Revenue & Financing Policy

Introduction

The Revenue and Financing Policy (RFP) outlines the Council’s policies on funding sources to be used to fund the operational and capital expenditure of Council’s activities and the rationale for their use.

The policy is required by Section 102 and 103 of the Local Government Act 2002 (the Act). The full policy must be included in the Long Term Plan (LTP). Where a change to the policy is made outside of the LTP process, only a significant amendment is required to be audited.

Section 103(2) of the Act allows the following mechanisms to be used for funding the operating or capital expenditure of Council’s activities:

a) general rates, including –

  • i) choice of valuation system; and
  • ii) differential rating; and
  • iii) uniform annual general charges

b) targeted rates:

ba) lump sum contributions

c) fees and charges:

d) interest and dividends from investments:

e) borrowing:

f) proceeds from asset sales:

g) development contributions:

h) financial contributions under the Resource Management Act 1991:

i) grants and subsidies:

j) any other source.

In addition to identifying the sources of funding, the policy must outline why the Council has determined they should be used. A two-step process is required under Section 101 (3) of the Act. Firstly, for each activity, the Council must consider the following matters:

  • The community outcomes to which the activity primarily contributes
  • The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals
  • The period of time over which benefits occur (intergenerational equity). For example, the benefits of some activities will occur over the entire life of the asset. This will benefit not only existing generations but future generations who should also contribute towards paying for the cost.
  • The extent to which actions or inactions of particular individuals or groups contribute to a need to undertake the activity. Also called the ‘exacerbator pays’ principle, this suggests that exacerbators should meet at least part of the cost of an activity.
  • The costs and benefits from funding the activity distinctly from other activities. This particularly relates to transparency and accountability, but may also relate to factors like the financial scale of the activity (e.g. a small activity may not warrant separate funding due to the cost of establishing systems to support cost recovery).

Secondly, following consideration of these elements, the Council must consider the overall impact of this allocation of liability for revenue needs on the community. This may lead to some changes to the policy where there are particularly negative effects. These are noted under each individual activity.

Changes to 2012 Revenue and Financing Policy

The following changes have been made to the previous policy:

  • Addition of more information around the funding approach used by Council and description of the rating methods used
  • Adjustment to the District Planning funding recovery percentages to reflect greater public recovery required due to the District Plan review.
  • A rewrite of the Stormwater activity funding recovery approach to better reflect the intended approach. This has no impact on the funding mechanisms to be used.
  • Minor editing and grammatical changes.

The Council reviews the RFP every three years, in line with its preparation of the Long Term Plan (LTP). Changes to the RFP can be made between reviews, but must go through the appropriate consultation processes. The Act requires the Council to produce a Funding Impact Statement (FIS) annually that illustrates how the RFP is being implemented, provides details on the funding mechanisms to be used and how these rates will be applied.

The policy covers all of the Council’s activities, as outlined in the diagram.

Group of Activities Chart 

Funding of Operating Expenditure

Operating expenditure is expenditure on the day to day operations of the Council. The Council has determined that the following sources may be used to fund operating expenditure:

  • General rates, including differential rating and a uniform annual general charge
  • Targeted rates
  • Fees and charges
  • Interest and dividends from investments
  • Proceeds from asset sales
  • Financial contributions under the Resource Management Act 1991
  • Grants and subsidies
  • Other sources

The Council does not borrow for its day to day operations. The proportion of operating expenditure to be funded by each mechanism is outlined in this policy.

Funding of Capital Expenditure

Capital expenditure is expenditure on new or existing assets that maintains or increases their value and the level of service to the community. The Council has determined that the following sources may be used to fund capital expenditure:

  • General rates, including differential rating and a uniform annual general charge
  • Targeted rates
  • Lump sum contributions
  • Interest and dividends from investments
  • Borrowing
  • Proceeds from asset sales
  • Development contributions
  • Financial contributions under the Resource Management Act 1991
  • Grants and subsidies
  • Reserve funds
  • Other sources

The use of these sources will be considered for each capital expenditure project. It will frequently involve a mixture of funding sources that will vary over time.

Council’s Funding Approach

The Council provides a wide range of activities to district residents, ratepayers and visitors. Council aims to provide a fair and equitable rating system for all ratepayers. A mixture of rating and other funding mechanisms are used to achieve this. Some constraints exist, such as the ability of Council to only receive 30% of Council revenue from rates set on a uniform basis. This requires Council to use other mechanisms, such as rates set on the land value of properties.

Rates provide the budgeted net funding requirements of the Council work programmes through the Long Term plan. Other sources, such as those listed above can be used as funding sources. Rates are set on each rating unit under the provisions of the Local Government (Rating) Act 2002.

The following principles will help guide the assessment and design of the Council’s funding approach:

  • Benefits – those who benefit from a Council service or facility should pay for the service, where equitable and administratively efficient. This involves selecting funding sources that are appropriate to the distribution of benefits.
  • Exacerbators – those who contribute to the need for a Council facility or service should contribute to the cost of that facility or service
  • Equity and fairness – Council will seek to ensure the most equitable and fair funding approach
  • Affordability – Council will consider the impact of funding mechanisms on people’s ability to pay and seek to ensure that Council facilities, services and rates remain affordable
  • Intergenerational equity – each generation of ratepayers should contribute towards the services they receive
  • Minimise effects of change - where reviews result in significant funding changes, transitional approaches will be used where possible to ease the financial impact
  • Legal compliance – the policy will comply with legal requirements under the Local Government Act 2002 and Local Government (Rating) Act 2002

The application of these principles requires Council to apply judgement and balance often competing principles. The most equitable solution will be sought for funding each activity using these and the Section 101 analysis required for each activity under the Local Government Act.

Three main types of rates are used:

  1. General Rates, which are value based rates and can be adjusted through differentials. The Council is able to rate properties based on capital, land or annual value. Timaru District Council uses the land value system.
  2. Uniform Annual General Charge (UAGC)
  3. Targeted Rates

General rates

A general rate is set based set on a rate per dollar of rateable land value, and differentiated on the use to which the land is put. This is set on all rateable land in the Timaru District. It is used to fund those services where there is a community benefit across the whole district and where a fixed charge per Rating Unit is not considered appropriate.

The objective of differential rating is to ensure a fair and equitable proportion of rates are paid by the various differential categories. The weightings for the differential categories are being changed from the 2015/16 rating year to reflect, among other things, the change in the distribution of benefits associated with the roading network and intensification of land use in the rural area. It is proposed to amend the differential weightings over three years to reflect that the primary sector is receiving increased benefits of the roading network.

The Council uses differentials to distribute the General Rate between particular categories of the community, as listed below. This does not change the total amount of funding from these sources annually, but rather the incidence of rates to be funded from each category.

The Council differentiates the General Rate based on land use (Schedule 2 Local Government (Rating) Act 2002). The differential is applied to the following nine categories:

 CategoryDefinition
1AccommodationAll properties used primarily for hotel, motel or similar short term or travellers’ accommodation purposes.
2Commercial - CentralAll properties situated within the Timaru Central Business District and used primarily for commercial purposes.
3Commercial - OtherAll properties used primarily for commercial purposes other than those situated in the Timaru
Central Business District.
4Community ServicesAll properties used primarily for education, religious and/or community purposes.
5IndustrialAll properties used primarily for industrial purposes.
6PrimaryAll properties used primarily for agricultural, horticultural or pastoral purposes, including the
grazing of animals.
7RecreationalProperties used primarily for active or passive indoor/outdoor recreational activities.
8Residential – GeneralAll properties used primarily for residential accommodation of a single household or used for
residential purposes and not otherwise classified or which are vacant or of not determined
use of those differential categories and situated in an area in which residential dwellings are
permitted.
9Residential – Multi
Unit
All properties used primarily for multi-unit residential accommodation, for example, purpose
built rental flats.

Uniform Annual General Charge

A Uniform Annual General Charge (UAGC) is a fixed charge set per rating unit in the District. The charge enables all ratepayers to make a minimum contribution to the Council’s costs, and ensures that higher value properties do not carry a disproportionate amount. This rate also applies to fund those services where community benefits apply across the district. The Council has decided that the level of annual increase in the UAGC will be the same overall percentage increase as the General Rate increase in any given year.

Targeted Rates

The Council applies Targeted Rates to a number of services where the benefits are clearly received by a particular
community or group of ratepayers. These apply to properties who receive certain services or are located in specific areas. The following targeted rates are used:

Targeted RateActivity
Aquatic Centre rateCaroline Bay Trust Aoraki Centre
Community Board rateVarious
Community Centre RateHalls and Theatres
Community Works and Services rateVarious
Rural Fire Protection rateRural Fire
Sewer rateSewer
Waste Management rateWaste Minimisation
Water Supply rateWater Supply

How these rates are set is further described under each activity. A differential is applied to the Aquatic Centre and
Waste Management Targeted rates based on the provision of the service.

Target recovery from funding sources

The following table shows the percentage target recovery for each activity from private funding sources organised by 10% bands:

% recovery from private funding sources in 10% bandsActivity
90-100%Social Housing, Animal Control, Building Control, Fishing Huts, Motor Camps, Forestry, Parking Development– Facilities, Parking Enforcement, Compost, Recycling and Refuse, Wastewater, Water Supply
70-80%Safer Communities
60-70%Cemeteries
50-60%Aquatic Centre, Airport (45-55%), Environmental Health
40-50% 
30-40%Subsidised Labour, Swimming Pools
20-30%Rural summer pools, District Planning
10-20%Community Funding (5-15%), Halls & Community Centres, Theatre Royal
0-10%Governance and Leadership, Public Toilets, Civil Defence, Rural Fire, Economic
Development & District Promotions, Art Gallery, Libraries, Museum, Parks, Roading
and Footpaths, Stormwater

Private funding sources (e.g. sewer targeted rate or fees and charges) are used mainly where benefits from services apply to a specific group of people or individuals are the primary beneficiaries or users of a service delivered by the Council. All sources of funding to be used by the Council are summarised in the table below for all Council activities.

Fees and Charges

The council will amend its fees and charges annually (or more frequently as appropriate) to reflect increases in costs as measured by the council rate of inflation and/or maintain the cost recovery levels underlying the basis for setting the fee levels.

Funding of Depreciation

The Council fully funds depreciation on assets with the exception of:

  • Roading – Council does not fully fund depreciation on roading because it is continually maintained and renewed, and over 50% of this cost is received as a subsidy. The Council funds a portion of the depreciation based on average subsidy rates.

Conclusions (Section 101 (3b) consideration)

Timaru District communities are diverse. There are many different users of Council services. Council’s funding approach is a complex assessment of determining where the benefits of Council services apply, what the best methods for funding those services are and how this can be equitably applied across Timaru district communities. Council must also consider affordability both from a ratepayer perspective and for individuals and groups using Council provided services. This ensures that everyone has a reasonable opportunity to access these services.
Council has considered all of these elements and considers the overall funding approach to be fair and equitable.

Council Activities

A summary of the rationale for funding sources for Council activities is included below. Each activity includes analysis of the five matters listed above and the funding sources and ratios the Council has identified to be used for each activity:

ActivityCommunity Outcomes
(primary contribution)
Who BenefitsPeriod of benefitsWhose actions create a
need for the activity
Costs and benefits
of separate funding
Funding Sources
DEMOCRACY      
Governance and
Leadership
This activity
contributes primarily to
all of the community
outcomes.
Benefits from the activity are for the community generally.
Council and
community boards are the vehicles for making decisions affecting the
whole district.
The activity
provides ongoing
benefits to the
community.
Living in a democratic
society contributes to
the need for this activity.
Benefits from this activity occur district-wide and there is no benefit
perceived from separate funding.
Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 0-10% via user fees for
hearings etc
COMMUNITY SUPPORT      
AirportHigh quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled
Benefits from the airport accrue mainly to users who travel or who operate, store and maintain
personal aircraft.

Community benefits exist through the availability of a facility for air travel from and to South Canterbury. This facility helps enhance and facilitate economic
development for the district.
Ongoing benefits
to users and the
wider community.

Intergenerational
benefits to the
community through maintaining and developing a facility for air
travel.
The community benefits widely from having airport services available.Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 45-55%, via a Uniform Annual General Charge and a differentiated General Rate.

Private – 45-55%, via Airport user fees and charges.
CemeteriesHigh quality
infrastructure to meet community and business needs

Communities that are safe, vibrant and growing
Specific benefits to families and
individuals from the provision of individual gravesites for
remembrance and burial.

Wider community benefits from the provision of an interment system that remembers and respects those who have passed away and maintains public health standards through safe disposal of human remains.
Benefits are
ongoing to the
community.
The community benefits widely from having
cemeteries available. In
some cases, vandalism and failure to maintain headstones may cause additional costs. Where
possible, costs will be
recovered if perpetrators
are caught.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 30-40%, funded via a Uniform Annual General Charge and a differentiated
General Rate.

Private – 60-70%, funded via Cemetery user fees and charges.

Exacerbator – Cost recovery will be achieved where possible.
Community
Funding
Communities that are safe, vibrant and
growing

A strong identity forged and promoted
Benefits can accrue to particular
individuals, groups and
organisations through receipt
of funding to assist their various
activities.

The community benefits through
the promotion of activities and
events that meet its social, sporting and cultural needs.
Immediate and
ongoing. Some
benefits may be
longer- term.
The community benefits from having these
funding opportunities
available.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 85-95%, funded via a Uniform Annual General Charge and a differentiated General Rate.

Private – 5-15%, funded via various funding agencies, such as Creative New Zealand and interest on loans provided to community organisations.
Civil DefenceCommunities that are safe, vibrant and
growing

People enjoying a high quality of life
Benefits from civil defence accrue across the wider community, as
the users of civil defence services cannot be identified until after disaster strikes.
Ongoing. Benefits occur now via training and preparedness,
during an event
and following an
event through
response and
recovery.
In some cases, civil
defence emergencies
could be as a result of human actions, such as sabotage or terrorism.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 100%, funded via a Uniform Annual General Charge and a differentiated General Rate.
Economic
Development
and District
Promotions
Smart, diversified
economic success and
growth supported and enabled

People enjoying a high quality of life

A strong identity forged and promoted
Benefits from economic development and promotions
accrue largely to the community,
due to the ongoing economic
benefits created from business
support, promotion, visitor spending, creation of employment
and investment in the potential
of the district.
Some benefits may accrue to businesses or individuals
using these services (e.g. tourism operators). Any cost recovery for these will be recovered by the organisation carrying out these functions.
Immediate and
ongoing for users. Some benefits may be long term to the community.
The community benefits from having this support
available.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 0-10%, funded via user
fees by funding agencies involved in providing these services or government subsidies.
Public ToiletsHigh quality
infrastructure to meet community and business needs

Communities that
are safe, vibrant and
growing
Specific benefits to those who use
the facilities.
Benefits to the wider community
through having these essential
facilities available for residents and
visitors and maintaining standards
of public hygiene.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through
maintaining and
developing these facilities.
The community benefits
widely from having
public toilets available.
Benefits from this activity occur district wide and there is no benefit
perceived from
separate funding.
Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 0-10%. Charging for use isdifficult, but may be achievable at specific facilities where financially viable.
Rural FireCommunities that are safe, vibrant and
growing

People enjoying a high quality of life
Benefits from rural fire accrue to the wider community, but
particularly rural inhabitants
through protection of life and property, and peace of mind
through having a system available.

This system aims to protect the whole community, but in the event of a fire, some individuals,
businesses or organisations will benefit more than others.
Ongoing.
Benefits occur now via training and preparedness,
during an event
and following an
event through
response and
recovery.
In some cases, rural fire emergencies could be as a result of human actions, such as arson or inadequate care and attention to burn-offs.
Where possible, costs will be recovered from people responsible for rural fire emergencies
that could have been
prevented, or from perpetrators where they
are caught.
Benefits from
this activity are primarily to the rural community.
Public – 100%, funded via a Targeted Rural Fire Protection Rate (based on land value), excluding the urban areas of Geraldine, Pleasant Point, Temuka and Timaru.

Exacerbator - Cost recovery will be achieved where possible.
Safer CommunitiesCommunities that are safe, vibrant and
growing

People enjoying a high quality of life
There are some private benefits to individuals and groups from
the programmes and support
offered by Safer Communities
programmes.

Community
benefits accrue from contributions made to improving
community safety and addressing
social issues in the community.
Ongoing.Offenders contribute
to the need for this activity.
However, the
community generally
benefits widely from having this support and opportunities available.
Benefits from
this activity are district wide and there is no benefit perceived from separate funding.
Public – 20-30%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 70-80%, funded via grants from local organisation and contracts from Central Government departments.
Social HousingHigh quality
infrastructure to meet community and business needs
Benefits from social housing are to tenants of the housing units through provision of affordable
accommodation in convenient
locations.

There is community benefit through the availability of low cost housing to vulnerable groups in the
community.
Immediate and
ongoing for
tenants.
The community benefits from having social
housing available.
This activity is self funding
throughtenants rentals.
Public – 0%.

Private – 100%, funded via user
rental income.
Subsidised LabourCommunities that are safe, vibrant and
growing
There are benefits to individuals
through employment experience
and opportunities.

Some benefits accrue to the
community through having these work opportunities available and
work carried out that benefits the
community.
Ongoing.The community
benefits from having these employment
opportunities available.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 60-70%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 30-40%, funded via grants and subsidies from Central Government Departments.
DISTRICT PLANNING AND REGULATORY SERVICES      
Animal ControlCommunities that are safe, vibrant and
growing

People enjoying a high quality of life
Benefits from the animal control service accrue mainly to animal owners from the provision of a service that either confines or returns lost or stray animals. The community generally benefits through the enforcement of
regulations against aggressive and
straying animals.
Immediate and
ongoing, but
occur mainly in
the short- term.
People who do not properly control their
animals can be a significant contributor
to this activity. In some cases, it can be difficult
to identify who these people are.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 0-10%, funded via a
differentiated General Rate.

Private – 90-100%, funded via Dog Registration and Impounding fees, fines and other fees associated with the activity.
Building ControlCommunities that are safe, vibrant and
growing

People enjoying a high quality of life
Benefits from building control
accrue mainly to users (i.e. people who build or alter buildings)
through meeting legislative
requirements and building and maintaining safe and sanitary
buildings.
The community benefits through the enforcement of regulations that
ensure safe, sanitary and accessible
buildings in which people live, play and work.
Immediate and
ongoing to users
of the service.
The community benefits widely through having consistent standards
available. People who do not comply with legislative regulations may contribute to the need for this activity. In some cases (e.g. property purchase where consent
standards are not met), it may be difficult to identify who should pay.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public - 0-10% funded from a
differentiated General Rate.

Private – 90-100%, funded via various forms of building user fees and charges.
District PlanningCommunities that are safe, vibrant and
growing

People enjoying a high quality of life

A valued,
healthy and accessible
environment
Benefits from district planning
services accrue to users of these services (i.e. people seeking
permission to undertake a
certain activity, Land Information
Memorandums) through meeting legislative requirements. There is also often a direct economic
benefit received by the applicant (e.g. developers).
The community benefits through protection from adverse environmental, social and
cultural impacts, control over the appropriate development
of land and buildings, districtwide
economic development
opportunities, consistent standards
for development, education and
information and monitoring the
impacts of development.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through protection from
adverse impacts.
The community benefits widely through having consistent standards
available. People who
do not comply with legislative requirements
may contribute to the need for this activity.
Generally, this is met through additional charges on those people.
Benefits from
this activity are district wide and there is no benefit
perceived from separate funding.
Public – 70-80%, funded via a differentiated General Rate.

Private/Exacerbators – 20-30%, funded via District Planning user fees and charges.
Environmental
Health
Communities that are safe, vibrant and
growing

People enjoying a high quality of life
Benefits from environmental health services accrue to individuals,
businesses and organisations from the assurance that their premises are of an acceptable and healthy standard to the consumer and
meet other legislative requirements
(e.g. liquor licensing).

The community benefits through
the expectation that public health legislative standards of operation are being met and assurance of a safe and healthy environment for
residents and visitors.
Immediate and
ongoing to users
of the services.
The community benefits
widely through having
consistent standards
available.

People who do not meet
appropriate standards
of operation can cause
additional work for this
activity.
Generally, this is met through additional
charges on those people.
Benefits from this activity occur district wide and there is no benefit
perceived from
separate funding.
Public – 40-50%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private/Exacerbators – 50-60%,
funded via various user fees and
charges associated with this
activity. In some cases, these fees and charges are prescribed by government.
Parking
Enforcement
Services
Communities that are safe, vibrant and
growing

People enjoying a high quality of life
Benefits from parking enforcement
services accrue to users of these services from being able to use their own transport. District businesses located in township CBD’s benefit from the existence of
a service that ensures the turnover of parking spaces.
Ongoing and
immediate to
users and business owners.
People who do not observe
parking restrictions
(exacerbators) are significant contributors
to the need for this activity. Costs are recovered via parking
fees and fines for infringements.
This activity is largely funded by
exacerbators.
Public – 0 -10%.

Private/Exacerbators – 90-100%, funded, via a range of parking fees and fines for infringements.
RECREATION AND LEISURE      
Art GalleryCommunities that are safe, vibrant and
growing

People enjoying a high quality of life

A strong identity forged and promoted
Specific benefit to those who use the facility.

Benefits accrue largely to the
wider community, through access
to the visual arts, appropriate
storage and treatment of the art gallery collection, provision of an attraction for residents and visitors, educational opportunities,
and through contributions to the cultural strength and diversity of
the community. A high level of user recovery may restrict the ability of some people to continue to use
these services.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through maintaining and
developing a
facility for public
consumption of
art.
The need is created by the community
choosing to have a facility for the public
consumption of art.
Benefits from this activity occur district wide and there is no benefit perceived from separate funding.Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 0-10%, funded via some charges and donations.
Fishing HutsA valued, healthy and accessible
environment
Benefits from fishing huts are
enjoyed wholly by those people who choose to lease this type of
accommodation from the  Council.
Immediate and
ongoing to Fishing
Hut lessees.
The need is created by
people who choose to
lease these facilities.
This activity is self-funding.Public – 0%.
Private – 100%, funded via Fishing Huts lease fees.
ForestrySmart, diversified
economic success and
growth supported and enabled

A valued, healthy and accessible
environment
Benefits from forestry accrue to the public through the generation of
income to fund Council activities and storage of carbon to reduce the impact of climate change and meet obligations under climate
change agreements.
Immediate and
ongoing through
generation of
income for other
Council activities.
There are no specific
contributors to the need for this activity.
This activity is self-funding.Public – 0%.
Private – 100%, via the sale of
timber.
Halls and
Community
Centres (including
Aorangi Stadium)
High quality
infrastructure to meet community and business needs

Communities that are safe, vibrant and
growing
Direct benefits for individuals and groups who choose to use the facilities for functions and events.

Wider community benefits from
use of the facilities for public events
or gatherings and as a hub in the event of civil defence emergencies.

Specific community benefits in
four communities where funding is provided to maintain community
owned halls.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through
maintaining and
developing these
facilities.
The community benefits
widely from having halls
and community centres
available.
Benefits from this activity occur district wide and
there is no benefit
perceived from
separate funding.

Four centres are funded by rates based on dwellings in the area of the
community centres.
Public – 80-90%, funded via a
Uniform Annual General Charge
and a differentiated General
Rate and Targeted Rates for four
Community Centres.

Private – 10-20%, funded via Halls and Community Centres user fees and charges.
LibrariesHigh quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled

Communities that are safe, vibrant and
growing

People enjoying a high quality of life
Direct benefit to individuals who use library services.

Wider benefits accrue largely to the community, through contributing
to a community that is literate and informed, access to information
and provision of a community
resource.

Some costs can be
recovered, but a high level of
recovery may restrict the ability of some people to continue to use
these services.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through maintaining and
developing these facilities.
The community benefits
widely from having library services available.

It is appropriate to
charge penalties (i.e.
overdue fines) where people do not return
items on time.
Benefits from this activity occur district wide and
there is no benefit
perceived from
separate funding.
Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private/Exacerbators – 0-10%,
funded via Libraries user fees, fines and charges.
Motor CampsSmart, diversified
economic success and
growth supported and enabled
Benefits from motor camps are enjoyed by those who lease the
facilities for use by groups and
individuals.

There is some wider economic benefit in having the
facilities generally available to the
district and for use by tourists and visitors.
Ongoing to those who run the facilities.There are no specific
contributors to the need for this activity.
Benefits from this activity occur district wide and there is no benefit
perceived from
separate funding.
Public – 0-10%.
Private – 90-100%, via Motor
Camps leases.
MuseumHigh quality
infrastructure to meet community and business needs

Communities that are safe, vibrant and
growing

People enjoying a high quality of life

A strong identity
forged and promoted
Specific benefit to those who use the facility.

Benefits accrue largely to the
community, through cultural
enrichment, information and
community identity. A high level of recovery may restrict the ability of some people to continue to use
these services.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through maintaining and
developing these facilities.
The community benefits
widely from having museum services
available.
Benefits from this activity occur district wide and there is no benefit perceived from
separate funding.
Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

This applies where Learning
Experiences Outside the Classroom (LEOTC) funding is excluded.

Private – 0-10%, funded via
Museum user fees and charges,
donations and government
subsidies (e.g. LEOTC programme).
Parks and
Recreation
High quality
infrastructure to meet community and business needs

Communities that are safe, vibrant and
growing

People  enjoying a high quality of life

A strong identity
forged and promoted

A valued, healthy and accessible
environment
Individuals and groups receive
private benefits through their
use of parks and sportsfields for
recreational pursuits, events,
organised sport, health and wellbeing.

However, parks are available to the wider  community
when not used exclusively for these purposes.

Specific facilities located on district parks (e.g. skate parks) also provided direct benefits. A high
level of cost recovery may restrict the ability of some to use these
services.

Benefits from parks accrue to the community generally through provision of facilities for individuals
and groups to pursue active and passive leisure pursuits, education
on the natural environment,
adding to community pride and
contributions to community health,
well-being and perceptions of the
district.
Immediate and
ongoing benefits
to users.
Intergenerational
benefits to the
community
through
maintaining and
developing these
facilities.
The community benefits
widely from having
parks, gardens and
sportsfields available.
Benefits from this
activity occur
district wide and
there is no benefit
perceived from
separate funding.
Public – 90-100%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.
Private – 0-10%, funded via parks
user fees and charges.
Swimming PoolsHigh quality
infrastructure to
meet community and
business needs
Communities that
are safe, vibrant and
growing
People enjoying a high
quality of life
A strong identity
forged and promoted
Pool users derive a direct benefit
through use of the pool for
relaxation, health, sports and fitness, learning to swim and water
safety education.

Benefits accruing to the wider
community include recreational
opportunities, education about water safety and swimming and
promotion of healthy lifestyles.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through maintaining and
developing these facilities.
Thecommunity
benefits widely from having swimming pools available.
Benefits from this activity occur district wide and there is no benefit
perceived from
separate funding.
Rural Summer Pools
Public – 70-80%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 20-30%, funded via
Swimming Pool user fees and
charges.

Aquatic Centre
Public – 40-50%, funded via
Aquatic Centre Targeted Rate.

Private – 50-60%, funded via
Aquatic centre user fees and
charges.
Theatre RoyalHigh quality
infrastructure to meet community and business needs

Communities that are safe, vibrant and
growing

A strong identity forged and promoted
Theatre Royal users derive direct benefits from either use of the Theatre Royal for events and
performances or attendance of performances.

Benefits accrue to the  community
through economic benefits
associated with performances and social and cultural benefits gained
through the performing arts and
entertainment.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through maintaining and
developing this
facility.
The community benefits
widely from having the
Theatre Royal available.
Benefits from this activity occur district wide and there is no benefit
perceived from
separate funding.
Public – 80-90%, funded via a
Uniform Annual General Charge
and a differentiated General Rate.

Private – 10-20%, funded via
Theatre Royal user fees and
charges.
ROADING AND FOOTPATHS      
Roading and
Footpaths
High quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled
Private benefits accrue to individuals, groups and businesses
using the roading and footpaths network to carry out their day-to-day business and activities.

Rural
landowners, businesses and
farms receive specific benefits from
a roading network that connects them to the wider district and enables goods and services to be delivered to their properties and farm produce to be sold.

Public benefits include equal
access for district residents to
transport people, goods and services throughout the district, connections to other transport
networks,  location and property identification, and maintaining an
attractive urban environment and streetscape.
Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through maintaining
and developing
roading and
footpath infrastructure.
The community
benefits widely from having roading and
footpaths infrastructure
available. In some cases,
additional costs may be caused to Council through vandalism,
accidents and activities beyond normal usage.
Benefits from
this activity are to private users and district wide.
However, it is
impractical to
currently charge for private use.

For some specific elements (e.g. footpaths), there are
specific groups that can be identified for
funding.

Public – 100%. Funding the components of this activity differs and is outlined below:

Road/street landscapes – uniform annual general charge and a differentiated general rate.

Subsidised Roading – differentiated general rate, New
Zealand Transport Agency (NZTA)
funding assistance.

Road carriageways and lighting – differentiated general rate, NZTA
funding assistance.

Community footpaths  and
lighting – undifferentiated
community based works and services rate (based on land
value).

The NZTA is the main central government source for funding assistance. The Financial Assistance Rate for Timaru District Council is reducing to 51%. For the Timaru District in 2015/16, the rate will be 55% with a 1% reduction annually until it reaches 51%. Financial  assistance rates may differ
depending on the project being undertaken and category of road
concerned under the One Network Road Classification.

Cycleways and
walkways

High quality
infrastructure to meet community and business needs

Communities that are safe, vibrant and
growing

People enjoying a high quality of life

Private benefits accrue to individuals and specific groups
who use these facilities for travel or recreation.

Community benefits include equal access for district residents to these facilities, provision of alternative safer and efficient transport options and sustainability benefits in improving environmental
outcomes and potentially removing
vehicle traffic from the roading network.

mediate and
ongoing benefits
to users Intergenerational
benefits to the
community
through maintaining
and developing
infrastructure
and potential
environmental
benefits through
riparian plantings
etc.

The community
benefits widely from having cycleways and
walkway infrastructure
available. In some cases,
additional costs may be caused to Council through vandalism.

It is impractical to currently charge for private use. In some circumstances, it may be possible to
get government
funding to assist in provision of these facilities.

Public – 100%. Funded via a
differentiated general rate, NZTA
financial assistance and potential
grants or donations from other
external sources.

Parking
Development

High quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled

Private benefits of parking developments are to users of the service through being able to use their own transport and businesses
located in township CBDs.

Community benefits accrue
through the existence of these facilities to maintain and promote economic growth.

Ongoing and immediate to
users and business owners.

People using parking facilities are the main contributors to the need for this activity.

This activity is
largely funded by users.

Public – 0-10%, via differentiated
general rate.

Private – 90-100%, funded, via a
range of parking fees and fines for infringements.

SEWER      

Sewer

High quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled

Communities that are safe, vibrant and
growing

People enjoying a high quality of life

A valued, healthy and accessible
environment

All properties, both domestic and industrial connected to Council’s
wastewater system can be readily identified and receive a direct
benefit from the service.

Provision of a wastewater system is
essential community infrastructure
and provides numerous public benefits, including the maintenance
of public health standards,
prevention of disease, economic
development opportunities and protection for the environment

Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community through maintaining and
developing sewer
infrastructure.

The community benefits widely from having
a wastewater system available.

Additional costs may be caused through overloading
of systems, disposal of
hazardous material and
illegal connections.

Because the
benefits of this
activity are
predominantly
private, it is
considered
appropriate to fund the activity through
a targeted rate and fees and charges.

Public – 0%.

Private – 100%, funded via a
targeted rate for those connected to a sewer system and tradewaste charges. The targeted rate is set uniformly across connected communities to allow for an equitable charge.

Council may also be able to fund some of the costs of establishing
new or improved wastewater schemes in small communities
from central government funding
sources.

STORMWATER      
Stormwater

High quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled

Communities that are safe, vibrant and
growing

People enjoying a high quality of life

A valued, healthy and accessible
environment

Provision of a stormwater system provides public benefits including safe and efficient disposal of
stormwater, decreased risk from flooding, protection of community
infrastructure, maintaining safe transport links during rainfall events and encouraging residential
development.

Private benefits accrue to property owners connected to a scheme via safe and efficient disposal of stormwater away from their
properties.

Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community through maintaining and developing stormwater infrastructure.

The community benefits widely from having a
stormwater disposal system available.

Because this
activity provides
predominantly
community benefits to specific location, it is considered
appropriate to
fund the activity separately by
community.

Public – 100%, funded via a Community Works and Services targeted rate.

Private – 0%.

WASTE MINIMISATION      

Compost,
Recycling and
Refuse Collection

High quality
infrastructure to meet community and business needs

People enjoying a high quality of life

A valued, healthy and accessible
environment

Compost, recycling and refuse is considered to have largely private benefits, because it provides a
service which householders would otherwise have to arrange for
themselves.

There are community benefits through preventing illegal dumping
and litter, health hazards and damage to the environment. It
also helps provide for the safe and efficient disposal of waste and maintenance of public health
and environmental standards. The
existing system also ensures that goods can be recycled or reused to the benefit of the environment.

Immediate and
ongoing benefits
to users.

Intergenerational
benefits to the
community
through protection of the
environment from adverse impacts.

In some cases,
inappropriate disposal
of hazardous waste and illegal dumping
(fly- tipping) causes additional costs to the community.

Costs will be recovered if it is possible and economically viable to do so.

It is appropriate
to recover the
private benefit via a separate funding mechanism.

Public – 0-10%, via a differentiated general rate.

Private – 90-100%, via a differentiated targeted rate and user fees and charges.

WATER SUPPLY      

Water Supply

High quality
infrastructure to meet community and business needs

Smart, diversified
economic success and
growth supported and enabled

Communities that are safe, vibrant and
growing

People enjoying a high quality of life

A valued, healthy and accessible
environment

There are significant direct benefits
to consumers connected to a
Council piped water scheme
including access to potable drinking water for domestic,
business, industrial and stockwater
uses.

Provision of water supplies
provides public benefits including
community access to potable water, maintenance of public health and availability of water for
key public services and amenities (e.g. fire fighting, swimming pools).

Immediate and
ongoing benefits
to users

Intergenerational
benefits to the
community
through maintaining and developing water supply infrastructure

The community benefits widely from having a
water supply system available.

Because the
benefits of this
activity are predominantly
private, it is
considered
appropriate to
fund the activity separately through targeted rates and water supply fees
and charges.

Public – 0%.

Private – 100%, via targeted rates for those connected to a water supply system and water metering (commercial/ industrial users) and land and volume based water fees and charges in rural areas. There is also a small rental contribution. The targeted rate is set uniformly across urban connected communities to allow for an equitable charge.

Council may be able to fund some of the costs of establishing
improved or new water supply schemes in small communities from central government funding sources.