local communities and to longer term national strategic goals. The paper clarified many of the issues faced by councils in managing high value assets: “There are a number of critical issues that each council must confront in planning and managing its infrastructure assets, including: What level of infrastructure investment, if any, is necessary to provide for growth in the community; How to manage the timing of investment for growth, to avoid constraints on growth from limited infrastructure capacity while minimising the costs to the community of under- utilised infrastructure capacity; What level of investment is needed to maintain, renew and replace existing assets; How to balance service level expectations with affordability in the context of demographic changes such as depopulation and ageing; and What level of investment, if any, is needed to improve the level of service provided by those assets.” The Council operates in a number of distinct environments that shape the services they provide and the management of the assets required to deliver to the service. Legislative and Regulatory Environment – water supply services exist in a highly regulated environment designed to ensure a reliable and safe public water supply. Legislation, passed by parliament, is enacted through agencies such as the District Health Boards, the NZ Fire Service the Regulatory department of local government and even the police for Crown offences. Regulation also has less direct influence through matters such as the health and safety of staff, building standards, financial control regulations, etc. Commercial Environment – funding and spending are important considerations for the delivery of Council services. Local authorities are scrutinised and regulated by central government and have a moral responsibility to their ratepayers for financial probity. Council have a number of funding sources – general rates, targeted rates, development levies, volumetric charges loans, enterprise income, grants, fees, etc. The allocation of costs must have due consideration to customer affordability, equity between business/domestic users; inter- generations, socio- economic groupings, geographic areas, etc. Economic Environment – Council must consider its strategic approach to economic development – the amount and type of businesses it wants to encourage to the region and the subsequent development of service industries and related commerce. The prosperity of the area will encourage population growth and urban development. Land must be identified and zoned for development and the water treatment and reticulation capacity must be planned and available. Policies and strategies must be adopted for the allocation of costs. Social Environment – social responsibility requires fair and beneficial business practices across the whole community; balancing the benefits and impacts of its service provision across socio-demographic groups. The council influences the social environment through the provision of social services, housing and the development of the built environment. Access to a water supply and equitable charging tariffs can be intrinsic to these developments. Natural Environment – environmental sustainability is becoming a pressing imperative. Councils are looked upon to set the highest standards of environmental stewardship. Policies and strategies must be adopted to protect the environment and provide community leadership. Cultural Environment – Council has to pay due consideration to the cultural sensitivity and heritage of the community. The relationship of man to the environment is significantly different from a European perspective to Maori, Pacifica and other cultures. Disposal of waste is often Page 3