Infrastructure Strategy Part Three — Financial Summary The capital work presented in section two represents total infrastructural capital The preceding chart shows the total infrastructural spending (capital and operating spending of $759 Million over the next 30 years; with associated operating expenditure combined) by Activity Group. totalling $2.318 Billion – to operate and maintain existing and new infrastructural assets. The operating expenditure is spread fairly evenly across the years whereas Given the constant challenge to provide the required services in an affordable manner, the capital expenditure is more concentrated in the early years. and the demand on internal and external project management and construction resources, the renewals expenditure based on expected useful life has been budgeted to “fill the gaps” between the major projects. In preparing its LTP Council has to inflate the project cost estimates, also added into the budget are approximately $1.0 Million of Planning and Development costs which will be capitalised. The same methodology has been applied throughout the thirty years of this financial summary. Preparing the LTP and this financial summary also involved consideration of factors which may delay the proposed timing of projects and have a significant impact on the overall capital programme. Over the past five years actual Capital Expenditure has ranged from $28.3 Million in 2013 to $42.7 Million in 2017 with an average of $34.1 Million, the projection for 2017/18 is over $50 Million. In all of these years the actual spending was below budget, often significantly. Capital project timing has been delayed due to: • finalising community consultation; • obtaining land access; • obtaining resource consents; • the availability of external professional expertise; • receiving acceptable contract price and contractor availability. As described throughout the strategy there are many projects and solid demand for improved services from all of the core activities. However it is unlikely that projects will rapidly overcome the obstacles described and accelerate much beyond an annual expenditure of $60M. It has therefore been decided to limit capital financing to $60M per annum for the first three years of the LTP. 2018-2028 Long Term Plan Page 220