oje c ts 23 June 2011 Pr kshop: Major YP Wor T Wor kshop - PDF document

oje c ts 23 June 2011 Pr kshop: Major YP Wor T

Wor kshop Outline • Introduction • Major Project Updates • Major Projects – Project Readiness • Wider context of Major Projects – Investment in community facilities – Financial position – Funders requirements – Addressing our challenges • Wrap up

Intr oduc tion to the Major Pr oje c ts • Disclosure • Financial modelling/financial strategy • Linked to strategic positioning • Community consultation – what the demand and need is

Intr oduc tion to the Major Pr oje c ts Committe d pr oje c ts – Wastewater Treatment Plant ($45m) – Wastewater Solutions for Wainui and Makorori (investigation) – Waiapu Landfill – Waiapu River Flood Protection $48M

Intr oduc tion to the Major Pr oje c ts Major Pr oje c ts – Inc lude d but not c ommitte d – Cycle and Walkways – Library Extension – Civic Space $79M – War Memorial Theatre – Multi-Purpose Aquatic and Recreation Centre ($61M) – Inner Harbour – Waipaoa River Flood Protection

Intr oduc tion to the Major Pr oje c ts Re move d Pr oje c ts – Water Demand Management and Metering – Makaraka Wastewater – Mobile Library

Intr oduc tion to the Major Pr oje c ts Community L e d Collabor ative – Community House – Ruatoria Recreation Centre – Healthy Homes – Artificial Hockey Turf – Broadband Investment – Computers in Homes – Gisborne Accessibility Planning

Ne w Pr oje c ts • Cenotaph Restoration – Council Resolution • Tairawhiti Navigations – Annual Plan 2010/11 and 2011/12 – Council Resolution

2009-2019 Proposed Timeline MAJOR PROJECTS TIMELINE 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Walking and Cycleways Library extension War Memorial Civic Theatre Space Upgrade Waiapu Olympic Recreation Centre Landfill Pool Waiapu Flood Protection Wastewater Treatment Inner Harbour Plant Waipaoa River Flood Protection 9

De live r ing Major Pr oje c ts Our Challe nge s – Meeting LGA requirements – Community mandate – Reaching a Consensus – Funding (ratepayers and funders) – Obtaining Consents – Ability to pay – Ability to deliver

De live r ing Major Pr oje c ts Our Suc c e sse s – Rakaiatane Road – Waste water treatment plant project

De live r ing Major Pr oje c ts Addr e ssing the Issue s – Project management discipline •Project scoping/Feasibility – Project Manager – Funding Advisor

T o think about…. • Are there any projects that need to be moved forward? • Are there any projects that should be removed? On what basis? • Are there any projects that should be deferred? On what basis?

oje c t e se ntations Pr Major Pr

Othe r Pote ntial Conside r ations .. • Museum Redevelopment – Relocation of Lysnar House – C. Company • Gladstone Road Bridge

M) e adine ss (Pe te r oje c t R Pr

Project Readiness Community c onsultation c ompleted on ent a ine d es e asibility Assessme nt ime line r c ur e limanry Desig n and c ost estima t ibution obt ed under pla n oject t obta ined med o jec t be stag ed? na l funding obta ined ent 10 yr ed Sco pe ha s been c onfir equir ed Co unc il funding c ontr opo sed pr e d eam in pla c e e quir equir equir c e c onsent nal funding r r usiness Ca se / F comply with cur chase r o ption a nalysis e r oan funding r a t he pr completed completed geted r Will the pr o jec t T a nd pur esour Does t plan ? xter Exter a r Pr Pr Community Enhancement B E R L T L Tair ā whiti Navigations Inner Harbour Civic Space War Memorial Theatre Cenotaph Restoration Museum expansion Walking and Cycling 1. Waikanae B e ac h 2. T aruhe ru R ive r 3.Waikanae Cre e k & b ri dge Library building expansion Aquatic and Recreation Centre Essent ia l Infr a str uc tur e Waiapu Flood Protection Waiapoa Flood Protection L egend Yes I n pr og r ess Possib le No

Amended Timeline 18

F or De libe r ation…. • Are there any projects that should be moved forward? • Are there any projects that should be removed? On what basis? • Are there any projects that should be deferred? On what basis? • How do we enable the projects to be delivered?

Inve sting in Community e uc tur astr Infr

F utur e T r e nds Solutions? • Agglomeration – Population move to bigger urban city • Ageing population – Tailored facilities • Urbanisation • Increase in lifestyle seekers – Attractive and close communities

A Balanc ing Ac t What kind of distr ic t do you want? And c an you affor d? • Economic, social, cultural and environmental benefits • Deferred maintenance & end of life • Community wants/ needs • Keeping up with the “Jones” • Safety

inanc ial Position F

F inanc ial T r e nds • Last 3 Years strong financial results. R e por te d Sur plus Ac tual $000s Budge t $000s 2008/09 18,240 8,186 2009/10 15,365 6,151 2010/11 (Est) 10,900 8,679 Balanc e d Budge t Ac tual $000s Budge t $000s (De fic it) 2008/09 3,355 (513) 2009/10 1,605 (511) 2010/11 (Est) 2,000 870

Bor r owing T r e nds Adjusted for Inflation $33M in 2000 is equal to $45M in 2011 (36% increase)

e xpe nditur Capital E

e xpe nditur Capital E

Inte r e st Costs - T r e nds For each $5M in debt Interest Costs increase $300K (6%) = 0.7% on rates

T r e asur y Polic y Ratio Ratio GDC GDC Accept Acceptable able Effective GDC Effective GDC Limits Limits Sector Levels Sector Levels limit limit (30/06/09) (30/06/09) (Guidance (Guidance Only) Only) Net debt as a percentage of equity <10% <20% $174M Net debt as a percentage of income <95% <150% $81M <$1,700 $75M Net debt per capita (44,460 residents) <10% <15% Net Interest as a percentage of $132M (interest income @6.5%) <15% <20% Net Interest as a percentage of $99M (interest annual rates income @6.5%)

Bor r owing • Borrowing to fund a project assists Council meet its obligations around intergenerational equity. • Borrowing to fund operational expenditure (deficits ) is to be discouraged. • Prudent borrowing is a key component of the Council s’ Financial Strategy.

Conc lusions • We have tended to over budget borrowing levels and interest costs. • Council can manage with higher debt levels. • There is head room to undertake additional capital work funded by borrowings. • Current conservative borrowing limits already provide for higher borrowing levels.

unding for oje c ts Ac c e ssing F Pr Major

Addr e ssing our Challe nge s • Gaining Commitme nt and Buy-in (c ounc illor s, staff, c ommunity) Co unc illo rs – paradig m shift S taff – c le ar ac c o untabilitie s Co mmunity - impro ve e vide nc e base • Impr oving F unde r Re lationships E ffe c tive and re g ular c o mmunic atio n Asse ssing funde r inte re st by type No t se e king fo r “c o re ” Co nsiste nt sig nals (prio ritie s) • Having mor e “skin in the game ” Gre ate r c o unc il c o mmitme nt (33%) • Affor dability Unde rstanding financ ial po sitio n and willing ne ss/ ability to pay

Addr e ssing our Challe nge s • Having aspir ations we c an de live r on Cle ar prio rity se tting and c rite ria • Re vie wing pr ior itie s Prio rity se tting / re se tting Org anisatio nal vie w vs pro je c t by pro je c t • F r ont loading pr oje c ts F e asibility funding ahe ad o f c o mmitme nts to c apital • Pr ac tic ing pr oje c t manage me nt disc ipline s S c o pe de fine d – no c re e p Have a plan

Que stions?