Infrastructure Strategy Assumptions • For renewals capital expenditure in years 11 to 30 it has been assumed that any made in preparing financial information (generally apply to years 11 to 30): additional costs will be more than offset by a reduction in related maintenance and no operating costs adjustment has been made; this probably leads to an Capitalised overheads have been added to capital projects in years 11 to 30 at the immaterial overstatement of operating costs towards the end of the planning • horizon. average rate they are applied in the budget ten years, by Activity. • The renewals expected based on the estimated useful life of current and planned • Given the high level of uncertainty around local government cost increases assets have been forecast to utilise availability of operational and financial beyond ten years the same capital inflation rate has been applied to years 11 to resources; renewals have generally not been forecast earlier than the engineering 30 as in the previous infrastructural strategy ie; water and sewerage 2.83% pa. trigger point. roads, rivers, community facilities and stormwater 2.91% pa. • Council’s landfill has not been included in the financial analysis, whilst it is a These compare to BERL’s forecast LGCI for the year ending June 2028 of 2.7% significant, long life, infrastructural asset it is forecast to operate as it is currently Additional operating costs, including insurance and depreciation, have been operating throughout the next 30 years. • estimated in relation to growth and level of service related capital projects in years Council’s proposed Library project has not been included in this financial analysis • 11 to 30. of infrastructural assets. 2018-2028 Long Term Plan Page 230