1. Hill Country Afforestation We propose: To work with landowners to promote afforestation of steepest and least productive erodible land in return for a share of carbon credit revenue Cost :$47M over ten years Paid from: HBRC’s investment portfolio for a commercial return

2. Regional Landcare Scheme We propose: To align the scheme on HBRC’s environmental protection priorities and areas where greatest land use intensification is likely to occur To target subsidy rates to reflect priorities Cost :$880,000 per annum Paid from: General rates and investment dividends

3. Biodiversity Strategy We propose: To jointly develop a Regional Biodiversity Strategy with relevant agencies and stakeholders To identify priority areas for action and/or any funding commitment required Cost: $27k in each of Years 1 and 2; $37.5k in Yr 3 Paid from: General Funding

4. Ruataniwha Water Storage We propose: Subject to the feasibility investigations, to construct a dam on the Makororo River storing 90 million cubic meters of water to irrigate 17,000-30,000 ha of land Cost: current estimates for the dam and reticulation network are $170 million Paid from: part-funded from HBRC investment portfolio, in partnership with private investors

5. Ngaruroro Water Storage We propose: To investigate the cost and feasibility for water storage for irrigation, power generation and augmenting of environmental flows in the Upper Ngaruroro catchment Cost: to be determined Paid from: if feasibility study is justified proposed to be part funded from HBRC investment portfolio and application made to Irrigation Acceleration Fund

6. Flood Control We propose: Three options being considered to manage standard of flood protection on the Heretaunga Plains: 1. Maintain current level of protection (no additional cost) 2.Increase protection to 500-year event standard with work to take 10-15 yrs starting in 2016 ($15 million with little or no borrowing) 3.As for option 2 but with work starting in 2014 ($15 mill plus cost of borrowing) Cost : Dependent upon option chosen Paid from : Option 1 could result in small rates decrease; Option 2 targeted scheme rates managed in line with inflation: Option 3 funded primarily though borrowing but requires increase in targeted rates above rate of inflation

7. Regional Economic Development Strategy We propose: To expand economic activities in following areas: –Primary sector growth (an additional $50k) –Business Hawke’s Bay (an additional $50k) –Economic reporting ($10k) –China sister city initiatives ($10k) Cost: $120,000 per annum Paid from: an increase in the 2012/13 economic development targeted rate

8. Port of Napier We propose: To maintain majority shareholding in the Port of Napier as a strategic asset. The Port Company is now part of the HB Regional Investment Company, which is 100% owned by HBRC Cost: Nil Paid from: Not applicable

9. Heat Smart We propose: To continue the Heat Smart programme offering financial assistance for home insulations (region- wide) or clean heat upgrades (Napier and Hastings airsheds) Cost :$8.75 million over 20 years, of which there are 17 years remaining Paid from: a targeted rate in the Napier and Hastings airsheds ( no changes proposed to rate)

10. Public Transport We propose: To continue to fund current services To investigate planned improvements identified in the Regional Public Transport Plan Cost: $1,460,000 from targeted rates Paid from: passenger fare revenues, the New Zealand Transport Agency and HBRC targeted rate – no change is proposed to the targeted rate total

11. Civil Defence We propose: To increase coordination and response capacity across the region establish a targeted rate for civil defence and emergency management Cost: Total budget $768,762 in year 1; equating to $13.01 per $100k land value per property Paid from: a uniform annual charge on all properties except the small no. in Taupo and Rangitikei districts

12. Genetic Modification We propose: To consider a formal response to a request to prohibit the establishment of genetically modified crops in Hawke’s Bay A range of options have been identified and public feedback is sought Cost: To be determined, depending on option selected Paid from: Likely source is general funding

13. Webcasting of Meetings We propose: To enable on-line access to Council and Committee meetings Cost: Video option – capital $25,900, operational $38,400 p.a. Audio option – capita $19,400, operational $38,400 p.a. Paid from: General funding

14. Solar Hot Water Scheme We propose: To administer and fund a voluntary targeted rate to assist people install domestic solar hot water heating Cost: $6.0 million, but long-term effect is cost neutral Paid from: Council will borrow money to be paid back by borrowers plus interest.

15. Catchment-based Plan Changes We propose: To accelerate the plan change programme required for the Tukituki, Taharua/Mohaka and Heretaunga zone catchments where there are significant water management issues. Cost : $1.0 million for each of the next three years, due in part to requirement for external technical expertise Paid from: General funding

16. Regional Natural Hazards Plan We propose: To publicly notify a change to the RPS by July 2013 to improve policy direction on managing the effects of natural hazards on land use, particularly placing greater emphasis on avoiding hazards Cost: 2012/13 - $50k; 2013/14 - $25k; 2014/15 - $30k. Paid from: General funding

17. Investment Strategy We propose to: Establish subsidiaries to invest in water Continue investing in the Port of Napier Increase investment in water harvesting and land use Sell leasehold properties in Napier and Wellington Cost: Estimated $143 million Paid from: range of options including existing and future cash reserves, realising leasehold property values, additional borrowing, govt. contributions

18. Leasehold value realisation We propose: To realise the value in low return properties to finance investment in regional infrastructure assets: –Offer attractive discounts to leaseholders to freehold by 30 June’12 –Sell cash flows from remaining Napier rents to investors –Sell properties in Wellington over next three years Cost: Only additional costs are discounts granted to buyers of freehold up to 30 June 2012. Paid from: This activity will generate funds and reduce need for Council borrowing

19. Strategic Alliances We propose: To establish a Lower North Island regional councils- Department of Conservation alliance called “Nature Central” To focus Nature Central on science and technical info, biodiversity, biosecurity, regional park management and community engagement Cost: Funded from within existing budgets Paid from: N/A

20. Research Alliances We propose: To continue to grow the relationship established with Massey University, aiming to increase the level of research and development undertaken to underpin sustainable growth in Hawke's Bay Cost: $50,000 Paid from: An increase in the economic development budget (previously identified in the R.E.D.S. section)

21. Property at Tutira We propose: To transfer approx 20ha of Tutira Country Park to the Crown for use in Treaty settlement with hapu of the area, in exchange for, ownership of the Tangoio Soil Conservation Reserve being transferred to HBRC. The TSCR would give HBRC chance to develop recreational and biodiversity opportunities close to Napier and Hastings Cost: Not expected to be any other than valuation and ownership transfer costs. Paid from: To be determined; but not expected to have impact on general rate

22. Regional Community Facilities We propose: To allocate $2.5 million to Hastings District Council for an international hockey turf at the RSP To allocate $500,000 to Wairoa District Council to upgrade the Wairoa Community Centre Cost: $3 million Paid from: $2.1 million to be funded through loans and $0.9 million from Council reserves

23. Organisational Efficiency We propose: To develop shared services opportunities and are considering options for joining a possible Hawke’s Bay Shared Service company or an existing one based in Palmerston North To implement efficiency programmes currently being applied to central government Cost: Uncertain at this point Paid from: Awaiting further information