LONG TERM PLAN. Revenue and Financing Policy

Transcription

1 LONG TERM PLAN Revenue Financing Policy 1

2 2

3 What is the Revenue Financing Policy? The Revenue Financing Policy sets out how the Council funds each of its activities explains the reasons for each. The policy provides ratepayers customers with predictability certainty about the sources for funding for our activities in conjunction with the Long Term Plan provides certainty on the level of those funds. In determining how activities are funded the Council is obliged to equitably share the costs of delivering services across different users as well as ensuring equity between current future generations. In deciding how to fund each activity, the Council considers the nature of the services provided who benefits from those services. The Council takes into account: the council outcomes to which an activity contributes the distribution of benefits between the community as a whole, identifiable parts of the community individuals (beneficiary pays principle) the period during which the benefits are expected to occur (intergenerational equity principle) the extent to which actions, or inactions, of individuals or groups contribute to the need to undertake the activity (exacerbator pays principle) the costs benefits of funding the activity distinctly from other activities. The Council then considers the overall impact of any allocation of liability for revenue needs on the District, local communities communities of interest. Key changes to the policy Key changes the Council is proposing to the Remission Policy are: Changing the funding of the Stormwater activity from a local-funded activity to a district-funded activity. Changing the funding of Public conveniences Cemeteries from district-funded activities to local-funded activities. Introducing a targeted fixed rate of $200 per property for those who make their homes available on a short term basis for holiday rentals. Classifying Bed Breakfast businesses who have 4 or more bedrooms available for short term accommodation as Commercial rather than Residential ratepayers. Changing the funding of the Tairua, Pauanui, Whangamata Coromel Information Centres from district-funded to local funding over the next three years. More details of these proposals are explained on page 4. The full policy is included in this Statement of Proposal on page 9. 3

4 We want your feedback... Your views on the proposed changes are important. We encourage you to share your views by making a submission. The proposals within this Statement of Proposal are available for comment from Monday 9 March until 4pm, Thursday 9 April. This is your chance to let the Mayor Councillors underst your views so please take the time to get involved have your say. Our Mayor, Councillors, Community Board members staff will be available across the district during the month of consultation to discuss the proposals future planning. Dedicated time with each Community Board has been arranged on the following days: Thames 16 March Council Chambers 9am Tairua 16 March Library 1pm Coromel/Colville 17 March Area office 9am Mercury Bay 17 March Area office 1pm Pauanui 18 March Fire station 1pm Whangamata 19 March Area office 1pm Your comments suggestions can also be sent to the Council by: Completing the on-line submission form at Sending us an to customer.services@tcdc.govt.nz Writing to us at Thames-Coromel District Council, Private Bag, Thames 3540 Faxing us on (07) Hearings will be held for those who wish to present their submission formally before the Mayor Councillors in late April. The dates venues will be finalised once submissions have closed. Once the Council has considered all the public feedback it will make decisions adopt either the proposed or a revised Revenue Financing Policy. Remember, you have until 4pm, Thursday 9 April to give Council your feedback. Alongside this policy the Council is also consulting on its Long Term Plan, revised Remission Policy, Development Contributions Policy. See our website to read the details make a submission. How to provide feedback When making a submission on the proposed changes, please tell us: what aspect/s of the proposed areas of change you would like to comment on what you want what decision you would like made, the reasons for this. 4

5 Proposals within the Revenue Financing Policy Changes to who pays Essential Services There are five services we consider essential to the functioning of our District. These services are Water Supply, Wastewater, Stormwater, Roads Footpaths Rubbish Recycling. We have taken the view that those who create the need for these services, those who benefit from the provision of these services are one the same. Further, we consider that everybody in our community, regardless of where they live, over time, should have equitable access to these services based on need. This means that, in general, all those who benefit from these services should be paying the same amounts for these services, irrespective of the underlying costs of service delivery. As long ago as 2003, the Council implemented policy to rate for the capital costs of wastewater on a district wide basis, alongside the district funding already in place, for the day to day operating costs of the service, rather than charging each community for the costs of its specific system. In the last Long Term Plan there were further changes made to the policy so that funding the supply of water is now spread across all communities not just the one in which the scheme is located. This resulted in a oneoff, permanent change to the water rates bill. In the Long Term Plan, there was a proposal to move the funding of Stormwater to a district funding basis as well but, ultimately, the proposal was not implemented in order to moderate what would otherwise have been substantial rate movements for some members of the community. However, Council stated that it would consider this proposal again in the Long Term Plan. Proposal Options Considered Implications for levels of service Financial implications Proposed: Move Stormwater funding from a scheme basis to a districtwide basis. Status quo - Stormwater is funded scheme by scheme by each community By spreading the costs of the stormwater infrastructure over the whole District, it is considered feasible to maintain current service levels in each community. Over time, the financial implication is that smaller communities, or those communities with old infrastructure, where depreciation has not been sufficiently funded, may have difficulty affording the costs of stormwater infrastructure renewals /or upgrades with the potential to require reduced levels of service. The general implication is that smaller communities will pay a higher amount of rates. However, this is an overly simplistic view as the Thames-Coromel District has varied geography which means each areas needs for a stormwater network is equally variable. District wide rate of $88.01 The cost of stormwater will be spread across all ratepayers. The stormwater rates on an average value property will be $ Stormwater rate per rating unit Cost difference Thames $ $ Ratepayers in Thames would pay $100 each more if we did not move to district funding of stormwater. Ratepayers in all areas except Thames would pay lower rates in 2015/16 if stormwater was to remain as local funding. Coromel- $ $4.87 Colville Mercury Bay $ $12.72 Tairua/Pauanui $ $34.68 Whangamata $ $

6 Changes to who pays Local Services Over the last four years, the Council has examined all of its services more explicitly recognised those that are primarily provided for the benefit of the local community. These services are funded locally which enables the diversity of the district to be provided for in the ways most appropriate to each community. Community Boards feed directly into the Council decision making process to set local priorities for local services. As part of the broader review of service, public conveniences cemeteries, two services which have previously been district funded are now considered to be primarily for the benefit of the local communities. It is proposed that the net costs of these services are funded by each local community (after deducting user fees charges). There has also been a small change proposed to the funding of Library Services so that all of the costs associated with the Libraries are now funded locally rather than in part by a charge across the whole District. Proposal Options Considered Implications on levels of service Financial implications Proposed: Move the net costs of public conveniences from district funding to local funding Status Quo The net costs of public conveniences remain as a district funded general charge through the Community boards will decide the priorities for public conveniences in their community board areas, increase or decrease service levels according to the needs of their community their ability willingness to pay for these service levels. There may be sub-optimal decisions made regarding service levels as the costs of providing the service are averaged. There is a different impact in each community board area New local rate - (less than) + (more than) the status quo e.g. Thames ratepayers will pay $3.08 less than the status quo Thames $ Coromel - $ Colville Mercury Bay $ Tairua/Pauanui $ Whangamata $ $

7 Proposed: Move the net costs of cemeteries from district funding to local funding Status Quo The net costs of cemeteries remain as a district funded general charge through the Community boards will decide the priorities for cemeteries in their community board areas (including heritage cemeteries) increase or decrease service levels according to the needs of their community their ability willingness to pay for these services. There may be sub-optimal decisions made regarding service levels as the costs of providing the service are averaged. Financial implications New local rate - (less than) + (more than) the status quo Thames $ Coromel - $ Colville Mercury Bay $ Tairua/Pauanui $ Whangamata $ $

8 Economic Development Council's direction vision emphasises facilitating activating economic development within our District. This direction was indicated in the Long Term Plan took more shape with the production of an Economic Development Strategy Action Plan adopted in December The action plan lead to an exped Economic Development programme in our Annual Plan a different funding approach recognising the changed objectives, beneficiaries overall affordability of the proposals. As part of the strategy planning over the last two years, we have taken account of a national I-Sites review that concluded there should be only 2 sub-regional I-Sites in our district at Thames Whitianga. This led Council to reconsider its approach to funding the information centres in Tairua, Whangamata Coromel a conclusion that these are primarily for the benefit of the local community. However, moving costs to local rates would cause substantial rate movements for some members of the community, so Council has decided that this change in funding should be phased in over the next three years. Additionally, when Council prepared our last Annual Plan , we signalled that we would be reviewing a perceived inequity in the current funding structure between moteliers other providers in the short-term accommodation sector. These include Bed Breakfast operators those letting their residences on a short term basis such as through Book-a-Bach or similar. Moteliers pay the commercial portion of the Economic development rate their competitors do not. We have completed our review of the sector concluded that there is an inequity in the current arrangements. In order to reduce this inequity we propose two changes: the introduction of a targeted fixed rate of $200 per property for those who make their homes available on a short term basis for holiday rentals; classifying Bed Breakfast businesses who have 4 or more bedrooms available for short term accommodation as Commercial rather than Residential ratepayers. They will then pay commercial rates. Proposal Options Considered Implications on levels of service Financial implications Proposed: Move the funding of the Tairua, Pauanui, Whangamata Coromel Information Centres to local funding over the next three years. No implications for levels of service with this proposal. Options Considered Implications on levels of service Financial implications Status quo No service level implications but not in line with national strategy to focus on key sites. Additional targeted rates per rateable unit in each Community Board Area 2015/ / /18 Coromel-Colville $16 $23 $26 Tairua/Pauanui $11 $16 $19 Whangamata $9 $12 $14 Additional cost all ratepayers 2015/ / /18 $4.97 $7.09 $8.33 8

9 Options Considered Implications on levels of service Financial implications Fully locally fund the Tairua, Pauanui, Whangamata Coromel Information Centres from Year One of LTP. Community boards may have considered decreasing funding which would impact on levels of service. Options Considered Implications on levels of service Financial implications Proposed: Introduce a new targeted rate to apply to all residential properties offering short term accommodation of $200 per property reclassify Bed Breakfast businesses with four or more bedrooms for hire as commercial properties. None Additional targeted rates per rateable unit in each Community Board Area Coromel-Colville $32 Tairua/Pauanui $22 Whangamata $17 This is projected to collect $252,000 which will reduce the amount to be collected from all ratepayers through the. Status quo None All residential ratepayers would pay an additional $8.91 on the. Other changes to the policy A number of the Council's activities have been restructured from the 2012 Long Term Plan. For the most part, the funding of the affected services has not changed, where funding has changed it is included in the key changes highlighted above or in the list that follows. The district component of the Grants Remissions activity is proposed to be funded through a uniform annual general charge rather than the general rate. The District Plan activity is proposed to be funded through a uniform annual general charge () rather than the current combined funding from the general rate uniform annual general charge (). The Economic Development activity includes provision for capital expenditure to be funded by grants subsidies. The funding split for the Community Spaces Development activity group changes to a medium portion from l value based rates, a medium portion from a fixed charge rate a low portion from user fees charges. The Council has reconsidered the beneficiaries exacerbators of all its activities through the review has identified more activities that the ratepayers of properties all benefit equally. In these cases the Council considers that it is fairer to distribute the costs uniformly over the affected properties. That means all ratepayers pay the same amount regardless of the property value. 9

10 The Revenue Financing Policy sets out how the Council funds each of its activities why. The Council is required to have this Policy to provide predictability certainty to customers about the sources levels of funding. The Policy is set out in three sections as follows: 1. taking an equitable approach 2. description of funding mechanisms 3. funding of activities. Review The Revenue Financing Policy is reviewed three-yearly as part of the ten year planning process. Supporting Documentation Available Documentation of the activity analysis supporting this policy is available on our website. Taking an Equitable Approach In determining how activities are funded the Council is obliged to equitably share the costs of delivering services across different users as well as ensuring equity between current future generations. In deciding how to fund each activity, the Council considers the nature of the services provided who benefits from those services. It takes into account: the council outcomes 1 to which an activity contributes the distribution of benefits between the community as a whole, identifiable parts of the community individuals the period during which the benefits are expected to occur the extent to which actions, or inactions, of individuals or groups contribute to the need to undertake the activity the costs benefits of funding the activity distinctly from other activities. It then considers the overall impact of any allocation of liability for revenue needs on the District, local communities communities of interest. Guiding principles The Council has identified some overarching principles that it considers important in taking a fair equitable approach to funding its activities. Essential services The Council considers that some of its services are considered essential fundamental to the functioning communities in the Thames-Coromel District. These include water, wastewater, stormwater, roads footpaths (district) rubbish recycling. The District should have (over time) equitable access to the level of essential services that a community requires to meet their needs, regardless of whether there are differences in cost (while noting that need may be specific to different communities). Differences in the cost of delivering these services locally are often due to factors outside of the communities control such as the sensitivity of the surrounding environment on the availability of water at source. Hence, the Council does not see it as appropriate to recognise exacerbators based on the catchments or areas in which users may choose to access services. Rather, the Council considers that communities through the District benefit from those services has therefore chosen to have a consistent approach to the way it views the beneficiaries exacerbators of these services. 1 For the purposes of this policy, the term council outcomes in this policy means community outcomes as defined in the Local Government Act

11 Ability to pay Concerned about the public's ability to pay rates, the Council seeks to maintain an affordable predictable level of rates in the future. To do this it will look to increase the use of alternative revenue sources while maintaining a conservative approach to borrowing investment. District Diversity The Council also acknowledges the diversity of our communities, wishes to recognise the different users needs in its rating structure where considered appropriate. This includes targeting funding (whether it be through rates or user charges) to those who generate dem or benefit from Council services, but only to an extent that is considered affordable. In addition, a priority of the Council is to empower local communities to have greater decision-making on services that it considers are local in nature. This includes activities which are considered to be non-essential (but still important) activities therefore may vary across local communities. Because this approach enables community boards to set these services at a level specific to their community board area, the Council is of the view that these local communities are the primary beneficiaries exacerbators of these services rather than the District as a whole. It follows that in these cases, community board area-based funding is considered appropriate. through The Council has reviewed its approach to allocating funding requirements across ratepayers. Currently the Council funds a number of activities through rates based on value i.e. the higher the rateable value of a rating unit, the higher the proportion of rates assessed. This approach is taken where it is considered that the value of a rating unit is a better indicator of ability to pay. The Council has identified services where it believes that the ratepayers all benefit equally. In these cases the Council believes that it is fairer in many cases to distribute the costs uniformly. That means the value of the rating unit is not considered when setting assessing these rates. There is a limit to how much the Council can fund through uniform charges so not all of the Council s business can be funded this way. Description of Mechanisms Types of Broadly speaking the Council has two types of expenses: operating expenditure capital expenditure. Operating expenditure is used to fund the on-going day-to-day activities services of the Council. expenditure is money spent in acquiring or upgrading a business asset such as infrastructure, equipment or buildings. The Council has three categories of capital expenditure spread across its activities: Renewals Defined as capital expenditure that increases the life of an existing asset with no increase in service level Increased Level of Service (ILOS) Defined as capital expenditure that increases the service level delivered by the asset. Additional Capacity (AC) Defined as capital expenditure that is required to provide additional capacity, in whole or part under Council s Development Contributions Policy, necessary to accommodate growth. Mechanisms Different funding sources are used for different types of expenditure. This document outlines how the Council will fund its expenditure using the following funding mechanisms: rates, including: o valuation system o differential rating o uniform annual general charges targeted rates lump sum 2

12 fees charges interests dividends from investments borrowing proceeds from asset sales development financial under the Resource Management Act 1991 grants subsidies other sources. User are fees charged to individuals or groups who are directly using a Council service. In this case, there is a direct benefit to an individual. User fees charges also include rental income, trade waste fees charges. For a user charge to be charged, the beneficiaries must be able to be identified charged directly. The Council also considers issues like the affordability of user charges or how they compare to the market rate for services. The use of user charges may be balanced with other funding sources where the Council believes that a charge set too high will reduce use therefore diminish the value of the service to the community impose a greater cost on ratepayers. The Council distinguishes between two different rates types: 1. Rate a. Rate set at a different rate in the dollar of rateable value for different categories of l b. Uniform Annual Charge - set on a per separately used or inhabited part of a rating unit. 2. rates are rates that are charged to particular communities or groups of ratepayers. They are used to fund services where a particular community or group benefits from the activity being funded. Proceeds from Asset Sales are the monies received from selling physical assets, such as plant equipment. They are initially used to repay debt associated with that asset. Any remaining proceeds will be used to fund a replacement asset or fund other capital expenditure within an activity that was funded by the same funding source of the asset sold. Development Contributions are the funds received from developers when they develop property. They are used to fund capital works that are driven by the need to provide services to our growing communities. As the cost of growth is driven by development, the Council considers that it is equitable that a development should meet its share of the resulting costs. The Council's Development Contributions Policy details the method by which development are obtained to fund the infrastructure required due to property growth. Council can only use Development Contributions to fund growth related capital expenditure. Financial Contributions are required under the Resource Management Act The Council is still receiving financial for some older resource consents. The only financial contribution currently assessed on new consents is for car parking purposes. These are used for the financing of capital expenditure, which falls within the requirements of that Act. Grants subsidies are funding received from other agencies, usually for a specific purpose. As such, they are used to fund those purposes. Depreciation Reserves are funds in which the probable replacement cost of equipment is accumulated each year over the life of the asset, so that it can be replaced readily when it becomes obsolete. Other Sources including Reserves are funds for specific purposes. Retained earnings are used to fund operating or capital expenses at the Council's discretion. Special reserves will be used to fund either operating or capital expenses according to the policy applying to those reserves. Investment Interest Dividends is used to reduce the amount of Uniform Annual Charge required. Borrowing is not a source of revenue itself. Rather it is a 'bridging' mechanism to assist with the financing required for the construction of longterm assets. The debt still needs to be repaid from other sources of revenue (e.g. rates). The use of debt allows us to enjoy the asset now while paying 3

13 the debt back over time. In this sense it is much the same as a home mortgage. Borrowing is usually used to fund capital works assets built or provided now before future new consumers use those services. It is used to ensure fairness or 'intergenerational equity' so that current ratepayers pay for the services they use now, future ratepayers pay their share too. It's only used where other available funding sources are exhausted. Council only uses borrowing to fund operational expenditure when it is financially prudent to do so. Lump Sum The Council does not offer this payment option. charges User charges are direct charges to people or groups who either use certain council services or give rise to a need to undertake a particular service. In these instances, a benefit or cause exists to people or groups who are clearly identifiable. charges are set on the basis of either fully recovering the cost of the service, recovering the marginal cost added by users or at a rate that the market will pay so as to avoid diminishing the value of the service placing a greater cost on ratepayers. of Activities The Council has considered how to apply the available funding mechanisms to its activities. The following table provides a summary of how activities are proposed to be funded. The Council has also completed a detailed assessment which informed this policy it is available on our website. For operational expenditure, funding portions contributing to each activity are expressed as ranges, from low to high. These ranges equate to the following percentages: Low: 0-33% Medium: 34-66% High: %. Application of Mechanisms to Different funding sources are used for different types of expenditure. The Council uses the funding mechanisms as follows: * Application depends on how the activity to which the capital expenditure relates is funded. Mechanism Operating Additional Capacity Increased Level of Service Renewals rates * * * * rates * * Lump sum charges * * Borrowing Asset sales Development Financial Grants subsidies Depreciation 4

14 Group of Operating of Representation Representation District High Development Borrowing Asset Sales Depreciation Grants Remissions District All of the district benefit from the democratic process. This component is considered to be important in contributing to council outcomes therefore has a public good. The benefits are ongoing in both the immediate long term. Need is created by the whole of community for knowledge of involvement in Council decisions as well as legislation. Local High District While the particular local communities represented by community boards benefit, the district benefits from having equal access to representation. The benefits are ongoing in both the immediate long term. The Council provides District District district grants to High community organisations to achieve 5

15 Group Planning & Regulation Strategic Planning Local of Operating High of District High Borrowing Asset sales Depreciation Community Board Area District Local High Community Board Area a greater spread of benefits across the District. Local grants are intended to primarily benefit community board areas. While funding recipients receive short term funding, the intent of this activity is to achieve long-term results. The primary benefit of this activity is to improve community wellbeing in the future through identifying preferred outcomes putting plans in place to achieve them. This occurs at the District community board area levels. The benefits of this activity will more often occur in the medium to long term as plans are realised. All ratepayers benefit from this activity to the same degree. The need for this activity is driven by a legislative mate, community dem, to identify meet current future community needs. 6

16 Group of Operating of District Plan Resource Consents - Use Consents Monitoring & Enforcement High - District The primary benefit of this activity is to identify preferred l use environmental outcomes putting plans in place to achieve them. The benefits of this activity should occur in the short- long-term as plans are realised. All ratepayers benefit from this activity to the same degree The need for this activity is driven by a legislative mate, community dem, to identify meet current future resource management preferences. Med Med - District The aim of this activity is to ensure that l use activities in the District are consistent with the District Plan, thereby achieving the environmental outcomes sought. The general public benefit from this. Low High District The individuals or organisations which apply for a resource 7

17 Group Building Control Building Consenting Building Enforcement of Operating of consent benefit from the consent being considered. They also create dem for the activity. Individuals or groups who undertake nonpermitted l uses oblige the Council to monitor resolve them, however in many cases the cost of doing so is not fully recoverable. Benefits should occur in the short- to long-term as future l-use outcomes are realised. The RMA 1991 provides for the Council to recover funding through user charges. High Low Low - District The general public benefit from the assurance that buildings are safe, as do the individuals/groups developing their properties. The individuals or organisations undertaking building Med Low Low District work create dem for the activity as legislation requires that consent must be obtained. 8

18 Group Protection of People the Environment Community Health Safety Information Memora of Operating of Individuals or groups who undertake nonpermitted l uses oblige the Council to monitor resolve them, however in many cases the cost of doing so is not fully recoverable. Benefits should occur in the short- to long-term as buildings remain safe. The Building Act 2004 provides for the Council to recover funding through user charges. High n/a The issuing of LIMs primarily benefits individual applicants immediately. Community Regulations Med Med Development District Health Med Med Borrowing District Licensing Asset sales Health High District Depreciation License Monitoring Enforcement Liquor Control Low Med District Animal Control Med Med District This activity benefits the general public of the District /or local communities through promoting clean, safe healthy places. Consumers of services such as food outlets benefit from assurance that the food is safe to consume. The use of behavioural controls such as liquor bans may have shortterm benefits for the 9

19 Group Coastal Hazard Management Coastal Hazard Management of Operating of Med Med Borrowing Asset sales rates District time in which a ban is in place, but also have potential long-term benefits such as changing drinking behaviours. The dem for the activity is created by those who seek community safety nuisance issues to be addressed, legislation requirements for regulation, those who seek to operate a business requiring such regulation, owners of dogs those who directly cause the nuisances. Regulations are set implemented on an ongoing basis with current future outcomes in mind. The general public benefit from the 10

20 Group Emergency Management Moanataiari Special Project of Operating of Low High rates rates Lump sum - High Borrowing Asset Sales Depreciation District, Community Board Area & Area of Service District management of risk to people, property the physical environment. It also benefits people properties in specific risk areas for which projects are developed, such as flooding waterways, the Moanataiari special project. Benefits should be realised as projects are put into place into the future. Some programmes may be implemented to address forecasted hazards such as sea-level rise. The need for the activity is sometimes created through natural causes, however this need can be exacerbated through individuals/groups choosing to own property in areas known to be susceptible to natural hazards. This activity benefits the general public through promoting readiness for, appropriate responses to civil defence emergencies. Such emergencies may 11

21 Group Economic Development Economic Development of Operating of District Low Low Med Borrowing Asset Sales Depreciation District, Community Board Area & Industrial/ Commercial rates Properties Grants & Local Med Med Community subsidies Board Area occur across the District or in particular geographical areas, such as fires on a rural farm. The general public may include residents visitors. The benefits of this activity will most likely be realised whenever a civil defence emergency occurs. Readiness for emergencies will have short- to long-term benefits while responses will usually have short-term benefits. The primary need for this activity is driven by weather events however the degree to which people seek a safe living environment, trigger an emergency or place themselves at risk also contributes to the need for this activity. This activity is intended to benefit the public in the medium- to longterm through increasing the overall economic health of the District. It is envisaged that businesses will benefit more directly in the 12

22 Group Community Spaces Development (CSD) of Operating of Thames CSD - Low High Development & financial Borrowing Asset Sales Depreciation rates charges Other reserves Coromel- Colville CSD - Low High Development & financial Borrowing Asset Sales Depreciation rates Community Board Area Community Board Area short- to long-term through enhancing their operations. Visitors to the District overtime will benefit immediately. Local communities are considered to benefit from local events i- site servicing. The need for increased economic activity employment opportunities is a significant driver. These activities are intended to primarily benefit local communities as defined by community board areas within which the services are based. Some services benefit visitors tourists from outside both the district local area e.g. public conveniences, airfields, Wi-Fi in libraries. A large number of specific communities of interest will benefit from drive the need for some services e.g. businesses benefiting from air marine 13

23 Group Mercury Bay CSD Tairua Pauanui CSD Whangamata CSD of Operating of charges Other reserves - Low High Development & financial Borrowing Asset Sales Depreciation rates charges Other reserves - Low High Development & financial Borrowing Asset Sales Depreciation rates charges Other reserves - Low High Development & financial Borrowing Asset Sales Depreciation rates Community Board Area Community Board Area Community Board Area transport, community groups using community centres as a venue, boat users. Some benefits are immediate in nature (e.g. borrowing books from libraries for a short term period) while others are long-term (e.g. ongoing ability to use library services into the future, access to cemeteries. Some services will have a limited period of direct benefits such as community halls also the limited lifespan of the current Thames swimming pool. Some user charges can be collected where users are identifiable. 14

24 Group Roads Footpaths Roads Footpaths of Operating of charges Other reserves District Med Low Med Development & financial Borrowing Asset sales Depreciation rates rates Grants subsidies District Local High Community Board Area The Council considers district transportation services as essential the outcomes achieved through delivering it to benefit the District as a whole. Regardless of road usage all residents visitors are likely to receive some benefit as roads provide a vital network for goods services. Providing roads are maintained, the benefits of the activity will be received now into the future. Drivers for this activity include road users, users of goods services requiring road transport. However many of the local factors of district transportation are outside of the control of the public the community within which services are provided. Local roading infrastructure including footpaths, street lighting 15

25 Group Solid Waste Rubbish Recycling of Operating of Litter/fills High Development Borrowing Asset sales Depreciation District Other Med Med rates Area of Service rates charges Lump sum town centre projects are considered to primarily benefit local communities the visitors to them. Some subsidies are available from external sources including the NZTA. The broader public benefit from the safeguarding of public health the cleaner environment that results from this activity. The Council considers this activity as essential to the District the benefits received by the District as a whole. Direct beneficiaries include the people organisations which dispose of waste in the District. The operation of transfer stations benefit the communities within which they are located people passing through those communities. The benefits should continue to be received now into the future. The collection of waste 16

26 Group of Operating of Stormwater Stormwater Stormwater Low High Development Borrowing Asset sales Depreciation rates rates District & Area of Service from properties provides immediate benefits to waste generators on an ongoing basis. The appropriate disposal of waste is intended to have a long-term benefit of maintaining our natural environment. Those who create the need for the activity include those who wish to maintain the District s natural environment, consent requirements, those who generate waste those who undertake littering illegal dumping of waste. The provision of adequate stormwater collection systems benefits the whole District in preventing ponding of rainwater lslips, maintaining accessibility protecting property, but particularly those in urban areas within which stormwater collection infrastructure is provided. Infrastructure will continue to provide for stormwater collection 17

27 Group Drainage of Operating of High - Community Board Area & Area of Service Wastewater Wastewater - Low High Development & financial Borrowing Asset sales Depreciation Area of Service disposal from urban properties both now into the future. Local factors of geography weather are outside of a community s control. While urbanisation exacerbates the effects of these natural factors by altering the natural flow of water, it should be done in accordance with district l use policies which are set with broader district benefits in mind. drainage services are very localised small in nature primarily benefit the users of the l within which the services are provided through maintaining l productivity. These services result in the ongoing drainage of l making that l more productive both now into the future. The provision of adequate wastewater collection systems benefits the whole District in preventing environmental pollution, 18

28 Group of Operating of rates Lump sum Water Supply Water Supply - High Development & financial Borrowing Asset sales Depreciation rates Lump sum Area of Service the Council considers it to be an essential service. Those in urban areas within which wastewater collection infrastructure is provided benefit directly. Infrastructure will continue to provide for these wastewater benefits to be received both now into the future. Some factors such as treatment stards rainfall are outside of a community s control. While urbanisation exacerbates the need for the activity, it should be done in accordance with district l use policies which are set with broader district benefits in mind. The provision of adequate water supplies is considered essential for maintaining life, public health the protection of property from fire. Those in urban areas within which water 19

29 Group of Operating of supply infrastructure is provided benefit directly. Infrastructure will continue to provide for these wastewater benefits to be received both now into the future. Some factors such as the sensitivity of the surrounding environment on the availability of water at source are outside of a community s control. While urbanisation exacerbates the need for the activity, it should be done in accordance with district l use policies which are set with broader district benefits in mind. * Unless otherwise stated, development contribution catchments are the same as the capital expenditure catchments indicated in the table. 20

30 Need help? If you need any help filling out this submission form, please call us on or Name address Phone number Address SUBMISSION FORM - Thames-Coromel District Council Revenue Financing Policy Do it online! It's easier online - find our online submission form at Mobile number Public information -please note that submissions are public information they will be published be accessible to the public media as part of the decision making process. Hearings for the Revenue Financing Policy will be scheduled for late April. Would you like to speak at a hearing in support of your submission? Yes No Please make sure you tell us your telephone number address to ensure we can contact you to arrange a time for your presentation to Council. Council is proposing a number of changes to the way that activities are funded who pays for them. Please tell us if you agree or disagree with these changes. Q1 Stormwater is currently an activity which is paid for by ratepayers within each community board area. We are proposing that this should be funded at a district level as one of our essential services. Q2 Public toilets are currently paid for by a district wide rate. We are proposing that these facilities should be paid for by ratepayers within each of the local community board areas as they are a local service. Q3 Cemeteries are currently paid for by a district-wide rate. We are proposing that these facilities should be paid for by ratepayers within each of the local community board areas as these are a local service. Q4 All information centres are currently funded through a district-wide rate. We are proposing over the next three years that the funding for the Tairua, Pauanui,Whangamata Coromel information centres be funded locally by ratepayers in those community board areas that the Thames Whitianga information centres remain funded at a district-wide level as they are key visitor information locations for the whole of the Coromel Penisula Q5 We are proposing that the Grants Remissions changes from being funded through the general rate to being funded through a uniform annual general charge (). This means that going forward all ratepayers across the District will pay the same amount to this activity regardless of the value of their property I agree I do not agree I agree I do not agree I agree I do not agree I agree I do not agree I agree I do not agree Thames-Coromel District Council - Submission form - draft Revenue Financing Policy March 2015

31 Q6 We propose that the District Plan changes from being funded by a mix of uniform annual general change () general rate, to solely the, as all ratepayers benefit from this activity to the same degree. This means that going forward all ratepayers across the District will pay the same amount to this activity regardless of the value of their property. Q7 We are proposing a new annual fixed rate of $200 for all short term accomodation providers (e.g. Bed Breakfast operators, Bookabach owners) as a contribution towards economic development expenditure. Q8 We are proposing that Bed Breakfast operators with four or more rooms for hire be reclassified as commercial properties. I agree I do not agree I agree I do not agree I agree I do not agree Q9 Any other comments? Record them below. Please attach additional pages if necessary. Q10 Please select the option that best describes you. I live in the Thames-Coromel District I own a property in the Thames-Coromel District but I live elsewhere in New Zeal I own a property in the Thames-Coromel District but I live internationally I am a visitor to the Thames-Coromel District I am submitting on behalf of an organisation/company which is based in the Thames-Coromel District I am submitting on behalf of an organisation/company which is not based in the Thames-Coromel District Thank you for taking the time to make a submission. Thames-Coromel District Council - Submission form - draft Revenue Financing Policy March 2015