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Financial Management
Prospective Statement of Financial Position
LTCCP Annual Plan LTCCP
Introduction
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
ASSETS
2,781 Cash and cash equivalents 2,781 2,781
Council Activities
8,592 Trade and other receivables 8,758 8,849
755 Inventories 778 778
285 Other financial assets - current 285 285
12,413 Current assets 12,601 12,693
600,612 Property, plant and equipment assets 601,583 605,782
11 Intangible Assets 11 11
3,144 Forestry assets 971 3,197
Organisations
27,372 Investment property 28,124 25,912
Controlled
49,343 Other financial assets 45,535 51,785
Council
680,482 Non-current assets 676,223 686,687
692,896 TOTAL ASSETS 688,824 699,380
LIABILITIES
Fees & Charges
8,674 Trade and other payables 9,064 9,064
189 Provisions - Current portion 146 146
2,382 Employee benefit liabilities - current portion 2,308 2,453
11,344 Borrowings - Current Portion 2,294 2,294
22,589 Current liabilities 13,812 13,957
Employee benefit liabilities - Non current
779 portion 755 803
Management
37,817 Borrowings - non current portion 49,510 46,067
Financial
804 Provisions - non current portion 706 706
39,400 Non-current liabilities 50,971 47,576
61,989 TOTAL LIABILITIES 64,783 61,533
EQUITY
398,066 Retained earnings 395,686 403,760
23,405 Restricted reserves 18,933 24,651
241 Hedging Reserve 241 241
209,195 Asset revaluation reserves 209,181 209,195
630,907 TOTAL EQUITY 624,041 637,847
692,896 TOTAL LIABILITIES AND EQUITY 688,824 699,380
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123
Prospective Statement of Comprehensive Income
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
Revenue
42,393 Rates revenue 42,689 43,757
30,869 Other revenue 32,881 32,197
0 Gain on sale of assets 0 9,007
849 Property Revaluations - Gain/(loss) 778 755
867 Finance income 946 1,038
74,979 77,293 86,754
Expenditure
19,031 Employee benefit expenses 19,031 19,692
15,883 Depreciation and amortisation 19,170 16,932
34,222 Other expenses 38,816 39,195
3,096 Finance expenses 3,760 3,993
72,233 80,777 79,812
2,746 Operating surplus/(deficit) (3,484) 6,942
Other Comprehensive Income
17,457 Property Plant and Equipment Revaluations 0 0
- Gain/(loss)
0 Less Taxation Expense 0 0
20,203 Total Comprehensive Income after Taxation (3,484) 6,942
Reconciliation of total comprehensive
income to cost of service statements
42,393 Rates 42,689 43,757
31,737 Other Income 33,827 33,235
0 Gain on sale of assets 0 9,007
849 Investment Property Revaluations 778 755
74,979 Total income per cost of service statements 77,293 86,754
Add Property Plant and Equipment
17,457 Revaluations 0 0
92,436 Total Comprehensive Income 77,293 86,754
124
Prospective Statement of Changes in Equity
Introduction
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
610,704 Equity Balance at 1 July 627,525 630,907
Council Activities
20,203 Total Comprehensive Income after Taxation (3,484) 6,941
Total Recognised Revenues and Expenses for
20,203 year (3,484) 6,941
630,907 Equity Balance at 30 June 624,041 637,848
Components of Equity
Organisations
Controlled
396,823 Retained earnings at 1 July 395,690 398,066
Council
2,746 Net surplus/(deficit) for the year (3,484) 6,941
(1,503) Transfers (to)/from restricted reserves 3,480 (1,246)
398,066 Retained earnings at 30 June 395,686 403,761
21,902 Restricted reserves at 1 July 22,413 23,405
1,503 Transfers to/(from) reserves (3,480) 1,246
Fees & Charges
23,405 Restricted reserves at 30 June 18,933 24,651
241 Hedging reserves at 1 July 241 241
0 Transfers to/(from) reserves 0 0
241 Hedging reserves at 30 June 241 241
191,738 Revaluation reserves at 1 July 209,181 209,195
17,457 Transfers to/(from) reserves 0 0
Management
209,195 Revaluation reserves at 30 June 209,181 209,195
Financial
125
125
Prospective Statement of Cashflows
Prospective Statement of Cashflows
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
Cash Flows from Operating Activities
Cash was provided from
42,393 Rate Income 42,689 43,757
867 Investment Income 946 1,038
2,900 Dividend Income 3,450 3,300
27,680 Other Operating Income 29,431 28,617
73,840 76,515 76,712
Cash was applied to
52,899 Operating Expenditure 57,847 58,545
3,096 Interest 3,760 3,993
55,995 61,607 62,538
17,846 Net cash Inflow/(Outflow) from Operating Activities 14,909 14,174
Cash Flows from Investing Activities
Cash was provided from
2,594 Redemption of Investments 5,958 2,956
99 Sale of Fixed Assets 88 11,322
2,693 6,046 14,278
Cash was applied to
21,457 Purchase of Fixed Assets 22,894 22,255
5,262 Investments Made 3,412 5,397
26,719 26,306 27,652
(24,026) Net cash Inflow/(Outflow) from Investing Activities (20,260) (13,374)
Cash Flows from Financing Activities
Cash was provided from
8,130 Loans raised 7,732 10,544
8,130 7,732 10,544
Cash was applied to
1,949 Loan Principal Repaid 2,380 11,344
1,949 2,380 11,344
6,181 Net cash Inflow/(Outflow) from Financing Activities 5,351 (800)
Net (decrease) increase in cash and cash
0 equivalents (0) 0
Cash and cash equivalents at the beginning of the
2,781 year 2,781 2,781
2,781 Cash and cash equivalents at the end of the year 2,781 2,781
126
Reconciliations from Cost of Service Statements to Statement of Comprehensive Income
1. Rates Revenue
Introduction
Non significant activities comprise of the support functions of Council. These include the Directors, Accounting and Financial Services, Information Services and Corporate Services.
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
7,049 Roading 6,829 7,391
Council Activities
4,860 Sewerage 4,884 4,845
4,085 Solid Waste Management 3,790 4,775
1,936 Stormwater 2,179 2,017
5,348 Water Supply 5,716 5,621
23,278 Infrastructural Services 23,398 24,649
146 Animal Control 147 150
560 Building Consents 558 496
Organisations
332 Civil Defence Emergency Management 231 347
Controlled
735 Environmental Health 842 850
Council
(107) Compliance (94) (106)
956 Resource Management 1,222 1,027
2,622 Development and Regulatory Services 2,906 2,764
293 Community Development 218 301
Fees & Charges
0 Housing Care Service 0 0
3,691 Libraries and Archives 3,632 3,754
5,375 Parks and Reserves 4,996 5,411
915 Passenger Transport 891 939
1,877 Pools 1,568 1,637
320 Public Toilets 326 344
1,127 Theatre Services 1,078 1,144
1,840 Provision of Specialised Community Services 2,662 2,314
Management
15,437 Community Services 15,370 15,844
Financial
2,498 Democratic Process 2,571 2,584
1,571 Enterprise (including Destinational Marketing) 1,574 1,610
(448) Investment (343) (1,093)
3,621 Corporate Services 3,803 3,101
(2,566) Non significant activities (2,788) (2,602)
42,393 Total Rates Revenue 42,689 43,756
Per Statement of Comprehensive Income:
42,393 “Rates Revenue” 42,689 43,757
127
127
Reconciliations from Cost of Service Statements to Statement of Comprehensive Income
2. Operating Revenue
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
7,792 Roading 7,062 8,261
728 Sewerage 528 745
3,807 Solid Waste Management 5,915 3,887
8 Stormwater 8 8
1,232 Water Supply 1,057 1,261
13,567 Infrastructural Services 14,570 14,162
467 Animal Control 526 480
1,900 Building Consents 2,007 1,946
34 Civil Defence Emergency Management 0 34
295 Environmental Health 182 302
734 Compliance 822 752
276 Resource Management 233 295
3,706 Development and Regulatory Services 3,769 3,809
55 Community Development 8 57
867 Housing Care Service 960 889
330 Libraries and Archives 279 346
1,842 Parks and Reserves 2,021 1,877
1,059 Passenger Transport 1,006 1,085
1,201 Pools 1,283 1,388
2 Public Toilets 0 2
502 Theatre Services 0 520
2 Provision of Specialised Community Services 5 3
5,860 Community Services 5,564 6,167
58 Democratic Process 113 60
1,541 Enterprise (including Destinational Marketing) 1,448 1,566
1,036 Investment 1,529 1,133
2,636 Corporate Services 3,090 2,759
5,967 Non significant activities 6,834 6,337
31,736 Total Operating Revenue 33,827 33,234
Per Statement of Comprehensive Income:
30,869 “Other Revenue” 32,881 32,197
867 “Finance Income” 946 1,038
31,736 33,827 33,234
128
Reconciliations from Cost of Service Statements to Statement of Comprehensive Income
3. Operating Gains/ (Losses)
Introduction
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
12,276 Roading 13,410 12,903
5,025 Sewerage 4,872 5,415
Council Activities
7,808 Solid Waste Management 9,886 8,590
2,291 Stormwater 2,915 2,536
6,924 Water Supply 7,514 7,212
34,324 Infrastructural Services 38,598 36,656
589 Animal Control 649 604
2,460 Building Consents 2,565 2,443
366 Civil Defence Emergency Management 231 381
Organisations
1,030 Environmental Health 1,023 1,125
Controlled
Council
627 Compliance 728 646
1,207 Resource Management 1,443 1,295
6,279 Development and Regulatory Services 6,641 6,494
348 Community Development 219 358
1,319 Housing Care Service 1,158 1,356
Fees & Charges
5,105 Libraries and Archives 5,272 5,358
6,447 Parks and Reserves 6,942 6,683
1,959 Passenger Transport 1,908 2,008
3,261 Pools 3,129 3,253
315 Public Toilets 353 334
1,752 Theatre Services 1,168 1,815
1,857 Provision of Specialised Community Services 4,691 5,764
22,363 Community Services 24,840 26,928
Management
Financial
2,516 Democratic Process 2,798 2,712
3,112 Enterprise (including Destinational Marketing) 3,023 3,176
980 Investment 1,416 1,104
6,609 Corporate Services 7,236 6,992
2,659 Non significant activities 3,462 2,742
72,233 Total Operating Expenditure 80,777 79,812
Per Statement of Comprehensive Income:
34,222 “Other Expenses” 38,816 39,195
19,031 “Employee Expenses” 19,031 19,692
15,883 “Depreciation” 19,170 16,932
3,096 “Finance Costs” 3,760 3,993
72,233 80,777 79,812
129
129
Reconciliations from Cost of Service Statements to Statement of Comprehensive Income
4. Operating Expenditure
LTCCP Annual Plan LTCCP
2010/11 2009/10 2009/10
($,000) ($,000) ($,000)
Cost of Service Statements
- GAINS IN FAIR VALUE OF ASSETS
849 Investment 750 755
Cost of Service Statements
- GAINS FROM SALE OF ASSETS
0 Investment 0 9,007
849 Total Other Gains and Losses 750 9,762
849 “Other Gains and Losses” 750 9,762
130
Statement of Accounting Policies
Reporting Entity The financial statements are
presented in New Zealand dollars
Invercargill City Council (“the Council”) is a territorial local authority governed
and all values are rounded to the
Introduction
by the Local Government Act 2002.
nearest thousand dollars ($’000). The
functional currency of the Council is
The Council has not presented group prospective financial statements because
New Zealand dollars.
the Council believes that the parent prospective financial statements are more
relevant to the users. The main purpose of prospective financial statements in
The Council adopted the prospective
the Annual Plan is to provide users with information about core services that the
Council Activities
financial statements on
Council intends to provide ratepayers, the expected cost of those services and,
7 June 2011.
as a consequence, how much Invercargill City Council requires by way of rates
to fund the intended levels of service. The level of rates funding required is
The Council and management
not affected by subsidiaries, except to the extent that Invercargill City Council
of the Invercargill City Council
obtains distributions from, or further invests in, those subsidiaries. Such effects
accept responsibility for the
are included in the prospective financial statements presented.
preparation of their prospective
financial statements, including the
Organisations
The primary objective of the Council is to provide goods or services for the
Controlled
appropriateness of the assumptions
Council
community or social benefit rather than making a financial return. Accordingly,
underlying the prospective financial
the Council has designated itself and the group as public benefit entities for
statements and all other required
the purposes of New Zealand equivalents to International Financial Reporting
disclosures.
Standards (“NZ IFRS”).
No actual financial results have been
Fees & Charges
Basis of Preparation
incorporated within the prospective
The financial statements of the Council have been prepared in accordance with
financial statements.
the requirements of the Local Government Act 2002: Part 6, Section 93 and
Part 1 of Schedule 10, which includes the requirement to comply with New
Zealand generally accepted accounting practice (NZ GAAP).
These financial statements have been prepared in accordance with NZ GAAP. Management
They comply with NZ IFRS, and other applicable Financial Reporting Standards,
Financial
as appropriate for public benefit entities. The financial statements use opening
balances from the period ended 30 June 2010, estimates have been restated
accordingly if required.
The accounting policies set out below have been applied consistently to all
periods presented in these financial statements.
The financial statements have been prepared on a historical cost basis,
modified by the revaluation of land and buildings, certain infrastructural assets,
investment property, biological assets and financial instruments (including
derivative instruments).
131
131
Accounting Policies Sales of goods are recognised when a
product is sold to the customer. Sales
Foreign Currency Transactions
are usually in cash or by credit card.
Foreign currency transactions are translated into the functional currency using
The recorded revenue is the gross
the exchange rates prevailing at the dates of the transactions.
amount of the sale, including credit
card fees payable for the transaction.
Foreign exchange gains and losses resulting from the settlement of such
Such fees are included in other
transactions are recognised in the Statement of Comprehensive Income.
expenses.
Where a physical asset is acquired
Joint Ventures
for nil or nominal consideration the
Joint ventures are those entities over which the Council has joint control, fair value of the asset received is
established by contractual agreement. The consolidated financial statements recognised as revenue. Assets vested
include the Council’s proportionate share of the joint venture entities’ assets, in the Council are recognised as
liabilities, revenue and expenses with items of a similar nature on a line-by-line revenue when control over the asset
basis, from the date joint control commences until the date joint control ceases. is obtained.
Revenue Interest income is recognised using
Revenue is measured at the fair value of consideration received. the effective interest method.
Rates revenue Dividends are recognised when the
Rates are set annually by a resolution from Council and relate to a financial year. right to receive payment has been
All ratepayers are invoiced within the financial year to which the rates have been established.
set. Rates revenue is recognised when payable.
Construction Contracts
Other revenue Contract revenue and contract
Water billing revenue is recognised on an accrual basis. Unbilled usage, as a costs are recognised as revenue and
result of unread meters at year end, is accrued on an average usage basis. expenses respectively by reference
to the stage of completion of the
Traffic and parking infringements are recognised when tickets are issued. contract at balance date. The
stage of completion is measured
The Council receives government grants from the New Zealand Transport Agency, by reference to the contract costs
which subsidises part of the Council’s costs in maintaining the local roading incurred up to balance date as a
infrastructure. percentage of total estimated costs
for each contract.
The subsidies are recognised as revenue upon entitlement as conditions
pertaining to eligible expenditure have been fulfilled. Contract costs include all costs
directly related to specific contracts,
Revenue from the rendering of services is recognised by reference to the stage costs that are specifically chargeable
of completion of the transaction at balance date, based on the actual service to the customer under the terms
provided as a percentage of the total services to be provided. of the contract and an allocation
of overhead expenses incurred in
132
connection with the group’s construction activities in general. Deferred tax is the amount of income
tax payable or recoverable in future
An expected loss on construction contracts is recognised immediately as an periods in respect of temporary
Introduction
expense in the Statement of Comprehensive Income. differences and unused tax losses.
Temporary differences are differences
Where the outcome of a contract cannot be reliably estimated, contract costs are between the carrying amount of
recognised as an expense as incurred, and where it is probable that the costs will assets and liabilities in the financial
be recovered, revenue is recognised to the extent of costs incurred. statements and the corresponding
Council Activities
tax bases used in the computation of
Construction work in progress is stated at the aggregate of contract costs taxable profit.
incurred to date plus recognised profits less recognised losses and progress
billings. Deferred tax liabilities are generally
recognised for all taxable temporary
If there are contracts where progress billings exceed the aggregate costs incurred differences. Deferred tax assets
plus profits less losses, the net amounts are presented under other liabilities. are recognised to the extent that
it is probable that taxable profits
Organisations
Controlled
will be available against which the
Council
Borrowing Costs deductible temporary differences or
Borrowing costs are recognised as an expense in the period in which they are tax losses can be utilised.
incurred.
Deferred tax is not recognised if the
Grant Expenditure temporary difference arises from the
Fees & Charges
initial recognition of goodwill or from
Non-discretionary grants are those grants that are awarded if the grant
the initial recognition of an asset and
application meets the specified criteria and are recognised as expenditure when
liability in a transaction that is not a
an application that meets the specified criteria for the grant has been received.
business combination, and at the time
of the transaction affects neither
Discretionary grants are those grants where the Council has no obligation to
accounting profit nor taxable profit.
award on receipt of the grant application and are recognised as expenditure Management
when a successful applicant has been notified of the Council’s decision.
Deferred tax is recognised on
Financial
taxable temporary differences
arising on investments in subsidiaries
Income Tax
and associates, and interests in
Income tax expense in relation to the surplus or deficit for the period comprises
joint ventures, except where the
current tax and deferred tax.
company can control the reversal
of the temporary difference and
Current tax is the amount of income tax payable based on the taxable profit for
it is probable that the temporary
the current year, plus any adjustments to income tax payable in respect of prior
difference will not reverse in the
years.
foreseeable future.
Current tax is calculated using rates that have been enacted or substantively
Deferred tax is calculated at the tax
enacted by balance date.
rates that are expected to apply in
133
133
the period when the liability is settled or the asset is realised, using tax rates Financial Assets
that have been enacted or substantively enacted by balance date. Current tax The Council classifies its financial
and deferred tax is charged or credited to the Statement of Comprehensive assets into the following three
Income, except when it relates to items charged or credited directly to equity, in categories: available for sale
which case the tax is dealt with in equity. investments, loans and receivables
and financial assets at fair value
through surplus or deficit. The
Leases classification depends on the purpose
Finance leases for which the investments were
A finance lease is a lease that transfers to the lessee substantially all the acquired. Management determines
risks and rewards incidental to ownership of an asset, whether or not title is the classification of its investments
eventually transferred. at initial recognition and re-evaluates
this designation at every reporting
At the commencement of the lease term, the Council recognises finance leases date.
as assets and liabilities in the Statement of Financial Position at the lower of
the fair value of the leased item or the present value of the minimum lease Financial assets and liabilities are
payments. initially measured at fair value plus
transaction costs.
The amount recognised as an asset is depreciated over its useful life. If there is
The fair value of financial instruments
no certainty as to whether the Council will obtain ownership at the end of the
that are not traded in an active
lease term, the asset is fully depreciated over the shorter of the lease term and
market is determined using valuation
its useful life.
techniques. The Council uses a
variety of methods and makes
Operating leases
assumptions that are based on market
An operating lease is a lease that does not transfer substantially all the risks and
conditions existing at each balance
rewards incidental to ownership of an asset. Lease payments under an operating
date.
lease are recognised as an expense on a straight-line basis over the lease term.
Quoted market prices or dealer
quotes for similar instruments are
Inventories
used for long-term debt instruments
Inventories (such as spare parts and other items) held for distribution or held. Other techniques, such as
consumption in the provision of services that are not supplied on a commercial estimated discounted cash flows, net
basis are measured at the lower of cost and current replacement cost. asset backing, are used to determine
fair value for the remaining financial
Inventories held for use in the production of goods and services on a commercial instruments.
basis are valued at the lower of cost and net realisable value. The cost of
purchased inventory is determined using the FIFO method. The three categories of financial
assets are:
The write down from cost to current replacement cost or net realisable value is » Loans and receivables
recognised in the Statement of Comprehensive Income. These are non-derivative
financial assets with fixed or
determinable payments that are
134 not quoted in an active market.
After initial recognition they are measured at amortised cost using the Non-current assets held for sale
effective interest method. Gains and losses when the asset is impaired Non-current assets held for sale are
or derecognised are recognised in the Statement of Comprehensive classified as held for sale if their
Introduction
Income. carrying amount will be recovered
principally through a sale transaction,
Loans and receivables are classified as “trade and other receivables” in not through continuing use. Non-
the Statement of Financial Position. current assets held for sale are
measured at the lower of their
Council Activities
Investments in this category include fixed term deposits and loans to carrying amount and fair value less
associates. costs to sell.
» Financial assets at fair value through Surplus or Deficit Impairment of Financial Assets
This category has two sub-categories: financial assets held for trading, and At each balance sheet date the
those designated at fair value through surplus or deficit at inception. A Council assesses whether there is any
financial asset is classified in this category if acquired principally for the objective evidence that a financial
purpose of selling in the short term or if so designated by management. asset or group of financial assets
Organisations
Controlled
Derivatives are also categorised as held for trading unless they are is impaired. Any impairment losses
Council
designated as hedges. Assets in this category are classified as current are recognised in the Statement of
assets if they are either held for trading or are expected to be realised Financial Performance.
within 12 months of the balance sheet date. After initial recognition they
are measured at their fair values. Gains or losses on remeasurement are Financial Instruments
recognised in the Statement of Comprehensive Income. »
Fees & Charges
Trade and other receivables
Trade and other receivables are
» Available for sale investments initially measured at fair value
Available for sale investments are those that are designated as being held to and subsequently measured
maturity or are not classified in any of the other categories above. at amortised cost using the
effective interest method, less
This category encompasses investments that the Council intends to
any provision for impairment.
hold long-term but which may be realised before maturity. After initial
Loans, including loans to
Management
recognition these investments are measured at their fair value.
Financial
community organisations made
by the Council at nil, or below-
Gains and losses are recognised directly in equity except for impairment losses,
market interest rates are initially
which are recognised in the Statement of Comprehensive Income. In the event
recognised at the present value
of impairment, any cumulative losses previously recognised in equity will be
of their expected future cash
removed from equity and recognised in the Statement of Financial Performance
flows, discounted at the current
even though the asset has not been derecognised. Investments in this category
market rate of return for a
include shares in Local Government Insurance Corporation.
similar asset/investment. They
are subsequently measured at
Shareholdings that Invercargill City Council holds for strategic purposes
amortised cost using the
Invercargill City Council’s investments in its subsidiaries and associate companies
effective interest method. The
are not included in this category as they are held at cost (as allowed by NZ IAS
difference between the face
27 Consolidated and Separate Financial Statements and NZ IAS 28 Investments in
value and present value of
Associates) whereas this category is to be measured at fair value.
135
135
expected future cash flows of the loan is recognised in the Statement of Cash flow hedge
Comprehensive Income as a grant. Changes in the fair value of the
derivatives hedging instruments
A provision for impairment of receivables is established when there designated as a cashflow hedge are
is objective evidence that the Council will not be able to collect all recognised directly in equity to the
amounts due according to the original terms of receivables. extent that the hedge is effective.
To the extent that the hedge is
The amount of the provision is the difference between the asset’s ineffective, changes in fair value are
carrying amount and the present value of estimated future cash flows, recognised in profit or loss.
discounted using the effective interest method.
If a hedge of a forecast transaction
» Cash and cash equivalents subsequently results in the
Cash and cash equivalents includes cash in hand, deposits held at call recognition of a financial asset or
with banks, other short-term highly liquid investments with original a financial liability, the associated
maturities of three months or less, and bank overdrafts. gains or losses that were recognised
Bank overdrafts are shown separately in current liabilities in the directly in equity will be reclassified
Statement of Financial Position. into profit or loss in the same period
or periods during which the asset
» Borrowings acquired or liability assumed affects
Borrowings are initially recognised at their fair value, net of any profit or loss.
transaction costs incurred. After initial recognition, all borrowings are
measured at amortised cost using the effective interest method. However, if Invercargill City Council
Borrowings are classified as current liabilities unless Council has an expects that all or a portion of a loss
unconditional right to defer settlement of the liability at least 12 recognised directly in equity will not
months after the balance date. be recovered in one or more future
periods, it will reclassify into profit or
» Trade and other payables loss the amount that is not expected
Trade and other payables are initially measured at fair value, and to be recovered.
subsequently measured at amortised cost using the effective interest
method. When a hedge of a forecast
transaction subsequently results in
» Accounting for derivative financial instruments and hedging activities the recognition of a non-financial
The Council uses derivative financial instruments to hedge exposure to asset or a non-financial liability, or
interest rate risks arising from financing activities. In accordance with a forecast transaction for a non-
its treasury policy, the Council does not hold or issue derivative financial financial asset or non-financial
instruments for trading purposes. liability becomes a firm commitment
for which fair value hedge accounting
Derivatives are initially recognised at fair value on the date a derivative is applied, then the associated gains
contract is entered into and are subsequently remeasured at their fair and losses that were recognised
value at each balance date. However, where derivatives qualify for directly in equity will be included in
hedge accounting, recognition for any resultant gain or loss depends on the initial cost or carrying amount of
the nature of the hedging relationship. the asset or liability.
136
For cash flow hedges other than those covered above, amounts that had been Disposals
recognised directly in equity will be recognised in profit or loss in the same
Gains and losses on disposals are
period or periods during which the hedged forecast transaction affects profit or
Introduction
determined by comparing the
loss (for example, when a forecast sale occurs).
proceeds with the carrying amount
of the asset. Gains and losses
If the hedging instrument no longer meets the criteria for hedge accounting,
on disposals are included in the
expires or is sold, terminated or exercised, then hedge accounting is discontinued
Statement of Comprehensive Income.
prospectively. The cumulative gain or loss previously recognised in equity
When revalued assets are sold, the
Council Activities
remains there until the forecast transaction occurs.
amounts included in asset revaluation
reserves in respect of those assets are
The amount recognised in equity is transferred to surplus or deficit in the same
transferred to retained earnings.
period that the hedged item affects the surplus or deficit.
Subsequent Costs
Property, Plant and Equipment
Costs incurred subsequent to initial
Organisations
Property, plant and equipment consists of:
acquisition are capitalised only
Controlled
Council
when it is probable that future
Operational assets - These include land, buildings, library books, plant and
economic benefits or service potential
equipment, and motor vehicles.
associated with the item will flow to
the Council and the cost of the item
Restricted assets - Restricted assets are parks and reserves owned by the
can be measured reliably.
Fees & Charges
Council which provide a benefit or service to the community and cannot be
disposed of because of legal or other restrictions.
Depreciation
Infrastructure assets - Infrastructure assets are the fixed utility systems owned
Depreciation is provided on a
by the Council. Each asset class includes all items that are required for the
straight-line basis on all property,
network to function, for example, sewer reticulation includes reticulation piping
plant and equipment other than
and sewer pump stations.
land, at rates that will write off the Management
cost (or valuation) of the assets to
Financial
Property, plant and equipment is shown at cost or valuation, less accumulated
their estimated residual values over
depreciation and impairment losses.
their useful lives. The useful lives
and associated depreciation rates
of major classes of assets have been
Additions
estimated as follows:
The cost of an item of property, plant and equipment is recognised as an asset
if, and only if, it is probable that future economic benefits or service potential
associated with the item will flow to the Council and the cost of the item can be
measured reliably. In most instances, an item of property, plant and equipment
is recognised at its cost. Where an asset is acquired at no cost, or for a nominal
cost, it is recognised at fair value as at the date of acquisition.
137
137
(a) Building
Parent
- Structures 3% SL
- Roof 2.5% SL
- Electrical 2.22% SL
- Plumbing 2.22% SL
- Internal Fitout 2.86% SL
- Plant 3.33% SL
(b) Furniture and Fittings 6.7% - 50% DV
(c) Office equipment 14.4% - 60% SL/DV
(d) Infrastructural Assets
Bridges 1% - 2% DV
Traffic Signals 2.6% - 12.6% DV
Footpaths and Crossings 6.6% - 12% DV
Roads
- Formation 0%
- Shoulders and Pavements 1.25% - 2.65% DV
- Top Surface 15.42% DV
Drainage and Stormwater
- System 1% - 2% DV
- Plant 6.67% DV
- Buildings 1% - 2% DV
Water
- System 2.8% - 3.8% SL
- Plant 3.4% DV
(e) - Plant 5% - 50% SL/DV
- Tools 10% SL
(f) Motor Vehicles 10% - 31.2% DV
(g) Library Collections 6.67% - 50% SL
The non fiction collection is not depreciated.
The residual value and useful life of an asset is reviewed, and adjusted if
applicable, at each financial year end.
138
Revaluation Any subsequent increase on
Those asset classes that are revalued are valued on a valuation cycle as described revaluation that offsets a previous
decrease in value recognised in
Introduction
below on the basis described below. All other asset classes are carried at
depreciated historical cost. the Statement of Comprehensive
Income will be recognised first in
The carrying values of revalued items are reviewed at each balance date to the Statement of Comprehensive
ensure that those values are not materially different to fair value. Income up to the amount previously
expensed, and then credited to the
Council Activities
revaluation reserve for that class of
Valuation asset.
All assets are valued at historic cost less accumulated depreciation and
impairment costs, except the following:
Intangible Assets
» Operational land and buildings have been valued at fair value.
Valuations are completed three yearly. Software
» Investment land and buildings have been valued annually at net Intangible assets that are acquired
Organisations
realisable value. Any adjustment to the values has been accounted for which have finite useful lives are
Controlled
measured at cost less accumulated
Council
as an increase (decrease) in the Statement of Comprehensive Income.
» Restricted land and buildings have been valued at net current value as at amortisation and accumulated
30 June 1992. impairment losses.
» Library collections are valued at depreciated replacement cost.
Valuations are completed three yearly. Amortisation is charged to the
Fees & Charges
» Infrastructural assets statement of performance on a
Land under Roads straight-line basis over the estimated
Land under roads has been valued at deemed cost. Deemed cost is the useful economic lives of the
fair value being the current valuation at 30 June 2005. intangible assets. The amortisation
Roads and Bridges rates for the current period are as
Roads and bridges are valued at depreciated replacement cost. follows:
Valuations are completed three yearly.
Software 40-48%SL/DV
Management
Stormwater, Waste Water and Water Systems
Financial
Assets are valued at depreciated replacement cost. Valuations are
completed three yearly.
Accounting for revaluations Forestry Assets
The Council accounts for revaluations of property, plant and equipment on a class Forestry assets are independently
of asset basis. revalued annually at fair value less
estimated point of sale costs. Fair
The results of revaluing are credited or debited to an asset revaluation reserve value is determined based on the
for that class of asset. Where this results in a debit balance in the asset present value of expected net cash
revaluation reserve, this balance is expensed in the Statement of Comprehensive flows discounted at a current market
Income. determined pre-tax rate.
139
139
Gains or losses arising on initial recognition of biological assets at fair value less For revalued assets the impairment
estimated point of sale costs and from a change in fair value less estimated point loss is recognised against the
of sale costs are recognised in the Statement of Comprehensive Income. revaluation reserve for that class of
asset. Where that results in a debit
The costs to maintain the forestry assets are included in the Statement of balance in the revaluation reserve,
Comprehensive Income. the balance is recognised in the
Statement of Comprehensive Income.
Investment Property For assets not carried at a revalued
Properties leased to third parties under operating leases are classified as amount, the total impairment loss
investment property unless the property is held to meet service delivery is recognised in the Statement of
objectives, rather than to earn rentals or for capital appreciation. Comprehensive Income.
Investment property is measured initially at its cost, including transaction costs.
The reversal of an impairment loss
on a revalued asset is credited to the
After initial recognition, the Council measures all investment property at fair revaluation reserve.
value as determined annually by an independent valuer.
However, to the extent that an
Gains or losses arising from a change in the fair value of investment property are impairment loss for that class of asset
recognised in the Statement of Comprehensive Income. was previously recognised in the
Statement of Comprehensive Income,
a reversal of the impairment loss is
Impairment of Non-Financial Assets also recognised in the Statement of
Comprehensive Income.
Non-financial assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment. Assets that have a
For assets not carried at a revalued
finite useful life are reviewed for impairment whenever events or changes in
amount (other than goodwill) the
circumstances indicate that the carrying amount may not be recoverable. An
reversal of an impairment loss is
impairment loss is recognised for the amount by which the asset’s carrying
recognised in the Statement of
amount exceeds its recoverable amount. The recoverable amount is the higher
Comprehensive Income.
of an asset’s fair value less costs to sell and value in use.
Value in use is depreciated replacement cost for an asset where the future
Employee Benefits
economic benefits or service potential of the asset are not primarily dependent
on the asset’s ability to generate net cash inflows and where the entity would, if Short-term benefits
deprived of the asset, replace its remaining future economic benefits or service Employee benefits that the Council
potential. expects to be settled within 12
months of balance date are measured
The value in use for cash-generating assets is the present value of expected at nominal values based on accrued
future cash flows. entitlements at current rates of pay.
If an asset’s carrying amount exceeds its recoverable amount the asset is These include salaries and wages
impaired and the carrying amount is written down to the recoverable amount. accrued up to balance date, annual
140
leave earned to, but not yet taken at balance date, retiring and long service current market assessments of
leave entitlements expected to be settled within 12 months, and sick leave. the time value of money and the
risks specific to the obligation. The
Introduction
Long-term benefits increase in the provision due to the
Long service leave and retirement leave passage of time is recognised as an
Council’s net obligation in respect of long-term employee benefits other than interest expense.
pension plans is the amount of future benefit that employees have earned in
return for their service in the current and prior periods; that benefit is discounted Landfill Post Closure Costs
Council Activities
to determine its present value. The Council has a legal obligation
under the Resource Consent to
The discount rate is the yield at the reporting date on AA credit-rated bonds provide ongoing maintenance and
that have maturity dates approximating the terms of Council’s obligations. The monitoring services at the landfill
calculation is performed using the projected unit credit method. Any actuarial site after closure. A provision for
gains or losses are recognised in surplus or deficit in the period in which they post closure costs is recognised as a
arise. liability when the obligation for post
Organisations
closure arises.
Controlled
Superannuation schemes
Council
Defined contribution schemes: The provision is measured based
Obligations for contributions to defined contribution superannuation schemes are on the present value of future cash
recognised as an expense in the Statement of Comprehensive Income as incurred. flows expected to be incurred, taking
into account future events including
Defined benefit schemes:
Fees & Charges
new legal requirements and known
The Council belongs to the Defined Benefit Plan Contributors Scheme (the improvements in technology. The
scheme), which is managed by the Board of Trustees of the National Provident provision includes all costs associated
Fund. The scheme is a multi-employer defined benefit scheme. with landfill post closure. The
discount rate applied is 7% which
Insufficient information is available to use defined benefit accounting, as it is not represents the risk free discount rate.
possible to determine from the terms of the scheme, the extent to which the
surplus/deficit will affect future contributions by individual employers, as there
Management
is no prescribed basis for allocation. The scheme is therefore accounted for as a Borrowings
Financial
defined contribution scheme.
Borrowings are initially recognised
at their fair value. After initial
recognition, all borrowings are
Provisions
measured at amortised cost using the
The Council recognises a provision for future expenditure of uncertain amount or effective interest method.
timing when there is a present obligation (either legal or constructive) as a result
of a past event, it is probable that expenditures will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of the expenditures expected to
be required to settle the obligation using a pre-tax discount rate that reflects
141
141
Equity Critical Accounting Estimates
Equity is the community’s interest in the Council and is measured as the and Assumptions
difference between total assets and total liabilities. Equity is disaggregated and In preparing these financial
classified into a number of reserves. statements Invercargill City Council
The components of equity are: has made estimates and assumptions.
» Retained earnings. These estimates and assumptions may
» Council reserves (includes sinking funds, special reserves and differ from the subsequent actual
endowment reserves). results. Estimates and assumptions
» Fair value and hedging reserves. are continually evaluated and are
» Asset revaluation reserves. based on historical experience and
other factors, including expectations
or future events that are believed
Goods and Services Tax (GST) to be reasonable under the
All items in the financial statements are stated exclusive of GST, except for circumstances. The estimates and
receivables and payables, which are stated on a GST inclusive basis. Where GST assumptions that have a significant
is not recoverable as input tax then it is recognised as part of the related asset or risk of causing a material adjustment
expense. to the carrying amounts of assets and
liabilities within the next financial
The net amount of GST recoverable from, or payable to, the Inland Revenue year are discussed below:
Department (IRD) is included as part of receivables or payables in the Statement
of Financial Position.
Properties
Invercargill City Council owns a
The net GST paid to, or received from, the IRD including the GST relating to
number of properties, which are
investing and financing activities, is classified as an operating cash flow in the
maintained primarily to provide
Statement of Cash Flows.
housing to pensioners. The receipt
of market-based rental from these
Commitments and contingencies are disclosed exclusive of GST.
properties is incidental to holding
these properties. These properties
are held for service delivery
Cost Allocation
objectives as part of Invercargill
The Council has derived the cost of service for each significant activity of the
City Council’s social housing policy.
Council using the cost allocation system outlined below.
These properties are accounted for as
property, plant and equipment.
Direct costs are those costs directly attributable to a significant activity. Indirect
costs are those costs, which cannot be identified in an economically feasible
manner, with a specific significant activity. Infrastructural Assets
There are a number of assumptions
Direct costs are charged directly to significant activities. Indirect costs are and estimates used when performing
charged to significant activities using appropriate cost drivers such as actual DRC valuations over infrastructural
usage, staff numbers and floor area. assets. These include:
142
» The physical deterioration and condition of an asset, for example the
Council could be carrying an asset at an amount that does not reflect its
actual condition. This is particularly so for those assets which are not
Introduction
visible, for example stormwater, waste water and water supply pipes
that are underground. This risk is minimised by Council performing a
combination of physical inspections and condition modelling assessments
of underground assets;
» Estimating any obsolescence or surplus capacity of an asset; and
Council Activities
» Estimates are made when determining the remaining useful lives over
which the asset will be depreciated.
These estimates can be impacted by the local conditions, for
example weather patterns and traffic growth. If useful lives do not
reflect the actual consumption of the benefits of the asset, then
Invercargill City Council could be over or under estimating the annual
depreciation charge recognised as an expense in the Statement of
Financial Performance. To minimise this risk Invercargill City Council’s
Organisations
Controlled
infrastructural assets’ useful lives have been determined with reference
Council
to the NZ Infrastructural Asset Valuation and Depreciation Guidelines
published by the National Asset Management Steering Group, and have
been adjusted for local conditions based on past experience. Asset
inspections, deterioration and condition modelling are also carried out
regularly as part of the Invercargill City Council’s asset management
Fees & Charges
planning activities, which gives Invercargill City Council further
assurance over its useful life estimates. Experienced independent
valuers review the Council’s infrastructural asset revaluations.
Prospective Financial Information
The financial information contained within this document is prospective financial
information in terms of accounting standard FRS42 and complies with this
Management
Financial
standard. The purpose for which it has been prepared is to enable ratepayers,
residents and any other interested parties to obtain information about the
expected future financial performance, position and cash flow of the Invercargill
City Council. The actual results achieved for any particular financial year are
also likely to vary from the information presented and may vary materially
depending on the circumstances that arise during the period. Estimates and
judgements are continually evaluated and are based on historical experience
and other factors, including expectation of future events that are believed to be
reasonable under the circumstances.
Changes in Accounting Policies
There have been no changes to accounting policies.
143
143
Funding Impact Statement
LTCCP Annual Plan LTCCP
2010/11 2011/12 2011/12
($,000) ($,000) ($,000)
Funding
20,065 Fees and Charges 22,403 20,522
867 Interest 946 1,038
2,900 Dividends 3,450 3,300
0 Gain on sale of assets 0 9,007
8,130 Borrowing 7,732 10,544
99 Proceeds from Asset Sales 88 2,315
7,905 Grants and Subsidies 7,028 8,375
5,865 General Rates 6,488 5,833
36,529 Targeted Rates 36,201 37,924
14,962 Transfers from Special Reserves - Depreciation 18,237 15,991
2,604 Transfers from Reserves 5,958 2,957
99,924 Total Funding 108,531 117,806
Expenditure
53,253 Operating Costs 57,847 58,888
3,096 Interest 3,760 3,993
15,883 Depreciation 19,170 16,932
21,457 Capital Expenditure 22,894 22,254
1,949 Loan Repayments 2,380 11,344
4,285 Transfers to Reserves 2,479 4,395
99,924 Total Expenditure 108,531 117,806
144
Rating
This Rating Policy should be read in conjunction with the Revenue and Financing
Introduction
Policy and the funding principles included in this Plan. Figures in this Policy are
inclusive of GST. The 2010/11 rate amounts are shown at 15% GST.
The following rates will be set by Council for the financial year commencing 1 July
2011 and ending 30 June 2012.
Council Activities
Shown below are the details for each of the rates to be set for each financial year.
All rates set by way of a rate in the dollar are based on Capital Value.
Differentials Applied In Setting General And Targeted Rates
In order to maintain an equitable rating impact and preserve the relationship which
exists between residential, rural, commercial, utilities and large industrial rating
units, differentials have been applied to the residential rating unit base rate, as
Organisations
Controlled
follows:
Council
General Rate %
Residential Base Rate 100.00
Residential – Home Business Base Rate + 20.00
Residential – Multi Units For the first unit Base Rate 100.00
Fees & Charges
For each additional unit Base Rate - 50.00
Commercial Base Rate + 20.00
Industrial Base Rate + 10.00
Rural – Farming Base Rate - 55.00
Management
Financial
The General Rate is to fund the activities of Environmental Health, Building
Consents, Emergency Services, Grants, Total Mobility, Civic Theatre, Democratic
Process and 10% of both Street Lighting and Footpaths. It is based on the Capital
Value of that Rating Unit. This is the Base Rate.
Differentials will be applied to the General Rate as outlined above. No Uniform
Annual General Charge is applied.
Targeted Rates
2011/12 2010/11
General Base Rate 0.00112565 / $ 0.00100532 / $
145
145
(a) Targeted Rates Payable on All Rating Units
The following rates are payable on all rateable land by applying a rate in the
dollar based on the Capital Value of the Rating Unit and are subject to the
differentials as outlined:
» Resource Management Rate is to fund the function of Resource
Management.
» Roading Rate is to fund the provision of Roading Services.
» Parks and Reserves Rate is to fund provision of Parks and Reserves in the
district.
» Cemeteries Rate is to fund the operation of Council’s Cemeteries.
» Pools Rate is to fund provision of Aquatic Facilities in the district.
2011/12 2010/11
Resource Management Base Rate 0.00021193 / $ 0.00018620 / $
Roading Base Rate 0.00081658 / $ 0.00081138 / $
Parks and Reserves Base Rate 0.00082806 / $ 0.00083863 / $
Cemeteries Base Rate 0.00003862 / $ 0.00004146 / $
Pools Base Rate 0.00027199 / $ 0.00027625 / $
The following rates are set on all rating units by applying a fixed charge with
differentials applied as outlined above:
» Libraries Rate is to fund provision of Library Services in the district.
» Regional Heritage Rate is to fund Council’s contribution to the operation
of Southland Museums.
2011/12 2010/11
Libraries Base Rate $170.13 $171.02
Regional Heritage Base Rate $29.89 $29.45
The following rate applies to those rating units which have a land use as shown in
the Rating Information Database of Commercial or Industrial only. This differential
has the objective of applying a nil rate to all other categories of land use. The rate
is detailed below:
» Economic Development Rate is to fund economic, sporting and cultural
development initiatives.
2011/12 2010/11
Economic Development Base Rate 0.00004909 / $ 0.00004942 / $
» Vibrant Invercargill Rate (Map H) 2011/12 2010/11
Vibrant Invercargill Base Rate 0.00016188 / $ 0.00016509 / $
146
(b) Targeted Rates Payable by Groups of Ratepayers
Payable by Ratepayers Within a Specified Location
Introduction
The following rates are payable on all rateable land within a specified location. A
general description of the area is given in each case. Maps defining the areas are
attached as Maps A - G.
(1) Rateable Land Within the Invercargill City and Bluff Urban Areas
(Map A). These targeted rates will be set for each rating unit by
Council Activities
applying a rate in the dollar based on the Capital Value of the Rating
Unit. Differentials will be applied to these targeted rates as outlined
earlier. 90% of the rates for footpaths and street lighting will be
targeted and 10% general rate.
» Footpaths Rate to fund provision of footpaths in the Invercargill City
and Bluff areas.
» Street Lighting Rate to fund provision of street lighting in Invercargill
City and Bluff.
Organisations
2011/12 2010/11
Controlled
Council
Footpaths Base Rate 0.00033052 / $ 0.00031566 / $
Street Lighting Base Rate 0.00009867 / $ 0.00009987 / $
(2) Rateable Land within the Invercargill City Area Only (Map B). This
targeted rate will be set for each rating unit by applying a rate in the
Fees & Charges
dollar based on the Capital Value of the Rating Unit. Differentials will
be applied to these targeted rates as outlined above.
» Transport Rate to fund the cost of subsidised passenger transport in
the Invercargill City area.
2011/12 2010/11
Transport Base Rate 0.00017166 / $ 0.00017561 / $ Management
Financial
(3) Rateable Land Within the Makarewa Drainage Area (Map C). The
Makarewa targeted drainage rate will be set for each rating unit on a
fixed charge per rating unit basis.
» Drainage - Makarewa Rate to fund costs in the Makarewa Drainage
area.
2011/12 2010/11
Drainage Makarewa Base Rate $79.63 $64.00
147
147
(4) Rateable Land Within the Myross Bush Drainage Area (Map D). The
Myross Bush targeted drainage rate will be set for each rating unit on a
fixed charge per rating unit basis.
» Drainage – Myross Bush Rate to fund costs in the Myross Bush Drainage
area.
2011/12 2010/11
Drainage Myross Bush Base Rate $74.36 $70.36
(5) Rateable Land Within the Specified Locations for Community Centres
(Map E). These targeted rates will be set for each rating unit on a
fixed charge per rating unit basis to fund the cost of operating a
Community Centre in each location.
» Community Centre - Makarewa Rate
» Community Centre - Myross Bush Rate
» Community Centre - Awarua Rate
» Community Centre - Otatara Rate
» Town Hall - Bluff Rate
2011/12 2010/11
Community Centre – Makarewa Base Rate $10.22 $10.22
Community Centre – Myross Bush Base Rate $30.66 $30.67
Community Centre – Awarua Base Rate $20.45 $20.45
Community Centre – Otatara Base Rate $6.00 $5.75
Bluff Town Hall Base Rate $6.34 $6.37
(6) Rateable Land Within the Bluff Ward (Map F). This targeted rate will
be set for all rateable land by applying a rate in the dollar based on the
Capital Value of the Rating Unit. Differentials will be applied to this
rate as outlined above.
» Community Board – Bluff Rate to fund costs within the Bluff
Community Board
2011/12 2010/11
Bluff Community Board Base Rate 0.00035230 / $ 0.00035330 / $
(7) Land Within the Redmayne Road Drainage District (Map G).
Drainage Rate - Redmayne Road to fund drainage operational costs.
2011/12 2010/11
Drainage Redmayne Road Base Rate $75.47 $81.75
148
(c) Targeted Rates Payable Where a Service is Provided or Available for
Provision by Council
Introduction
The following rates are payable on all rateable land where the service
is provided or available to be provided. In the provision of water,
sewerage and refuse disposal services these rates also apply to those
non-rateable rating units as specified in Section 9 and Parts 1 and 2
of Schedule 1, Local Government (Rating) Act 2002. There are two
Council Activities
categories for each rate – Residential and Non-Residential.
Non-residential means rateable land included in the Rating Information
Database as rating units being used for Commercial, Industrial or
Other purposes. Rest Homes, Hospitals, Schools, Kindergartens and
Playcentres, Halls, Services and Sports facilities are included in the
Non-residential category.
Organisations
Controlled
2011/12 2010/11
Council
Water Base Rate $286.99 $282.43
Sewerage Base Rate $207.96 $200.36
Drainage Base Rate $92.95 $94.63
Fees & Charges
The following differentials will be applied to these targeted rates:
» Water – those rating units designated Residential will meet 84% of the
total Water rate. Non-residential rating units will meet 16%.
» Sewerage – those rating units designated Residential will meet 75% of
the total Sewerage rate. Non-residential rating units will meet 25%.
» Drainage – those rating units designated Residential will meet 75% of the
total Drainage rate. Non-residential rating units will meet 25%.
Management
» All rateable land designated Residential will be set a fixed charge for
Financial
each of the water, sewerage and drainage rates.
» Vacant rating units which are able to be connected to a Water, Sewerage
or Drainage system but have not been connected will be charged half
the amount of the above charge.
» All rateable land designated as Non-residential will be set a fixed charge
for each of the water, sewerage and drainage rates based on a range of
capital values as follows:
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149
Group %
A Less Than $50,000 = Base Fixed Charge - 20
B From $50,001 - $100,000 = Base Fixed Charge
C $100,001 – $200,000 = Base Fixed Charge + 20
D $200,001 – $400,000 = Base Fixed Charge + 40
E $400,001 – $1,000,000 = Base Fixed Charge + 100
F $1,000,001 – $3,000,000 = Base Fixed Charge + 200
G $3,000,001 – $5,000,000 = Base Fixed Charge + 300
H $5,000,001 + = Base Fixed Charge + 400
Refuse Collection Rate is to fund the provision of refuse removal and kerbside
recycling services in the serviced area. This targeted rate will be set by applying
a fixed change for each rate on all rateable land within the serviced area which
receives or is able to receive the service. The General Waste Management Rate is
17% of the total solid waste service cost and is the education and administration
service provided to all ratepayers. This rate is borne by all ratepayers.
Differentials will be applied to these targeted rates as outlined above. Each
additional wheelie bin provided for refuse or recycling costs $150 per annum.
Additional Rating Policies
In addition to the policy and method of collecting rates as outlined above the
following additional policies will also be applied.
2011/12 2010/11
Refuse Collection Base Rate $172.28 $110.70
Recycling Base Rate $0.00 $71.86
Additional Wheelie Bin $150.00 $0
General Waste Management Rate $30.97 $0
Rating of Utilities
Utilities as specified in the Rating Information Database will be charged only the
following rates:
» General Rate
» Resource Management Rate
» Roading Rate
» Parks and Reserves Rate
» Cemeteries Rate
» Libraries Rate
» Pools Rate
» Regional Heritage Rate
All utilities are rated as industrial properties at their full capital value.
150
Rating of Non-Rateable Land
Rating Units which are deemed to be non-rateable under the Local Government
(Rating) Act 2002 will be rateable for water, sewerage and refuse collection
Introduction
where these services are provided (Section 9 of that Act).
These rating units will be assessed in the same manner as other ratepayers and
according to their Residential or Non-residential status. Churches, community
groups, residential homes and pensioner housing will be classified as Residential
Council Activities
for this purpose. All other non-rateable rating units will be classified as
Non-residential.
Water Charge
Water user charges based on metered consumption may also be made for water
consumed by rating units, other than private residential rating units. This
targeted rate will be charged by invoice, on a three monthly basis.
Organisations
Controlled
Industrial
Council
The maxiumum value on which an industrial property is rated is $15,000,000.
Fees & Charges
Management
Financial
151
151
Total Rates to be Collected
Note: All 2010/11 are stated at 15% GST for the whole year.
2011/12 2010/11
GST inclusive GST inclusive
$ $
General Rate 7,461,609 6,562,569
Resource Management 1,404,788 1,215,451
Roading 5,412,857 5,296,534
Parks and Reserves 5,488,985 5,474,363
Cemeteries 255,983 270,604
Libraries 4,176,548 4,176,479
Pools 1,802,937 1,803,335
Regional Heritage 700,458 714,081
Footpaths 1,691,780 1,596,285
Street Lighting 504,881 504,881
Transport 864,288 873,501
Sewerage 5,616,315 5,383,699
Drainage 2,481,339 2,572,806
Drainage Makarewa 12,662 10,110
Myross Bush 8,998 8,443
Redmayne Road 2,415 2,616
Refuse Collection 3,617,951 2,324,866
Recycling 0 1,494,282
Waste Minimisation Fee 741,026 0
Water 6,573,214 6,442,322
Economic Development 63,250 63,250
Vibrant 92,000 92,000
Community Centre Awarua 2,331 2,187
Makarewa 1,758 1,758
Myross Bush 15,698 12,819
Otatara 7,555 6,905
Bluff Town Hall 8,183 8,144
Bluff Community Board 82,455 81,765
Net Rates 49,092,264 46,936,055
152
Makarewa
Introduction
Lorneville
Makarewa River
Myro ss Creek
West Plains
Myross Bush
Rive r
Waih op ai
Council Activities
Waikiwi Stream
Kennington
INVERCARGILL Otepuni Creek
Otatara Kingswell Creek
Oreti Waimatua
Beach
Organisations
Controlled
Council
Waimatua or Duck Creek
Oreti River
Woodend Motu Rimu
New River Estuary
M
M
ok
Sandy
ko
tu
Point
au
St
S
Fees & Charges
Awarua
re
am
Wa
ip a
ka
Omaui C re
ek
Island
Awarua Plains
Omaui
Mokomoko
Inlet
Greenhills Muddy
Creek
Colyers Island
Management
Awarua Bay
Financial
Tikore
Island
Greenpoint Bluff Harbour
Ocean
Beach
Tiwai
Point
Bluff
Stirling
Bluff Hill Point
Legend Motupohue
Urban Rateable Land
District Boundary
Roads
Railway
Dog Island
Map A
Urban Rateable Land - Invercargill and Bluff
±
Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2009
Authorative Owner. E & O.E
153
153
NORTH RD
STEEL RD WEST PLAIN S RD
BAINF IELD RD
B
BA
IN
FIE
F
LD
RD
NORTH RD
QUEEN
QUEEN S DRV
Y RD
BA
LAYAR D ST
HERBE RT ST
HERBE RT ST
RA
AC
EC
OU
QUEEN S DRV
UR
ST
S
EW
ER
R
ND
KELVIN ST
A D
ST TR
D
DEE ST
DEE ST
S
EA
D
AR
TA R
ST
OT A
W
O
RR
YA
AVE
VIC TOR IA GALA ST Y ST
TA
YARROW ST
RO
OC
KD
AL
ING
L ER
BOND ST
LE W
E
D
LI ND
N
OO
TAY ST
RD
ISFA
DR
D
IK A
AM
ER
D
OT
R
NE S
E T
Invercargill Airport
TWEED ST
TWEED ST
MORT ON ST
CENTR E ST
CLYDE ST
ST
ELLES RD
ST
E AD
ST
ST
SATUR N ST
T
EN
G
RE
TRAMW AY RD
TRAMWAY RD
MO
UL
DUNNS RD SO
N
ELIZABETH ST ST
ROCK DALE RD
MCQUARRIE ST
DALE
SC
O TT
ELLES RD
ST
BL
LU
FF
HW
Y
GO
RG
ER
O AD
-IN V
ER
CA
RG
IL LH
WY
BOUN DARY RD
Legend
Transport Rateable Land
BL
B
U FF
District Boundary
HW
Y
Road
State Highway
Railway
Map B
Transport Rateable Land Information shown is the currently
±
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2009
Authorative Owner. E & O.E
154
ORION RD WEST ORION RD EAST
283 269 257 253 223 201 185 173 171 157
317 217 183
Introduction
- 233
1927
1932 1931
142 143
143
1943 139
1938 136 139
123
1946A 1946* 1953
127
128 124
1954* 1957 119
118
1959
117
Council Activities
1964
1965 115
110
112
1970 1977 101
108
1984 1981 93
96
1986 1985
1990
ACTAEON RD
MINERVA RD
CALYPSO RD
1993 89
1992 - 1996 109 115 127 131 143 153 159 165 167 181*
1 11 21 33 39 1998 1997 63 73 77 101 107
FLORA RD WEST FLORA RD EAST
2 12 22 28 32 36 42 56 - 64 66 84 106 116 124 130 144 154 164 168 172 188
30 34 2006
26 2013
Organisations
2019
Controlled
2022 59 158 61
Council
55
2027
WINTON-LORNEVILLE HWY
51
48 2030
48
44 2034
2039
40 38
42
30 2041 31 36
2044
47
2048 2051 22
26
Fees & Charges
2060 2057 15
20
15 2064
MOIR ST
13 2066
11 2068
9 2070
7 2072
5 2074
2076 111 129 131 143 153 171 185
1 17 33 37 49 61 89
POMONA RD WEST POMONA RD EAST
2 4 8 24 38 68 70 88 98 104 116 126
2097 110
16
2112 2111
Management
Financial
2122
2125
2126
2129 2127
2135
2132 2139
24
2137
2150 Legend
District Boundary
30 2158 Legal Boundaries
2/12 27
W ALLA C 22 20 2162 Unformed Road
ETOW N-L 4/12 12 8 6
63 OR NEVIL
49 39 31 LE H WY Drainage District
25
LO RN E-D
871 6 8
10 AC RE R 59
869 16 18 D 67
Map C
Rateable Land Within the Makarewa Drainage Area
±
Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2009
Authorative Owner. E & O.E
155
155
MCGILVRAY RD
55* 49 23 5
428
407
21 405
403
388
372
350
342
331
131 141
MILL RD NORTH
133* 221 233
421 455 457 523 7 23 39 41*
431 485*
420 MCIVOR RD MYROSS RD
440 464 478 490 500 510 20 48 58 72 76 84 100 102 118 130 134 192 202 212 232
34
148 154 170 176 190
308
422 299
290 42
35
289 288
426 34 184C 184B
SIMON RD
279 29
276 158A 160 92
90
20 184D 184A 158B 94
274 19 154
304 272
9 12 88
108 100 54
261
264 246 80
398 384 376 358* 350 340 326 310 276 210 200 186 180 162 148 128
DRYSDALE RD 251 241 227 215 205 183 173
DRYSDALE RD
155 149
389 379 359* 351 337 317 303 299 275 267
121 93 56
103 48
1/14 14
238
237 FOX RD
22* 620 21 15 53
225 230
187
5
123 145
714 9 17* 55 57* 73* 89* 107 161
602 618 640 662 684 706
632
RD
BAINFIELD677 FAIRWEATHER RD 171
619 637 641 699 703 723 2 12* 26* 34* 44* 62* 72* 84* 94* 110 124 138 175
130 158
MILL RD NORTH
609 170 219 231
182
198 210 216* 228 240
623/RC 653/RC
641/RC
637/RC 665/RC
168 180
699/RC 192
165* 126 128 150152
163
150*
471
40
37
106
260/RC 264/RC
310 312
G IL
Legend
L IE
308
216 92
61
SR
301 5*
214 District Boundary 274
282 1
RD
264 299 93 84 2* 11
D
260 285
D 403*
Legal Boundaries LA Y R T
281
RD AS
18 21
D 261 FIN
52
WN E 22 23 120
218
5 B RO 30 385 6
210 Unformed Road 12 8
70 24 7
221
208 D 6 9
190 215
Drainage District
44
373* LE WR 8
11
185
203
MC
24 19 42
341
219 6
16
Map D
Rateable Land Within the Myross Bush Drainage Area
±
Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2009
Authorative Owner. E & O.E
156
Makarewa
Makarewa
Community
Centre Area
Introduction
Lorneville
Makarewa River
Myro ss Creek
West Plains Myross Bush
Myross Bush
Community
Centre Area
Rive r
Waih op ai
Council Activities
Waikiwi Stream
Kennington
INVERCARGILL Otepuni Creek
Otatara
Otatara Kingswell Creek
Community
Waimatua
Oreti
Beach
Centre Area
Organisations
Controlled
Council
Waimatua or Duck Creek
Oreti River
Woodend Motu Rimu
New River Estuary
M
Sandy
ok
Awarua
o
ot
Point
a
a u
Community
St
Awarua
Fees & Charges
re
am
a
Centre Area
Wa
ip a
ka
Omaui C re
ek
Island
Awarua Plains
Omaui
Mokomoko
Inlet
Greenhills Muddy
Creek
Bluff Colyers Island
Town Hall
Area
Management
Awarua Bay
Financial
Tikore
Island
Greenpoint Bluff Harbour
Ocean
Beach
Tiwai
Point
Bluff
Stirling
Bluff Hill Point
Motupohue
Legend
District Boundary
Roads
Railway
Community Centre and Town Hall Areas
Dog Island
Map E Rateable Land Within the Specified Locations
For Community Centres and Bluff Town Hall
±
Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2011
Authorative Owner. E & O.E
157
157
Makarewa
Lorneville
Makarewa River
Myross Creek
West Plains Myross Bush
Waihopai River
Waikiwi Stream
Kennington
Otepuni Creek
Otatara Kingswell Creek
Oreti Waimatua
Beach
Waimatua or Duck Creek
Oreti River
Woodend Motu Rimu
New River Estuary
Mokotua
Sandy Stream
Point
Awarua
Waipaka
Omaui Creek
Island
Awarua Plains
Omaui
Mokomoko
Inlet
Greenhills Muddy
Creek
BLUFF Colyers Island
WARD
Awarua Bay
Tikore
Island
Greenpoint Bluff Harbour
Ocean
Beach
Tiwai
Point
Bluff
Stirling
Bluff Hill Point
Motupohue
Legend
District Boundary
Roads
Railway
Bluff Ward Dog Island
Map F ±
INVERCARGILL CITY DISTRICT Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Date Printed : 24/2/2009 Authorative Owner. E & O.E
158
Introduction
283
283E Myross Creek
285
Council Activities
315
281
275
253255
293
284
268
292
305
302 403
397
98 327
320 331
322 399 401
MC
IV OR 405
342
R OA
D
377
57
55 374
Organisations
395
407
Controlled
53A
390
Council
396
68 455
421
66 431
53
NEAS ROAD
392 420 440
69
71
51 70
87
RE
D MA 119
YN 97 394 422
ER
45 96 OA
D 105
41 102
Fees & Charges
121
29 28 130
124
32
30 98
426
128
112
12*
7
458
440 466
416 426 428 468
455 37 398 384
415 431 439 41
DRYSDALE ROAD
480 39
Management
478 389
479
Financial
496
433 437
498 620
22*
536
10*
SAVILLE ROW
503
435 511 510
515
Legend
618 622
602
Waterway 578 588
568
538 BAINFIELD ROAD 619 623
Legal Boundaries 551
591 609
Drainage District
Unformed Road 529 595
619/RC623/RC
Map G
Rateable Land Within the Redmayne Road Drainage Area
±
Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2009
Authorative Owner. E & O.E
159
159
SYDNEY ST
MELBOURNE ST
FOX ST
THAMES ST W ST
D RE
AN
KELVIN ST
RITCH
ST
LIFFEY ST
STIE
EARNSLAW ST
VICTORIA AVE VICTORIA AVE
GALA ST
QUEENS DRV
DEE ST
MACMASTER ST
LEET ST
MARY ST
YARROW ST
KELVIN ST
DOO N ST
DEVERO N ST
LEVEN ST
JED ST
SPEY ST
DON ST
ESK ST
TH TAY ST
E
C RE
S
NESS ST
WOOD ST
FORTH ST
TYNE ST
ELLES RD
LIDDEL ST
YTHAN ST
CLYDE ST
NITH ST
EYE ST
NESS ST
TWEED ST
Legend
TEVIOT ST
ANNAN ST
ANNAN ST
Legal Boundaries
TEVIOT ST
Vibrant Rateable Land
Map H
Vibrant Rateable Land
±
Information shown is the currently
assumed knowledge as at Date Printed.
If information is vital, confirm with the
Current as at : 1/3/2009
Authorative Owner. E & O.E
160
