M AI HAU OR A KI POR IR U A ADV I SOR Y GR OU P

Porirua City Council is a member of the health-focussed Interagency Social Sector Trial Tumai Hauora ki Porirua Advisory Group. There are several Social Sector Trials around the country involving the Ministries of Education, Health, Justice and Social Development and the New Zealand Police working together to improve social service delivery. Most of these initiatives have a focus on outcomes for young people but there was a decision to focus on education in Rotorua and on health in Porirua.

The Porirua focus is on reducing hospitalisations and emergency department attendance for conditions that should be able to be prevented or better managed earlier in a community setting. The Council involvement recognises its strategic city leadership role, long interest in health services and health outcomes and its contribution to health in the widest sense. The Council also provides advocacy, information and monitoring on city outcomes and links with relevant Council programmes, events, facilities and services. The programme was formally launched in Porirua on 5 December 2013 and had an original timeframe of two years to June 2015.

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3.4 GRANTS AND AWARDS

AWAR D S PR ES EN TED B Y THE CO U NC IL

The presentation of Civic Awards for Voluntary Community Service occurs each year to provide an opportunity for the Council to formally recognise residents for their outstanding voluntary contribution to Porirua City. The following people received Civic Awards in 2013/14:

· Ted Gallen: awarded for his 15 years of voluntary service to Mana Recovery Trust embarking on a process of job creation with a particular emphasis on the emerging industries around recycling and resources recovery;

· Mary Casey: Casey has served within the Plimmerton Red Cross Branch since 1973 and also instigated a programme at Kenepuru Hospital, providing toothbrushes and toothpaste to children who have had oral surgery;

· Pat McCalman: awarded for voluntary work at Windley School library for the past eight years. McCalman’s grandchildren are former Windley School students. Besides her work in the library, McCalman helps out in the Junior Syndicate in many capacities; and

· Judy McKoy: McKoy chairs the Porirua Community Arts Council, which stages the annual Festival of the Elements. She also teaches English to refugees at the Porirua Language Project, tutors for Literacy Aotearoa and has been volunteering at the Migrating Kitchen Trust’s exhibitions since 2011.

There were also four recipients of the Mayoral Recognition Award 2013/14:

· Elizabeth Meaclem: has been Chief Executive Officer for the Mana Recovery Trust for the past four years. The Trust was facing insolvency at the start of her tenure because of the economic downturn and Meaclem made vital and effective changes to stabilise the organisation;

· Dennis and Enid Kennemore: are members of the Titahi Bay Golf Club and Surf Club, and supporters of the Titahi Bay Bowling Club. They have financed improvements to the north entrance at Titahi Bay Beach and created gardens at both the Titahi Bay Golf Club and Titahi Bay Bowling Club;

· Pip Piper: has been a long-time Plimmerton resident and member of the Porirua Historical Society and the Porirua Genealogy Society. He has been a very active member of the Plimmerton Residents Association and has been a volunteer at the genealogy desk of Porirua Library for many years; and

· Marie Wright: has lived in Titahi Bay for nearly 45 years. She is an elder of St Timothy’s Church and for many years Wright has assisted the Council in planting and maintaining the crib walling on the banks of Toms and Beach roads.

GR ANT S ALL OCA TE D BY THE CO U NC IL

The Council recognises the important contribution made by not-for-profit organisations to the overall wellbeing of the city and its residents and to the support of the outcomes that the Porirua community identifies as important.

As part of that recognition, the Council makes funds available through two different funding schemes (described below) to not-for-profit organisations to benefit the wider community. The funding schemes are disbursed by the Community Grants Sub-committee of the Council.

A third funding scheme, the Neighbourhood Matching Fund, is still in development. Its intention is to strengthen connections and responsiveness at a neighbourhood level by encouraging individuals to look at ways of engaging their neighbours to collaborate and promote positive activities within their neighbourhood space. Community organisations are not eligible for funding and the Fund will not be used to replace or supplement money already designated by the Council to Village Planning. It is intended to be open for applications in 2014/2015.

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Por ir ua Communit y O ut comes F und The purpose of the Community Outcomes Fund is to assist in the achievement of the Porirua City Community Outcomes. This is done through supporting established community organisations to provide essential social services, community development and/or strategic services within the city and which enhance the wellbeing of residents.

As well as providing annual financial statements, recipients are expected to provide an annual issues report as an accountability measure, in which they identify current or emerging issues in the community, any concerns, changes and/or gaps in service delivery, and the effect the economic environment may have on these.

For 2013/14, the Community Outcomes Fund non-contestable grants section was made contestable and a total of $180,000 was available to applicants. In total 21 groups applied for funding – 5 were declined and 15 groups were awarded funding, as follows:

Funded Amount Agape Budgeting Service $4,000

Age Concern Wellington $4,000

Care Share and Wear Wellington Trust $2,000

Citizens Advice Bureau Porirua $40,000

Porirua Community Guardians $20,000

Porirua Community Services Centre $12,000

Porirua Healthy Safer City Trust $25,000

Porirua Language Project $10,000

Porirua Living Without Violence $6,000

Safer Porirua Strategic Group $16,000

Te Whare Tiaki Wahine Refuge $3,000

Volunteer Porirua $10,000

Wellington Riding for the Disabled $10,000

Wellington Sexual Abuse HELP Foundation – Porirua $10,000

Whare Manaaki $3,000

Wesley Community Action Porirua $5,000

Total $180,000

Por ir ua Emer gency Ser vices Fund The Council’s annual funding commitment to emergency services is $21,000. This support is to ensure that the people of Porirua have emergency services available should the need arise.

The Fund has traditionally being non-contestable with allocations made to three emergency organisations: the Wellington Free Ambulance, the Mana Volunteer Coastguard and Life Flight.

In April 2013, the Council resolved that the Emergency Services Fund would be contestable for 2013/14 to allow other emergency services the opportunity to access the Fund. Only three applications were received however, from the same three organisations that had been funded the previous year. Each organisation was awarded a grant of $7,000 from the Porirua Emergency Services Fund.

The accountability measures for the three recipient groups are to provide a statistical report showing how Porirua residents were assisted and how many, and the same financial statements and issues report required for Community Outcome Fund grant recipients.

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4 SERVICES WE PROVIDE This section summarises the Council’s performance against Activity plans and actual costs against budget for the year.

4.1 STRATEGY AND PLANNING

The following activities are delivered under Strategy and Planning:

· Strategic and Community Policy

· Environment and City Planning

· Harbour and Catchments

· Economic Development and Marketing

· City Centre Revitalisation

· Village Planning

· Emergency Management

These activities support the work of the Council by providing a range of integrated strategy and planning processes that contribute to all four strategic priorities. Other programmes identified as priorities by the community that are directly related to this group of activities are resilient communities (emergency preparedness), retention of green space, digital infrastructure, city image and promotion, youth partnerships and community safety.

STRATEGIC AND COMMUNITY POLICY

WHAT WE D O

The Council provides strategic policy advice, statutory planning and reporting, public consultation, and manages partnerships with a wide range of organisations and groups in the community. This activity also includes the provision of policy advice for infrastructure, strategic and social matters (such as health, education, welfare, population), community development functions – including information, advice and financial grants for community organisations (see section 3.3), and the support and coordination of the Youth Advisory Group (see section 3.3).

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To support a growing city, these services help to build a resilient, connected and engaged community and city of villages where residents and visitors can experience quality and efficient services.

ACHI EV EM EN T S / CHA L LE NG E S

Regiona l Gover na nce This initiative was funded following feedback to submissions on the Annual Plan 2013/14. Further detail is provided under the Regional Governance Reform in section 3.2. The objectives of the project were to ensure that:

· the Council continued to be well-informed about, and had input into, the discussions and decision-making on the future function and form of local government in the region;

· the principles and aspects of importance to Porirua in this process were identified and promoted; and

· the Council was able to promptly provide information to the Local Government Commission (the Commission) should any application for reorganisation be accepted and subsequently trigger a review of

33

regional governance. The funding was allocated to cover costs such as contract support, community engagement, advertising, web development and other related activities.

Sett lement Supp ort – T r ans it ion t o a new model Settlement Support was an information and referral service for new migrants and refugees, funded by central government. The Council hosted the Porirua service since its inception in 2005. A review of Settlement Support New Zealand resulted in the government developing a new business model to take effect from 1 July 2014. The 2013/14 year focussed on transition to the new model and the Porirua service closed on 30 June 2014. There is a greater provision of online and telephone information and service assistance through Immigration New Zealand. The face-to-face component of working with migrants and refugees throughout New Zealand is to be provided by the Citizens Advice Bureau (CAB), including the Porirua CAB.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain satisfaction of community organisations with the availability and quality of the Council’s support services.

75% 73% Not met

Commenta ry This year, 13 community organisations that work directly with the Council on support services were surveyed. The result showed that 73% were satisfied with the Council’s support services. This was in-line with last year’s result of 71%.

In a separate survey of residents, 49% of respondents were satisfied with the Council’s support to community groups. There was also a wide range of understanding of what "support to community groups" constitutes, as shown by the 35% of residents surveyed who answered “don’t know”.

Performance Measure Target 2014 Actual 2014 Status All statutory requirements for the production of the Council’s Annual Plan, Annual Report, and Long Term Plan are met and the Council receives unqualified audits within required timeframes.

100% 100% Met

Commenta ry All statutory requirements were met: The Annual Report 2012/13 was adopted on 18 September 2013 and published within one month. The external audit opinion was unqualified. The Annual Plan 2014/15 was adopted on 25 June 2014 and published within one month.

WHAT IT C O ST – STR AT EG IC A ND CO M MU N IT Y PO LI CY

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,190 1,264 1,348

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

0 0 1

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

1,190 1,264 1,349

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Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Application of Operating Funding:

Payments to staff and suppliers

818 878 1,003

Finance costs

0 0 0

Internal charges applied

373 386 346

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,190 1,264 1,349

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the following keywords into www.pcc.govt.nz:

· Community Outcomes

· Youth Development

· Community Funding

· Long Term Plan 2012-22

· Annual Plan

· Annual Report

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ENVIRONMENT AND CITY PLANNING

WHAT WE D O

The Council provides for integrated land-use planning and decision making, and engages with the community to encourage participation in planning processes. This activity includes reviewing the District Plan, developing and monitoring land-use policy frameworks, and providing policy and planning advice on matters such as heritage, landscape and urban design.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure Porirua is a modern growing city recognised for its distinctive villages and communities, with sustainably designed and constructed buildings, and complemented by a valued natural environment including a healthy harbour. We plan for a cohesive and integrated city where residents and visitors can make the most of their city experience.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Integrated land-use planning and policy advice is provided, including monitoring and reviewing Porirua City's District Plan

District Plan review is progressed as per agreed programme

The agreed programme has been progressed as outlined in the commentary below

Met

Commenta ry The District Plan review programme has progressed in accordance with the District Plan Rolling review programme. Progress was reported to the District Plan Committee and covered the delivery of the following programmes to year end:

· Plan Change 15 Heritage: Completed and made operative 31 March 2014;

· Proposed Plan Change 16 Network Utilities: Notified for submissions in October 2013, further submissions closed 7 May 2014;

· Proposed Plan Change 17 Aotea Supermarket Zone (Private): Accepted March 2014, and notified 19 April 2014;

· Rural Landscape Management Strategy: Completed and adopted 18 July 2013;

· Significant Urban Vegetation: Community reference group formed February, and commenced review and feedback on significant urban vegetation draft plan change work;

· Natural Hazards: Regional natural hazard management strategy brief developed and accepted by the region’s councils, call for proposals completed and received and assessed in June 2014. Porirua fault trace study completed June 2014;

· Northern Growth Structure Plan: Commenced with preliminary draft plan completed June 2014; and

· City Centre: Programmes for signage and car parking strategy development delayed.

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WHAT IT CO ST – ENV IR ON ME NT AND C IT Y PLA NNIN G

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

982 988 858

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

54 0 0

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

1,036 988 858

Application of Operating Funding:

Payments to staff and suppliers

848 803 691

Finance costs

0 0 0

Internal charges applied

188 185 167

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,036 988 858

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords District Plan into www.pcc.govt.nz.

37

HARBOUR AND CATCHMENTS

WHAT WE D O

The Council promotes the sustainable use, protection and restoration of the harbour and surrounding catchment, facilitates research, promotes education, and monitors activity to implement the Porirua Harbour and Catchment Strategy and Action Plan. The strategy focuses on sediment and pollution reduction and ecological restoration.

This activity includes liaison with, and working alongside, the community, Greater Wellington Regional Council, Wellington City Council, Ngāti Toa Rangatira and a range of other local and national agencies.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that the Porirua Harbour and catchment areas are clean, healthy, and regularly enjoyed by the public. We also work to ensure that the harbour environment is widely recognised as a significant natural, cultural, recreational, economic and educational resource and the significant, but vulnerable, 'heart' of the city.

MAJ OR CAPI TA L PR OJ E CTS

The major capital projects supporting this activity are detailed in Stormwater (section 4.2) and Wastewater (section 4.3).

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Reduce the sedimentation rate as measured by a bathymetric survey every five years

· Sediment and erosion control guideline documents reviewed, updated, produced and implemented.

· Education and awareness plan developed and implemented.

As per agreed programme (see commentary below)

Met

Commenta ry Programmes advanced in 2013/14 that impact on sedimentation rates have included:

· Te Awarua-o-Porirua Harbour and Catchment Joint Committee: Terms of reference agreed, partners approval and membership appointed.

· Sedimentation rates: Review and setup arrangements were put in place for the next bathymetric survey of sedimentation levels in the harbour to be conducted over the 2014/15 summer season, conducted every five years.

· Research and monitoring: A range of inter-agency initiatives undertaken, such as completion of the cockle survey conducted every 5 years, and various mapping and modelling studies of different habitats was undertaken.

· Education and awareness:

o a baseline community survey was completed to assist education programme development and monitoring;

o a draft Community Education Plan was developed;

o a draft “Rural Guidelines” document was completed for community review;

o a range of educational information was produced, including school education material and initiatives to support teaching, website material updated, street drain signage improved, a joint media protocol for Harbour Strategy activities, events, reports and media releases implemented.

38

Performance Measure Target 2014 Actual 2014 Status Pollutant inputs as measured by:

· faecal bacteria counts1 · toxicants in harbour

sediments

· Recognised high-use recreational locations in the harbour have a 'Suitability for Recreation Beach Grade' of at least "Good"

· Target significant reduction from Porirua Stream and Semple Street stormwater outfall

As per agreed programme (see commentary below)

Not applicable as long term measure

1. As stated in the Porirua Harbour and Catchment Strategy and Action Plan (2012).

Commenta ry Programmes advanced in 2013/14 that impact directly on water quality included:

· Wastewater Network: relining, pump station upgrades, closed-circuit television (CCTV) inspections inside pipelines, real-time flower monitoring and cross-connection detection programme and the Pauatahanui Village sewer reticulation scheme.

· Stormwater Network: Street sump maintenance and installation of new, high-capacity street sumps.

· Litter Management: Continual improvement in frequency of litter collection and reduction, including increased foreshore litter removal, prompt removal of high-visibility ‘Mega-litter’ such as road cones and shopping carts, and establishment of a Litter Working Group’ in the Council to address litter collection and education opportunities.

Performance Measure Target 2014 Actual 2014 Status Ecological restoration as measured by:

· Priority areas planted through Council-assisted planting programmes within the estuarine and riparian habitats of the harbour

· Number of plants planted through Council-assisted planting programmes within the estuarine and riparian habitats of the harbour

· Porirua Harbour Catchment re-vegetation plan developed.

· Porirua Harbour estuary restoration plan developed.

· Harbour and catchment planting programme implemented in accordance with approved revegetation and restoration plans.

As per agreed programme (see commentary below)

Met

Commenta ry Ecological restoration work advanced in 2013/14 included:

· Estuary Restoration Options: completed an assessment report for estuary restoration options and priorities.

· Porirua Stream mouth enhancement: completed draft Porirua Stream Mouth and Estuary Enhancement Plan (PSMEEP) with lead agency GWRC.

· Planting: over 31,000 trees involving several rural and urban environments.

· Riparian Protection: 1600m of Pauatahanui village and Horokiri Stream.

· Retirement: 12.5ha of regenerating forest retired.

· Mitigation Planting: included 42,000 native plants at Baxter’s knob and Aotea Block Stage 10.

39

Performance Measure Target 2014 Actual 2014 Status Usability of the harbour environment as measured by contaminants in shellfish

Improved kaimoana safety from existing gathering locations, consistent with public health advice

As per agreed programme (see commentary below)

Not applicable as long term measure

Commenta ry Programmes advanced in 2013/14 have included:

· NIWA and the Runanga completed a fish survey. The survey consisted of oral interviews with kaumatua, a literature survey and a field survey;

· Planning for shellfish count to be carried out in 2014/15 commenced; and

· The Guardians of the Pauatahanui Inlet undertook the three yearly cockle count which showed significant and persistent improvement in cockle numbers in the Pauatahanui Inlet.

WHAT IT C O ST – HAR B OU R AND CAT CH M ENT S

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

248 252 179

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

0 0 0

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

248 252 179

Application of Operating Funding:

Payments to staff and suppliers

210 213 147

Finance costs

0 0 0

Internal charges applied

39 39 32

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

248 252 179

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

40

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Porirua Harbour and Catchment into www.pcc.govt.nz.

ECONOMIC DEVELOPMENT AND MARKETING

WHAT WE D O

The Council encourages a growing local economy by marketing the city to attract new business investment, improve employment opportunities and increase both resident population and visitors.

This activity includes management of the i-SITE Porirua Visitor Information Centre, the Sister Cities programme, the Council's Economic Development Strategy, marketing in line with the City Marketing Strategy, and maintaining a strong working relationship with the Chamber of Commerce.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To broaden Porirua City's economic base and assist with growing a modern, prosperous and sustainable city that provides a range of business opportunities and attracting new residents and visitors to the city.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Improve rate of growth of Porirua employment1 0.5% 1.3% Met

1. Infometrics Annual Economic Profiles for Wellington region and Porirua City, 2013.

Commenta ry Total employment in Porirua City averaged 17,606 in the March 2013 year, up 1.3% from a year earlier. Over the same period employment increased by 0.4% for the Wellington Region and by 0.8% for the whole of New Zealand (Infometrics Annual Economic Profiles for Wellington Region and Porirua City, 2013).

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Performance Measure Target 2014 Actual 2014 Status Maintain business satisfaction with provision of Council support

75% 27% / 49% Not met

Commenta ry 27% of businesses surveyed were satisfied with the way rates were spent on services/facilities provided by the Council for their businesses and 49% were satisfied with services received when contacting Council offices.

Performance Measure Target 2014 Actual 2014 Status Let, manage and review contracts as scheduled to provide local businesses with advice, support, profile, local relationships and representation1

100% 100% Met

1. Contracts with Porirua Chamber of Commerce, Partners Porirua and Agenda (organisers of the Wellington Gold Awards).

Commenta ry Contracts with Porirua Chamber of Commerce, Partners Porirua, Agenda Marketing and CHAT Enterprises let, managed and reviewed.

WHAT IT C O ST – EC ON OM IC DEV E LO PM EN T AN D MAR KE TIN G

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,624 1,895 1,554

Targeted rates

150 150 150

Subsidies for operating purposes

0 0 0

Fees and charges

131 130 98

Internal charges recovered

1 0 41

Other operating

100 105 58

Total Operating Funding

2,006 2,280 1,901

Application of Operating Funding:

Payments to staff and suppliers

1,422 1,703 1,366

Finance costs

37 45 44

Internal charges applied

495 476 444

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,955 2,225 1,854

Surplus/(Deficit) of Operating Funding

51 55 47

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(51) (51) (47)

Total Sources of Capital Funding

(51) (51) (47)

42

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 4 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 4 0

Surplus / (Deficit) of Capital Funding

(51) (55) (47)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the following keywords into www.pcc.govt.nz:

· Business, Porirua Economic Bulletin, Smartlinx3

· i-SITE Porirua Visitor Information Centre

CITY CENTRE REVITALISATION

WHAT WE D O

The Council works in partnership with businesses, investors and the community to encourage the private sector to invest in the city centre to improve business and visitor growth in the city. The Council has established a City Centre Sub-Committee made up of a mix of Councillors and independent business people to lead the city centre revitalisation project. This group is leading urban space improvements, the development of new city centre activities, and developing opportunities for investment in new and existing retail and business ventures.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To grow Porirua City by ensuring the city centre has a prosperous retail and business sector, a high quality, distinctive and well-connected urban environment that complements the harbour, and offers a range of recreational activities, making it a focal point for the Porirua community and a place to be proud of as our central Business Village. A revitalised city centre will enable residents, businesses and visitors to make the most of their city experience.

43

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

City Centre Revitalisation An on-going project to improve the functionality of Porirua's Central Business District (CBD) environment to attract more visitors, new businesses and residents. In addition the Council has budgeted $500,000 operating expenditure each year.

2,063 299

Commenta ry The City Centre Revitalisation budget was provided for in the LTP 2012-22 before detailed project planning was completed. The project was intended to be accelerated in 2013/14 by bringing forward capital expenditure by one year.

Objectives for 2013/14 included improving business attraction, visitor attraction and resident attraction. However a change in focus and management structure during the year caused a number of the City Centre projects to be delayed or discontinued. From December 2013 onwards the project changed focus from large-scale design to economic development and place making, with the spatial focus shifting from the streamside to the canopies area. The project returned to in-house management in early 2014.

The project changes during the year resulted in a significant budget under-spend. In total, $1.802 million has been carried-over into 2014/15. A new programme of activities will be developed for the next financial year focussing on Cobham Court.

Major highlights for 2013/14 included the launch of the new City Centre Revitalisation project branding, a successful ice skating rink in September/October 2013 which attracted 12,000 people, and the development of the placemaking project.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status City centre revitalisation project plan is implemented as per objectives set by Council resolution

Achieve objectives as set

by Council resolution

Achieved1 Met

1. Objectives were modified by Council resolution.

As noted above, as a result of a resolution by the Council, from December 2013 this project changed focus from large-scale design to economic development and place making, with the spatial focus shifting from the streamside to the canopies area. Project plans were implemented for those objectives that were not formally put on hold. In particular, the “Do It Yourself” (DIY) Placemaking, component of the project has gone to plan and proceeding well.

Community satisfaction with the inner city (canopies and Cobham Court) fell to 54% this year compared to 66% (average previous three years). This result reflects that progress has been slowed with the change of focus of the project this year.

Performance Measure Target 2014 Actual 2014 Status Increase the number of businesses recorded in the city centre

146 127 Not met

Commenta ry There have been significant changes around the city centre in the last year, with several businesses relocating within the same area, some newly empty spaces and some new businesses, but overall there has been a slight drop in the number of businesses from 134 (last year) to 127.

44

Overall it is expected that the number of city centre businesses will remain relatively static over the next year, with an emphasis on bringing in new land uses such as residential and filling empty commercial spaces.

Performance Measure Target 2014 Actual 2014 Status Increase the foot traffic recorded at selected locations around the city centre

Increase Increase Met

Commenta ry The latest foot traffic survey (May 2014) showed an increase in foot traffic. There were 7 different time periods which all showed an increase, but with vastly different levels of increase: the range was 10% - 82%.

Performance Measure Target 2014 Actual 2014 Status Increase the number of residential property units recorded in the city centre

0 No increase Met

Commenta ry This is a long-term measure – which is why the target is for no increase in years 1-3 of the 2012-22 LTP.

Performance Measure Target 2014 Actual 2014 Status Develop a design for the Streamside Plaza and deliver through to construction

Completed On hold Not met

Commenta ry This Streamside Quarter project has been put on hold. Refer to the City Centre Revitalisation project update above.

Performance Measure Target 2014 Actual 2014 Status Develop a design for Ferry Lane and deliver through to construction

Completed On hold Not met

Commenta ry This Ferry Lane project has been put on hold. Refer to the City Centre Revitalisation project update above.

Performance Measure Target 2014 Actual 2014 Status Improve the pedestrian connection between the proposed Streamside Plaza and the train station

Increase On hold Not met

Commenta ry This Pedestrian Connection project has been put on hold. Refer to the City Centre Revitalisation project update above.

Performance Measure Target 2014 Actual 2014 Status Develop a number of initiatives to increase the vibrancy and utility of Cobham Court (including the Canopies), the proposed Ferry Lane and proposed Streamside Plaza

Completed Completed Met

Commenta ry A community DIY Placemaking workshop was held with guest speaker David Engwicht, which achieved a high attendance and a team of volunteers who are now working towards a community-led makeover of the canopies area.

45

WHAT IT C O ST – CIT Y C ENTR E REV ITA L IS ATI O N

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

504 549 608

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

91 0 0

Internal charges recovered

0 0 0

Other operating

6 0 0

Total Operating Funding

602 549 608

Application of Operating Funding:

Payments to staff and suppliers

503 503 523

Finance costs

2 15 2

Internal charges applied

98 97 83

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

602 614 608

Surplus/(Deficit) of Operating Funding

0 (65) 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 625 0

Total Sources of Capital Funding

0 625 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

299 2,063 350

- to replace existing assets

0 0 0

Movement in reserves

(299) (1,503) (350)

Movement in investments

0 0 0

Total Application of Capital Funding

0 560 0

Surplus / (Deficit) of Capital Funding

0 65 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the following keywords City Centre Revitalisation into www.pcc.govt.nz.

46

VILLAGE PLANNING

WHAT WE D O

The Council works in partnership with communities in Porirua to assist with the development of village plans to help achieve their vision and outcomes for their neighbourhoods. This activity includes working with communities to identify local needs, setting strategic priorities for the Council's involvement in each area, fostering constructive working relationships that benefit the community and contributing funding for implementation of village plans.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To support a city of connected and distinctive villages enhanced by the natural environment, that reflect each unique neighbourhood whilst recognising the importance of economic sustainability, and ensuring the community remains in charge of the vision for their area. An engaged community is more sustainable from an economic, environmental, and health and safety aspect.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Village Development Programme An on-going programme working with residential communities to develop and implement local village development plans, including capital works.

503 427

Commenta ry The Village development programme was completed as planned and highlights were:

· The Villages Development Programme contributed to two major projects this year with major village centre upgrade work in Ranui ($165,000) and Cannons Creek ($30,000). These upgrades were jointly funded from three activity programmes – this Village Development Programme, Minor Improvements (City Roading and Safety) and East Porirua Safety Work (Transport Facilities) – see section 4.5;

· In addition, 20 minor projects were completed across 12 villages, for example safety footpath and landscaping work at Pauatahanui, walkway and street map signage projects in Whitby and the new pathway diversion on Conclusion Walkway;

· Village Plans were updated for both Titahi Bay and Takapuwahia;

· Ascot Park began the process of developing their first Village Plan; and

· Negotiations commenced for an additional community to join the programme (Aotea).

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain stakeholder satisfaction with the village programme

75% 78% Met

Commenta ry The Council worked with a wide range of stakeholders across 13 villages to implement the Villages Development Programme this year. Stakeholder satisfaction remained high, although a slight drop on the result of 84% the previous year.

47

WHAT IT C O ST – V IL LA GE PLANN IN G

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

715 768 720

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

0 0 0

Internal charges recovered

0 0 7

Other operating

0 0 13

Total Operating Funding

715 768 740

Application of Operating Funding:

Payments to staff and suppliers

223 202 207

Finance costs

207 275 216

Internal charges applied

74 68 62

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

504 545 485

Surplus/(Deficit) of Operating Funding

211 223 255

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

216 280 202

Total Sources of Capital Funding

216 280 202

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

427 503 457

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

427 503 457

Surplus / (Deficit) of Capital Funding

(211) (223) (255)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Village Planning Programme into www.pcc.govt.nz.

48

EMERGENCY MANAGEMENT

WHAT WE D O

Porirua City Council has joined with other councils in the wider Wellington region to establish the Wellington Regional Emergency Management Office (WREMO). WREMO provides regional emergency management services such as public education on how to plan for and recover from an emergency, regional planning and advice, training, and emergency equipment. The Council manages the Porirua Emergency Operations Centre and ensures that Council staff are trained for an emergency event. The Council also runs a water supply project, installing large emergency water tanks at strategic locations in the community.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

The Council works with WREMO to ensure the community has the knowledge and resilience to manage themselves during an emergency and recover from an emergency. We also ensure that disaster planning occurs at an individual and local community level strengthening villages to support a growing city and provide a great service for residents and visitors.

ACHI EV EM EN T S/C HAL L EN GE S

Emer gency O per at ions Centre A key change from the LTP 2012-22 for 2014 was an additional $100,000 budgeted per year for the establishment of a new Emergency Operations Centre (EOC) that meets required emergency resilience standards. A new EOC has not yet been identified, although a number of options have been tested and currently a joint accommodation arrangement is being considered for a long-term EOC.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Emergency Management An on-going project to increase emergency water supply capacity and water treatment options, plus upgrade communications equipment and Emergency Operations Centre systems to improve emergency response effectiveness.

162 6

Commenta ry The focus during 2013/14 was on improving the equipment in the Emergency Operations Centre, and household and business readiness initiatives. No further emergency supply water tanks were installed.

The work completed is considered to have brought Porirua up to a good standard and did not require the originally budgeted amount. The reduced expenditure has not compromised emergency preparedness.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain the number of Porirua households that are ready for any emergency with stored water, food, survival items and a household emergency plan

75% 80% Met

Commenta ry The result of 80% was a significant increase in household readiness for emergencies from 2013 where 62% of households reported they were prepared for any emergency.

49

WHAT IT C O ST – EM ER GE NC Y MANA G E MEN T

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

390 612 649

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

1 0 1

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

391 612 650

Application of Operating Funding:

Payments to staff and suppliers

300 353 402

Finance costs

0 0 0

Internal charges applied

85 97 77

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

385 450 479

Surplus/(Deficit) of Operating Funding

6 162 171

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

6 162 171

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

6 162 171

Surplus / (Deficit) of Capital Funding

(6) (162) (171)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Emergency Management into www.pcc.govt.nz.

50

4.2 STORMWATER

The following activity is delivered under Stormwater:

· Stormwater Management

This activity provides for the management, control and discharge of stormwater into waterways and the long term management of the drainage assets to assist with the achievement of a safe urban environment. Safe and efficient functioning of the city is highly dependent on sustainable design and careful management of stormwater infrastructure.

STORMWATER MANAGEMENT

WHAT WE D O

The Council provides a stormwater network to efficiently manage and remove stormwater from urban areas, residential dwellings and commercial floor space – as well as maintaining clean and safe streams, harbours and coastlines. The stormwater drainage system includes the pipe network, associated infrastructure, open channels, streams and natural drainage basins. The Council provides a 24 hour response system.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that stormwater is managed and removed in a responsible and sustainable manner that protects the built environment and the harbour and ensures that the infrastructure is appropriate for the level of service provided.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Stormwater Upgrade Programme: Improvements to the stormwater network to provide greater capacity and enhanced public safety features.

686 921

Commenta ry A key change to the LTP 2012-22 in the Annual Plan 2013/14 was approval for the Stormwater Upgrade Programme to exceed the stated budget up to the value of $1.35 million. In the LTP this was the combined budget value for both 2013/14 and 2014/15. The change provided greater flexibility to phase the implementation of stormwater improvements over the two year period more efficiently.

Major stormwater upgrade works were as follows:

· Toms Gully Stormwater Upgrade: This was a large stormwater project servicing a significant catchment area of Titahi Bay with works comprising of stormwater pipe work and a portion of open channel. As part of the project and mitigation measures, a secondary stream restoration project took place higher up the catchment at Stuart Park.

· Pukaki Grove Stormwater Upgrade: This project spanned the stormwater network in Waitangirua from Kenepuru Stream to Westmeath St. These works included upsizing all pipes to gain additional capacity to cater for peak flows in storm events, additional upgrading of all old smaller sumps to new super pits and the outlet upgrade. This current upgrade completed three stages of works and will ensure a greater level of service to residents in the surrounding area.

· Takapuwahia: A minor stormwater renewal was completed in June 2014 on Ngatitoa St, to replace an existing stormwater pipe that was in poor condition.

51

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Reduce the number of maintenance requests per 1,000 households relating to the stormwater network (excludes roading culverts, sumps and sump leads)1

Less than 15.0 12 Met

1. This is a measure of customer satisfaction and provides a gauge of the proportion of households affected by stormwater issues that result in work requests. The unit of measurement per household is standardised across several other services for the purpose of comparison.

Commenta ry The downwards trend in network maintenance requests can be attributed directly to continued capital investment in high-priority areas.

Performance Measure Target 2014 Actual 2014 Status No residential, commercial or public buildings affected by the entry of floodwater during storm events1

Nil Nil Met

1. Excludes non-critical structures such as outhouses, sheds and garages. Porirua's stormwater design is based on a 1 in 10 year storm event.

Commenta ry A zero tolerance is targeted for this measure to ensure a high level of service is delivered to residents through continued capital investment.

PR O GR A M ME/ PR OJ E CT PER FOR MA NCE MEA SU R ES

Performance Measure Target 2014 Actual 2014 Status A stormwater bylaw is introduced to control pollutants at the source

Bylaw developed Net yet developed

Not Met

Commenta ry It was originally intended that the stormwater bylaw would be developed after adoption of the Greater Wellington Regional Plan. The development of the Regional Plan has taken longer than anticipated and a draft is due in September 2014 for comment. The importance of the stormwater bylaw necessitates that it will be completed in the 2014/15 year.

Performance Measure Target 2014 Actual 2014 Status Maintain the number of Council initiatives1 to contain stormwater at source, reduce peak flows and ensure future capacity

7 7 Met

1. For example, consent conditions, land development standards, construction of new detention areas.

Commenta ry These stormwater initiatives are part of an ongoing, developed maintenance and capital renewals programme to effectively manage the stormwater network. Works include:

· capacity upgrades;

· minor improvements;

· inlet structure enhancements at multiple sites city wide;

· promotion of detention tanks;

· installation of primary debris grates;

· sediment removal; and

· stream bank restoration.

52

WHAT IT C O ST – ST OR MWA TER MA NA GE M ENT

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

2,099 2,437 1,823

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

21 0 2

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

2,120 2,437 1,825

Application of Operating Funding:

Payments to staff and suppliers

276 256 297

Finance costs

201 198 178

Internal charges applied

744 780 722

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,221 1,233 1,197

Surplus/(Deficit) of Operating Funding

899 1,204 628

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

175 147 0

Increase / (decrease) in borrowing

426 245 452

Total Sources of Capital Funding

600 392 452

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

921 686 646

- to replace existing assets

0 0 0

Movement in reserves

578 910 434

Movement in investments

0 0 0

Total Application of Capital Funding

1,499 1,596 1,080

Surplus / (Deficit) of Capital Funding

(899) (1,204) (628)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Water Sewer and Stormwater Connections page and Porirua Pipeviewer maps into www.pcc.govt.nz.

53

4.3 WASTEWATER

The following activity is delivered under Wastewater:

· Wastewater Management

· Wastewater Treatment Plant

These activities cover the collection, treatment and disposal of sewage for Porirua City and Wellington's northern suburbs (through a joint venture with Wellington City Council) and the long term management of the wastewater assets to protect public health and the natural environment.

WASTEWATER MANAGEMENT

WHAT WE D O

The Council provides a wastewater collection and management system in the urban zone that includes the underground pipe network and pump stations.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that the infrastructure for the collection, treatment and disposal of wastewater is secure and appropriate for the protection of the community's health and a growing city, and that the effects on the natural environment are minimised.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Pauatahanui Sewer Reticulation To provide sewer reticulation and limited water supply to the Pauatahanui Village area due to residential growth and the resulting impact on the harbour.

1,637 754

Commenta ry A major change to the LTP 2012-22 budget of $1.351 million was an extra $276,000 budgeted in the Annual Plan 2013/14 to cover costs such as engineering and easements for Pauatahanui Sewerage Reticulation. A key driver for the scheme was to protect the Pauatahanui Inlet arm of Porirua Harbour as a number of properties in the village had been developed with basic on-site disposal systems that were never designed to cope with the demands of today's lifestyles.

Work to reticulate the 21 Pauatahanui properties, including Pauatahanui School and preschool, was substantially completed this year. Final site works and completion of easements was completed in July 2014, requiring carry-over of $60,000 from the project budget into 2014/15.

Project 2014 Budget ($000)

2014 Actual ($000)

Wastewater Pump Station Upgrades Ongoing programme of cyclic renewals to ensure continued operation of service.

145 163

Commenta ry As part of the Council’s ongoing renewals programme, the cottage pump station on Joseph Banks Drive was upgraded. The pumps and control equipment were replaced to provide additional capacity for the Pauatahanui Sewer Reticulation and new houses in Whitby. In addition, the Mana Esplanade pumps were replaced.

54

Project 2014 Budget ($000)

2014 Actual ($000)

Wastewater Pipeline Renewals (including Wastewater Rising Main Renewals) On-going local network renewal and rehabilitation of deteriorated sewer mains, rising mains and properties where necessary to maintain integrity of the system and reduce inflow and infiltration of stormwater.

1,712 1,697

Commenta ry This year renewals included 4km of sewer pipe relining and approximately 200 lateral pipelines and associated man holes replaced in and around Cannons Creek, Waitangirua and Papakowhai.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Reduce the number of maintenance requests per 1000 households relating to the wastewater network1

(Less than) 24.0

23.7 Met

1. This is a measure of customer satisfaction and provides a gauge of the proportion of residents affected by wastewater issues that result in work requests. The unit of measurement per household is standardised across several other services for the purpose of comparison.

Commenta ry The result was slightly better than the target and better than last year’s result of 24.4, indicating a steady level of performance. This shows the benefits of the pipe relining and replacement programme where the number of callouts for blocked or overflowing sewers has reduced in the areas being relined/replaced first.

Performance Measure Target 2014 Actual 2014 Status Reduce the amount of estimated unaccountable wastewater lost throughout the public network1

Implement accurate

measurement of network flows

Implemented Met

1. Estimates are based on up-to-date analysis of network flow data.

Commenta ry Permanent flow meters have now been installed at nine key locations throughout the City. These have been calibrated to ensure the Wastewater Network Model provides accurate data. Data is now being collected so analysis can then begin to inform this measure.

Performance Measure Target 2014 Actual 2014 Status Ratio of peak wet weather flow to average dry weather flow (indicating amount of stormwater entering the wastewater network)

Baseline to be set Baseline still being

established

Not applicable

Commenta ry As noted above, the Council has installed nine flow meters at key location throughout the city. Data is now being collected so analysis can then begin to enable the baseline to be set. Measurements will enable a baseline set of data to be established during 2014/15 for comparison in future years. The flow rates vary depending on location and rainfall intensity at the time. The flow meters are being monitored by consultants Mott MacDonald (formerly AWT).

Performance Measure Target 2014 Actual 2014 Status Maintain the number of Council initiatives1 to preserve future capacity in the wastewater network

7 9 Met

1. For example, water demand management, network analysis, telemetry/flow monitoring upgrades, joint venture arrangements.

55

Commenta ry Initiatives included closed-circuit television (CCTV) inspections inside pipelines, smoke testing to locate outlets, temporary flow monitoring and the Wastewater Pipe Renewal programme. Areas targeted were Mungavin Avenue, Astrolabe St in Cannons Creek and Papakowhai, pump station upgrades, electrical and alarm system upgrades, additional monitoring of water quality in the streams and harbour over and above bathing water monitoring, trade waste monitoring and flushing of low volume pipelines.

WHAT IT C O ST – WA S T EWA TER MAN A GE M ENT

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,292 1,262 950

Targeted rates

5,341 5,048 4,585

Subsidies for operating purposes

0 0 0

Fees and charges

4 52 16

Internal charges recovered

0 0 1

Other operating

12 0 0

Total Operating Funding

6,650 6,362 5,552

Application of Operating Funding:

Payments to staff and suppliers

976 1,051 846

Finance costs

424 369 320

Internal charges applied

4,576 4,619 4,554

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

5,977 6,039 5,720

Surplus/(Deficit) of Operating Funding

673 323 (168)

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

415 271 92

Increase / (decrease) in borrowing

2,327 3,361 2,450

Total Sources of Capital Funding

2,742 3,632 2,542

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

754 1,637 80

- to replace existing assets

2,020 2,008 1,893

Movement in reserves

640 310 401

Movement in investments

0 0 0

Total Application of Capital Funding

3,415 3,955 2,374

Surplus / (Deficit) of Capital Funding

(673) (323) 168

Funding Balance

0 0 0

56

WANT T O KN OW M OR E?

Type in the keywords Wastewater Treatment Facility page and Porirua Pipeviewer maps into www.pcc.govt.nz.

WASTEWATER TREATMENT PLANT

WHAT WE D O

In a Joint Venture with Wellington City Council, the Council shares the ownership and costs for the operation of wastewater infrastructure that conveys and treats sewage from both Porirua and Wellington's northern suburbs. The shared infrastructure includes the Wastewater Treatment Plant, three major pump stations, shared sewage pipelines and associated land parcels.

Capacity Infrastructure Services Limited, now known as Wellington Water, manages the overall operation under the direction of the Joint Venture Committee. The Wastewater Treatment Plant is managed in accordance with the Council’s discharge consent with Greater Wellington Regional Council.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that the infrastructure for the collection, treatment and disposal of wastewater is secure and appropriate for the protection of the community's health and a growing city, and the effects on the natural environment are minimised.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Cross-Harbour Pipeline Rehabilitation Rehabilitation of the existing disused sewer pipeline from Paremata to Onepoto to re-establish service capability and provide network capacity and flexibility necessary as the city grows.

2,598 60

Commenta ry Scheduled work was delayed this year in the planning phase of this two-year project, while options for increasing capacity were evaluated. A report detailing project options is scheduled for the Council’s consideration early in 2014/15. As a result, a total of $2.518 million has been carried forward into 2014/15 for this project.

Project 2014 Budget ($000)

2014 Actual ($000)

Wastewater Treatment Plant Equipment Renewals On-going asset replacement programme for existing Wastewater Treatment Plant equipment and facilities.

522 624

Commenta ry Renewal work completed this year included:

· Health and Safety improvements including grills, a new gate and handrails;

· Four additional aerator headers installed;

· Electrical Distributional Board fitted; and

· Purchase of four replacement aerator bars.

57

An additional $270,000 was brought forward in the Annual Plan 2013/14 for replacement of components on Clarifier 1. However, delays in completion to repairs to Clarifier 3 have meant this work has been postponed to springtime 2014/15. A total of $160,000 was carried forward for this clarifier renewal work.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain compliance with Resource Consent conditions of the Wastewater Treatment Plant

100% 91% Not met

Commenta ry There was a large improvement in overall performance of the Wastewater Treatment Plant this year – as measured by the increase in the number of days when the plant was 100% compliant (this year 55% of days compared with 29% last year and 31% the previous year). A sewage discharge prosecution is detailed under the measure below.

The performance improvement was mainly due to increased blower capacity, which aerates and turns the ponds. Improvements to the Tangare Drive pump station have increased flows to the plant in storm events and these flows exceed the current treatment capacity of the plant approximately 45-60 times a year. A major non-compliance event occurred and is outlined under the measure below. Work is still underway to improve the overall capacity and therefore performance of the plant to meet population forecasts.

Performance Measure Target 2014 Actual 2014 Status No discharges to the sea bypass the Wastewater Treatment Plant Screen and UV Treatment

Nil 1 Not met

Commenta ry During a storm with heavy rain on 12 October 2013, partially-treated sewage was discharged from the treatment plant into a stream and the open sea south of Titahi Bay. This situation was caused by various factors, including the entry of a large volume of stormwater into the sewerage network and a blocked grate at the treatment plant.

The spill of contaminated water resulted in a temporary closure of the bay for recreation and potentially toxic effects to fish in the stream. As a result, the Council was successfully prosecuted by Greater Wellington Regional Council under the Resource Management Act. As a penalty, Porirua City Council was required to pay nearly $40,000 towards the cost of Takapuwahia stream restoration, plus $2,500 towards the regional council's prosecution costs.

In response to the spill, the Council removed the grate that had become blocked and upgrades to the Wastewater Treatment Plant have continued as described in the project section above to improve the performance of the facility.

Community satisfaction with the sewerage system dropped from 91% (average across previous three years) to 82% this year – with events such as these likely to impact negatively on residents’ views.

58

WHAT IT C O ST – WA S T EWA TER TR EAT M ENT PLANT

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

0 0 0

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

9 61 13

Internal charges recovered

26 39 44

Other operating

5,160 5,163 5,084

Total Operating Funding

5,195 5,264 5,141

Application of Operating Funding:

Payments to staff and suppliers

2,307 1,818 1,936

Finance costs

681 327 703

Internal charges applied

1,773 2,765 2,187

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

4,761 4,910 4,826

Surplus/(Deficit) of Operating Funding

434 354 315

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(62) 2,760 1,314

Total Sources of Capital Funding

(62) 2,760 1,314

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

60 2,597 0

- to replace existing assets

645 550 1,973

Movement in reserves

(332) (33) (344)

Movement in investments

0 0 0

Total Application of Capital Funding

372 3,114 1,629

Surplus / (Deficit) of Capital Funding

(434) (354) (315)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the following keywords Wastewater Treatment Facility page into www.pcc.govt.nz.

59

4.4 WATER SUPPLY

The following activity is delivered under Water Supply:

· Water and Demand Management

This activity provides for the storage, management and reliable supply of safe potable water and fire-fighting supply to households and businesses in the urban zone. It also provides for the long term management of the water supply asset to assist with the achievement of a valued natural environment and an active and healthy lifestyle for the people of Porirua. Safe and efficient functioning of the city is highly dependent on sustainable design and careful management of the water supply infrastructure.

WATER AND DEMAND MANAGEMENT

WHAT WE D O

The Council stores and manages the distribution of high quality drinking water to urban areas and ensures an adequate supply for urban fire fighting. This activity includes water reservoirs and pump stations, the underground water supply pipe network, and the management of flow to ensure appropriate pressure. Water is conserved through awareness programmes and demand management techniques.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure sustainable, healthy and safe village life through the provision of quality drinking water, protected by a secure supply for urban fire fighting, to support a great city experience and a growing city.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Water Pipeline Renewals An ongoing asset replacement programme for city water pipeline to ensure ongoing levels of service are met.

1,200 1,325

Commenta ry All scheduled work was successfully completed, consisting of the relining of existing water pipelines along Mungavin Avenue to Awatea Street, Arawhata Street to Princess Street, Princess Street across State Highway 1, under the rail lines, beneath the Porirua Stream and connecting to Kenepuru Drive.

Porirua City Council is the first council in New Zealand to introduce a structural water main re-liner in aging water main pipes.

Project 2014 Budget ($000)

2014 Actual ($000)

Reservoir upgrades Ongoing asset replacement programme for reservoirs to ensure they are in good working order and able to serve the critical function for storage and on-demand supply.

94 121

Commenta ry The Reservoir Upgrade for 2013/14 was a refit of all existing pipe works, valves and internal seals at Porirua Low Reservoir. All works were completed in December on time and within adjusted budgets provided in October 2013.

60

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Reduce the number of major water reticulation breakage incidents per 100 kilometres per year

80 17.5 Met

Commenta ry A downward trend continues from last year’s result of 24 and is a direct result of continued investment in capital water main upgrades and pipe renewals.

Performance Measure Target 2014 Actual 2014 Status Maintain random tests throughout the city to ensure that the water supply is safe to drink

100% 100% Met

Commenta ry Tests were carried out across the city by an accredited laboratory as part of the Ministry of Health and Drinking Water Standards Requirement. This continues the result of 100% water supply safety from the previous year.

Performance Measure Target 2014 Actual 2014 Status Reduce the number of maintenance requests per 1000 households relating to the water supply network1

81 18 Met

1. This is a measure of customer satisfaction and provides a gauge of the proportion of households affected by Water Supply issues that result in work requests. The unit of measurement per household is standardised across several other services for the purpose of comparison.

Commenta ry The downwards trend in network maintenance requests can be attributed directly to continued capital investment in water grade main upgrades and pipe renewals. Last year’s result of 75.6 was due to a large increase in requests during a total water ban. However there were no water bans this year.

Performance Measure Target 2014 Actual 2014 Status Reduce the % estimated unaccountable water lost through the public network (versus bulk water produced)

18% 17% Met

Commenta ry Unaccountable water loss was 16% last year and has remained reasonably static over the last few years due to a number of projects to account more accurately for losses and continue to reduce this figure, for example Commercial Water Meter replacement.

Performance Measure Target 2014 Actual 2014 Status Improve compliance with minimum fire-fighting pressures for fire hydrants tested during the year

92% 100% Met

Commenta ry Pressure and Flow Tests are carried out across the city network on a 5 year cycle to ensure all hydrants meet the required standards for fire fighting.

PR O GR A M ME/ PR OJ E CT PER FOR MA NCE MEA SU R E

Performance Measure Target 2014 Actual 2014 Status Maintain the number of Council initiatives1 to secure adequate water supply into the future

7 7 Met

1. Examples include Elsdon Reservoir and Supply Main, demand management, reservoir shut-off valves, working at regional level for future bulk supply.

61

Commenta ry Initiatives for the year included night patrols, leak detection, conservation promotion, renewal programmes, smart meter installations, enhanced monitoring and advanced modelling and analysis.

WHAT IT C O ST – WA TE R AND DE MAND MA NA G EM EN T

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,032 838 1,021

Targeted rates

4,756 4,746 4,512

Subsidies for operating purposes

0 0 0

Fees and charges

768 1,074 746

Internal charges recovered

191 213 245

Other operating

15 0 0

Total Operating Funding

6,763 6,871 6,524

Application of Operating Funding:

Payments to staff and suppliers

3,781 3,682 3,993

Finance costs

389 421 354

Internal charges applied

1,632 1,804 1,595

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

5,803 5,907 5,942

Surplus/(Deficit) of Operating Funding

960 964 582

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

43 44 0

Increase / (decrease) in borrowing

1,108 1,031 1,404

Total Sources of Capital Funding

1,151 1,075 1,404

Application Of Capital Funding

Capital expenditure

- to meet additional demand

149 145 150

- to improve the level of Service

0 0 0

- to replace existing assets

1,466 1,320 1,455

Movement in reserves

495 574 381

Movement in investments

0 0 0

Total Application of Capital Funding

2,111 2,039 1,986

Surplus / (Deficit) of Capital Funding

(960) (964) (582)

Funding Balance

0 0 0

62

WANT T O KN OW M OR E?

Type in the keywords Water Use and Wastage page and Porirua Pipeviewer maps into www.pcc.govt.nz.

63

4.5 TRANSPORT

The following activity is delivered under Transport:

· City Roading and Safety

· Transport Facilities

These activities include the sustainable provision and management of the roading network and maintenance of transport facilities. They contribute to the sustainable development of the city through provision of an efficient, integrated, multi-modal transport system. These activities enable Porirua to be well connected and enable people and goods to move throughout the city, safely and efficiently.

CITY ROADING AND SAFETY

WHAT WE D O

The Council provides a local transport network for Porirua including all public roads (excluding State Highway 1 and 58), road drainage infrastructure and cleaning, walkways and cycleways (non-recreational), traffic and street lighting, and community road safety education. This activity includes the employment of a Road Safety Coordinator and is supported by the New Zealand Transport Agency through subsidies.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure a safe, sustainable and efficient roading network that connects people across villages within the city and across the region, supporting the growth and prosperity of Porirua City.

OTHER ACH IEV E ME NT S/ CHA LL EN G E S

Cit y Roa ding and Safet y – Access t o “T he F jor d” , A otea, from Whitfor d Br own Avenue An extra $70,000 was budgeted in the Annual Plan 2013/14 for a scoping study of the intersections along Whitford Brown Avenue, with particular emphasis on the intersection of The Fjord and Whitford Brown Avenue. This budget was not identified in the original LTP 2012-22. The scoping study was delayed and is scheduled for completion in early 2014/15, for input into the budgeting process for the LTP 2015-2025.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Minor Improvements An on-going programme to improve capacity of the roading network.

192 275

Commenta ry The two key projects this year were focused on roading improvements at the shopping centres in Ranui (lower Mungavin Avenue) and Cannons Creek. These upgrades were jointly funded through this project and also the Villages Programme (see section 4.1) and East Porirua Safety Work project (see the Transport Facilities activity. section 4.5).

Cannons Creek Shopping Centre: Modifications to the flow of traffic in and out of the shopping centre car park included:

· a new parking layout in front of the shops with an additional eight parking spaces;

· the taxi stand relocated to Mungavin Avenue adjacent to Cannons Creek Superette;

· a new roundabout at the Mungavin/Bedford Street intersection; and

· modifications to the existing roundabout at the Mungavin/Warspite/Champion Street intersection.

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Additional work to be completed by mid-July 2014 includes the new taxi stand, paving on the pedestrian area beside the shops, a pedestrian crossing on Mungavin Avenue and a designated pedestrian walkway at the entrance to the Presbyterian Church parking area.

Mungavin Shopping Centre, Ranui: Minor road safety work was completed on Mungavin Avenue, as part of the upgrade of the shopping centre parking. Improvements included a mountable “dome” roundabout at Martin Street and new pedestrian crossing.

Project 2014 Budget ($000)

2014 Actual ($000)

Transmission Gully Highway Connector Roads Construction of new local roads to provide access between Porirua’s suburbs and the Transmission Gully Highway.

2,266 2,842

Commenta ry The connections from Transmission Gully Highway to Waitangirua (Warspite Avenue / Niagara Street intersection) and Whitby (James Cook Drive / Navigation Drive intersection) will be via connector roads that will be local roads administered by the Council.

Additional funding was brought forward in the Annual Plan 2013/14 to align with the earlier start date for state highway construction, announced by the Government (compared to the original LTP 2012-22 budget phasing). The amount of additional funding was a rough estimate as there was uncertainty around how quickly the project would progress. During 2013/14, $954,000 was spent on associated costs in purchasing land, professional fees associated with the tender process for the design and initial construction and project management costs.

The majority of property acquisition agreements have been either concluded or progressed substantially to plan, and $1.888 million was spent on the purchase of land. The remaining expenditure will not occur until 2014/15. As a result, $1.521 million was carried over to 2014/15 for this work. In addition, the actual property acquisition costs have been above original estimates. Actual costs are based on detailed valuations undertaken for both the Council and the landowner and take into account features that were not included in the original rating information used for estimates. All remaining property agreements are expected to be in place by the end of 2014/15.

Some funding for property acquisition work is also covered under the Strategic Land Purchase project (see the Council Property activity in section 4.9).

Project 2014 Budget ($000)

2014 Actual ($000)

Sealed Road Resurfacing Road renewals are carried out as part of the cyclic road maintenance. When a stretch of asphalt surface on the road has deteriorated, a new surface is laid which has a normal life of around 15 years. The local roads are resurfaced cyclically until the network is renewed.

869 717

Commenta ry Chip seal and asphaltic concrete resurfacing were carried out as per schedule.

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Project 2014 Budget ($000)

2014 Actual ($000)

Sealed Road Pavement Rehabilitation Rehabilitating the layers beneath the road surface so that the integrity of the road is maintained.

232 8

Commenta ry Sealed road pavement rehabilitation was not carried out this year. Funding was reallocated to pre-reseal repairs due to general deterioration of the network. The pavement rehabilitation work that was scheduled for 2013/14 will be carried-out early in 2014/15.

Project 2014 Budget ($000)

2014 Actual ($000)

Structural Component Replacements On-going cyclic renewal of structural components of the roading network such as bridges, footbridges and underpasses to ensure their continued operation and level of service.

77 20

Commenta ry Structural component replacements to the roading network were carried out as per schedule. The total roading budget is allocated over a number of projects, and in this case, was over-allocated.

Project 2014 Budget ($000)

2014 Actual ($000)

Traffic Service Renewals On-going cyclic renewal of street lighting, signs, road-marking and traffic signals to ensure the continued safe operation of the roading network.

186 236

Commenta ry Traffic Service Renewals were carried out as per schedule, including the upgrade of the traffic signals at the intersection of Titahi Bay Road and Lyttelton Avenue. Extra work was required for the renewal of line markings.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Reduce the number of maintenance requests per 1000 households relating to the roading network1

Less than 80 71 Met

1. This is a measure of customer satisfaction and provides a gauge of the proportion of residents affected by roading issues. The unit of measurement per household is standardised across several other services for the purpose of comparison.

Commenta ry The number of maintenance requests was below the target and an improvement on last year’s result of 86 (which was due to storm damage). The result reflects continued investment in high-priority areas of the roading network.

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Performance Measure Target 2014 Actual 2014 Status Maintain performance by roading maintenance contractors

75% achievement of measures in the

roading maintenance

contract

77% achievement

of measures in the roading

maintenance contract

Met

Commenta ry The performance of the roading contractor was in-line with last year’s result of 78%.

Performance Measure Target 2014 Actual 2014 Status Ride quality as measured by "Smooth Travel Exposure" for sealed roads1

Hold rating at 91%

91% Met

1. Smooth Travel Exposure is measured by a system developed by the former National Association of Australian State Roading Authorities (NAASRA). In Porirua 50% of roads are measured every second year.

Commenta ry Ride quality is measured using a system developed by the former National Association of Australian State Roading Authorities (NAASRA). In Porirua half the roads are measured every second year. The result was also 91% last year.

Performance Measure Target 2014 Actual 2014 Status Reduce the number of reported crashes involving an injury in Porirua City per (calendar) year

90 56 Met

Commenta ry The low number of injuries from crashes this year reflects the success of the Community Road Safety Programme and the ongoing Minor Safety Improvements programme. The number of crashes involving injury was significantly lower than the result of 91 last year.

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WHAT IT C O ST – C IT Y ROADI N G AND SAF ET Y

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

3,506 3,440 3,481

Targeted rates

0 0 0

Subsidies for operating purposes

1,225 1,070 1,262

Fees and charges

62 0 0

Internal charges recovered

125 0 3

Other operating

0 0 0

Total Operating Funding

4,918 4,510 4,746

Application of Operating Funding:

Payments to staff and suppliers

3,019 2,456 3,241

Finance costs

210 138 212

Internal charges applied

833 829 909

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

4,062 3,423 4,362

Surplus/(Deficit) of Operating Funding

856 1,087 384

Sources Of Capital Funding

Subsidies for capital expenditure

492 734 1,551

Development and financial contributions

0 0 31

Increase / (decrease) in borrowing

2,567 (240) 174

Total Sources of Capital Funding

3,058 494 1,756

Application Of Capital Funding

Capital expenditure

- to meet additional demand

3,118 191 196

- to improve the level of Service

0 0 715

- to replace existing assets

811 1,405 1,245

Movement in reserves

(14) (16) (16)

Movement in investments

0 0 0

Total Application of Capital Funding

3,914 1,581 2,140

Surplus / (Deficit) of Capital Funding

(856) (1,087) (384)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Roads and Traffic Management page into www.pcc.govt.nz.

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TRANSPORT FACILITIES

WHAT WE D O

The Council provides and maintains transport facilities in Porirua including city car parks, footpaths, footbridges, underpasses and the city centre canopies. This activity includes support for active lifestyles and the use of non-vehicular modes of transport, and enforcement. Note that public transport is provided by the Greater Wellington Regional Council and Porirua City Council carries out bus shelter maintenance in the city on their behalf.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To support a growing city, where pedestrians, cyclists and users of public transport can travel safely and conveniently between villages and parking is available in the city and suburban areas.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

East Porirua Safety Work

Improvements to existing assets by the investigation, design and programming of construction for renewed urban transport amenities in Eastern Porirua, to improve the living environment for residents

115 134

Commenta ry This project focused on completing the upgrade of Ranui and Cannons Creek Shopping Centres, with a combined budget from the Minor Improvements project (City Roading and Safety, section 4.5) and Villages Programme (section 4.1). See these other two sections for detail.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain the distance of footpath renewals as per the roading maintenance contract

100% 0% Not met

Commenta ry No footpath renewals were undertaken this year because of funding constraints. Footpath maintenance was conducted where safety hazards were identified.

Community satisfaction with the maintenance of street footpaths dropped from 78% last year to 71% this year, reflecting the lack of investment compared to last year when 507 square metres of footpath were renewed.

The footpath renewals programme will be addressed as part of revision of the Roading Asset Management Plan next year.

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WHAT IT C O ST – TR AN S POR T FAC I LIT I ES

Actual Annual Plan Actual

2014 2014 2013

$000's $000's $000's

Source of Operating Funding:

General rates

1,381 1,765 1,285

Targeted rates

175 175 175

Subsidies for operating purposes

0 0 0

Fees and charges

199 0 32

Internal charges recovered

0 0 0

Other operating

(24) 0 0

Total Operating Funding

1,731 1,940 1,493

Application of Operating Funding:

Payments to staff and suppliers

521 716 511

Finance costs

84 117 111

Internal charges applied

682 681 581

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,287 1,515 1,203

Surplus/(Deficit) of Operating Funding

444 425 290

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(310) (310) (290)

Total Sources of Capital Funding

(310) (310) (290)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

134 115 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

134 115 0

Surplus / (Deficit) of Capital Funding

(444) (425) (290)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Roads and Traffic Management into www.pcc.govt.nz.

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4.6 SOLID WASTE

The following activities are delivered under Solid Waste:

· Waste Minimisation and Recycling

· Landfill Management

· Rubbish Collection

· City Cleaning

These activities contribute to a safe city and a valued natural environment through waste minimisation (promotion and resource recovery), recycling (kerbside collections and bulk recycling), rubbish collection, street cleaning and the operation of the Spicer Landfill. The solid waste activity also contributes to a sustainably designed and built city.

WASTE MINIMISATION AND RECYCLING

WHAT WE D O

The Council provides kerbside collection of recyclable and reusable material, bulk recycling and recycling at the landfill, Trash Palace and Poly Palace. The Council also provides green waste diversion and promote waste minimisation through public education and awareness programmes and support.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To help create clean and safe villages, protect the harbour and catchments, and lengthen the life of the landfill by providing quality services. These services promote sustainability through reducing consumption and reusing, recycling and recovering materials that would otherwise go to the landfill.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain or increase the amount of recycled material recovered from kerbside collections, bulk recycling, tip face and transfer station, and by Trash Palace

5,800 tonnes 5,533 tonnes Not met

Commenta ry Tonnes of recycling were 4.6% under target. The result is almost identical to the average amount over the previous four years (5,562 tonnes). This consistent result should be considered relative to the drop in the amount of waste being disposed at the landfill, possibly indicating that an increasing proportion of potential waste is being recycled.

Performance Measure Target 2014 Actual 2014 Status Number of requests per 1000 households relating to missed kerbside recycling collections

<10 3 Met

Commenta ry This result, an improvement upon last year, reflects the ongoing low level of complaints received for the kerbside recycling service.

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WHAT IT C O ST – WA S T E M IN I MI SAT I ON AND REC YC LIN G

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

344 448 289

Targeted rates

288 288 281

Subsidies for operating purposes

0 0 0

Fees and charges

6 9 5

Internal charges recovered

0 0 0

Other operating

154 159 146

Total Operating Funding

792 905 721

Application of Operating Funding:

Payments to staff and suppliers

526 585 486

Finance costs

0 0 0

Internal charges applied

266 320 235

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

792 905 721

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

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WANT T O KN OW M OR E?

Type in the following keywords intowww.pcc.govt.nz:

· Household Collections

· School Resources

· Recycling – More Options

LANDFILL MANAGEMENT

WHAT WE D O

The Council manages the landfill in a joint venture with Wellington City Council, including the setting and monitoring of performance targets, and the promotion of a waste minimisation focus. The operation of the Spicer Landfill is provided by a contractor.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure the Spicer Landfill is managed in a sustainable way that allows for the safe disposal of domestic, commercial and industrial residual waste, while encouraging waste reduction to provide a great city experience, and supporting a healthy and protected harbour.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Cell Construction

Development of the landfill which will provide additional capacity and reduce leachate and greenhouse gas emission. This will increase landfill lifetime and reduce environmental impacts.

83 83

Commenta ry A number of environmental and health and safety improvements were completed in relation to Cell Construction.

Project 2014 Budget ($000)

2014 Actual ($000)

Landfill Stormwater Works

An increase of $302,000 was budgeted in the Annual Plan 2013/14to address stormwater drainage issues at the landfill.

302 0

Commenta ry The additional stormwater works originally budgeted in the Annual Plan 2013/14 were not started, as consenting design and analysis were more complex than anticipated. These works, including silt management, new piping and increasing the stormwater pond, are scheduled to begin in 2014/15 and completed in 2016. A total of $302,000 has been carried-over into 2014/15 for this purpose.

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HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain or reduce tonnes of waste, taken to and remaining in landfill (excluding clean fill)

62,000 tonnes

49,219 tonnes

Met

Commenta ry The amount of waste being disposed of at the landfill continued to drop this year (an average 4% drop per year for the last four years). This is due to a combination of improved diversion from the landfill, less consumer activity and diversion of waste to other landfill sites by some contractors.

Performance Measure Target 2014 Actual 2014 Status Maintain compliance with landfill resource consent conditions

100% 98% Not met

Commenta ry Of the 511 analyses made, 10 did not comply with consent conditions (2%). The likely causes were identified as sampling error and damage to infrastructure, which were managed accordingly.

Performance Measure Target 2014 Actual 2014 Status Maintain user satisfaction with landfill services 75% 82% Met

Commenta ry The annual survey of landfill customers shows a high level of satisfaction with the landfill service. The result maintains a high level of satisfaction as with the 79% recorded in the previous year.

WHAT IT C O ST – LAND F IL L MANA G E ME NT

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

0 0 0

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

4,878 5,049 4,875

Internal charges recovered

884 1,295 877

Other operating

(38) 191 (47)

Total Operating Funding

5,723 6,535 5,705

Application of Operating Funding:

Payments to staff and suppliers

2,897 3,845 3,093

Finance costs

349 333 284

Internal charges applied

555 572 498

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

3,801 4,749 3,875

Surplus/(Deficit) of Operating Funding

1,922 1,786 1,830

Sources Of Capital Funding

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Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(4) (4) (4)

Total Sources of Capital Funding

(4) (4) (4)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

82 83 203

- to improve the level of Service

72 302 0

- to replace existing assets

0 0 0

Movement in reserves

1,764 1,397 1,623

Movement in investments

0 0 0

Total Application of Capital Funding

1,918 1,782 1,826

Surplus / (Deficit) of Capital Funding

(1,922) (1,786) (1,830)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Rubbish – Spicer-Landfill into www.pcc.govt.nz.

RUBBISH COLLECTION

WHAT WE D O

The Council provides regular collection of household rubbish. This includes kerbside rubbish collection from urban and some rural residential properties.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that household rubbish is disposed of in a safe, reliable and efficient way that protects the harbour and wider environment and allows residents and visitors to make the most of their city experience.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Number of requests per 1000 households relating to missed kerbside rubbish bag collections1

<10 4.6 Met

1. This is a measure of customer satisfaction and provides a gauge of the proportion of households affected by missed kerbside rubbish bag collections that result in work requests. The unit of measurement per household is standardised across several other services for the purpose of comparison.

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Commenta ry This result, consistent with last year’s result of 4.2, reflects the consistent quality of the kerbside rubbish bag collection service contracted by the Council.

WHAT IT C O ST – RU BB I SH C OL LE CT ION

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

0 0 0

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

516 616 611

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

516 616 611

Application of Operating Funding:

Payments to staff and suppliers

415 497 437

Finance costs

0 0 0

Internal charges applied

192 119 137

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

607 616 574

Surplus/(Deficit) of Operating Funding

(91) 0 37

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

(91) 0 37

Movement in investments

0 0 0

Total Application of Capital Funding

(91) 0 37

Surplus / (Deficit) of Capital Funding

91 0 (37)

Funding Balance

0 0 0

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WANT T O KN OW M OR E?

Type in the following keywords into www.pcc.govt.nz:

· Rubbish – Household Collections

· Rubbish – Recycling/How to Reduce Waste Pamphlet

CITY CLEANING

WHAT WE D O

The Council provides city cleaning and graffiti reduction services around the city centre and suburban shopping centres. This includes pavement cleaning, emptying litterbins, removing graffiti on Council-owned property and discouraging graffiti through education and painting murals in high risk areas.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that the city centre, suburban centres in villages and outdoor spaces are clean and graffiti free, the harbour and waterways are protected from downstream effects of rubbish, and that the city is welcoming to residents and visitors allowing them to make the most of their city experience.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Reduce the number of maintenance requests per 1000 households relating to city cleaning1

10 6.2 Met

1. This is a measure of customer satisfaction and provides a gauge of the proportion of households affected by city cleaning issues that result in work requests. The unit of measurement per household is standardised across several other services for the purpose of comparison.

Commenta ry This result is consistent with last year’s result of 6.1 and reflects the overall satisfaction with the street cleaning service.

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WHAT IT C O ST – C IT Y C LE ANI NG

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,452 1,513 1,276

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

0 0 1

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

1,452 1,513 1,277

Application of Operating Funding:

Payments to staff and suppliers

383 248 349

Finance costs

0 0 0

Internal charges applied

1,069 1,265 928

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,452 1,513 1,277

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Graffiti-Vandalism and Tagging into www.pcc.govt.nz.

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4.7 COMMUNITY AND LEISURE

The following activity is delivered under Community and Leisure:

· Arts and Heritage

· Libraries

· Community Recreation Programmes

· Indoor Recreation

· City Landscape

· Sports Fields and Outdoor Courts

· Cemeteries and Crematorium

ARTS AND HERITAGE

WHAT WE D O

The Council supports and celebrates the city's cultural identity and diversity through the provision of exhibitions, events, festivals and programmes, and the promotion of relationships between people of different cultures.

This activity includes the recognition and protection of historic heritage: Pataka Art + Museum celebrating our heritage and showcasing contemporary Maori, Pacific Island, New Zealand, Asian and international art and culture; Pataka Education Centre; management and acquisition of public art; and the Heritage Trail.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To promote the community's social and cultural wellbeing by preserving and caring for Porirua's diverse culture and heritage and providing opportunities for the city's residents and visitors to enjoy a great city experience and value the city's rich culture and creative achievements.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Number of major contemporary arts and heritage exhibitions held at Pataka1

12 21 Met

1. This target is lower than the previous year’s result of 12 exhibitions to reflect the reduced levels of service.

Commenta ry Pataka was pleased to present the following major exhibitions during 2013/14:

· Uku Rere: Nga Kaihanga Uku &beyond Contemporary Maori Ceramics

· Joseph Michael: Dark Cloud/White Light

· Rob McLeod: Imposters, Aliens & Angels

· John Pule: Sadness Spirit

· Refugee

· Marian Maguire: Titokowaru’s Dilemma

· Birch/Cotton/Jahnke: Whakawhiti Aria:Transmission

· Elizabeth Thomson: Transitive States

· Miranda Parkes: Shebang

· TOAST : Whitireia Art & Design Graduate Exhibition

· Terry Stringer: Face/Space

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· 22nd Annual Wallace Art Awards 2013

· Chocolate

· Meridian Lines/ Nga Ahapau Contemporary art from the Museum of NZ Te Papa

· Shigeyuki Kihara

· Elizabeth Thomson Elysian Fields

· Jens Uwe Parkitny Blood Faces: Chin Woman of Myanmar

· Tonga ‘I Onopooni Tonga Contemporary

· Looking Like Someone Else: Portraits by Seraphine Pick

· Erewhon: Left for Dead in the Field of Dreams: Fiona Pardington

· So Far: A Maker’s Journey David Trubridge

The total of 21 major exhibitions this year compares to 13 held last financial year. The exhibition calendar does not run in accordance with the annual financial year so this contributes to some variations in exhibition numbers from year to year. In addition, Pataka had a major exhibition programme for the New Zealand International Festival 2014 and a specialised programme for Matariki during 2014, which boosted the number of exhibitions held.

Performance Measure Target 2014 Actual 2014 Status Number of visitors to Pataka 160,000 285,498 Met

Commenta ry High quality exhibitions and effective advertising have resulted in Pataka attracting 285,498 visitors, both above target and an improvement on last year’s result of 232,436. The very high visitation numbers reflect the extremely positive response to Pataka’s exciting and varied programme. The Joseph Michael exhibition, for example, attracted the highest number of visitors ever for a single exhibition at Pataka.

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WHAT IT C O ST – AR T S AND HER IT A GE

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

2,337 2,550 2,410

Targeted rates

0 0 0

Subsidies for operating purposes

52 55 53

Fees and charges

269 221 217

Internal charges recovered

-1 0 0

Other operating

59 44 52

Total Operating Funding

2,717 2,869 2,732

Application of Operating Funding:

Payments to staff and suppliers

1,905 2,036 1,842

Finance costs

5 6 7

Internal charges applied

791 791 732

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

2,701 2,833 2,581

Surplus/(Deficit) of Operating Funding

16 36 151

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

77 (16) (15)

Total Sources of Capital Funding

77 (16) (15)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

93 0 0

- to replace existing assets

0 20 136

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

93 20 136

Surplus / (Deficit) of Capital Funding

(16) (36) (151)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Check www.pataka.org.nz.

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LIBRARIES

WHAT WE D O

The Council provides a seven day per week public library service and community space accessible by the whole community. This activity includes running libraries in five locations, providing a wide range of library items for loan or reference, access to on-line and inter-library services, e-books, programmes for children and school groups and spaces available for community use. As part of the SMART regional library service this activity now provides access to the resources of five other library systems in the Wellington region.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To encourage people in their search for knowledge, meet the ongoing demand for a quality library service, and provide community spaces and support learning throughout Porirua. These services contribute in particular to a rich village life and a great city experience for residents and visitors.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Book Purchases

Maintaining a relevant and up to date collection of materials including books, magazines, music, video and online items. The book purchasing budget has not changed for ten years. We have a responsibility with agreements under the regional SMART libraries system to maintain a wide range of quality materials. Any significant increase in costs for materials will have a negative effect on the quantity and quality of the library collection

302 252

Commenta ry The library purchased over 13,700 new items for the collection as part of an on-going programme of collection development and maintenance.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain number of library visits (physical and online)1 300,000 463,852 Met

1. Benchmarked to ISO 11620: B2.2.1.

Commenta ry Visit numbers were slightly lower than last year’s result of 487,744 – but were well above forecast. Online traffic has continued to increase by 9% over the preceding year.

Performance Measure Target 2014 Actual 2014 Status Size of library collection (loan and reference items) meets NZ library standards

156,000 154,869 Not met

Commenta ry Although the size of the library collection is slightly lower than the target, the collection size is within the National Standards of three items per head of population served. The library also has access to 6,500 eBooks through participation in the Lower North Island public library eBook collaboration (ePukaPuka) – this takes collection size to over 161,200, although the digital books are not classified as belonging to the Council, so are not included in the total figure above.

82

Performance Measure Target 2014 Actual 2014 Status % of users satisfied with library services1 95% 95% Met

1. This target is slightly lower than previous year's results to reflect the slightly reduced levels of service.

Commenta ry The community satisfaction survey carried out recently shows 95% satisfaction with library services.

WHAT IT C O ST – LIBR A R IE S

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

2,838 2,743 2,658

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

124 169 139

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

2,962 2,912 2,797

Application of Operating Funding:

Payments to staff and suppliers

1,649 1,517 1,583

Finance costs

8 9 9

Internal charges applied

990 1,010 890

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

2,647 2,536 2,482

Surplus/(Deficit) of Operating Funding

315 376 315

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(15) (15) (14)

Total Sources of Capital Funding

(15) (15) (14)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

4 0 0

- to replace existing assets

296 361 301

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

300 361 301

Surplus / (Deficit) of Capital Funding

(315) (376) (315)

Funding Balance

0 0 0

83

WANT T O KN OW M OR E?

Check www.porirualibrary.org.nz.

COMMUNITY RECREATION PROGRAMMES

WHAT WE D O

The Council plans, facilitates, partners and manages recreational programmes that are safe, accessible and relevant for the city's diverse community. This activity includes educating and supporting Porirua City’s residents through Healthy Eating and Healthy Action (HEHA), senior citizens programmes through the Lifetimers Club, building capacity in local sports clubs, and the coordination of focused programmes for children and their families referred from health professionals. Part of this work is funded by Regional Public Health, Sport Wellington and other funders.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To encourage more residents to participate in local recreational activities that meet the health and recreation needs of families and contribute to their overall wellbeing. These services contribute to a rich village life and a great city experience for residents and visitors.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain user numbers of community recreation programmes

5,000 users 4,247 users Not met

Commenta ry The participation numbers provided cover two programmes –the Healthy Eating Healthy Action (HEHA) programme (accounting for 57% of users) and Lifetimers Club (our older adult group) activities (accounting for 43% of users). The 30% drop in users of community recreation programmes was due mainly to the usual Children’s Day programme not being run this year. Also in February 2014 the Sports Development Officer role was removed because of lack of external funding.

84

WHAT IT C O ST – CO M M U NIT Y RE CR E ATI ON PR OGR A M M E S

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

109 55 99

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

10 0 18

Internal charges recovered

0 0 0

Other operating

35 89 67

Total Operating Funding

154 144 184

Application of Operating Funding:

Payments to staff and suppliers

114 108 149

Finance costs

0 0 0

Internal charges applied

40 36 35

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

154 144 184

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keyword Programmes into www.terauparaha-arena.co.nz.

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INDOOR RECREATION

WHAT WE D O

The Council provides indoor recreation facilities and programmes that:

· are accessible to local residents;

· attract a range of events that are local, regional, national and international; and

· are well managed and compliant with all regulatory standards.

This activity includes: the Arena Aquatic Centre, Cannons Creek Pool, Arena Fitness, and Te Rauparaha Arena - with multipurpose stadium spaces, meeting rooms, dance studio and theatre.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To encourage residents and visitors to use the quality recreational facilities within the city and become involved in physical activities leading to improved health and events that contribute to the overall well-being of the Porirua community. These services contribute in particular to a rich village life and a great city experience for residents and visitors.

ACHI EV EM EN T S/C HAL L EN GE S

Aqua Pla y Pa rk An extra $50,000 was budgeted in the Annual Plan 2013/14 for an investigation into a suitable location, engineering (including geotechnical), consent requirements and funding options for a White Water NZ Aqua Play Park in Porirua. The proposal will be considered further during the development of the LTP 2015-25.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Aquatic Centre

An on-going programme to renew swimming pool assets

75 373

Commenta ry This budget was established for the re-theme of the swimming pool facilities, which occurs every two years. Works included new sparge lines to the lane pool (as a result of losing water under the pool from the existing sparges lines), the engagement of consultants to assist with the water loss exercise, the replacement of the hydro slide stairs, and the interior redecoration including the high level duct work.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain user numbers of indoor recreation facilities1 550,000 613,202 Met

1. Includes Te Rauparaha Arena, Arena Aquatic Centre, Arena Fitness and Cannons Creek Pool.

Commenta ry All indoor facilities had excellent numbers of users coming through the facilities:

· Te Rauparaha Arena 192,536 users

· Arena Fitness Centre 74,051 users

· Arena Aquatic Centre 227,317 users

· Cannons Creek Pool 115,051 users

86

Performance Measure Target 2014 Actual 2014 Status Maintain customer satisfaction with indoor recreation facilities

80% 93% Met

Commenta ry Direct users of the facilities were surveyed by phone, showing 95% satisfaction with Te Rauparaha Arena and 91% for Council swimming pools – a significant improvement upon last year’s result of 84.5% (as measured in a door-to-door survey conducted by the National Research Bureau).

87

WHAT IT C O ST – IN DO O R RECR E ATI ON

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

4,566 2,801 4,039

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

2,291 3,054 2,408

Internal charges recovered

592 553 559

Other operating

22 0 159

Total Operating Funding

7,470 6,408 7,165

Application of Operating Funding:

Payments to staff and suppliers

4,357 4,397 4,027

Finance costs

276 322 326

Internal charges applied

1,740 1,216 1,568

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

6,373 5,935 5,921

Surplus/(Deficit) of Operating Funding

1,097 473 1,244

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(176) (346) (421)

Total Sources of Capital Funding

(176) (346) (421)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

242 0 126

- to replace existing assets

679 127 697

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

921 127 823

Surplus / (Deficit) of Capital Funding

(1,097) (473) (1,244)

Funding Balance

0 0 0

88

WANT T O KN OW M OR E?

Check the following websites:

· www.terauparaha-arena.co.nz

· www.dashswimschool.co.nz

· www.pcc.govt.nz/Leisure/Cannons-Creek-Pool

CITY LANDSCAPE

WHAT WE D O

The Council manages and maintains accessible, safe public outdoor spaces including 45 children's playgrounds, reserves such as Aotea Lagoon, Colonial Knob Walkway, Whitby Lakes and Spicer Botanical Park, walkways and cycleways (recreational), 'Te Araroa Walkway', landscaped areas adjoining beaches and harbours, re-vegetation and pest control programmes.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that the city has a well-managed and publicly accessible network of open spaces and recreational parks to meet community needs and to protect biodiversity and heritage sites. This enhances village life, the health of the harbour and catchments, and contributes to providing a great city experience for residents and visitors.

ACHI EV EM EN T S/C HAL L EN GE S

Spla sh Pa d An additional $30,000 was allocated in Annual Plan 2013/14 for an investigation into a suitable location, engineering and consent requirements and funding options for a Water Splash Pad. The proposal will be considered further during the development of the LTP 2015-25.

Pla ygr ound Rene wals In the Annual Plan 2013/14 an additional $80,000 was transferred from the Recreation and Civic Development Reserves Fund to the Playground Renewals budget to fund the building of a new playground in the Silverwood subdivision. The Council resolved part-way through the year to defer the playground construction until the 2014/15 financial year to allow for more growth of the subdivision around the playground.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Pauatahanui Pathway An on-going work on Te Ara Piko walkway enhancing access to the Pauatahanui Inlet, a partnership project with the Plimmerton Rotary Club.

200 152

Commenta ry The section of Te Ara Piko/Pauatahanui walkway from Ration Creek to Pauatahanui Village was completed and officially opened in May 2014, as per schedule. This involved construction of a new bridge over Ration Creek, an additional connecting boardwalk and the construction of 400m of pathway. The Council's partnership with Plimmerton Rotary Club has resulted in a walkway connection between Pauatahanui Village and Motukaraka Point.

89

Project 2014 Budget ($000)

2014 Actual ($000)

Bothamley Park The park requires work on landscaping, vegetation management and pathway formation

167 156

Commenta ry This year's restoration programme included upgrades of the Champion Street and Warspite Park entrances, targeted weed control over two hectares, native revegetation of one hectare, construction of a track linking Sumner Terrace in the Aotea subdivision, installation of fish passage enhancements on Kenepuru Stream and removal of dumped rubbish.

Project 2014 Budget ($000)

2014 Actual ($000)

Playground Renewals On-going renewal of city playgrounds to ensure they meet New Zealand standards

374 345

Commenta ry New playgrounds were installed at the Chapel Street, Gloaming Hill, Acheron St and Pukerua Bay Station reserves this year. A Council decision was taken mid-year to defer the construction of a new playground in the Silverwood subdivision. The resulting budget underspend was carried over into 2014/15.

Project 2014 Budget ($000)

2014 Actual ($000)

Walkways/cycleways An ongoing programme to ensure city walkways/ cycleways are upgraded and new assets are developed and promoted to make them more accessible and utilised. This project includes upgrade work provided under the Corrections Inmate Employment Scheme.

111 67

Commenta ry Walkway upgrades in Bothamley Park this year included 961 metres of the Champion Street car park to Cannons Creek Park section and 563 metres of the Champion Street car park to Champion Street section. In addition, a section of the Bothamley Park Walkway in Ascot Park was upgraded.

Planned upgrading of a section of Ara Tawa alongside Porirua Stream has been deferred to 2014/15 and $26,000 carried over for that purpose.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Weekly playground safety inspections carried out. All major faults fixed within 24 hours

100% Not met Not met

Commenta ry Weekly inspection was not considered necessary in order to maintain annual certification that Council's playgrounds meet and comply with NZ standards. The frequency of inspections was reduced to monthly. Unsafe equipment was either immobilised or removed until repairs were completed within 24 hours.

90

Performance Measure Target 2014 Actual 2014 Status Number of sections of walkways upgraded per year 3 3 Met

Commenta ry Achievements are detailed under the Walkways/Cycleways project above – covering the upgrade of three separate sections of the Bothamley Park walkway.

WHAT IT C O ST – C IT Y L AND SCAP E

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

4,806 4,871 4,693

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

347 57 165

Internal charges recovered

32 0 0

Other operating

(44) 10 6

Total Operating Funding

5,141 4,938 4,864

Application of Operating Funding:

Payments to staff and suppliers

1,299 840 1,213

Finance costs

84 100 97

Internal charges applied

3,055 3,140 2,826

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

4,437 4,080 4,136

Surplus/(Deficit) of Operating Funding

704 858 728

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 7

Increase / (decrease) in borrowing

(88) (88) (86)

Total Sources of Capital Funding

(88) (88) (79)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

308 366 123

- to improve the level of Service

85 0 80

- to replace existing assets

452 486 371

Movement in reserves

(228) (82) 75

Movement in investments

0 0 0

Total Application of Capital Funding

616 770 649

Surplus / (Deficit) of Capital Funding

(704) (858) (728)

Funding Balance

0 0 0

91

WANT T O KN OW M OR E?

Type in the keywords Walkways and Pathways and Shared Responsibility Scheme into www.pcc.govt.nz.

SPORTS FIELDS AND OUTDOOR COURTS

WHAT WE D O

The Council develops and maintains sports fields and outdoor courts in a safe and playable condition, and administers bookings of sporting facilities. This activity includes the maintenance of 35 hard courts, 53 winter sports fields and 51 summer sports fields, including three high-performance sand carpet fields, and Trust Porirua Park which attracts regional and national use.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

Outdoor recreational facilities are accessible, appropriate and maintained for recreation activities and events. These facilities support a growing city, improve village life, and support the work of sports and community organisations to promote active and healthy lifestyles for residents and visitors, contributing to a great city experience.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Topsoil & Wickets Upgrade Playing field upgrade with topsoil – change three B/C grade to A grade premier soil (Cannons Creek #1, Onepoto #2, Adventure #1 fields) and one wicket (Ngāti Toa #3 ground)

199 327

Commenta ry The following sports fields were upgraded this year to plan:

· Porirua Park – Field 2 – upgrade including drainage and surface;

· Kura Park – surface upgrade and cricket wicket removal;

· Cannons Creek Park bowl upgrade including new artificial cricket wicket installed and associated drainage; and

· Ngāti Toa Domain – Field 3 – the clay wicket block was removed and the new artificial wicket was installed.

Project 2014 Budget ($000)

2014 Actual ($000)

Playing Surface Upgrades1 This is the development of artificial surfaces on two of the Council's existing playing fields to improve availability.

1,809 0

1. Note that the provision of artificial turfs will be considered through the Annual Plan and LTP review process as identified in the 2012 Leisure Asset Management Plan. The results of a regional study on sportsfield provision and planning will inform this project.

Commenta ry This project was discontinued. The regional sports field review demonstrated that the topsoil upgrades and the opening of two artificial surfaces (Ole Academy and the Bernie Woods Synthetic Sports Field at Ascot Park) could meet demand for the foreseeable future. The Bernie Woods Field was partly funded by the Council through the Shared Responsibility Scheme reserve fund.

92

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status All sports fields and outdoor courts pass a weekly safe and playable condition inspection

100% 100% Met

Commenta ry There were no closures of sports fields and courts for safety reasons in the year, nor were there closures for playability due to maintenance. Some closures were required due to weather conditions.

93

WHAT IT C O ST – SPOR T S F I EL DS A ND OU TD OO R COU R TS

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,641 3,934 1,856

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

120 167 146

Internal charges recovered

(6) 0 0

Other operating

8 0 0

Total Operating Funding

1,762 4,101 2,002

Application of Operating Funding:

Payments to staff and suppliers

508 819 428

Finance costs

51 62 61

Internal charges applied

1,080 1,007 1,081

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,639 1,888 1,570

Surplus/(Deficit) of Operating Funding

123 2,213 432

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(96) (96) (90)

Total Sources of Capital Funding

(96) (96) (90)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

327 199 342

- to replace existing assets

27 1,918 0

Movement in reserves

(327) 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

27 2,117 342

Surplus / (Deficit) of Capital Funding

(123) (2,213) (432)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keyword Leisure at www.pcc.govt.nz.

94

CEMETERIES AND CREMATORIUM

WHAT WE D O

The Council operates and maintains the Whenua Tapu cemetery and crematorium, Porirua cemetery, Pauatahanui Burial Ground and contributes to the cost of maintenance of 11 Urupa sites within the City.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

Whenua Tapu cemetery and crematorium provide high-quality burial and cremation services to Porirua City in pleasant park-like surroundings. In addition historic cemeteries of Porirua cemetery and Pauatahanui Burial Ground are also maintained to provide a similar good visitor experience, although these are now closed for new burials. These amenities and services enhance village life and contribute to a great city experience for residents and visitors.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Increase visitor satisfaction with cemeteries and crematorium services

80% 88.6% Met

Commenta ry Visitor satisfaction across Porirua's cemeteries and the crematorium was 8.6% beyond the target set for the year. This was a slight increase on last year’s result of 85.6% and demonstrates the high level of satisfaction with the standard of facilities and grounds at the cemeteries and crematorium.

95

WHAT IT C O ST – CE M E TER I E S AND CR E MAT OR IU M

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

383 361 365

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

447 505 475

Internal charges recovered

(1) 0 0

Other operating

1 2 1

Total Operating Funding

830 867 841

Application of Operating Funding:

Payments to staff and suppliers

141 148 170

Finance costs

32 39 39

Internal charges applied

589 576 568

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

762 764 777

Surplus/(Deficit) of Operating Funding

68 103 64

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

(68) (68) (64)

Total Sources of Capital Funding

(68) (68) (64)

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 35 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 35 0

Surplus / (Deficit) of Capital Funding

(68) (103) (64)

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Cemetery and Crematorium at www.pcc.govt.nz.

96

4.8 ENVIRONMENT AND REGULATORY

The following activities are delivered under Environment & Regulatory:

· District Plan Administration & Monitoring

· Building Compliance

· Environmental Standards

· Animal Control

These activities help achieve a valued natural and built environment through functions such as the administration of Porirua's District Plan and bylaws to manage urban planning and sustainable building design and construction.

These activities also help provide an environment where the people of Porirua can be active, healthy and safe through monitoring and controlling various land-use activities, inspection and licensing of food and liquor premises, and animal control.

DISTRICT PLAN ADMINISTRATION AND MONITORING

WHAT WE D O

The Council promotes, safeguards and monitors the environmental values defined in Porirua's District Plan. This activity includes the timely processing and monitoring of resource consent applications, administering the District Plan, initiating enforcement proceedings under the Resource Management Act where necessary, processing Land Information Memoranda and providing expert advice related to resource consent matters to the public, developers, the Council and the Courts.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

This activity aims to support appropriate development and protect the natural and physical environment in accordance with the District Plan, to support a healthy harbour, to create a city of villages to be proud of, and assisting residents, businesses and visitors to enjoy a great city experience.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain resource consent applications processed within statutory timeframes

100% 100% Met

Commenta ry 194 Resource Consents were processed during the year with an average turnaround of 17 working days for non-notified consents. All resource consents were processed within statutory timeframes (20 working days for non-notified consents). Two of the consents processed were limited notified and one was fully notified. Last year 170 Resource Consents were processed – equating to a 14% increase in activity this year. Some of this increase was due to Transmission Gully related consenting activity.

97

Performance Measure Target 2014 Actual 2014 Status Maintain customer satisfaction levels with service given by Resource Consents Team

80% 70% Not met

Commenta ry 70% of customers surveyed were satisfied with the quality of service provided by the Resource Consents Team. The target of 80% was a stretch target and last year's result was 56% – equating to a 14% increase in satisfaction levels this year. The customers surveyed were selected randomly.

Performance Measure Target 2014 Actual 2014 Status Resource Consent decision-making process is of a high standard

No successful judicial reviews

Nil Met

Commenta ry As with last year, there were no judicial review decisions that were issued against the Council and no judicial reviews were sought.

Performance Measure Target 2014 Actual 2014 Status Maintain monitoring of Resource Consents (those with conditions requiring monitoring) within four months of issue – for full compliance with the conditions or follow-up actions taken

100% 100% Met

Commenta ry All 244 Resource Consents requiring monitoring were monitored within four months of issue, and necessary follow-up actions taken where necessary. Last year 244 Resource Consents were also monitored.

WHAT IT C O ST – D I STR ICT PLA N AD MI NI STR A TIO N AND MO NIT OR I N G

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

806 786 808

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

428 455 288

Internal charges recovered

22 1 4

Other operating

0 0 0

Total Operating Funding

1,256 1,242 1,100

Application of Operating Funding:

Payments to staff and suppliers

738 714 631

Finance costs

0 0 0

Internal charges applied

518 528 469

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,256 1,242 1,100

Surplus/(Deficit) of Operating Funding

0 0 0

98

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the following keywords into www.pcc.govt.nz:

· Resource Consents

· District Plan

99

BUILDING COMPLIANCE

WHAT WE D O

The Council encourages sustainable building design and construction by processing building consents, inspecting buildings, and issuing Project Information Memoranda (PIMs), Code of Compliance Certificates and Building Warrants of Fitness.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that all buildings approved by the Council are high quality and compliant to support a growing city, contribute to the health and well-being of the people and their distinctive village communities, and that people who use these buildings can do so safely without endangering their health.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain Building Consent applications processed within statutory timeframes

100% 99.99% Not met

Commenta ry There were 604 building consents processed for this year for Porirua city. This is an increase of 18%. Two went over the statutory 20 days because of a process error by a Council contractor. The system has since been changed and this will not reoccur.

In addition to the consent work for Porirua city, the team are processing consents for other local authorities. These consents were all processed without exceeding the statutory 20 days. 195 consents were processed on behalf of the other local authorities.

Last year the team processed 512 consents, with none exceeding the statutory 20 days.

Performance Measure Target 2014 Actual 2014 Status Maintain customer satisfaction with service given by Building Compliance Team

75% 91% Met

Commenta ry This year 91% of customers were satisfied with the quality of service given by the Building Compliance Team, an improvement of 6% from the previous year (last year’s result was 85%).

Performance Measure Target 2014 Actual 2014 Status No determinations to the Department of Building & Housing that overturn a decision that has been made by the Building Compliance Team

Nil Nil Met

Commenta ry No determinations overturned decisions made by the Building Compliance Team this year, compared with two in the previous year.

100

WHAT IT C O ST – BU I LD IN G CO MP LIA NC E

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

1,093 684 796

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

1,034 1,110 864

Internal charges recovered

0 3 13

Other operating

0 0 0

Total Operating Funding

2,127 1,797 1,673

Application of Operating Funding:

Payments to staff and suppliers

1,384 1,010 999

Finance costs

0 0 0

Internal charges applied

743 787 674

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

2,127 1,797 1,673

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

101

WANT T O KN OW M OR E?

Type in the following keywords into www.pcc.govt.nz:

· Building Consents

· Earthquake Prone and Dangerous and Insanitary Buildings

ENVIRONMENTAL STANDARDS

WHAT WE D O

The Council promotes, monitors, investigates and enforces public health and other legislation, as well as local bylaws, and encourage compliance with standards. This activity covers overgrown sections, litter control, water quality, food safety, liquor licensing, water contamination, hazardous substances, excessive smoke and noise, parking, abandoned vehicles, public health nuisances, communicable disease and on-site wastewater disposal systems. Rural fire responsibilities are carried out on behalf of Porirua City Council by the Wellington Rural Fire Authority.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure the environment continues to be safe and healthy, and public health is protected. This activity underpins all strategic priorities ensuring confidence that the city environment is safe and provides a great city experience.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain level of inspection of food premises in accordance with the frequency stated in the Council's adopted food risk categories

100% 100% Met

Commenta ry The licensing year for food premises is from 1 September to the 31 August. All 227 licensed food premises were inspected in the year to 31 August 2013, requiring a total of 293 inspections based on risk categorisation factors.

Performance Measure Target 2014 Actual 2014 Status All exceedances of recreational water quality guidelines (identified during testing from November 1 to March 31 and monthly for the remainder of the year) are investigated to determine possible causes of pollution, and a report of proposed action is issued when an exceedance is recorded in the Exceedance Register

100% 100% Met

Commenta ry All monitoring sites were sampled 24 times throughout the year. Where samples showed elevated indicator bacterial levels the potential sources of the contamination were identified and warning signage was put in place until monitoring results showed the recreational waters safe.

102

Performance Measure Target 2014 Actual 2014 Status Maintain response time to noise complaints to within one hour of receiving notification

95% 98% Met

Commenta ry 1,155 noise complaints were received and actioned, compared to 1,432 in the previous year. This decrease of 19% in complaints compared to last year is a normal variance. The two main contributors to noise complaint levels relate to good weather (which promotes more socialising outdoors and with windows open) and commonly a small number of problem properties that need to be managed each year.

103

WHAT IT C O ST – ENV IR ON ME NTA L STA NDAR D S

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

675 707 440

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

476 348 580

Internal charges recovered

20 0 1

Other operating

2 0 15

Total Operating Funding

1,172 1,055 1,036

Application of Operating Funding:

Payments to staff and suppliers

759 621 670

Finance costs

0 0 0

Internal charges applied

428 450 384

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,188 1,071 1,054

Surplus/(Deficit) of Operating Funding

(16) (16) (18)

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

(16) (16) (18)

Movement in investments

0 0 0

Total Application of Capital Funding

(16) (16) (18)

Surplus / (Deficit) of Capital Funding

16 16 18

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Littering and Rubbish Dumping into www.pcc.govt.nz.

104

ANIMAL CONTROL

WHAT WE D O

The Council promotes, enforces and encourages responsible animal ownership practices and compliance with legislation. This activity covers dog registration, enforcement, control of stray animals, responding to and investigating complaints, managing impounded, dangerous and menacing animals, and providing public education initiatives.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure all animals are managed and controlled and a high level of public safety is maintained, allowing residents to safely participate in and enjoy their village community and a great city experience as a whole.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain dogs on the register, registered by 30 June each year (or whose owners have otherwise had enforcement action taken against them)

100% 100% Met

Commenta ry The number of dogs registered in 2013/14 was 4,622 – compared to 4,439 in 2012/13. This 4% increase in dog numbers is in-line with previous years.

Performance Measure Target 2014 Actual 2014 Status Maintain response time to all urgent animal-related complaints within 2 working hours of notification

100% 100% Met

Commenta ry The Animal Control team responded to 1,750 complaints during the year. All urgent complaints, which included 73 dog bites, were responded to within 2 hours. Last year 161 urgent complaints were received.

105

WHAT IT C O ST – AN IM A L CONTR O L

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

180 173 147

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

457 452 447

Internal charges recovered

0 0 0

Other operating

0 0 0

Total Operating Funding

637 625 594

Application of Operating Funding:

Payments to staff and suppliers

296 245 281

Finance costs

0 0 0

Internal charges applied

341 350 313

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

637 595 594

Surplus/(Deficit) of Operating Funding

0 30 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 30 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 30 0

Surplus / (Deficit) of Capital Funding

0 (30) 0

Funding Balance

0 0 0

106

WANT T O KN OW M OR E?

Type in the following keywords into www.pcc.govt.nz:

· Animal Welfare and Care

· Keeping Animals other than Dogs

107

4.9 DEMOCRATIC PROCESS

The following activities are delivered under Democratic Process:

· Governance and City Leadership

· Council Property

These activities contribute to all nine community outcomes, by providing the community with the opportunity to contribute to decisions about local issues through elected representatives. The property assets owned by the Council contribute in particular to a sustainably designed and safe built environment, provision of amenities for an active and healthy lifestyle, and a vibrant and creative city.

GOVERNANCE AND CITY LEADERSHIP

WHAT WE D O

The Council provides administration and management services to Councillors enabling them to make open and democratic decisions. This activity includes providing public agendas, papers and minutes to Councillors and the Porirua community within the appropriate timeframes.

The three-yearly local elections are also covered in this activity.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that services provided are high quality and efficient, and confidence is maintained in the democratic processes of local government including public engagement, election and decision making procedures to ensure a great city experience.

MAJ OR CAPI TA L PR OJ E CTS

There were no major capital projects for this activity.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status All legislative requirements for representation review and elections are met

100% 100% Met

Commenta ry A representation review was held in 2012. The Local Government Commission determined that from the election of the Porirua City Council on 12 October 2013 that the Council comprise of ten members elected from the three wards and the Mayor.

Performance Measure Target 2014 Actual 2014 Status Maintain public access to Council meeting information in accordance with legislation1

100% 100% Met

1. Including Public Notices, Agendas, Reports, Minutes and Attendance Records.

Commenta ry Agendas for meetings of the Council and its committees and subcommittees were made available to the public two clear working days prior to each meeting.

108

WHAT IT C O ST – GOV E R NANC E AND C IT Y LEAD ER S HI P

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

973 1,088 1,018

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

170 105 1

Internal charges recovered

0 0 1

Other operating

(5) 0 2

Total Operating Funding

1,138 1,193 1,022

Application of Operating Funding:

Payments to staff and suppliers

1,012 1,045 916

Finance costs

0 0 0

Internal charges applied

126 148 106

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

1,138 1,193 1,022

Surplus/(Deficit) of Operating Funding

0 0 0

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

0 0 0

Total Sources of Capital Funding

0 0 0

Application Of Capital Funding

Capital expenditure

- to meet additional demand

0 0 0

- to improve the level of Service

0 0 0

- to replace existing assets

0 0 0

Movement in reserves

0 0 0

Movement in investments

0 0 0

Total Application of Capital Funding

0 0 0

Surplus / (Deficit) of Capital Funding

0 0 0

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the keywords Your Council into www.pcc.govt.nz.

109

COUNCIL PROPERTY

WHAT WE D O

The Council manages and maintains Council properties to a standard that meets both user requirements and statutory obligations; and allows for the efficient delivery of Council services, community activities and future developments. This activity includes the development, maintenance and purchase of property for future strategic and economic development.

WH Y W E DO I T – OU R STR ATE G IC PR I OR IT I ES

To ensure that the facilities provided in the city meet the needs of the community and the Council. We also ensure that potential for future developments is considered when purchasing or developing property and that consideration is given to ensuring local facilities reflect the distinctive character of individual village communities. Property functions underpin all four strategic priorities, particularly enhancement of village life, great city services for residents and visitors, as well as supporting a growing city.

PR OJ ECT RE SU L TS

Major capital works projects are summarised below.

Project 2014 Budget ($000)

2014 Actual ($000)

Strategic Land Purchase

Property investment to help achieve economic development or infrastructure objectives, protect green space and/or coordinate development of key sites in the city for community benefit. A total of $5 million has been provided for land to be purchased for the Transmission Gully Highway connector roads at Whitby and Waitangirua over the next two to three years. This fund could also be used to purchase property required to implement projects under City Centre Revitalisation. This budget is an estimate of what might be required as the Council draws down loans for property purchases only if relevant sites become available.

2,010 532

Commenta ry Additional land was purchased for Bothamley Park from the New Zealand Transport Authority (NZTA). This land had been previously leased from NZTA as part of Bothamley Park.

Project 2014 Budget ($000)

2014 Actual ($000)

Public Toilets

On-going asset replacement programme.

201 54

Commenta ry The focus for the year was replacement of the public toilets at Dolly Varden Reserve, located at the entrance to the Pauatahanui Inlet. The condition of the existing public toilets required further investigation to determine whether a new building was required or a refurbishment of the existing structure possible. The decision has since been made to proceed with the refurbishment option, which will require significant structural strengthening work. As such, $88,000 has been carried over to 2014/15 and the refurbishment work is due for completion by the end of 2014.

110

Project 2014 Budget ($000)

2014 Actual ($000)

Civic Administration Building

On-going maintenance programme for the Council's main civic building in accordance with the Building Asset Management Plan. A seismic engineering and geo-technical evaluation of this building will be carried out to assess if any future structural remediation is required. This evaluation will also estimate any costs involved. Any cost impact will occur from 2014/15.

153 58

Commenta ry Maintenance to the Civic Administration Building involved the upgrade of the kitchen on Level 4 and refurbishment of the Ground floor entrance canopy. A total of $95,000 was reallocated and carried-over to the 2014/15 year to contribute to urgent building remediation work as outlined below.

Project 2014 Budget ($000)

2014 Actual ($000)

Urgent Building Remediation A recent reassessment of Council buildings has highlighted some outstanding issues which require further remediation1

500 263

1. An additional $500,000 was budgeted in 2014 for significant high-risk remedial work identified in the Buildings Asset Management Plan.

Commenta ry Urgent building remediation work during 2013/14 focused on:

· Pataka Recladding $93,000; and

· Emergency Repairs Arena Aquatic Centre $170,000.

The balance of the project budget was carried over to 2014/15 as follows:

· $65,000 to increase the Pataka recladding budget, to enable the work to be completed;

· $65,000 for the Arena Aquatics Emergency Concrete Floor project;

· $45,000 for Mungavin Homestead for a new roof; and

· $57,000 for Gear Homestead to repair and rebuild of the Level 1 deck and balustrade.

HOW D ID W E D O?

Performance Measure Target 2014 Actual 2014 Status Maintain user satisfaction with Council halls and facilities1 60% 93.75% Met

1. In addition to halls, this measure includes Council-owned property that enables the delivery of Council services, for example, Gear Homestead, the Civic Administration Building and public toilets.

Commenta ry Only three Council halls provide a revenue stream – Mungavin Hall, Plimmerton Pavilion and Ngātitoa Domain Hall. Client satisfaction surveys using the Common Measurements Tool are conducted annually by the Contact Centre on behalf of Property. The result of this survey did not include Ngātitoa Domain Hall as clients could not be surveyed due to their contact details being disconnected or they were not available when the survey was conducted. Property will continue to improve the level of service to mitigate negative client feedback from the annual surveys.

111

Performance Measure Target 2014 Actual 2014 Status The return on Council-owned commercial properties will be no less than the return on investment1 for similar commercial properties in the Wellington region

100% 70% of properties are leased

Not met

1. As identified by the Real Estate Institute of New Zealand.

Commenta ry Market rents have been steadily declining for some Council investment properties in the Porirua City Central Business District. Recent market revaluations reflect these lower rentals. The Council is also hindered by space that cannot be leased due to the type of building, location, seismic rating and the lack of demand and growth in the CBD. These factors limit Council’s ability to achieve a 100% occupancy rate for their investment properties. Two good examples include 4 Lydney Place which is a large unleased area, and 8 Cobham Court which is vacant. The future of 8 Cobham Court is dependent on decisions made with the City Centre Revitalisation project.

WHAT IT C O ST – COU N C IL PR OP ER T I ES

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Source of Operating Funding:

General rates

2,865 2,679 1,548

Targeted rates

0 0 0

Subsidies for operating purposes

0 0 0

Fees and charges

1,615 1,754 1,627

Internal charges recovered

(8) 0 8

Other operating

(180) 0 0

Total Operating Funding

4,292 4,433 3,183

Application of Operating Funding:

Payments to staff and suppliers

1,964 1,784 1,810

Finance costs

718 1,181 849

Internal charges applied

688 622 602

Other operating funding applications

0 0 0

Total Applications Of Operating Funding

3,371 3,587 3,261

Surplus/(Deficit) of Operating Funding

921 846 (78)

Sources Of Capital Funding

Subsidies for capital expenditure

0 0 0

Development and financial contributions

0 0 0

Increase / (decrease) in borrowing

113 2,180 (396)

Total Sources of Capital Funding

113 2,180 (396)

Application Of Capital Funding

Capital expenditure

112

Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

- to meet additional demand

532 2,010 1,465

- to improve the level of Service

141 0 16

- to replace existing assets

361 1,016 117

Movement in reserves

0 0 (2,072)

Movement in investments

0 0 0

Total Application of Capital Funding

1,034 3,026 (474)

Surplus / (Deficit) of Capital Funding

(921) (846) 78

Funding Balance

0 0 0

WANT T O KN OW M OR E?

Type in the following keywords into: www.pcc.govt.nz:

· Halls for Hire

· Gear Homestead

113

5 FINANCIAL RESULTS

STATEMENT OF COMPREHENSIVE INCOME

FOR TH E YEAR EN DED 30 JU N E 2014

Note Actual Annual Plan Actual 2014 2014 2013 $000 $000 $000 Income General rates 1 38,011 37,804 36,918 Targeted rates – non water 1 5,689 5,660 5,191 Targeted rates – water 1 4,756 4,746 4,512 Fees and charges 14,311 14,675 13,170 Development and financial contributions 30 4,485 462 128 Subsidies and grants 2,404 2,538 3,616 Investment revenue 2 403 868 294 Net gain on interest rate swaps 19 780 - 1,610 Income from vested assets 3 10,066 2,070 5,738 Investment property valuations 12 - 520 114 Gain on sale of assets - 41 105 Share of associate’s net surplus 26 6 - - Total income 80,911 69,384 71,396

Expenditure

Personnel costs 4 21,834 22,460 21,669 Interest expense 3,511 3,956 3,449 Depreciation and amortisation 5 18,853 19,142 17,892 Investment property valuations 12 1,116 - - Loss on sale of assets 171 - - Other expenses 6 28,401 27,435 26,799 Total expenditure 73,886 72,993 69,809 Net surplus/(deficit) 7,025 (3,609) 1,587

Other comprehensive income

Revaluation of property, plant and equipment 21 27,445 45,349 3,961 Total comprehensive income 34,470 41,740 5,548

The accompanying notes form part of these financial statements.

114

STATEMENT OF CHANGES IN EQUITY

FOR TH E YEAR EN DED 30 JU N E 2014

Note Actual Annual Plan Actual

2014 2014 2013

$000 $000 $000

Equity opening balance

Ratepayers’ equity 335,652 326,960 333,905 Special funds and reserves 20 8,669 12,336 8,829 Revaluation reserves 21 755,322 803,364 751,361 Total equity opening balance 1,099,643 1,142,660 1,094,095 Comprehensive income Ratepayers’ equity 7,025 (3,609) 1,587 Revaluation reserves 21 27,445 45,349 3,961 Total comprehensive income 34,470 41,740 5,548 Transfers Ratepayer equity 20 (4,499) (2,071) 160 Special funds and reserves 20 4,499 2,071 (160) Total transfers - - - Equity closing balance Ratepayers’ equity 338,178 321,280 335,652 Special funds and reserves 20 13,168 14,407 8,669 Revaluation reserves 21 782,767 848,713 755,322 Total equity closing balance 1,134,113 1,184,400 1,099,643

The accompanying notes form part of these financial statements.

115

STATEMENT OF FINANCIAL POSITION

AS AT 30 JU N E 2014

Note Actual Annual Plan Actual

2014 2014 2013 $000 $000 $000 Assets Current assets Cash and cash equivalents 7 12,946 19,148 9,287 Trade and other receivables 8 4,484 6,425 6,736 Inventories 9 835 833 884 Investments 10 166 266 166 Interest rate swaps 19 444 - - Total current assets 18,875 26,672 17,073 Non-current assets Term receivables 575 354 360 Investment in associate 26 126 - - Property, plant and equipment 11 1,163,708 1,221,716 1,131,727 Investment properties 12 15,173 17,218 16,289 Work in progress 11 4,502 2,450 2,842 Intangible assets 13 2,180 2,965 2,657 Total non-current assets 1,186,264 1,244,703 1,153,875 Total assets 1,205,139 1,271,375 1,170,948 Liabilities and equity Current liabilities Employee entitlements 14 1,113 1,234 1,204 Provisions 15 1,067 2,175 1,403 Trade and other payables 16 8,874 11,446 9,563 Interest rate swaps 19 - 1,946 336 Current portion of public debt 17 48,209 884 12,893 Total current liabilities 59,263 17,685 25,399 Non-current liabilities Public debt 17 5,496 59,340 35,519 Development contribution levies 30 516 3,825 4,003 Landfill aftercare provision 18 5,751 6,125 6,384 Total non-current liabilities 11,763 69,290 45,906 Total liabilities 71,026 86,975 71,305 Equity Ratepayers’ equity 338,178 321,280 335,652 Special funds and reserves 20 13,168 14,407 8,669 Asset revaluation reserves 21 782,767 848,713 755,322 Total equity 1,134,113 1,184,400 1,099,643 Total liabilities and equity 1,205,139 1,271,375 1,170,948

The accompanying notes form part of these financial statements.

116

STATEMENT OF CASH FLOWS

FOR TH E YEAR EN DED 30 JU N E 2014

Note Actual Annual Plan Actual

2014 2014 2013 $000 $000 $000 Cash flows from operating activities Rates (including Greater Wellington Regional Council) 55,957 55,144 52,917 Non-rates income 17,758 17,570 17,186 Development contribution levies 978 462 128 Investment revenue 418 844 294 Suppliers and employees (50,124) (47,763) (48,202) Interest expense (3,562) (3,698) (3,449) Greater Wellington Regional Council rates (7,335) (6,934) (7,111) Goods and services tax (net) 280 (2,217) (3,030) Net cash flows from operating activities 22 14,370 13,408 8,733 Cash flows from investing activities Sale of property, plant and equipment 382 41 193 Term receivables repaid 61 21 36 Term receivables advanced (312) - - Investment in Capacity Infrastructure Services Ltd (120) - - Purchase of property, plant and equipment (16,000) (22,151) (12,277) Purchase of intangible assets 13 (274) (607) (798) Net cash flows from investing activities (16,263) (22,696) (12,846) Cash flows from financing activities Loans raised 17 48,000 31,893 - Loans repaid 17 (42,448) (22,440) (44) Net cash flows from financing activities 5,552 9,453 (44) Net increase/(decrease) in cash and cash equivalents 3,659 165 (4,157) Cash and cash equivalents opening balance 9,287 18,983 13,444 Cash and cash equivalents closing balance 7 12,946 19,148 9,287

The accompanying notes form part of these financial statements.

117

NOTES TO THE FINANCIAL STATEMENTS

STATEMENT OF ACCOUNTING POLICIES

REP OR TI NG ENT IT Y

Porirua City Council is a territorial local authority governed by the Local Government Act 2002. This Annual Report is prepared under section 98 of that Act, and in accordance with section 111 of that Act, complies with generally accepted accounting practice. The Council does not have any subsidiaries and is not required to prepare group financial statements.

The primary objective of the Council is to provide goods or services for the community or social benefit rather than making a financial return. Accordingly, the Council has designated itself as a Public Benefit Entity for the purposes of New Zealand equivalents to International Reporting Standards (NZ IFRS).

The reporting period for these financial statements is the year ended 30 June 2014. The financial statements were authorised for issue by the Council on 24 September 2014.

STAT E ME NT O F CO MP LI ANCE

The financial statements have been prepared in accordance with New Zealand generally accepted accounting practice (NZ GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

Under NZ IFRS Public Benefit Entities have certain accounting options and exemptions. The following public benefit entity exemptions have been applied:

· The Council has elected to apply the general exemption from the requirements of NZ IAS 14: Segment Reporting.

· The Council has elected to apply the exemption from the requirements of paragraph 39 of NZ IAS 16: Property, Plant and Equipment. The Council therefore accounts for revaluations of property, plant and equipment on a class of asset basis.

· The Council has elected to apply the exemption from the requirements of paragraph 77(e) of NZ IAS 16: Property, Plant and Equipment. The Council therefore does not disclose, for each revalued class of property, plant and equipment the carrying amount that would have been recognised had the assets been carried under the cost model.

MEA SU R E M ENT BA S E

The measurement basis applied is historical cost, modified by the revaluation of certain assets and liabilities as identified in this summary of significant accounting policies.

FU NCTI ONA L AN D PR ES ENTA TI ON CU R R E NC Y

The Council's functional currency is New Zealand dollars. These financial statements are presented in New Zealand dollars rounded to the nearest thousand dollars ($000), unless otherwise stated.

CHAN GE S IN ACC OU N TI NG PO LI CI E S

There have been no changes in accounting policies since the date of the last audited financial statements. The policies have been applied on bases consistent with the previous year.

118

STAND AR D S, AM END ME NTS A ND IN TER PR E TAT ION S IS SU ED BU T NOT Y ET EFF EC TIV E

Standards, amendments, and interpretations issued but not yet effective and 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. These standards have been developed by the XRB based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is for reporting periods beginning on or after 1 July 2014. This means the Council will transition to the new standards in preparing its 30 June 2015 financial statements. The Council has not yet fully assessed the implications of the new Accounting Standards Framework at this time. At this stage the main impact will be the timing of recognition of financial and development contributions.

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 new or amended NZ IFRS that exclude public benefit entities from the scope.

JU D GE M ENT S A ND ESTI MAT IO NS

To comply with NZ IFRS, the financial statements require judgements, estimates and assumptions. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The significant judgements, estimations and policies that have been made in the preparation of these financial statements are discussed in the following specific notes:

· 8. Trade and other receivables

· 11. Property, plant and equipment

· 12. Investment properties

· 14. Employee entitlements

· 15. Provisions

· 18. Landfill aftercare provision

· 29. Contingencies.

119

SIGNIFICANT ACCOUNTING POLICIES

BAS IS O F CON SO L IDAT I ON

Jo int Vent ur es The Council’s interests in joint ventures are accounted for using the proportionate method of consolidation.

Assoc iates The Council’s share of an associate’s assets, liabilities, revenue and expenditure are accounted for using the equity accounting basis.

REV EN U E

Rates Rates are a statutory annual charge and are recognised as income when the assessments are issued. Where the Council is acting as an agent for the receipt and dispersal of monies, e.g. regional rates, the transactions are excluded from the financial statements.

Gover nment gra nt s Government grants are recognised as revenue at the fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with.

Vested as sets Assets vested to the Council are recognised as revenue using the fair value of the asset when the asset is received.

Develop ment contr ibut ion lev ies Development contribution levies are recognised as revenue when the development in respect of which the contribution was received is completed and it is no longer probable that the contributions will be refunded to the developer. Until that time they are recognised as a liability.

Renta l income Rental income from investment property is recognised as revenue on a straight-line basis over the term of the lease.

Other income Other income is recognised when billed or earned on an accrual basis.

Donated Ser vices Recognit ion The Council receives the benefits of many services provided by volunteers. These services are greatly valued. However, due to the difficulty in determining the value of these donated services in monetary terms with sufficient reliability, donated services are not recognised in the financial statements.

EXP EN S E S

Borrowing costs are recognised as an expense when incurred, except borrowing cost directly attributable to the construction of a qualifying asset which are capitalised as part of the cost of that asset.

F INAN CIA L IN S TR U M EN TS

The Council is party to financial instrument arrangements as part of its everyday operations. Revenue and expenses in relation to all financial instruments are recognised in the Statement of Comprehensive Income.

Financial instruments are comprised of:

· Financial assets - cash and cash equivalents, trade and other receivables, available for sale investments, derivative financial instruments

· Financial liabilities – trade creditors, public debt, derivative financial instruments

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Cash a nd cas h equiva lents Cash and cash equivalents are held for the purpose of meeting short-term cash commitments. They comprise cash balances on hand, cash held in bank accounts, demand deposits and other highly liquid investments of short maturity, in which the Council invests as part of its day-to-day cash management.

Tra de a nd ot her r ece ivables Trade receivables, which generally have 30-60 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for impairment. The ability to collect trade receivables is reviewed on an on-going basis. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Council will not be able to collect the receivable. Financial difficulties of the debtor, default payments or debts more than 90 days overdue are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at the original effective interest rate.

Ava i la ble for sale inves tment s Available-for-sale investments are those non-derivative financial assets, principally equity securities that are designated as available-for-sale or are not classified as any of the other financial asset categories.

After initial recognition available for sale securities are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss.

The fair values of investments that are actively traded in organised financial markets are determined by reference to quoted market bid prices at the close of business on reporting date. For investments with no active market, fair values are determined using valuation techniques.

Publ ic debt Public debt is initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing. Subsequent to initial recognition, loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium on settlement.

Der ivat ive f ina ncial ins truments The Council uses derivative financial instruments (interest rate swaps) to hedge the risks associated with interest rate fluctuations. Such derivatives are initially recognised at fair value on the date on which the derivative is entered into and are subsequently measured at fair value. Fair value of interest rate swaps is determined by reference to market values of similar instruments. Any gains or losses arising from changes in the fair value of the derivatives are taken directly to the Statement of Comprehensive Income.

INV E ST M ENT PR O PER TI ES

Investment properties are properties which are held either to earn rental income or for capital appreciation or both. Investment properties are initially recognised at cost including transaction costs. After initial recognition, investment property is measured at fair value as determined annually by an independent valuer.

Any gain or loss arising from a change in fair value is recognised in the Statement of Comprehensive Income.

PR OP ER T Y, PLANT AND EQU I PM EN T

The Council’s property, plant and equipment consists of:

· Infrastructure Assets – These comprise utility assets that provide a continuing service to the community and are not generally regarded as tradable. Infrastructure assets include the fixed utility systems

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comprising the roading, water, reticulation and stormwater systems, land under roads and infrastructure land. Each asset type includes all items that are required for the network to function.

· Operational Assets – These comprise tangible assets able to be dealt with as part of the operating strategy. Operational assets include land, the landfill post closure asset, buildings, library collections and plant and equipment.

· Restricted Assets – These comprise assets that cannot be disposed of because of legal or other restrictions and provide a benefit or service to the community. Restricted assets include art and cultural assets, buildings on restricted land, parks and reserves.

Recognit ion Expenditure is capitalised as property, plant and equipment when it creates a new asset or increases the economic benefits of an existing asset. Costs that do not meet the criteria for capitalisation are expensed.

Meas ur ement Increases in the value of assets arising from revaluation are credited to the appropriate asset revaluation reserve. Decreases in the value of assets have been debited to the appropriate asset revaluation reserve. Where this would have resulted in a debit balance in the asset revaluation reserve, this balance has been expensed in the Statement of Comprehensive Income.

Land, buildings, reticulation systems and plant, and roading assets are valued at regular intervals by independent registered valuers or whenever the carrying amount differs materially to fair value.

In the case of assets that are of a “tradable nature” fair value is assessed using sales and market evidence. Assets considered to be of a “non-tradable” or of a specialised nature are assessed having regard to the optimised depreciated replacement cost.

Additions since the last valuation are recorded at cost except vested assets which are recorded at the current market value at the time of being vested in the Council.

Other property, plant and equipment including motor vehicles, library collections, museum collections and other heritage assets are recorded at the cost less accumulated depreciation.

Depr ec iat ion Depreciation is provided on all property, plant and equipment with the exception of land and assets under construction (work-in progress).

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Depreciation is calculated on a straight line basis to allocate the cost or value of the asset (less any assessed residual value) over its estimated useful life. The estimated useful lives for the major classes of property, plant and equipment are as follows:

Asset class Useful lives (years)

Infrastructure – water systems

Pipes 40 – 100 Valves, hydrants, meters, tobies 20 – 60 Pump stations 15 – 90 Reservoirs 60 – 90

Infrastructure – sewerage systems

Pipes 50 – 120 Manholes 100 Valves 40 Pump stations structure 90 Pump stations pumps 25 Pump stations components 45 Treatment Plant 18 – 90

Infrastructure – stormwater systems

Pipes 50 – 125 Manholes 100 Sumps 75

Infrastructure – roading networks

Basecourse 40 – 100 Top surface (seal) 14 – 18 Footpaths 80 Kerb and channel 80 Signs 20 Street and traffic lights 15 – 30 Bridges 70 – 100 Bus shelters 30 – 80

Operational assets

Buildings 5 – 75 Plant, furniture and fittings 5 – 10 Motor vehicles and mechanical plant 2 – 5 Library collections 5 – 10 Tools and equipment 5 Bridges 60 - 100

Restricted assets

Museum collections and heritage assets 100

Impa irment The carrying amounts of property, plant and equipment are reviewed at each reporting date to determine if there is any indication of impairment. Where an asset’s recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. The recoverable amount is the higher of an item’s fair value less costs to sell and value in use. Value in use is determined as the depreciated replacement cost where the future economic benefits are not dependent on the assets ability to

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generate cash flows. Losses resulting from impairment are reported in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount in which case any impairment loss is treated first as a revaluation decrease and then as a charge to the Statement of Comprehensive Income to the extent that the impairment exceeds the amount in the revaluation reserve in respect of that asset.

Assets under Const r uct ion (Wor k in Pr ogress) Assets under construction are not depreciated. The total cost of a project is transferred to the relevant asset class on its completion and then depreciated.

INTAN G IB LE AS S ET S

Comp uter Soft wa re Acquired computer software licenses are capitalised on the basis of costs incurred to acquire and bring to use the specific software. These costs are amortised over the estimated useful lives on a straight line basis. Typically, the estimated useful lives of these assets are 2.5 to 10 years.

Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software products controlled by the Council, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Direct costs include the software development, employee costs and an appropriate portion of relevant overheads. Computer software development costs recognised as assets are amortised over the estimated useful lives.

Indef inite I nta ngibles Intangible assets with indefinite useful lives are not amortised, but are reviewed annually for impairment.

INV E NTOR Y

Inventories are valued at the lower of cost or net realisable value. The method of determining cost is weighted average.

EMP L OY E E ENT IT LE M E NTS

Provision is made in respect of the Council’s liability for the following short and long-term employee entitlements.

Liabilities for annual leave and time off in lieu are accrued at the full amount owing at the pay period ending immediately prior to the reporting date.

Liabilities for accumulating short-term compensated absences (e.g. sick leave) are measured as the amount of unused entitlement accumulated at the pay period ending immediately prior to the reporting date, that the Council anticipates employees will use in future periods, in excess of the days that they will be entitled to in each of those periods.

TR ADE AND OTH ER PA Y ABL E S

These amounts represent liabilities for goods and services provided to the Council prior to the end of each financial year which are unpaid. These amounts are unsecured and are usually paid within 30 days of recognition. They are initially recognised at fair value and then carried at amortised cost. Due to the short term nature they are not discounted.

LEA SE S

Fina nce leases Lease of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset are transferred to the Council, are classified as finance leases. These are capitalised at the lower of the fair value of the asset or the present value of the minimum lease payments.

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Operat ing leases Leases where the Council retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income.

Where the Council is lessee, operating lease payments are recognised as an expense on a straight-line basis over the lease term.

PR OV IS IO NS

A provision is recognised when the Council has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits, the amount of which can be reliably estimated, will be required to settle the obligation. Provisions are recorded at the best estimate of the expenditure required to settle the obligation. Provisions to be settled beyond 12 months from the reporting date are recorded at the discounted present value.

La ndf il l c los ur e a nd p os t -c los ure costs The Council, as operator of the Spicer Valley Landfill, has a legal obligation under the resource consent to provide on-going maintenance and monitoring services at the landfill site after closure. A provision for post-closure costs is recognised as a liability when the obligation for post-closure costs arises. The provision is measured based on the present value of future cash flows expected to be incurred, taking into account future events including new legal requirements and known improvements in technology. The provision includes all costs associated with landfill closure and post-closure. Amounts provided for landfill closure and post-closure are capitalised to the landfill asset where they give rise to future economic benefits. Components of the capitalised closure and post-closure asset are depreciated over the expected life of the landfill. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

EQU I TY

Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of components to enable clearer identification of the specified uses of equity within the Council.

Ratep ayers ’ equit y Previously accumulated funds and current year net surplus.

Special F unds a nd Reserves Special Funds and Reserves are those reserves that are subject to specific conditions of use and may be legally restricted or created by the Council.

Asset Revaluat ion Reser ves This Reserve relates to the revaluation of property, plant and equipment to fair value.

CAPIT AL MAN A GE M ENT PO LIC Y

The Council’s capital is its equity (or ratepayers’ funds), which comprise retained earnings and reserves. Equity is represented by net assets.

The Local Government Act 2002 (LGA) 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 LGA 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

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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.

GO OD S AND SER V I CE S T AX (GST)

Amounts shown in the financial statements are exclusive of GST with the exception of receivables and payables, which are shown inclusive of GST. Where GST is not recoverable as an input tax it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue is included as part of receivables or payables in the Statement of Financial Position.

Commitments and contingencies are disclosed exclusive of GST.

INCO M E TA X

The Council is exempt from Income Tax under the provisions of the Income Tax Act 2004, and therefore no charge for income tax has been provided for.

BU DG ET FI GU R E S

The budget figures are those approved by Council in the Annual Plan 2013/14.

The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted in preparing the financial statements.

REL ATE D PAR TI E S

A party is related to the Council if:

· Directly or indirectly through one or more intermediaries, the party:

- controls, is controlled by, or is under common control with, the Council

- has an interest in the Council that gives it significant influence over the Council - has joint control over the Council

· The party is an associate of the Council

· The party is a joint venture in which the Council is a venture

· The party is a member of key management personnel (including any elected members) of the Council

· The party is a close member of the family of any individual referred to above

· The party is an entity that is controlled, jointly controlled or significantly influenced by, or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to above.

Councillors, including the Mayor, are considered directors as they occupy the position of a member of the governing body of the Council reporting entity. Directors’ remuneration is any money, consideration or benefit received, receivable or otherwise made available, directly or indirectly, to a director during the reporting period. Directors’ remuneration does not include reimbursement of legitimate work expenses or the provision of work-related equipment such as cell phones and laptops.

STAT E ME NT O F CA SH F LO WS

The Statement of Cash Flows has been prepared using the direct approach subject to the netting of certain cash flows. Cash flows in respect of investments and borrowings that have been rolled-over under arranged finance facilities have been netted in order to provide more meaningful disclosures.

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Operating activities include cash received from all income sources of the Council, the cash payments made for the supply of goods and services and includes cash flows from other activities that are neither investing nor financing activities.

Investing activities relate to the acquisition and disposal of assets.

Financing activities relate to activities that change the equity and debt capital structure of the Council.

COST AL LO CAT ION

The net cost of service for significant activities of the Council are the costs of providing the service less all revenue that can be allocated to these activities.

The costs of internal services not directly charged to activities are allocated on an appropriate basis as overheads. The basis included gross costs, rates contribution, personnel numbers, usage of information systems, purchasing transactions and loan usage.

ELI M INA TI ON O F IN TER NAL TR AN SA CT ION S

All significant internal transactions arising from trading between the Council’s various activity centres have been eliminated from the financial statements, to ensure the financial statements reflect only those transactions conducted with parties external to the Council.

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1. RATE REVENUE

2014 2013 $000 $000 General rates General rates 31,536 32,009 Uniform annual general charge 7,847 6,230 Penalties 225 219 less rates on Council properties (1,597) (1,540) Total general rates 38,011 36,918 Targeted rates Sewerage 5,076 4,585 Kerbside recycling 288 281 City Centre development 150 150 Walkway 175 175 Total targeted rates excluding water 5,689 5,191 Water 4,756 4,512 Total rates revenue 48,456 46,621

Rates are shown net of remissions amounting to $348,000 (2013 $315,000).

RATIN G BA S E IN FOR MA TIO N

This disclosure is required to comply with the Local Government Act 2002 Schedule 10 clause 30A. This information is at 30 June 2013 and was used for setting the 2013/14 rates.

2013 Number of rating units (rateable and non-rateable) 18,658 Total capital value of rating units (rateable and non-rateable) $8,390 million Total land value of rating units (rateable and non-rateable) $3,515 million

2. INVESTMENT REVENUE

2014 2013 $000 $000 Interest from investments Special funds and reserves 298 276 Operational investments and receivables 105 18 Total investment revenue 403 294

3. INCOME FROM VESTED ASSETS

Income from vested assets relates to the value of new roads, reticulation systems, and reserve that are vested in the Council through the subdivision process.

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Income from vested assets is non-cash income and Council assumes the ongoing maintenance obligations for these vested assets.

2014 2013 $000 $000 Roading 1,723 929 Land under roads 4,085 2,847 Water services 641 372 Sewer reticulation 1,431 499 Stormwater reticulation 2,186 1,091 Total income from vested assets 10,066 5,738

4. PERSONNEL COSTS

2014 2013 $000 $000 Salaries, wages and other employee related expenditure 21,391 21,354 Defined contribution plan employer contributions 443 315 Total personnel costs 21,834 21,669

Employer contributions to defined contribution plans include contributions to Kiwisaver.

5. DEPRECIATION AND AMORTISATION

2014 2013 $000 $000 Depreciation Buildings 2,845 2,762 Construction and improvements 5,562 4,813 Reticulation systems and plant 8,194 7,907 Library books 281 289 Heritage assets 12 12 Tools and equipment 220 249 Computer equipment and photocopiers 330 352 Motor vehicles and mechanical plant 471 464 Furniture and equipment 182 242 Total depreciation 18,097 17,090 Amortisation Computer software 756 802 Total depreciation and amortisation 18,853 17,892

Construction and Improvements are land improvements that are not categorised as buildings, and include roading formations.

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The table below shows the depreciation and amortisation allocated to each activity.

2014 2013 $000 $000 Arts and heritage 527 530 Library services 443 459 Community recreation programmes 5 5 Indoor recreation 1,293 1,290 City landscape 680 643 Sports fields and outdoor courts 626 584 Cemeteries and crematoriums 105 108 Governance and city leadership 25 20 Council property 716 723 District plan administration and monitoring 53 54 Building compliance 80 84 Animal control 40 39 Environmental standards 74 104 Strategic and community policy 41 43 Environment and city planning 20 20 Porirua harbour and catchment 7 7 Economic development and marketing 61 64 Village planning 11 12 Emergency management 142 127 City centre 19 17 Stormwater management 2,228 2,194 Rubbish collection 28 29 Waste minimisation and recycling 26 27 City cleaning 63 65 City roading and safety 2,997 2,841 Transport facilities 1,488 997 Water and demand management 2,213 2,148 Wastewater management 3,031 2,897 Wastewater treatment plant 1,104 1,068 Landfill management 707 693 Total depreciation and amortisation 18,853 17,892

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6. OTHER EXPENSES

2014 2013 $000 $000 Insurance premiums 1,248 1,037 Entertainment 10 14 Donations 4 2 Grants 476 344 Subscriptions, fees and contributions to organisations 217 205 Audit fees for the financial statement audit 182 181 Rental expense on operating leases 162 175 Assets written off - 6 Bad debts written off not previously provided for 165 5 Doubtful debt provision 218 29 Contractors 14,036 14,331 Consultants and legal fees 3,248 2,445 Other operating expenses 8,435 8,025 Total other expenses 28,401 26,799

Other operating expenses includes advertising, bank charges, cleaning, computer costs, levies, motor vehicle expenses, plant expenses, postage, power, purchases of materials and tools, printing and stationery, repairs and maintenance, security, travel and accommodation expenses.

7. CASH AND CASH EQUIVALENTS

2014 2013 $000 $000 Bank 5,868 5,287 Term deposits (original maturities less than 3 months) 7,078 4,000 Total cash and cash equivalents 12,946 9,287

8. TRADE AND OTHER RECEIVABLES

2014 2013 $000 $000 Rates 1,052 1,058 Sundry debtors 2,600 2,870 Subsidies, claims and accruals 1,182 2,977 Prepayments 277 240 Current portion of community loans 60 60 Gross debtors and other receivables 5,171 7,205 Less provision for doubtful debts (687) (469) Total trade and other receivables 4,484 6,736

The provision for doubtful debts is determined by referring to all balances greater than 90 days and assessing whether an impairment of the balance is probable.

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The aging profile of the debtor balances and other receivables that are past due but not impaired at the reporting date is as follows:

2014 2013 $000 $000 Not past due 1,223 930 Not greater than 30 days past due 244 403 Between 30 and 60 days past due 224 694 Greater than 90 days past due 1,274 1,432 2,965 3,459

9. INVENTORIES

2014 2013 $000 $000 Consumables 637 750 Inventories held for resale 198 134 Total inventories 835 884

Consumables are assets in the form of materials or supplies which will be consumed in the delivery of services. Consumables within the Council predominately comprise nursery plants, drainage and waste consumables and other materials held by the Works Operations business unit.

Inventories held for resale include inventories at Pataka, the Aquatic centres, the Visitor Information Centre and the rubbish bags and recycling crates held for sale.

There have been no write-downs of inventories (2013 $nil).

10. INVESTMENTS

2014 2013 $000 $000 New Zealand Local Government Insurance Corporation Ltd 133 133 SmartLinx3 Ltd 33 33 Total investments 166 166

The share investments are classified as being available for sale.

Following the issue of new shares to the new majority shareholder of Smartlinx3 Ltd in 2011, the Council revalued its shareholding in Smartlinx3 Ltd to reflect its fair value.

11. PROPERTY, PLANT AND EQUIPMENT

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PR OP ER T Y, PLANT AND EQU I PM EN T A S AT 30 JU NE 2014 Opening

Cost $000

Additions $000

Disposals $000

Transfers $000

Vested $000

Revaln $000

Closing Cost $000

Infrastructure assets Roading 167,380 1,583 - - 1,723 - 170,686 Water supply reticulation systems 62,529 1,598 - - 641 (4,068) 60,700 Stormwater reticulation systems 107,302 941 - - 2,186 (3,390) 107,039 Wastewater reticulation systems 87,786 2,211 - - 1,431 11,037 102,465 Wastewater treatment plant 42,295 793 - - - 553 43,641 Land 474,884 1,955 - - 4,085 2,007 482,931 Construction and improvements 7,214 146 - - - - 7,360 Total infrastructure assets 949,390 9,227 - - 10,066 6,139 974,822

Restricted assets Reserves 86,282 1,041 (284) - - 4,788 91,827 Buildings - - - 2865 - (115) 2,750 Construction and improvements 16,898 923 (40) (2,865) - - 14,916 Total restricted assets 103,180 1,964 (324) - - 4,673 109,493

Operational assets Land 22,376 9 (520) - - 236 22,101 Buildings 63,875 1,484 - - - (8,289) 57,070 Construction and improvements - 396 - - - - 396 Motor vehicles and mechanical plant 4,483 119 (424) - - - 4,178 Furniture and equipment 2,204 8 - - - - 2,212 Computer equipment and photocopiers 2,273 482 - - - - 2,755 Tools and equipment 2,270 173 (103) - - - 2,340 Library books 4,606 264 - - - - 4,870 Heritage assets 1,169 - - - - - 1,169 Landfill aftercare 4,777 - (904) - - - 3,873 Total operational assets 108,033 2,935 (1,951) - - (8,053) 100,964 Total property, plant and equipment 1,160,603 14,126 (2,275) - 10,066 2,759 1,185,279

Opening Accum

Depr $000

Current Year Depr $000

Disposals $000

Transfers $000

Depr reversed

on revaln $000

Closing Accum

Depr $000

Closing NBV $000

Infrastructure assets Roading - 3,945 - - - 3,945 166,741 Water supply reticulation systems 1,985 2,053 - - (4,038) - 60,700 Stormwater reticulation systems 2,137 2,174 - - (4,311) - 107,039 Wastewater reticulation systems 2,804 2,947 - - (5,751) - 102,465 Wastewater treatment plant 982 1,020 - - (2,002) - 43,641 Land - - - - - - 482,931 Construction and improvements 415 208 - - - 623 6,737 Total infrastructure assets 8,323 12,347 - - (16,102) 4,568 970,254

Restricted assets Reserve lands - - - - - - 91,827 Buildings - - - 554 (554) - 2,750 Construction and improvements 3,327 1,043 (16) (554) - 3,800 11,116 Total restricted assets 3,327 1,043 (16) - (554) 3,800 105,693

Operational assets Land - - - - - - 22,101 Buildings 5,525 2,845 - - (8,370) - 57,070 Construction and improvements - 2 - - - 2 394 Motor vehicles and mechanical plant 2,297 471 (359) - - 2,409 1,769 Furniture and equipment 1,818 182 - - - 2,000 212 Computer equipment and photocopiers 1,443 330 - - - 1,773 982 Tools and equipment 1,379 220 (1) - - 1,598 742 Library books 3,148 281 - - - 3,429 1,441 Heritage assets 119 12 - - - 131 1,038 Landfill aftercare 1,497 364 - - - 1,861 2,012 Total operational assets 17,226 4,707 (360) - (8,370) 13,203 87,761 Total property, plant and equipment 28,876 18,097 (376) - (25,026) 21,571 1,163,708

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PR OP ER T Y, PLANT AND EQU I PM EN T A S AT 30 JU NE 2013 Opening

Cost $000

Additions $000

Disposals $000

Transfers $000

Vested $000

Revaln $000

Closing Cost $000

Infrastructure assets Roading 150,592 2,999 - (533) 929 13,393 167,380 Water supply reticulation systems 60,454 1,703 - - 372 - 62,529 Stormwater reticulation systems 105,464 747 - - 1,091 - 107,302 Wastewater reticulation systems 85,012 2,275 - - 499 - 87,786 Wastewater treatment plant 41,351 944 - - - 42,295 Land 488,083 9 - (297) 2,847 (15,758) 474,884 Construction and improvements 3,888 3,355 (29) - - - 7,214 Total infrastructure assets 934,844 12,032 (29) (830) 5,738 (2,365) 949,390

Restricted assets Reserves 86,624 - (37) (305) - - 86,282 Construction and improvements 14,617 1,229 (83) 1,135 - - 16,898 Total restricted assets 101,241 1,229 (120) 830 - - 103,180

Operational assets Land 20,305 2,071 - - - - 22,376 Buildings 62,545 1,337 (7) - - - 63,875 Motor vehicles and mechanical plant 4,384 766 (667) - - - 4,483 Furniture and equipment 2,154 50 - - - - 2,204 Computer equipment and photocopiers 2,350 435 (512) - - - 2,273 Tools and equipment 2,167 103 - - - - 2,270 Library books 4,326 280 - - - - 4,606 Heritage assets 1,147 22 - - - - 1,169 Landfill aftercare 4,743 34 - - - - 4,777 Total operational assets 104,121 5,098 (1,186) - - - 108,033 Total property, plant and equipment 1,140,206 18,359 (1,335) - 5,738 (2,365) 1,160,603

Opening Accum

Depr $000

Current Year Depr

$000 Disposals

$000 Transfers

$000

Depr reversed

on revaln $000

Closing Accum

Depr $000

Closing NBV $000

Infrastructure assets Roading 3,048 3,288 - (9) (6,327) - 167,380 Water supply reticulation systems - 1,985 - - - 1,985 60,544 Stormwater reticulation systems - 2,137 - - - 2,137 105,165 Wastewater reticulation systems - 2,804 - - - 2,804 84,982 Wastewater treatment plant - 982 - - - 982 41,313 Land - - - - - - 474,884 Construction and improvements 252 196 (33) - - 415 6,799 Total infrastructure assets 3,300 11,392 (33) (9) (6,327) 8,323 941,067

Restricted assets Reserve lands - - - - - - 86,282 Construction and improvements 2,430 968 (80) 9 - 3,327 13,571 Total restricted assets 2,430 968 (80) 9 - 3,327 99,853

Operational assets Land - - - - - - 22,376 Buildings 2,770 2,762 (7) - - 5,525 58,350 Motor vehicles and mechanical plant 2,417 464 (584) - - 2,297 2,186 Furniture and equipment 1,576 242 - - - 1,818 386 Computer equipment and photocopiers 1,595 352 (504) - - 1,443 830 Tools and equipment 1,130 249 - - - 1,379 891 Library books 2,859 289 - - - 3,148 1,458 Heritage assets 108 11 - - - 119 1,050 Landfill aftercare 1,136 361 - - - 1,497 3,280 Total operational assets 13,591 4,730 (1,095) - - 17,226 90,807 Total property, plant and equipment 19,321 17,090 (1,208) - (6,327) 28,876 1,131,727

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WOR K IN PR O GR E S S

2014 2013 $000 $000 Opening balance 2,842 7,648 Additions 15,954 14,421 Transfers to property, plant and equipment (14,294) (19,227) Closing balance 4,502 2,842

VALU ATI ON

Valuations are completed on a regular cyclic basis for each of the following asset classes. Valuations will be undertaken more regularly if the carrying value is likely to be materially different from fair value.

La nd a nd bui ldings Land and building assets are revalued every three years.

Land and buildings were valued by an independent valuer, William Bunt FPINZ, FNZIV Director, Valuation and Advisory Services, CBRE Limited at 30 June 2014. The fair value of the land and buildings (excluding roading land) as per this valuation was $184.597 million.

Ret iculat ion s yst ems a nd pla nt The reticulation systems and plant are revalued on a cyclic basis at least every 2 years.

Reticulation systems and plant were valued by an independent valuer, John Vessey BE (Civil), Technical Principal of Opus International Consulting Ltd at 30 June 2014. The fair value of the reticulation assets as per this valuation was $330.5 million. Included in the valuation figure is $60.2 million of assets held by the joint venture, in which the Council has a 72.4% interest. Vested additions are valued on the same basis as used in the above valuation.

Roa ding ass ets The roading assets are revalued on a cyclic basis at least every 2 years.

Roading assets (excluding roading land) were valued by an independent valuer, MWH New Zealand Limited at 30 June 2013. The fair value of the Roading Assets as per this valuation was $163.45 million.

Roading land was valued by an independent valuer, William Bunt FPINZ, FNZIV Director, Valuation and Advisory Services, CBRE Limited at 30 June 2013. The fair value of the roading land as per this valuation was $468.67 million.

AS SE T MANA G EM EN T

Land and buildings are managed by systematically maintaining and upgrading them in a cost effective manner. The property assets (including the operational depot, office accommodation and other Council buildings) are maintained to an appropriate standard.

Parks and recreation reserves are managed and maintained by the Council's works team according to a programmed maintenance schedule which details performance standards to be maintained throughout the financial year.

Road asset management is assisted by the use of the Road Assessment and Maintenance Management System (RAMM) and a Pavement Deterioration Model (dTIMS) while future planning is undertaken with the assistance of the Porirua City Transport model developed by Traffic Design Group Ltd on behalf of Council.

Water supply asset replacement strategies have been developed to meet the levels of service expected by our customers for the least amount of cost over time. The basis of the strategies is to replace components when the yearly repair cost equals the replacement cost (spread over the expected life of the new asset).

The Wastewater Treatment Plant is owned jointly by Porirua City Council and Wellington City Council. Porirua City Council operates and maintains assets and systems on behalf of the Joint Venture, with Wellington City

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Council contributing to costs. An upgrade to the Treatment Plant to provide tertiary treatment of wastewater was completed in the 2013 financial year. Certain components of the tertiary treatment process require replacement on a regular basis. The renewal programme is addressed in the Asset Management Plan as per the Long Term Plan 2012-22. A replacement and upgrade programme for the treatment plant and the wastewater reticulation network shows a staged plan of expenditure over the next 10 years.

Some of the underground storm water pipe network is more than 50 years old and is affected by the presence of tree roots, unstable ground or acidic soil conditions that influence the effective life and functionality of the pipes. An on-going maintenance programme is in place for the stormwater asset. In the Long Term Plan 2012-22, the Council increased the stormwater upgrade to $6.3 million over 10 years. The Annual Plan 2013/14 combined the 2013/14 and 2014/15 budgets to allow for more flexibility and speed of implementation of the stormwater improvements programme.

INSURAN CE INFO RM ATION

This disclosure is required to comply with the Local Government Act 2002 Schedule 10 clause 31A.

The value of assets covered by insurance excludes land and land under roads.

In addition to Council’s insurance, in the event of natural disaster it is assumed that Central Government will contribute 60% towards the restoration of Council owned underground drainage, waste and water assets and the New Zealand Transport Agency will contribute between 44-54% towards the restoration of roading assets.

The maximum amount insured is based on the maximum probable loss aggregated across four Councils (Porirua City, Kapiti, Hutt City and Upper Hutt City) who are jointly insured to maximise insurance coverage and premium savings. The maximum probable loss is based on risk assessment modelling that takes into account that a natural disaster is not likely to result in 100% damage/loss.

12. INVESTMENT PROPERTIES

2014 2013 $000 $000 Investment properties opening balance 16,289 16,175 Net revaluation (1,116) 114 Investment properties closing balance 15,173 16,289

All investment properties were valued by William Bunt FPINZ, FNZIV, Director Valuation and Advisory Services, CBRE Limited a registered independent valuer, as at 30 June 2014. The net revaluation consists of positive revaluations totalling $14,000 offset by devaluations totalling $1,130,000.

2014 2013 $000 $000 Rental income from investment properties 1,237 1,237 Direct operating expenses (excluding overheads, depreciation and financial costs) 145 288

2014 $000 Total value of property, plant and equipment 1,163,708 Total insured value of assets covered by insurance contracts 746,119 Maximum amount to which they are insured 255,220 Total value of assets covered by financial risk sharing arrangements - Maximum amount available under those arrangements - Total value of assets that are self-insured - Value of any fund maintained by PCC for self-insurance -

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13. INTANGIBLE ASSETS

2014 2014 2014 2014

Carbon credits

Computer software

View Easement

Total

$000 $000 $000 $000 Opening cost or valuation - 5,191 591 5,782 Additions 5 291 - 296 Closing cost or valuation 5 5,482 591 6,078 Opening accumulated amortisation - 3,125 - 3125 Depreciation - 773 - 773 Closing accumulated amortisation - 3,898 - 3,898 Net book value 5 1,584 591 2,180

2013 2013 2013 2013

Carbon credits

Computer software

View Easement

Total

$000 $000 $000 $000 Opening cost or valuation - 4,393 591 4,984 Additions - 798 - 798 Closing cost or valuation - 5,191 591 5,782 Opening accumulated amortisation - 2,323 - 2,323 Amortisation - 802 - 802 Closing accumulated deprecation - 3,125 - 3,125 Net book value - 2,066 591 2,657

Carbon cr edits As part of the Emissions Trading Scheme the Council received units from Central Government in recognition of the carbon absorbed by a portion of the Council's forests. In 2013 the Council received 1,541 units. These are recognised at cost of $nil.

In 2014 the Council purchased 23,920 units at 19 cents each to be used in the 2014/15 financial year.

View Eas ement The View Easement is an intangible asset with an indefinite life. The easement has been added to a land title to ensure a harbour view is protected for the benefit of the Porirua community. It was valued on creation and remains unimpaired.

14. EMPLOYEE ENTITLEMENTS

2014 2013 $000 $000 Annual leave 963 1,056 Sick leave 72 71 Retirement grant 78 77 Total employee entitlements 1,113 1,204

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Movement s in emp loyee ent it lements The cost of providing employee benefits (annual leave, sick leave and retirement grants) are recognised in the period in which the benefit is earned by the employee, rather than when it is paid or payable.

Nature a nd t iming of emp loyee ent it lements There are a reducing number of employees entitled to a retirement grant of one weeks' pay for every year of service they had at 1 December 1995 if they retire from the Council on grounds of age or ill health. This liability increases in line with current pay rates.

15. PROVISIONS

2014 2013 $000 $000 General claims provision Opening balance 150 96 Additional provisions - 150 Payments made - (96) General claims provision closing balance 150 150 Weathertight provision Opening balance 1,253 2,079 Additional provisions 519 112 Payments made (855) (938) Weathertight provision closing balance 917 1,253 Total provisions 1,067 1,403

Genera l c la ims provis ion This provision is for professional liability claims made against the Council. It is anticipated that these provisions will be settled in the near future.

Movements in the provision are calculated with reference to past history of claims recently settled.

Profess iona l I ndemnit y Cla ims During the year there were no new professional indemnity claims against Council (2013 4 claims not expected to exceed $40,000 in total). If successful, the cost would be covered under the Council's insurance policies.

Weathert ight p rovis ion The Council is subject to claims in respect to Weathertight building defects that were advised to it by the Weathertight Homes Resolution Service (WHRS). The Council has also received claims directly. The total of claims against all parties is $2.103 million (2013 $1.759 million). Of this, the Council has recognised a provision of $0.917 million (2013 $1.253 million).

The Council has provided for the likely costs to be incurred as a result of these active and reported claims. Active claims are provided for based on the best estimate of what the council expects to pay on a case by case basis. The costs for reported claims are based on an estimate as at the reporting date. This provision includes both estimates of the repair costs as well as the estimated legal costs and other professional fee expenses.

Due to the level of uncertainty about future unreported claims, the Council has not recorded these claims as part of this provision but note that unreported claims are recorded as a contingent liability.

The provision is comprised of active and reported claims. Active are those which are actively being managed through a resolution process. As these claims are nearing resolution there is considered to be a high level of certainty regarding this provision amount. Reported claims are those which have been notified to the Council or the Weathertight Homes Resolution Service.

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The material assumptions when deriving the reported claim provision balance are as follows:

· The number of claims settled through the Government’s Financial Assistance Scheme in relation to weathertight building defects whereby the councils and the Crown would each pay a cap of 25 per cent of the agreed repair costs.

· Amount claimed – This assumption is derived from the claims settled to date. The ultimate cost will vary to the extent that the claim amounts vary in the future either through an increase or decrease.

· Settlement level award – This relates to the settlement award from the resolution process for those claims not assumed to be under the Government Financial Assistance Package. This amount has increased over time and future increases are allowed for in the provision.

· Council contribution to the settlement amount – This assumption is based on historical data regarding council contributions and will apply to those claims not assumed to be under the Government Financial Assistance Package. The Council's share has increased over time and future increases are allowed for in the provision.

The Council has some insurance cover for weathertight claims as follows:

· Claims notified prior to July 2007 - The Council meets the first $50,000 of any one claim with insurance cover above this level.

· Claims notified between July 2007 and June 2009 - Insurance cover is capped at a maximum of $500,000 for each year.

· Claims notified after June 2009 - No insurance cover.

Anticipated insurance recoveries have been assessed and are included as an asset.

The majority of the weathertight provision is anticipated to unwind over the next four - five years.

16. TRADE AND OTHER PAYABLES

2014 2013 $000 $000 Trade creditors 1,454 2,597 Joint Venture partner balance 1,158 785 Accruals 5,401 5,418 Income in advance 861 763 Total trade and other payables 8,874 9,563

17. PUBLIC DEBT

2014 2013 $000 $000 Porirua City Council public debt Current portion 48,209 12,893 Term portion 5,496 35,519 Total Porirua City Council public debt 53,705 48,412 Public debt attributable to Joint Venture Partner Maturity greater than one year 3,078 3,096 Total public debt 56,783 51,508

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All debt associated with the joint ventures in which the Council is involved is issued by and in the name of Porirua City Council, and is secured against the rate revenue of the Porirua City Council.

The financial years in which the City's public debt is to mature and the annual interest payable on the debt are set out below. The Council’s policy is to refinance term debt as required in the normal course of business.

Weighted

average rate Gross debt

Weighted average

rate Gross debt 2014 2014 2013 2013 Year of maturity % $000 % $000 2013/14 - - 6.4 12,893 2014/15 3.6 48,209 0.0 42 2015/16 6.9 3,542 5.9 33,541 2016/17 8.0 5,032 8.0 5,032 56,783 51,508

The Council has joined the Local Government Funding Authority (LGFA) as a guarantor/borrower to secure longer term refinancing of existing debt at competitive interest rates. To ensure that Council was able to take this opportunity in August 2014 the Council had to have $48 million of its debt in short term commercial paper. In August 2014, $30 million of this debt was refinanced with long term debt with $10 million maturing in each of the 2019, 2021 and 2023 years.

2014 2013 $000 $000 Public debt opening balance 51,508 51,552 Loans raised during the year 48,000 - Loans repaid during the year (42,725) (44) Public debt closing balance 56,783 51,508

18. LANDFILL AFTERCARE PROVISION

Porirua City Council was granted resource consent on 12 September 1996 to discharge contaminants onto or into land for the purpose of landfilling wastes at the Spicer Landfill. The Council has responsibility under the resource consent to provide on-going maintenance and monitoring of the landfill after the site is closed. There are closure and post-closure responsibilities such as the following:

Closure responsibilities:

· final cover application and vegetation

· incremental drainage control feature

· completing facilities for leachate collection and monitoring

· completing facilities for water quality monitoring

· completing facilities for monitoring and recovery of gas.

Post-closure responsibilities:

· treatment and monitoring of leachate

· ground water and surface monitoring

· gas monitoring and recovery

· implementing remedial measures needed for cover and control system.

· on-going site maintenance for drainage systems, final cover and vegetation.

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In November 2009 the Council approved the first phase of the landfill development (phases 1.1 and 1.2) which is expected to provide capacity to approximately 2022. Further phased development could provide capacity out to 2044 but requires Council approval.

Estimates of the life have been revised by Council's engineers based on estimated future volumes of waste.

As at 30 June 2014 the landfill is estimated to have 534,000 cubic metres of remaining capacity (2013 589,000 cubic metres), estimated to be sufficient for refuse, clean fill and cover through until the end of 2022.

The cash outflows for landfill post-closure are expected to occur between 2022 and 2052. The further phased development previously mentioned could delay these cash outflows.

The long term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated taking into account existing technology and is discounted using a discount rate of 4.25% (2013 3.5%).

The following major assumptions have been made in the calculation of the provision:

· The period of aftercare will last for 30 years.

· The Spicer Valley site is likely to be used as a refuse transfer station once the landfill is filled.

2014 2013 $000 $000 Landfill liability opening balance 6,384 6,135 Additional provision made 271 215 Re-discounting of interest (904) 34 Landfill liability closing balance 5,751 6,384

19. FINANCIAL INSTRUMENTS

Carrying amount Fair value

Carrying amount Fair value

2014 2014 2013 2013 $000 $000 $000 $000 Financial assets Loans and receivables Cash and cash equivalents 12,946 12,946 9,287 9,287 Accounts receivable 4,484 4,484 7,096 7,096 Available for sale financial assets Share investments 166 166 166 166 Asset at fair value through surplus/(deficit) Interest rate swap 444 444 - - Total financial assets 18,040 18,040 16,549 16,549 Financial liabilities Financial liabilities at amortised cost Trade creditors 1,454 1,454 2,597 2,597 Public debt 53,705 53,705 48,412 49,509 Liability at fair value through surplus/(deficit) Interest rate swap - - 336 336 Total financial liabilities 55,159 55,159 51,345 52,442

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Net gains Net losses Net gains Net losses 2014 2014 2013 2013 $000 $000 $000 $000 Loans and receivables 35 - 294 - Available for sale financial assets - - - - Financial liabilities at amortised cost - - - - Fair value through surplus/(deficit) 780 - 1,610 -

FAIR VA LU E

The Council uses various methods in estimating the fair value of a financial instrument. The methods comprise:

· Level 1 – the fair value is calculated using quoted prices in active markets

· Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from process)

· Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data

The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below.

Level 1 Level 2 Level 3

Quoted market

price

Market observable

inputs

Non-market observable

inputs Total $000 $000 $000 $000 Financial assets Available for sale financial assets Share investments - - 166 166 Asset at fair value through profit and loss Interest rate swaps - 444 - 444

The estimated fair value of financial instruments is based on observable market inputs.

The share investments are not in an active trading market and have been recognised at cost. Cost is deemed to be fair value. These share investments include Smartlinx Ltd and the NZ Local Government Insurance Corporation Ltd.

2014 2013 $000 $000 Reconciliation of Level 3 fair value movements Opening balance 166 166 Additions - - Closing balance 166 166

CR EDI T RI SK

Financial instruments which potentially subject the Council to credit risk consist of cash and cash equivalents, investments and accounts receivable. The Council's main bank accounts are held with the Westpac Banking Corporation. The credit risk is reduced by ensuring that the balances in the accounts are at sufficient levels to fund the day to day operations of the Council. Surplus funds are invested with registered banks and

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organisations with A1 to A1+ rating. The level and spread of accounts receivable minimises the Council's exposure to credit risk.

The maximum exposure to credit risk is equivalent to the carrying amount.

INT ER E ST RA TE RI SK

Interest rate risk refers to the impact that movements in interest rates can have on the Council's cash flows. The Council adheres to its Treasury Policy in order to achieve interest rate certainty and to reduce interest rate risk. The maturity profile of the Council's term liabilities gives rise to a direct exposure to interest rate movements. The Council tries to further reduce its exposure to interest rate movements by maintaining an appropriate percentage of long term fixed rate or hedged borrowing. At 30 June 2014, $53.7 million (100.0%) of the Council's gross debt was fixed rate stock or covered by fixed rate derivatives (2013 $48.4 million (100.0%) of the Council's gross debt was fixed rate stock or fixed rate derivatives).

Sensitivity Analysis: At year end, an increase in interest rates of 1% would affect the Council’s surplus and equity by $2,341,000 and a decrease in interest rates of 1% would affect the Council’s surplus and equity by ($2,424,000) (2013 $484,000).

L IQU I DIT Y RIS K

Liquidity risk is the risk that the Council will encounter difficulty raising liquid funds to meet commitments as they fall due. Present liquidity risk management implies maintaining sufficient cash and the availability of funding through a Council approved borrowing program.

20. SPECIAL FUNDS AND RESERVES

Reserve (and purpose) Activity Opening Balance

2014 $000

Transfers in and

Interest $000

Transfers Out

($000)

Closing Balance

2014 $000

Development of Recreation and Community amenities

City Landscape, Sports Fields and Outdoor Courts 344 3,471 (2,386) 1,429

Kaumanga (Old Man Point) waste water treatment plant Wastewater Mgmt 1,177 40 (225) 992 Broken Hill roading and footpaths City Roading and Safety 118 3 (12) 109 Paremata/Plimmerton sewerage infrastructure Wastewater Mgmt 83 3 (9) 77 Pukerua Bay water and sewerage infrastructure Wastewater Mgmt 52 1 (5) 48 Eastern Ward roading and footpaths

Environmental Standards 86 2 (8) 80

Parking management reserve Environmental Standards 83 3 (7) 79

Share Responsibility Scheme – capital projects for cultural, social, recreational and sports facilities on Council owned land City Landscape 1,008 165 (312) 861 Muri Road footpath City Roading and Safety 15 - - 15 Roading Access City Roading and Safety 31 1 (4) 28 Mana/Cambourne sewerage infrastructure Wastewater Mgmt 105 3 (10) 98

Plimmerton/Mana water storage Water and Demand Mgmt 103 4 (9) 98

Whitby reservoir Water and Demand Mgmt 219 6 (21) 204

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Reserve (and purpose) Activity Opening Balance

2014 $000

Transfers in and

Interest $000

Transfers Out

($000)

Closing Balance

2014 $000

Ascot Park reservoir Water and Demand Mgmt 120 3 (11) 112

Stormwater infrastructure Stormwater Mgmt 21 176 (147) 50

JV Sewerage Operating Reserve JV Wastewater Treatment Plant 96 3 - 99

JV Landfill Operating Reserve JV Landfill Mgmt (1,337) 1,889 (154) 398 Flighty’s Road rural road sealing City Roading and Safety 21 54 - 75 Mulherns Road rural road sealing City Roading and Safety 29 77 - 106 Jones Deviation rural road sealing City Roading and Safety 8 22 - 30 Belmont Rd rural road sealing City Roading and Safety 19 205 - 224 Murphys Rd rural road sealing City Roading and Safety 7 27 - 34 Moonshine Rd rural road sealing City Roading and Safety 8 26 - 34

Water Pipeline renewals Water and Demand Mgmt 16 162 (44) 134

Insurance and Indemnity Operating Reserve to fund unforeseen events up to the insurance excess 574 241 - 815 Sewer pump station upgrade levy Wastewater Mgmt 4 13 (13) 4

Elsdon Reservoir Water and Demand Mgmt 3 - - 3

WWTP Equipment renewals JV Wastewater Treatment Plant 10 184 (183) 11

Sludge Handling/Drying improved processing solution

JV Wastewater Treatment Plant 1 2 - 3

Stormwater Renewal Reserve Stormwater Mgmt 1,051 593 - 1,644 Refuse Collection Operating Reserve Rubbish Collection 440 13 (89) 364 Duck Creek Pump Station Wastewater Mgmt 9 51 - 60

Water Supply Renewal Reserve Water and Demand Mgmt 989 561 - 1,550

Waste Water Renewal Reserve Wastewater Mgmt 1,419 759 - 2,178 Muri Rd upgrade reserve City Roading and Safety - 21 - 21 Wastewater Pipeline Renewals Wastewater Mgmt - 43 (36) 7 City Centre Revitalisation Reserve City Centre 1,476 30 (299) 1,207 Gross Special Funds and Reserves 8,408 8,857 (3,984) 13,281

Joint Venture Partner share of reserves 261 (407) 33 (113) Total Special Funds and Reserves 8,669 8,450 (3,951) 13,168

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21. ASSET REVALUATION RESERVE

2014 2013 $000 $000 Opening balance Sewerage 80,793 80,793 Stormwater 54,668 54,668 Water supply 37,773 37,773 Roading 457,993 454,032 Operational 56,047 56,047 Restricted 68,048 68,048 Total opening balance 755,322 751,361 Revaluation Sewerage 21,232 - Stormwater 921 - Water supply 88 - Roading - 3,961 Operational 317 - Restricted 5,227 - Total revaluations 27,785 3,961 Revaluation reserve transferred on disposal Operational (340) - Closing balance Sewerage 102,025 80,793 Stormwater 55,589 54,668 Water supply 37,861 37,773 Roading 457,993 457,993 Operational 56,024 56,047 Restricted 73,275 68,048 Total closing balance 782,767 755,322

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22. RECONCILIATION OF NET SURPLUS/(DEFICIT) TO NET CASH INFLOW FROM OPERATING ACTIVITIES

23. RELATED PARTY DISCLOSURE

During the year Councillors and key management, as part of a normal customer relationship, were involved in minor transactions with the Council (such as payment of rates and the purchase of rubbish bags). Except for these transactions no key management personnel have entered into related party transactions with the Council.

The Mayor and Councillors disclose their personal interests in a register.

Transactions between the Council and entities in which Councillors are associated are undertaken at arm’s length using market prices and commercial terms.

KEY MAN AG E M ENT PER SO NN EL CO M PE NS ATI O N

The Chief Executive received remuneration (including the value of any non-financial benefits) as shown in the table below. The amount of defined contribution plan employer contributions including Kiwisaver included in the figures below is $20,049 (2013 $17,667).

The value of remuneration (including the value of any non-financial benefits) paid or payable to the Executive Management Team excluding the Chief Executive is shown in the table below. The amount of defined

2014 2013 $000 $000 Net operating surplus/(deficit) 7,025 1,587 Add/(deduct) non-cash items Depreciation and amortisation 18,853 17,892 Gain on assets vested (10,066) (5,738) (Gain)/loss on revaluation of investment property 1,116 (114) (Gain)/loss on sale of fixed assets 171 (105) Interest on provision for Landfill Aftercare 271 - Movement in provision for doubtful debts 34 29 Share of associate’s net surplus (6) - Non cash transactions with the Joint Venture (2,413) (2,781) (Gain)/loss on derivative (780) (1,610) Total non-cash items 7,180 7,573 Add/(deduct) movements in working capital items Increase/(decrease) in operating creditors 1,838 (348) Increase/(decrease) in provisions (336) 399 Increase/(decrease) in employee entitlements (91) (34) Increase/(decrease) in development contribution levies (3,486) 400 (Increase)/decrease in other current assets 2,328 (89) (Increase)/decrease in debtors (88) (755) 165 (427) Net cash inflow from operating activities 14,370 8,733

2014 2013 $ $ Gary Simpson 324,796 312,224

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contribution plan employer contributions including Kiwisaver included in the figures below is $30,260 (2013 $21,307).

24. REMUNERATION AND STAFFING

EL ECT ED REPR ES EN TAT IV E S

Elected representatives received the following remuneration:

SEV ER ANC E P AY M ENT S

In accordance with clause 19 of Schedule 10 of the Local Government Act 2002, in the financial year ended 30 June 2014, the Council entered into six severance agreements totalling $124,082 (2013 three severance agreements totalling $39,488).

STA FF IN G L EV EL S AN D REM U NER ATI ON BA ND S

The following table summarises the number of staff in each remuneration levels band. The total annual remuneration:

2014 2013 $ $ Short term employee benefits 1,238,097 1,183,857

2014 2013 $ $ N O Leggett (Mayor) 108,364 105,314 L L Ah Hoi 30,823 29,435 A K Baker 30,823 29,435 J Burke (from 29/10/13) 21,404 - A M Coffey 37,024 29,435 K G Douglas 30,833 29,435 S M Dow (to 12/10/13) 8,854 30,677 I I Ford (from 29/10/13) 21,404 - E N Kelly (to 12/10/13) 12,731 41,213 B E Kropp 30,823 29,435 D Latham 30,899 30,111 E G Murrell 39,349 36,798 W A Poutoa (to 12/10/13) 8,854 29,435 R E Rangi (to 12/10/13) 9,008 31,690 F V Seiuli (to 12/10/13) 8,854 29,435 T Sheppard 30,899 31,028 Total elected representatives’ remuneration 460,946 512,876

2014 2013 $59,999 and under 248 268 $60,000 - $79,999 54 49 $80,000 - $99,999 26 27 $100,000 - $119,999 19 18 $120,000 - $139,999 (2013 $120,000 - $159,999) 7 6 $140,000 - $339,999 (2013 $160,000 - $319,999) 7 6 Total employees (headcount) 361 374

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A full time equivalent (FTE) employee is based on a 40 hour week.

If the number of employees for any band was five or less then it has been combined with the next highest band.

25. JOINT VENTURES

The Council has interests in the following Joint Ventures which operate as joint committees of Council:

· Wastewater Treatment Plant – The Council is a party to a joint venture with the Wellington City Council for the ownership and operation of a wastewater treatment plant and associated trunk sewers and pumping stations serving the Porirua Basin. The joint venture agreement provides that all assets of the joint venture are owned by the two Councils as tenants in common with ownership being in proportion to the capacity of the plant allocated to the two councils. Currently 72.4% of the capacity is allocated to Porirua City Council and 27.6% to Wellington City Council.

· Spicer Valley Landfill – The Council is a party to a joint venture with the Wellington City Council for the ownership and operation of a sanitary landfill. The joint venture agreement provides that all assets of the joint venture are owned by the two Councils as tenants in common with ownership being in proportion to the ratio of the populations of Porirua City and the area of the former Tawa Borough. Currently the ratio provides for 78.5% of the venture to be owned by Porirua City Council and 21.5% to be owned by Wellington City Council.

The Council's interest in the Joint Ventures as disclosed in the Joint Venture financial statements is shown below:

2014 2014 2013 2013

FTE Head

Count FTE Head Count Number of full time employees 233.0 233 249.0 249 Number of part time employees 77.0 128 71.8 125 Total employees 310.0 361 320.8 374

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26. INVESTMENT IN ASSOCIATE

During the 2013/14 year the Council invested $120,000 in the associate Capacity Infrastructure Services Limited (Capacity). As at 30 June 2014 the Council held 25% Class A shares (voting rights) and 15% Class B shares (financial entitlements). Capacity jointly manages water services for Wellington, Lower Hutt, Upper Hutt and Porirua cities.

The Council’s share of the assets, liabilities, revenues and surplus/(deficit) of the associate are as follows:

The investment in the associate in the financial statements represents the Council’s share of the net assets of the associate. This is reflected in the financial statements as follows:

2014 2013 $000 $000 Revenue Fees and charges 8,280 8,236 Investment income (27) (36) Share of revenue 8,253 8,200 Expenditure Operating expenditure 5,663 5,803 Interest 767 732 Depreciation 1,662 1,607 Share of expenditure 8,092 8,142 Share of net surplus 161 58 Assets Inventory 81 94 Investments 4,515 3,078 Property, plant and equipment 60,131 57,559 Share of assets 64,727 60,731 Liabilities Term loans 8,085 8,134 Landfill aftercare provision 5,751 6,384 Total liabilities 13,836 14,518 Share of equity 50,891 46,213

2014 2013 $000 $000 Revenue 1,992 - Surplus/(deficit) 6 - Assets 747 - Liabilities 649 -

2014 2013 $000 $000 Opening balance - - Change in shares during the year 120 - Equity accounted earnings of associate 6 - Closing balance 126 -

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27. INTERNAL BORROWING

The following table discloses the internal borrowing for each activity.

Opening balance

New borrowing Interest

Repayments (principal and

interest) Closing

balance $000 $000 $000 $000 $000 Arts and heritage 91 93 5 (21) 168 Library services 132 - 8 (23) 117 Indoor recreation 4,760 170 276 (622) 4,584 City landscape 1,435 - 84 (172) 1,347 Sports fields and outdoor courts 892 - 51 (147) 796 Cemeteries and crematoriums 562 - 32 (100) 494 Council property 11,232 586 718 (1,191) 11,345 Economic development and marketing 646 - 37 (88) 595 Village planning 3,464 427 207 (418) 3,680 City centre - - 2 - 2 Stormwater management 2,999 715 201 (490) 3,425 City roading and safety 3,147 2,838 210 (481) 5,714 Transport facilities 1,551 - 84 (394) 1,241 Water and demand management 6,127 1,620 389 (902) 7,234 Wastewater management 5,993 2,615 424 (712) 8,320 Wastewater treatment plant 11,177 706 681 (1,449) 11,115 Landfill management 53 - 3 (7) 49 Total internal borrowing 54,261 9,770 3,412 (7,217) 60,226

28. COMMITMENTS

This statement indicates the total funds that the Council is committed to spending on future projects in excess of $50,000 and also indicates contingent items that may or may not occur after completion of the Financial Statements.

These represent contracts entered into but for which the goods and services ordered have not been received.

2014 2013 $000 $000 Capital commitments 2,282 2,731 Operating leases as lessee Not later than one year 260 56 Later than one year and not later than five years 308 66 Later than five years 160 12 Total operating leases as lessee 728 134 Operating leases as lessor Not later than one year 1,137 157 Later than one year and not later than five years 1,910 318 Later than five years 245 55 Total operating leases as lessor 3,292 530

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Two of the investment property leases are long term. However, only five years of the commitment has been included in the operating leases as lessor disclosure because the value of the lease is incorporated in the investment property valuation.

29. CONTINGENCIES

Contingencies relate to a particular condition or situation which exists at the reporting date, the ultimate outcome of which will be determined only on the occurrence or non-occurrence of one or more uncertain future events after the completion of the financial statements.

CONTI N GE NT LIAB I LIT I ES

In addition to the claims provided for in the Provisions Note, Council also acknowledges that it may be liable for claims in the next 10 years relating to Weathertight building defects not yet identified. Council no longer has insurance cover for future claims. The value of these claims may be material. Information surrounding these potential claims is subject to extreme uncertainty and therefore no provision has been made for them.

There are various other issues that the Council is aware of that could lead to future claims against Council for past actions. These have not been quantified due to the nature of the issues, the uncertainty of the outcome and/or the extent to which Council has a responsibility to the claimant. In the unlikely event that any of these claims resulted in successful claims against Council, the cost would be expected to be covered under Council's insurance policies.

There is subsidence in various places around the City that has occurred in the past year. There is uncertainty whether Council is liable for any reinstatement or other costs in relation to the subsidence and if liable what the cost would be and if these costs could be offset by any future insurance claim.

CONTI N GE NT ASS ET S

As at 30 June 2014 there were three rateable properties in the City that had rates postponement values in accordance with Section 87 of the Local Government (Rating) Act 2002 and Section 110 of the Local Government Act 2002. Rates postponed on these properties totalled $36,351 (2013 three properties totalling $36,685).

GU AR AN TE E S

The Council has guaranteed $200k borrowings under certain conditions, however as at 30 June 2014 that organisation had not drawn down the loan (2013 $nil).

30. COMPARISON BETWEEN 2014 ACTUAL AND THE ANNUAL PLAN

STAT E ME NT O F CO MPR EH EN SIV E INCO M E

Net s urp lus The net surplus of $7.0 million represents a $10.6 million variance compared to the annual plan deficit of $3.6 million. This variance is the result of the non-cash transactions summarised below:

2014 2014 2014 Actual Annual Plan Variance $000 $000 $000 Development and financial contributions 4,485 462 4,023 Net gain on interest rate swaps 780 - 780 Income from vested assets 10,066 2,070 7,996 Depreciation and amortisation (18,853) (19,142) 289 Investment property valuations (1,116) 520 (1,636) Gain/(loss) on sale of assets (171) 41 (212) Total non-cash variance 11,240

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Develop ment a nd f ina ncia l cont r ibut ions Development and financial contributions totalling $4.5 million were recognised as income, and this exceeded the annual plan by $4.0 million.

The Recreation and Civic Levies and Rural Roading Contributions are financial contributions levied under the Resource Management Act. It has been established that no liability exists for the Council unless the Resource Consent does not proceed and therefore the Council changed its estimate of liabilities in the 2013/14 financial year. Revenue has therefore been recognised equivalent to the balance of the Recreation and Civic Reserves of $3.1 million and Rural Roading Contributions of $0.4 million as at 30th June 2013, were transferred to income in the Council’s Statement of Comprehensive Income. This represents historical cash received and does not impact on Council’s cash position.

The development contribution levies liability in the Statement of Financial Position had a corresponding reduction in the balance and variance to the annual plan.

Net ga in on int eres t rat e s wa ps To comply with accounting standards, interest rate swaps are revalued to fair value as at 30 June. The fair value is affected by movements in interest rates.

The interest rate swaps asset in the Statement of Financial Position has a corresponding variance to the annual plan.

Income fr om vest ed ass ets Income from vested assets of $10.1 million exceeded the annual plan by $8.0 million. This represents the value of road land, roads and reticulation assets vested in the Council during the year. The timing of the completion of subdivision work and the vesting of assets is outside the control of Council.

Income from vested assets is non-cash income and Council assumes the ongoing maintenance obligations for these vested assets.

Invest ment propert y valuat ions The investment properties were devalued by $1.1 million, compared with the annual plan assumption of a revaluation of $0.5 million. The devaluation was mainly due to vacant tenancies in the buildings impacting on rentals.

In the Statement of Financial Position at 30 June 2014 the value of investment properties is $2.0 million less than the annual plan because of the devaluation.

Pers onnel costs a nd ot her expens es Effective from November 2013, Council entered into a contract with Capacity Infrastructure Services Ltd, now known as Wellington Water following the merger of Capacity Infrastructure Services and Greater Wellington Regional Council’s water supply group, for the management of water services (water, stormwater and wastewater), as well as bulk water for the Wellington region. The contract resulted in a reduction in personnel cost with Council staff moving to Capacity and an increase in other expenses for the contract payments, as compared to the annual plan.

Invest ment revenue a nd inter est exp ense Investment revenue was $0.5 million less than the annual plan and interest expense was also $0.5 million less than the annual plan. During the year funds held on short term deposit were used to fund capital expenditure. However, the annual plan assumption was to loan fund the capital expenditure.

In the Statement of Financial Position at 30 June 2014 cash and cash equivalents is $6.2 million less than the annual plan and public debt is $6.5 million less than the annual plan.

Revalua tion of pr operty , pla nt a nd equip ment Land, buildings and water reticulation assets were revalued at 30 June 2014 and added $27.4 million to the value of the underlying assets. The increase in value was $17.9 million less than the annual plan primarily because the land values decreased.

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STAT E ME NT O F F IN ANC IAL PO S IT ION

Cash a nd cas h equiva lents Cash and cash equivalents at 30 June 2014 is $6.2m less than the annual plan because funds held on short term deposit were used to fund capital expenditure instead of public debt.

Propert y , p la nt a nd equip ment Property, plant and equipment (including work in progress) is $58.0 million less than the annual plan at 30 June 2014. This variance is mostly due to the revaluations completed at 30 June 2013 and 30 June 2014 were less than the annual plan for these two financial years. Therefore the closing balance of property, plant and equipment is less than the annual plan balance.

Capital expenditure for the 2013-14 financial year was $8.2 million less than the Annual Plan, however this was offset by vested assets being $8.0 million more than the annual plan.

Publ ic debt Public debt at 30 June 2014 is $6.5 million less than the annual plan because funds held on short term deposit were used to fund capital expenditure instead of public debt.

31. POST BALANCE DATE EVENTS

Post balance date Council signed up as a shareholder of the New Zealand Local Government Funding Agency Ltd (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+.

Together with the other shareholders and guarantors, the Council will be a guarantor of all of NZLGFA’s borrowings. The Council considers the risk of NZLFGA 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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PORIRUA CITY COUNCIL FUNDING IMPACT STATEMENT

Actual Annual Plan Actual LTP2014 2014 2013 2013$000 $000 $000 $000

Source of Operating Funding:General rates, uniform annual charge, rates penalties 38,011 37,804 36,918 36,820 Targeted rates - non water 5,689 5,660 5,191 5,170 Targeted rates - water 4,756 4,746 4,512 4,500 Subsidies for operating purposes 1,497 1,345 1,543 1,432 Fees and charges 10,471 10,716 9,333 9,883 Internal charges recovered 0 0 0 0 Interest and dividends from investments 436 742 330 572 Local authorities fuel tax, fines, infringement fees and other receipts 421 450 627 374

Total Operating Funding (A) 61,281 61,463 58,454 58,751

Application of Operating Funding:Payments to staff and suppliers 48,183 47,689 46,185 45,226 Finance costs 3,240 3,698 3,228 3,333 Internal charges applied 0 0 0 0 Other operating funding applications 0 0 0 0

Total Applications Of Operating Funding (B) 51,423 51,387 49,413 48,559

Surplus/(Deficit) of Operating Funding (A - B) 9,858 10,076 9,041 10,192

Sources Of Capital FundingSubsidies for capital expenditure 492 734 1,551 763 Development and financial contributions 4,485 462 128 252

Increase / (decrease) in borrowing 3,108 8,454 1,454 5,975

Total Sources of Capital Funding (C) 8,085 9,650 3,133 6,990

Application Of Capital FundingCapital expenditure - to meet additional demand 4,106 2,713 1,934 466 - to improve the level of Service 3,565 5,455 2,896 1,987 - to replace existing assets 7,136 10,607 8,029 8,168

Movement in reserves 3,136 951 (685) 1,561 Movement in investments 0 0 0 5,000

Total Application of Capital Funding (D) 17,943 19,726 12,174 17,182

Surplus / (Deficit) of Capital Funding (C - D) (9,858) (10,076) (9,041) (10,192)

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

Note: The figues above are exclusive of GST, and exclude rates assessed on Council-owned properties.

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RECONCILIATION OF FUNDING IMPACT STATEMENT WITH PROSPECTIVE STATEMENT OF COMPREHENSIVE INCOME

Actual Annual Plan Actual LTP2014 2014 2013 2013$000 $000 $000 $000

Reconciliation of RevenueSources of Operating FundingTotal operating funding (A) as per Funding Impact Statement 61,281 61,463 58,454 58,751

Add Sources of capital fundingShare of revenue from joint ventures 3,807 4,135 3,801 4,344 Subsidies and grants for capital expenditure 492 734 1,551 763 Development and financial contributions 4,485 462 128 252

8,784 5,331 5,480 5,359

Add Sources of Non Cash Revenue TransactionsNet gain on interest rate swaps 780 0 1,610 0 Vested assets 10,066 2,070 5,738 2,069 Investment property revaluations 0 520 114 523

10,846 2,590 7,462 2,592

as per Statement of Comprehensive Income - Total Operating Income 80,911 69,384 71,396 66,702

Reconciliation of ExpenditureApplications of Operating FundingTotal applications of operating funding (B) as per Funding Impact Statement 51,423 51,387 49,413 48,559

Add applications of operating fundingShare of expenditure from joint ventures 2,494 2,464 2,504 3,435

Add Applications of Non Cash TransactionsDepreciation and amortisation expense 18,853 19,142 17,892 18,146 Net loss on interest rate swaps 0 0 0 0 Investment property devaluations 1,116 0 0 0

19,969 19,142 17,892 18,146

as per Statement of Comprehensive Income - Total Operating Expenditure 73,886 72,993 69,809 70,140

Reconciliation of Total Comprehensive IncomeSurplus / (Deficit) of operating funding (A-B) 9,858 10,076 9,041 10,192 Add Subsidies and grants for capital expenditure 492 734 1,551 763 Add Development and financial contributions 4,485 462 128 252 Add Net gain on interest rate swaps 780 0 1,610 0 Add Vested assets 10,066 2,070 5,738 2,069 Add Investment property revaluations 0 520 114 523 Add Share of joint ventures net Surplus 1,313 1,671 1,297 909 Add Revaluation of property, plant and equipment 27,445 45,349 3,961 52,003 Less Depreciation and amortisation expense (18,853) (19,142) (17,892) (18,146)Less Net loss on interest rate swaps 0 0 0 0 Less Investment property devaluations (1,116) 0 0 0

as per Statement of Comprehensive Income - Total Comprehensive Income 34,470 41,740 5,548 48,565

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GLOSSARY Act iv ity : services provided by Council.

Annua l P la n : a document produced annually by an organisation to inform stakeholders of its objectives, major policies, intended activities, performance, income and expenditure required for a period of one financial year. Councils must consult their community on the Annual Plan.

Annua l Report : a document produced annually that reports performance against the Annual Plan or Long Term Plan, including significant differences from what was planned.

Asset : an item of value, usually of a physical nature, that Council owns on behalf of the people of Porirua – that has a useful life of more than 12 months and creates future economic benefits over a period of time, such as roads, drains, parks and buildings. See both Vested and Infrastructure Assets.

Asset Ma na gement P la n (AMP) : a plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost-effective manner to provide a specified level of service. A significant component of the plan is a long-term cashflow projection for the activities.

Bus iness Excel lence : the Baldrige Criteria for Performance Excellence (Business Excellence) is a guide that Porirua City Council is using to work more efficiently and look at how we can improve our systems and services. It is derived from high performing organisations.

Cap ital C osts : transactions that have an effect on the longer term (i.e. greater than 12 months) financial position of Council. Items include the repayment of loan principal, transfer of funds to reserve accounts and the purchase or construction of assets.

Cap ital F ina ncing : transactions that have an effect on the longer term financial position of Council. Items include the raising of loan funds and transfers from reserve accounts.

Centra l Business D istr ic t (C BD) : the Porirua Central Business District is the city's commercial centre, roughly bounded by the Mungavin roundabout, Porirua Stream, Whitireia Community Polytechnic and Titahi Bay Road.

Cit y Cent re : see Central Business District.

Current As sets : assets which can be readily converted to cash, or will be used up during the year. These include cash, stock, debtors and operational investments.

Current Lia bil it ies : creditors and other liabilities due for payment within the financial year. Public Debt to be refinanced within the financial year is excluded.

Debt : the value of outstanding obligations owed by Council to external third parties.

Depr ec iat ion: assets lose their value over time as a result of wear and tear, age, or obsolescence (in other words, they depreciate), and must be replaced once the end of their useful life is reached. Depreciation is an accounting method to spread the replacement cost of items such as property, plant and equipment over their useful lives as an operating expense.

Develop ment C ontr ibut ions : contributions from developers, collected to help fund new infrastructural assets required by growth, as set out in the Local Government Act 2002.

Dist r ict P la n : a plan under the Resource Management Act 1991 that manages, through objectives, policies and rules, the adverse impact of land uses on the environment of the city. The Porirua City District Plan became operative on 1 November 1999.

Expendit ur e : the outflow of resources (usually cash) in return for goods and/or services.

Fina ncial C ontr ibut ions : contributions from developers collected under the district plan for developing public facilities, including open spaces and parks. Contributions might be in cash or in the form of land.

Funding Pol icy : a statutory process that looks at who benefits from a service and who pays for it.

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Genera l rate : a levy by Council to fund its general services, but not services funded by targeted rates, fees or charges.

Greater Wel l ington Regional C ouncil (G WRC, or Greater Wel l ington) : the authority responsible for protecting the Wellington region's air, soil and water resources from pollution and ensuring their sustainable use. It also manages the demands on the region's transport systems and supports public transport services.

Gross : total without deductions, as opposed to net.

Group of A ct iv it ies : Council groups all its services into nine main categories of activities (which equate to 'groups of activities' in the Local Government Act 2002).

Infrast r uct ur e Ass ets : Stationary systems forming a network and serving whole communities, where the system as a whole is intended to be maintained indefinitely at a particular level of service potential by the continuing replacement and refurbishment of its components. The network may include normally recognised ordinary assets as components.

Interest : interest payable on bank overdrafts and debt.

Loa n Funding : paying for capital costs by raising loans.

Loca l G over nment : comprises two types of local authority – regional councils and territorial authorities. These are autonomous and are accountable to the communities that they serve. They provide a vast range of services funded largely by rates and regulated by a series of local government acts. Territorial authorities such as Porirua City Council deal with day-to-day issues that contribute to the well-being of the people that live in their community, such as:

• community well-being and development

• environmental health and safety (including building control, civil defence, and environmental health matters)

• infrastructural services (roading and transport, sewerage, water/stormwater)

• recreation and culture

• resource management, including land-use planning and development control

Loca l G over nment Act (LGA ) 200 2 : the Local Government Act 2002 is the primary legislation governing Council's operations and actions.

Long T er m Pla n (LTP) : a ten-year plan which sets out Council's response to shared Community Outcomes and how Council will manage its finances and the community's resources. The LTP is a requirement of the Local Government Act 2002.

Operat ing Exp endit ure : expenditure through Council's activities on such items as salaries, materials, electricity and plant hire. All these inputs are consumed within the financial year.

Operat ing Revenue : money earned through the activities in return for a service provided, or by way of a grant or subsidy to ensure particular services or goods are provided. Examples include Transit New Zealand subsidies, rental income, permits and fees.

Operat ing Sur plus (Def icit ) : the expressions 'operating surplus' and 'operating deficit' are accounting terms meaning the excess of income over expenditure and excess expenditure over income respectively. It includes non-cash items such as income and expenditure owing but not paid (Debtors and Creditors) and depreciation. It excludes 'capital' items such as the receipt or repayment of loans, the cost of capital works and transfers to and from Reserves.

Outp ut : services the council provides.

Passenger Tra ns por t : sometimes referred to as public transport – includes buses, trains and ferries.

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Passenger Tra ns por t Corridor : an area of land the council has identified as necessary for future passenger transport developments, for example, road widening. The council identifies and formally designates such corridors and protects them from development.

Pol icy : outlines the approach Council takes to achieve a strategy.

Por ir ua C ity : refers to the geographical area governed by the Porirua City Council.

Por ir ua C ity C ounci l : refers to both the elected council and to the organisation.

Rates : a property tax to fund local government activities. The amount of rates varies between properties because of difference in capital values, and differences in services provided for residential, rural and commercial properties. Property valuation changes, which Council has no control over, will also affect the rates paid. See also Regional Rates.

Rates D if fer ent ial : where a rate is applied at a different level to different types or categories of property, e.g. residential, non-residential or rural land.

Rate F unding : paying for capital or operating costs from rates.

Regiona l C ouncil : the top tier of local government in New Zealand. There are 17 regions of New Zealand. Eleven are governed by an elected regional council, while six are governed by unitary authorities (ie territorial authorities that also perform the functions of a regional council). Porirua comes under the Greater Wellington Regional Council.

Regiona l Rat es : Regional rates, charged by the Greater Wellington Regional Council, are part of the overall rates you pay, and are noted separately on your bill from Porirua City Council.

Renewa ls : activities required to upgrade, refurbish or replace existing facilities or assets, with facilities or assets of equivalent capability or service potential.

Res ources : These are the assets, staff and funds needed to contribute to the activities of Council including goods, services and policy advice.

Revenue : income received by the council to fund its services. Revenue sources include rates, and fees and charges for using a particular service, penalties and fines, such as parking fines, and grants and subsidies.

Subcommitt ee : formed by the elected council or standing committees as needs arise, such as for major projects.

Submitt er : a person who puts forward their views in support of, or opposition to, a resource consent or council proposal.

Terr it or ia l Loca l A ut horit y (T LA ) : the second tier of local government in New Zealand, below regional councils.

Unitar y A ut hority : Six territorial local authorities (Auckland Council, Nelson City Council, Gisborne, Tasman, and Marlborough District Councils and the Chatham Islands Council) also perform the functions of a regional council.

Vested A ssets : infrastructural assets transferred to Council by developers at the time of subdivision completion and approval.

Wor king C ap ita l : Council's net current assets held in cash, or readily convertible to cash, less liabilities due for payment within a year. This is indicative of Council's ability to meet its obligations as they become due.