TYP Workshop: Major Projects 23 June 2011

Transcription

1 TYP Workshop: Major Projects 23 June 2011

2 Workshop 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

3 Introduction to the Major Projects Disclosure Financial modelling/financial strategy Linked to strategic positioning Community consultation what the demand and need is

4 Introduction to the Major Projects Committed projects Wastewater Treatment Plant ($45m) Wastewater Solutions for Wainui and Makorori (investigation) Waiapu Landfill Waiapu River Flood Protection $48M

5 Introduction to the Major Projects Major Projects Included but not committed Cycle and Walkways Library Extension Civic Space War Memorial Theatre Multi-Purpose Aquatic and Recreation Centre ($61M) Inner Harbour Waipaoa River Flood Protection $79M

6 Introduction to the Major Projects Removed Projects Water Demand Management and Metering Makaraka Wastewater Mobile Library

7 Introduction to the Major Projects Community Led Collaborative Community House Ruatoria Recreation Centre Healthy Homes Artificial Hockey Turf Broadband Investment Computers in Homes Gisborne Accessibility Planning

8 New Projects Cenotaph Restoration Council Resolution Tairawhiti Navigations Annual Plan 2010/11 and 2011/12 Council Resolution

9 Proposed Timeline MAJOR PROJECTS TIMELINE 2009/ / / / / / / / / /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 9

10 Delivering Major Projects Our Challenges Meeting LGA requirements Community mandate Reaching a Consensus Funding (ratepayers and funders) Obtaining Consents Ability to pay Ability to deliver

11 Delivering Major Projects Our Successes Rakaiatane Road Waste water treatment plant project

12 Delivering Major Projects Addressing the Issues Project management discipline Project scoping/feasibility Project Manager Funding Advisor

13 To 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?

14 Major Project Presentations

15 Other Potential Considerations.. Museum Redevelopment Relocation of Lysnar House C. Company Gladstone Road Bridge

16 Project Readiness (Peter M)

17 Targeted rate required Loan funding required Will the project be staged? Project Readiness Project Team in place Business Case/Feasibility Assessment completed Scope has been confirmed Community consultation completed on option analysis Prelimanry Design and cost estimates completed Council funding contribution obtained External funding required under current plan? External funding obtained Does the proposed project time line comply with current 10 yr plan Resource consent obtained Land purchase required Community Enhancement Tairāwhiti Navigations Inner Harbour Civic Space War Memorial Theatre Cenotaph Restoration Museum expansion Walking and Cycling 1. Waikanae Beach 2. Taruheru River 3.Waikanae Creek & bridge Library building expansion Aquatic and Recreation Centre Essential Infrastructure Waiapu Flood Protection Waiapoa Flood Protection Legend Yes In progress Possible No

18 Amended Timeline 18

19 For Deliberation. 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?

20 Investing in Community Infrastructure

21 Future Trends Solutions? Agglomeration Population move to bigger urban city Ageing population Tailored facilities Urbanisation Increase in lifestyle seekers Attractive and close communities

22 A Balancing Act What kind of district do you want? And can you afford? Economic, social, cultural and environmental benefits Deferred maintenance & end of life Community wants/ needs Keeping up with the Jones Safety

23 Financial Position

24 Financial Trends Last 3 Years strong financial results. Reported Surplus Actual $000s Budget $000s 2008/09 18,240 8, /10 15,365 6, /11 (Est) 10,900 8,679 Balanced Budget Actual $000s Budget $000s (Deficit) 2008/09 3,355 (513) 2009/10 1,605 (511) 2010/11 (Est) 2,

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

26 Capital Expenditure

27 Capital Expenditure

28 Interest Costs - Trends For each $5M in debt Interest Costs increase $300K (6%) = 0.7% on rates

29 Treasury Policy Ratio GDC Limits Acceptable Sector Levels (Guidance Only) Effective GDC limit (30/06/09) 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 Net Interest as a percentage of annual rates income <15% <20% $99M

30 Borrowing 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.

31 Conclusions 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.

32 Accessing Funding for Major Projects

33 Addressing our Challenges Gaining Commitment and Buy-in (councillors, staff, community) Councillors paradigm shift Staff clear accountabilities Community - improve evidence base Improving Funder Relationships Effective and regular communication Assessing funder interest by type Not seeking for core Consistent signals (priorities) Having more skin in the game Greater council commitment (33%) Affordability Understanding financial position and willingness/ability to pay

34 Addressing our Challenges Having aspirations we can deliver on Clear priority setting and criteria Reviewing priorities Priority setting/resetting Organisational view vs project by project Front loading projects Feasibility funding ahead of commitments to capital Practicing project management disciplines Scope defined no creep Have a plan

35 Questions?