1% - Waikato District Council

32NAVIGATING THE FUTURE | WAIKATO DISTRICT COUNCIL10 Year expenditure resulting from change in populationand land useMillions29.7Capital Expenditure7.6285.510.60.1127.9Operating Expenditure18.920.31.30.460.26Planning to maintain existing servicesThe council owns $1.4 billion of assets, mostly roads, water,wastewater and stormwater, and they wear out over time.Maintenance is important, and every so often we have to spendsignificant amounts of money to rebuild or replace them.This has to be well managed, so we have detailed assetmanagement plans that identify the assets, assess how wellthey’re doing the job they’re supposed to, estimate theirremaining useful life and help us decide when we need to buyor replace the assets.Details of the existing service levels and projects to maintainthem are in the groups of activities on pages 47-103 and pages42-65 in Volume Two.10 Year expenditure to maintain existing servicesWater SupplyWastewaterStormwaterRoadingSustainableEnvironmentSustainableCommunitiesCouncilLeadershipOrganisationalSupportCapital Expenditure200.7Operating Expenditure222.5Planning for improved servicesEvery year there is increased demand to increase services,whether from growth, or because people want a higher levelof service, for instance better water and wastewater services,increased quality of roads, or improvements in parks or libraries.As well, the government and other regulatory organisationsrequire us to improve services, such as drinking water standards(see page 23). These improved services will mean increasedcosts and/or reduced income for legislated areas such as liquorcontrol and building quality.There has to be a balance between our capital expenditure forgrowth and the capital expenditure to improve services. Thereis more detail about the major issues in the groups of activitieson pages 47-103.Our operating spending will also increase because of improvedservice, most of which is because of new assets (maintenance,financing costs, electricity etc).The effect of increased demand for improved services resultsin the following capital and operating costs:10 Year expenditure resulting from anticipated increaseddemand for servicesMillions9.1Water SupplyCapital Expenditure3.821.5Wastewater2.77Stormwater0.35.2RoadingOperating Expenditure3.60.40.7SustainableEnvironment100.8SustainableCommunitiesCouncilLeadership1.50.1OrganisationalSupportMillions20.926.5Water Supply15.419.2Wastewater1.8Stormwater5Roading167SustainableEnvironmentSustainableCommunitiesCouncilLeadershipThe council plans to maintain all the existing services at thesame or better standards during the next 10 years and beyond.Capital contributionsCapital contributions are one way for us to fund newprojects to upgrade services for existing, rather thanadditional, ratepayers (such as wastewater reticulation).These contributions are charged on an area basis to paythe capital cost only, and the ongoing annual targeted ratescover operational costs.OrganisationalSupportWe have begun consulting with the Pokeno communityabout connecting their properties to the wastewater systembeing installed, which will be partly funded by developmentcontributions to cater for the expected growth from the newsubdivisions there. However, existing ratepayers will need topay a capital contribution to also be connected to the system.We have also consulted with the Whaanga Coast communityat Raglan about the new wastewater reticulation system, whichwill also have a capital contribution charge, and the opportunityto spread the capital cost over 10 years. The first capitalcontribution charge will be payable in 2013. More detailsabout this are on page 41 in Volume Two.0.47136.913.4132.323.521