2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Asset Base1,3601,3401,3201,300$ Million1,2801,2601,2401,2201,200Overview Financial Overview1,1801,1602006/072007/082008/09Council’s asset base has increased by 9% since 2006/07 to$1.33 billion. This is due to new assets acquired or constructedthrough capital expenditure programmes, from valuationincreases and vested assets.2009/102010/112011/12The Council’s infrastructural assets were last valued as at 30June 2011 and operational assets were revalued on 30 June2010.How much Capital Expenditure was spent?50,000Total40,000New$00030,000Renewal20,00010,00002006/072007/082008/092009/102010/112011/12Council has had a large capital works programme throughoutthe year and was able to complete $23.7m of works andinvestments. This compares with $31m last year and a budgetof $49.1m this year.During the year some major projects were only able to becommenced or were deferred with the full budget not incurred.Those projects underway at year end will be completed in the2012/13 year. Expenditure to maintain or extend the life ofexisting assets (renewal capital expenditure) was funded fromoperating income.Expenditure for growth or to add new assets (new capitalexpenditure) is usually intended by Council to be fundedfrom borrowing with scheduled repayments included in rates,although part is funded by grants, subsidies and developmentcontributions.12Palmerston North City Council Annual Report 2011/12