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

T YP Wor kshop: Major Pr

• je c ts

23 June 2011

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

• duc tion to the

Major Pr

• je c ts
• Disclosure
• Financial modelling/financial

strategy

• Linked to strategic positioning
• Community consultation

– what the demand and need is

Intr

• duc tion to the

Major Pr

• je c ts

$48M

Committe d pr

• je c ts

– Wastewater Treatment Plant ($45m) – Wastewater Solutions for Wainui and Makorori (investigation) – Waiapu Landfill – Waiapu River Flood Protection

Intr

• duc tion to the

Major Pr

• je c ts

$79M Major Pr

• je c ts – Inc lude d

but not c ommitte d

– Cycle and Walkways – Library Extension – Civic Space – War Memorial Theatre – Multi-Purpose Aquatic and Recreation Centre ($61M) – Inner Harbour – Waipaoa River Flood Protection

Intr

• duc tion to the

Major Pr

• je c ts

Re move d Pr

• je c ts

– Water Demand Management and Metering – Makaraka Wastewater – Mobile Library

Intr

• duc tion to the

Major Pr

• je 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

• je c ts
• Cenotaph Restoration

– Council Resolution

• Tairawhiti Navigations

– Annual Plan 2010/11 and 2011/12 – Council Resolution

9

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 Theatre Upgrade

Civic Space Waiapu Landfill

Olympic Pool

Recreation Centre Waiapu Flood Protection

Wastewater Treatment Plant

Inner Harbour

Waipaoa River Flood Protection

De live r ing Major Pr

• je 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

• je c ts

Our Suc c e sse s – Rakaiatane Road – Waste water treatment plant project

De live r ing Major Pr

• je c ts

Addr e ssing the Issue s – Project management discipline

• Project scoping/Feasibility

– Project Manager – Funding Advisor

T

• 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?

Major Pr

• je c t

Pr e se ntations

Othe r Pote ntial Conside r ations..

• Museum Redevelopment

– Relocation of Lysnar House –

• C. Company
• Gladstone Road Bridge

Pr

• je c t R

e adine ss (Pe te r M)

Community Enhancement Pr

• jec t T

eam in pla c e B usiness Ca se / F e asibility Assessme nt completed Sco pe ha s been c onfir med Community c onsultation c ompleted on

• ption a nalysis

Pr e limanry Desig n and c ost estima t es completed Co unc il funding c ontr ibution obt a ine d E xter nal funding r equir ed under c ur r ent plan ? Exter na l funding obta ined Does t he pr

• po sed pr
• ject t

ime line comply with cur r ent 10 yr pla n R esour c e c onsent

• bta ined

L a nd pur chase r e quir ed Will the pr

• jec t be stag ed?

T a r geted r a t e r equir ed L

• an funding r

equir e d

Tairāwhiti 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 No I n pr

• g r

ess Possib le

Project Readiness

18

Amended Timeline

F

• r

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 Infr astr uc tur e

Solutions?

F utur e T r e nds

• 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

F inanc ial Position

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

• wing T

r e nds

Adjusted for Inflation $33M in 2000 is equal to $45M in 2011 (36% increase)

Capital E xpe nditur e

Capital E xpe nditur 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 Sector Levels Sector Levels (Guidance (Guidance Only) Only) Effective GDC Effective GDC limit limit (30/06/09) (30/06/09) Limits Limits

Net debt as a percentage of equity <10% <20% $174M Net debt as a percentage of income <95% <150% $81M Net debt per capita (44,460 residents) <$1,700 $75M Net Interest as a percentage of income <10% <15% $132M (interest @6.5%) Net Interest as a percentage of annual rates income <15% <20% $99M (interest @6.5%)

Bor r

• wing
• 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
• f 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.

Ac c e ssing F

unding for Major Pr

• je c ts

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
• ving 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

• n

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

• nt loading pr
• je c ts

F e asibility funding ahe ad o f c o mmitme nts to c apital

• Pr

ac tic ing pr

• je 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?