Financial Strategy Marlborough has the highest proportion of older people in New Zealand, with 20.5% Older people are also more likely to prefer smaller houses and units, near the urban of our population aged 65 or more in 2013. By 2046 about 35% of us will be aged centres. Providing for this market could lead to urban intensification through 65 and over. The change in Marlborough’s age distribution between now and 2043 regeneration of the existing housing stock. is clearly shown in the graph below. The current urban settlement pattern consists of an average of 10-11 properties per hectare. The Development Contribution Policy helps to encourage urban infill by offering reduced charges for the subdivision of small residential sections. Urban intensification would help to reduce further urban spread and subsequent extension to the linear infrastructure. Costs per connection would decrease and improve the affordability of these services. For planning purposes a growth rate at or slightly above the medium growth scenario has been adopted. The reasons for taking this position are twofold: 1. To take account of historic levels of growth which are almost double the current projections; and 2. To allow a contingency in infrastructure construction planning. It is comparatively easy to slow a major infrastructure project if the demand is below forecast levels. However, it is virtually impossible to accelerate a significant capital project because of the consultation, land access, regulatory, design and tendering requirements that must be worked through before construction can start. Council believes that, as development increases the consumption of its current infrastructure capacity and accelerates the requirement for new infrastructure, developers should bear the cost of this increased demand. Through the application of its Development Contributions Policies to fund the cost of this additional infrastructure, Council is seeking to achieve an appropriate balance between encouraging growth and reduce the potential for additional burden on the ratepayer. Undertaking development in a planned, co-ordinated manner can reduce costs as infrastructure development is not responding to “adhoc requests” for isolated, The increasing elderly population and fewer working people (50% rather than the scattered, piecemeal development. Responding to adhoc development can mean current 60%) needs to be taken into consideration in financial planning, particularly that parts of the infrastructure networks are replaced earlier in their life than when setting rates as affordability issues could arise as a large percentage of this optimum while allowing other parts of the network to remain comparatively group are on relatively fixed incomes. underutilised. The trend for growing urban centres and fewer people living in rural areas is Balancing the Budget expected to continue, as older people generally prefer to live closer to the services The Council is required under the Local Government Act 2002 to ensure that each provided in larger centres. The provision of infrastructure in smaller settlements and year’s projected operating revenues are set at a level sufficient to meet that year’s the method of funding may need to be considered in the light of these projections. projected operating expenses i.e. Council must demonstrate financial prudence. This may also result in new and or different levels of services being requested. 2018-2028 Long Term Plan Page 161