Infrastructure Strategy Community Facilities • Many of the local community halls are not constructed to modern earthquake resistance standards • Major memorials have been strengthened but some damage can be anticipated from a large event 5. Spending and Funding Balance One of the key infrastructure challenges is to address the tensions between spending and funding of core infrastructure The strategy is based on the following general principles: • growth driven capital expenditure is funded by Development Contributions • capital expenditure to increase levels of service, e.g. improve quality of drinking water supply, is funded by borrowing • renewals capital expenditure is funded from revenue - rates and charges - set to recover depreciation expense, and accumulated until spent. This funding source emphasises the importance to Council of continually fully funding depreciation on infrastructural assets. The detail of financial management is described in the Financial Strategy. The Infrastructure Strategy and Financial Strategy align with each other. The timing of expenditure with funding availability is an important outcome of the planning process. It is critical to ensure that adequate funding is available to prevent delays in programmed works but avoid excess cash that will incur unnecessary funding costs. An analysis of Council’s capital spending has shown that over the last 5 years around $34M has been spent per annum. The strategy identifies major capital projects. The delivery of many of these projects will depend on a number of protracted processes – public consultation and agreement, resource consent approval, land- purchase and design & construction resource availability. In consideration of these constraints the Council is planning to provide capital funding of no more than $60 million per year for the first 3 years of the LTP. Part Two – Asset-Specific Chapters 2018-2028 Long Term Plan Page 179