31 MAY 2012 NEW ZEALAND GAZETTE, No. 61 1759

Councils means the Manawatu District Council and the Palmerston North City Council.

GST means goods and services tax.

Manawatu District means the area administered by the Manawatu District Council prior to this order coming into force.

Palmerston North City means the area administered by the Palmerston North City Council prior to this order coming into force.

4. Boundary alteration—(1) The boundaries of Manawatu District and Palmerston North City are altered by excluding areas A to E from Manawatu District and including those areas in Palmerston North City.

(2) Where, as a result of this order, the boundary between Manawatu District and Palmerston North City follows a road, the boundary is the centre-line of the road.

5. Representation—(1) Area A is excluded from the Kairanga Ward of Manawatu District and included in the Awapuni Ward of Palmerston North City.

(2) Area B is excluded from the Kairanga Ward of Manawatu District and included in the Takaro Ward of Palmerston North City.

(3) Area C is excluded from the Kairanga and Kiwitea-Pohangina Wards of Manawatu District and included in the Papaioea Ward of Palmerston North City.

(4) Area D is excluded from the Kairanga Ward of Manawatu District and included in the Ashurst-Fizherbert Ward of Palmerston North City.

(5) Area E is excluded from the Kiwitea-Pohangina Ward of Manawatu District and included in the Ashurst-Fitzherbert Ward of Palmerston North City.

(6) In accordance with clause 67(j) of Schedule 3 to the Local Government Act 2002 and subject to clauses 1 to 4 of Schedule 7 to the Local Government Act 2002, this order makes no changes to the membership of the Manawatu District Council or the Palmerston North City Council.

6. Transitional payments—(1) Annual transitional payments will be paid by the Palmerston North City Council to the Manawatu District Council under the arrangements set out in this clause.

(2) The transitional payments will be made in acknowledgement of the expectation that the boundary alteration made by this order will result, for a number of years, in a net annual revenue reduction for the Manawatu District Council and a net annual revenue increase for the Palmerston North City Council. The transitional payments will be made by the Palmerston North City Council to the Manawatu District Council each year for 10 years after the date that this order comes into force.

(3) Payments to be made under this order are to be paid as quarterly sums at the end of each financial quarter, that is, on 30 September, 31 December, 31 March and 30 June in each year.

(4) For the purposes of calculating the annual transitional payments under this clause:

(a) All calculations shall be based on the operating budget of the Manawatu District Council and the rates set by the Manawatu District Council for the year immediately prior to this order coming into force.

(b) The estimated amount of the annual net revenue reduction for the Manawatu District Council as a result of this order coming into force is the amount (GST exclusive) of the Manawatu District Council annual rates assessed on the properties to be transferred from Manawatu District to Palmerston North City (Areas A to E), plus the amount of any other estimated annual operating revenue receivable by the Manawatu District Council in relation to those properties, less the amount of any estimated annual operating expenses (GST exclusive) payable by the Manawatu District Council in relation to those properties.

(c) The amount of the annual transitional payment in each of the first five years after this order has come into force shall, subject to subclause (3), remain constant and equal to the estimated annual net revenue reduction for the Manawatu District Council. GST, if applicable, is to be added to the amount of each payment.

(d) The amount of the annual transitional payment in each of the 6th to 10th years after this order has come into force shall, subject to subclause (3), remain constant and equal to 50 per cent of the estimated annual net revenue reduction for the Manawatu District Council. GST, if applicable, is to be added to the amount of each payment.

(e) Notwithstanding anything in subclauses (a) to (d), the amount of each transitional payment is to be adjusted in accordance with changes in the Local Government Cost Index for New Zealand that apply to the operating expenditure of the Manawatu District Council.

7. Rating—(1) The Palmerston North City Council will, using the latest valuation carried out for each property, assess and set rates for properties that are included in Palmerston North City as a result of this order coming into force in the same manner as it has assessed and set rates for like properties within Palmerston North City prior to this order coming into force.

(2) Notwithstanding subclause (1), a targeted rate in relation to the costs of upgrade to the industrial wastewater system in Longburn may be applied to properties in that area that are included in Palmerston North City as a result of this order coming into force.

8. Resource management—(1) In accordance with section 81 of the Resource Management Act 1991, on the date that this order comes into effect the operative Manawatu District Plan shall be deemed to be part of the operative Palmerston North City District Plan, in so far as it applies to Areas A to E. Within a period of two years from the date that this order comes into effect, the Palmerston North City Council is to promote a plan change to include provisions for Areas A to E.

(2) All proceedings or appeals in relation to provisions of the Manawatu District Plan affecting Areas A to E that have been commenced prior to the date that this order comes into effect will continue to be the responsibility of the Manawatu District Council until resolved. All proceedings or appeals in relation to provisions of the Manawatu District Plan deemed to be part of the Palmerston North City District Plan affecting Areas A to E that are commenced on or after the date that this order comes into effect will be the responsibility of the Palmerston North City Council. The status of the operative Palmerston North City District Plan shall not be compromised by any proceedings or appeals in relation to provisions of the Manawatu District Plan deemed to be part of the Palmerston North City District Plan.

(3) All resource consents relating to Areas A to E for which applications have been submitted prior to the date this order comes into effect will continue to be the responsibility of the Manawatu District Council until:

(a) for subdivision consents, certificates are issued under section 224(c) of the Resource Management Act 1991; or