Financial Overview Financial Overview $525.1 million over the next 10 years which is required to be shown in the three categories below. Council must, under the Local Government Act 2002, manage its revenues, $120.1 million to meet additional demand (including vested assets) expenses, assets, liabilities and general financial dealings prudently and in a $188.7 million to improve the levels of service manner that sustainably promotes the current and future interests of the community. The Financial Strategy at pages 159 to 167 is an important part $216.3 million to replace existing assets of the LTP, providing detailed information about how this will be achieved over $525.1 million in total the next ten years; an overview of that information is given here. More information on the Capital Expenditure programme is given in the The Financial Strategy demonstrates how Council will: Activity Sections and the Infrastructure Strategy and is also available in Ensure the levels of rates and borrowing are financially sustainable and Council’s Asset Management Plans. • kept within pre-set limits; • Maintain levels of service; • Maintain the assets it owns on behalf of the community; • Provide for growth and changing demand patterns within the District; • Fund improvements to infrastructural and other community facilities; • Manage Council’s investments and liabilities. In preparing its LTP budget and Financial Strategy Council has considered how to balance: • The levels of service to be provided and the cost of achieving and maintaining them during periods of growth; • The priorities and timing of expenditure across all activities, especially expenditure of a capital nature which is contained in the Infrastructure Strategy and Asset Management Plans; • The proposed levels of rates and charges across the full 10 year period of the LTP and their impact on the community; • The proposed level of borrowing current and future ratepayers will need to service. Capital Expenditure One of the main drivers for rates increase is financing Capital Expenditure. To maintain and improve levels of service in response to Government, Over the past five years actual Capital Expenditure has ranged from $28.3M community and growth demands, Council is planning Capital Expenditure of in 2013 to $42.7M in 2017 with an average of $34.1M. The projection for 2018-2028 Long Term Plan Page 14