Message from the Chief Executive

Kia ora tatou As projected, the economy in the Far North has continued to decline over the last 12 months with key indicators still showing no signs of meaningful growth. This provided for testing times with an emphasis on financial consolidation and the need to better manage existing resources. The end of year financial result shows how well this consolidation has been achieved and reflects the efforts which have been made to cut costs. We have had to do more with less and to think beyond the square to make savings.

At the beginning of the year it had been projected that the debt to revenue ratio would reach 115% but through efficiencies and careful management we completed the year with an actual debt to revenue ratio of 95%. This improvement was largely the result of internal operating efficiencies including some $322,000 in savings as a result of process improvements and $1.86 million in savings as a result of new procurement and asset management efficiencies.

There was an overall reduction in public debt of close to $8 million to finish the year with the total public debt standing at $100.7 million.

The year saw a dramatic change in the way our major infrastructure such as roads, water and wastewater are being managed. Among the changes made was the decision to bring back contract management and supervision in house. The full impact of the major restructuring which has taken place is expected to show through in the new financial year (2012/13) with projected savings going forward of greater than $1million per annum.

Because of the restrictive effect of the depressed economy, it has enabled the administrative changes which have been made to be bedded in without any significant disruptions to services. This is well illustrated in the most recent independent customer satisfaction survey which shows a general trend of improvement in service levels.

There was a significant increase in satisfaction for maritime assets, but a disappointing downturn in households taking responsibility for personal welfare during civil defence emergencies. Although many of the key performance indicators (KPI) have increased since 2010/11, we have still been able to maintain the status quo in a number of areas. Of particular note is in the customer services area in which council office visits reached a 92% satisfied or very satisfied response, the free phone service a 78% favourable response and written communications an 82% favourable response all above the KPI targets set at the beginning of the year.

The total number of building consents issued reached 1,054 but only 239 of these related to residential properties. This compares with a total of 1,243 consents issued of which 293 were of a residential nature in 2010/11. A similar pattern is evident with resource consents where the number of new lots created over the year reached 296, down from 591 the previous year. While there is still a way to go, the customer satisfaction statistics again showed an upward trend which reflects the efforts which are being made to speed up service delivery and to make it easier for the community to navigate the complex Resource Management Act and Building Act requirements.

While the major area of public spending, the roading network, received only a 55% satisfaction response, it was still above the KPI target set and was within acceptable parameters given the current government Road Subsidy policy which effectively confines council spending to maintenance and minor safety improvements. However Council was able to complete the Waipapa Road (Stage 3) and Waimate North Road roading projects, the Wireless Road, Ngawha and Kaeo wastewater projects and 7 significant footpath extension or renewal projects.

Overall the survey found Council's performance has lifted from 76% general satisfaction in 2010/11 to 79% satisfaction in the year under review. While there is still clearly room for further improvement, it was a good result given the financial restrictions which Council has faced and the limitations on capital expenditure.

David Edmunds - Chief Executive