Annual Report 2010 - Christchurch City Council
Annual Report 2010 - Christchurch City Council
Annual Report 2010 - Christchurch City Council
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Water supply<br />
<strong>Council</strong> activities and<br />
services<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>Christchurch</strong> Otautahi<br />
<strong>2010</strong><br />
p115.<br />
<strong>Council</strong> activities and services<br />
Water supply<br />
What did it cost?<br />
Statement of cost of services for the year ending 30 June <strong>2010</strong><br />
Costs (after<br />
internal<br />
recoveries)<br />
<strong>2010</strong> 2009<br />
Income Net cost Plan net Net cost<br />
cost<br />
$000s $000s $000s $000s $000s<br />
Operational service result<br />
Water supply 21,423 2,566 18,857 19,670 18,373<br />
Water conservation 173 - 173 152 140<br />
Capital revenues (22) 2,220 (2,242) (2,680) (1,988)<br />
Cost of service 21,574 4,786 16,788 17,142 16,525<br />
Capital expenditure<br />
Renewals and replacements 7,972 7,340 7,396<br />
Improved service levels 1,959 1,261 1,563<br />
Increased demand 1,248 2,622 1,746<br />
Total capital expenditure 11,179 11,223 10,705<br />
Explanation of significant cost of service variances<br />
The net cost of service for water supply is $0.8 million less than<br />
plan. This is due to less planning and asset management work in<br />
the year as resources were diverted to other activities ($0.5 million),<br />
lower depreciation costs ($0.4 million), lower maintenance costs<br />
($0.3 million) offset by additional internal charges ($0.1 million).<br />
There was $0.3 million less revenue from excess water charges.<br />
In <strong>2010</strong> there was $0.4 million loss on asset disposal, compared to<br />
zero in the previous year.<br />
Capital revenues were $0.4 million below plan the main variances<br />
being a $0.7 million shortfall in development contributions offset<br />
by $0.2 million of additional revenue from new connections to the<br />
water network.<br />
Significant capital expenditure<br />
$10 million was spent on renewals and replacements of headworks<br />
and water mains across the water supply network. Of the balance<br />
$0.5 million was spent on Bridle Path new mains, $0.2 million on<br />
a Ferrymead Booster Station and $0.3 million on the Cashmere<br />
Reservoir project, to provide for increased demand in the network<br />
with $0.8 million spent on new connections to the network.<br />
Explanation of significant capital expenditure variances<br />
There was no significant variance in capital expenditure.
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