Long Term Community Plan 2012-2022 - Hurunui District Council

Hurunui Community Long Term Plan 2012 - 2022
In general, Capital Expenditure is broken down to three key
categories:
1. Capital expenditure relating to meeting the existing
levels of service. This will be principally replacement of
the existing assets
2. Capital expenditure aimed at improving the current
levels of service
3. Capital expenditure on assets required due to growth.
Some items of Capital Expenditure may actually fall into more
than one category. For example, the replacement of a length of
water pipe is required to provide water to existing consumers,
but the diameter of that length of pipe may be increased from
its existing diameter to allow for greater capacity in the future.
An assessment is carried out as to apportion the cost of each
project to the category to which it relates and if that cannot
be readily assessed, the category will be determine by the key
reason for the work to be undertaken.
Over the period of the LTP, we have budgeted $77 million to
spend on Capital expenditure. Of this balance, $56.2 million
related to maintaining the existing levels of service by providing
for replacement of current assets. A further $14.7 million
is aimed at making improvements to the level of service and
the balance of $6.3 million relates to projects scheduled due
to growth. The following graph shows the percentages of the
Capital Programme that relate to each category.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Growth Related
Improved Levels of Service
Renewals
The key area of capital expenditure is relating to the infrastructural
assets. Of the total Capital Expenditure programme for the
ten years of $77 million; $43.5 million relates to Roads and
Footpaths; $10.1 million relates to Water Supplies and $3.8
million relates to Sewerage Schemes. The following graph shows
the split of the Capital Expenditure programme to each of the
ten Groups of Activities for the ten year period.
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
Corporate Services
Governance
Hanmer Springs Thermal Pools and Spa
Growth and Development
Environment and Safety
Community Services and Facilities
Roads and Footpaths
Stormwater and Drainage
Sewerage
Water Supplies
Rates
We base rates on the Capital Value of each property. We set our
rates by way of District Wide Rates and Targeted Rates.
• District Wide rates are charged on all properties in
the district, regardless of location. They are are broken
down further to: Governance; Roading; Planning; Waste
Management; Canterbury Museum; and other General
Rates.
• Targeted rates are charged for specific activities based
on services provided or land use. They are broken down
further to: Water; Sewer; Stromwater/Drainage/Land
Protection; Ward Amenities; Refuse Collection Ward
Medical Centre; Rural fire; Tourism and Other Sundry
Targeted rates.
• The rates and how they are set are further defined in the
Funding Impact Statement but the key changes proposed
for the LTP relate to the funding of Drinking Water
Standards, District Wide Stormwater work and the
Capital Levy anticipated to be charged by the Canterbury
Museum.
Drinking Water Standards
The funding of the drinking water improvements will be done
in two stages. Firstly, those supplies that are to be treated, the
direct operating costs of the treatment and the servicing of the
debt arising out of the capital expenditure needed to treat the
relevant water supplies, will be collectively charged by rating
each dwelling that benefits from the work. Secondly, from
2015/2016, a provision is to be made from the general rate to
build a fund to offset some of the significant capital cost to be
incurred in achieving full compliance with the drinking water
standards.
District Wide Stormwater
After the flooding events in 2008, much more emphasis has been
placed on development of stormwater plans for the District as
a whole. A stormwater engineer is to be appointed in 2013 to
look after this area. As the issue is district wide, the funding is
to come from the District Wide General Rate, with a portion
to be funded by way of a fixed charge and a portion by way of
capital value.
Canterbury Museum
As one of four contributing authorities to the Canterbury
Museum, the Hurunui District has been contributing a levy to
fund the operations of the Museum on an annual basis. Hurunui
has set a fixed charge on every property in the District to
cover this rate. The Museum is proposing to carry out a $63
million building project, which will need to be funded by way
of a Capital Levy. The budget set aside for the Capital levy is
$50,000 in 2013/2014, $100,000 in 2014/2015 and $50,000 in
2015/2016. It is intended that the Capital levy will be charged
on the same basis as the operating levy by sharing it as a fixed
charge per property.
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