Message from the Chief Executive

The council continued to make gains in terms of its business performance and relationships with communities it serves in 2010/11. Much of this was due to outcomes from Project Opportunity which the council initiated two years ago to overhaul all aspects of the way it does business. Better interaction with community groups and organisations - aimed at maximising levels of investment the council is able to make in a tough economic climate - also helped. The council also started one of the final phases of organisational restructuring. This involves a complete revamp of infrastructural services and will come into full effect before the end of 2011.

The main thrust of these changes is to provide for a number of external services to be brought back 'in house' to improve the level of supervision and performance and to achieve an overall reduction in costs.

Council also achieved improvements in response times for consents, with 99% of building consents now meeting statutory deadlines and 97% of resource consents issued on time.

It maintained concentrated debt recovery efforts and set parameters for a comprehensive review of rating policy and practices.

A working group of elected members and management has been established to complete the review which is largely prompted by inequalities that emerged from the 2010 district revaluations. The group will also review funding streams such as water and wastewater charges in a bid to find more equitable solutions.

Council made progress in obtaining a rethink of the way government agencies, such as the New Zealand Transport Agency, set priorities for funding assistance. But there is still some way to go before rural roads receive an equitable share of agency subsidies. Council rehabilitated 11km of roads during the year, resealed 68km's of road and completed 3km's of seal extensions. Restrictions in access to subsidies and the extremely difficult financial climate meant that Council was only able to complete two of the following three capital roading projects. These were the final stage of the Waipapa Road reconstruction and a 2.1km seal extension on Rawhiti Road. A further 2km's of work on Waimate North Road was completed but the full programme of work is due for completion before the end of 2011.

Our Council lodged a Resource Consent application to take water from the Sweetwater aquifer for its Kaitaia water supply which was severely threatened in previous years. It also reached an arrangement with a private company to supply water from the aquifer. Council completed an upgrade of the Kerikeri Water Treatment Plant and a new Ngawha wastewater project. An upgrade of the Kaeo wastewater scheme is well-advanced. A financial breakthrough was reached with the Ministry of Health which agreed to make a subsidy of up to $7.2 million available for the Bay of Islands Wastewater Scheme. The scheme will reticulate all major urban areas in Kerikeri and Waipapa when completed. Council hopes to be in a position to start construction before the end of 2011, having received Resource Consent in August 2011.

However, there remain some outstanding issues to work through in the design of the project to satisfy both the subsidy conditions and issues of community affordability.

In solid waste, Council is on target to halve the volume of waste from transfer stations going to landfills for final disposal by 2013. It passed the 50% recycling mark and continued a waste minimisation campaign to ensure the momentum is maintained. We also opened new recycling facilities at Rawene, Whangaroa, Maromaku, Motatau, Okaihau and Horeke. Peak season facilities are also now available at Te Uenga Bay near Rawhiti and at Opua.

Rural fire administration was this year passed over to the Northern Rural Fire Authority with savings anticipated from the merger.

In recreational areas, Council reached an agreement with the Russell community, which will lead to a major upgrade of wharf facilities at Russell. We also completed the Kerikeri Sports Complex by adding netball courts and sealed parking. A small grandstand was built at the Kerikeri Domain and cosmetic improvements made to the pavilion, enhancing that facility. Bledisloe Domain was upgraded for use as a training venue by Rugby World Cup teams. Progress was made on measures to improve public use of Lindvart Park at Kaikohe. Council enhanced Parkdale Reserve in Kaitaia by adding netball courts in a collaborative project with the local community.

We also improved stadium amenities and a carpark at Bay Sport in Waipapa in a collaborative project with the facility's administrators. The major recreational achievement of the year was the opening to public use of the first 13km's (Okaihau to Kaikohe) of the Pou Herenga Tai -Twin Coast Cycle Trail from Horeke to Opua. Substantial progress was also made on trail formation between Kaikohe and Kawakawa.

It has been a year of significant achievement in spite of the economic recession and the rapidly mounting cost of services. Despite this climate, the 2010/11 result was well above average in comparison to our peers.

However, the worst may be yet to come and there is absolutely no room for complacency moving forward.

David Edmunds - Chief Executive