Draft Long Term Plan 2012-2022 - Hurunui District Council

Hurunui Community Long Term Plan 2012 - 2022In general, Capital Expenditure is broken down to three keycategories:1. Capital expenditure relating to meeting the existinglevels of service. This will be principally replacement ofthe existing assets2. Capital expenditure aimed at improving the currentlevels of service3. Capital expenditure on assets required due to growth.Some items of Capital Expenditure may actually fall into morethan one category. For example, the replacement of a length ofwater pipe is required to provide water to existing consumers,but the diameter of that length of pipe may be increased fromits existing diameter to allow for greater capacity in the future.An assessment is carried out as to apportion the cost of eachproject to the category to which it relates and if that cannotbe readily assessed, the category will be determine by the keyreason for the work to be undertaken.Over the period of the LTP, we have budgeted $77 million tospend on Capital expenditure. Of this balance, $56.2 millionrelated to maintaining the existing levels of service by providingfor replacement of current assets. A further $14.7 millionis aimed at making improvements to the level of service andthe balance of $6.3 million relates to projects scheduled dueto growth. The following graph shows the percentages of theCapital Programme that relate to each category.100%90%80%70%60%50%40%30%20%10%0%Growth RelatedImproved Levels of ServiceRenewalsThe key area of capital expenditure is relating to the infrastructuralassets. Of the total Capital Expenditure programme for theten years of $77 million; $43.5 million relates to Roads andFootpaths; $10.1 million relates to Water Supplies and $3.8million relates to Sewerage Schemes. The following graph showsthe split of the Capital Expenditure programme to each of theten Groups of Activities for the ten year period.12,000,00010,000,0008,000,0006,000,0004,000,0002,000,000-Corporate ServicesGovernanceHanmer Springs Thermal Pools and SpaGrowth and DevelopmentEnvironment and SafetyCommunity Services and FacilitiesRoads and FootpathsStormwater and DrainageSewerageWater SuppliesRatesWe base rates on the Capital Value of each property. We set ourrates by way of District Wide Rates and Targeted Rates.• District Wide rates are charged on all properties inthe district, regardless of location. They are are brokendown further to: Governance; Roading; Planning; WasteManagement; Canterbury Museum; and other GeneralRates.• Targeted rates are charged for specific activities basedon services provided or land use. They are broken downfurther to: Water; Sewer; Stromwater/Drainage/LandProtection; Ward Amenities; Refuse Collection WardMedical Centre; Rural fire; Tourism and Other SundryTargeted rates.• The rates and how they are set are further defined in theFunding Impact Statement but the key changes proposedfor the LTP relate to the funding of Drinking WaterStandards, District Wide Stormwater work and theCapital Levy anticipated to be charged by the CanterburyMuseum.Drinking Water StandardsThe funding of the drinking water improvements will be donein two stages. Firstly, those supplies that are to be treated, thedirect operating costs of the treatment and the servicing of thedebt arising out of the capital expenditure needed to treat therelevant water supplies, will be collectively charged by ratingeach dwelling that benefits from the work. Secondly, from2015/2016, a provision is to be made from the general rate tobuild a fund to offset some of the significant capital cost to beincurred in achieving full compliance with the drinking waterstandards.District Wide StormwaterAfter the flooding events in 2008, much more emphasis has beenplaced on development of stormwater plans for the District asa whole. A stormwater engineer is to be appointed in 2013 tolook after this area. As the issue is district wide, the funding isto come from the District Wide General Rate, with a portionto be funded by way of a fixed charge and a portion by way ofcapital value.Canterbury MuseumAs one of four contributing authorities to the CanterburyMuseum, the Hurunui District has been contributing a levy tofund the operations of the Museum on an annual basis. Hurunuihas set a fixed charge on every property in the District tocover this rate. The Museum is proposing to carry out a $63million building project, which will need to be funded by wayof 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 in2015/2016. It is intended that the Capital levy will be chargedon the same basis as the operating levy by sharing it as a fixedcharge per property.27