What does this mean for our Capital Expenditure? The key point is that all projects identified in the LTP will continue. In the case of the Library/Art Gallery it’s important to consider the However, we have looked at the timing of some of them. With many positive impact Picton’s new library has had on the main street of Council capital projects costing more than $1M and having a long Picton. The new Blenheim Library/Art Gallery will have an even life, it’s vital they’re planned, designed and built professionally. As greater impact at 3,600m compared to Picton’s 761m. As we only2 2 a result we’re proposing to extend the timeframes for some of them have one opportunity to get this project right it’s important to take including two major projects; the $12-15M Flaxbourne Irrigation a little extra time. This will allow land, design and funding elements Scheme and the $20M Blenheim Library/Art Gallery. to be finalised and project risks to be minimised. While construction In the case of Flaxbourne it’s essential to confirm the availability of would be moved out a year, the investigation and design already water in the Waima (Ure) River and also identify any ecological effects underway will continue. in those times when the river isn’t flowing. Given the long dry period Please see the table below for details of Council’s major we had at the start of the year, it’s hard to believe, that the challenge construction projects. There is a lot going on! has been to get sufficient low flow periods for the ecological testing required for resource consent applications. CAPITAL PROJECTS EXPENDITURE 2019-20 CAPITAL ($M) TOTAL PROJECT ($M) Lansdowne Park Sports Hub 3.4 5.0 Library/Art Gallery 0.8 20.0 Road renewals - Including sealed road resurfacing 6.7 On-going Minor Improvements - Seal Widening, Intersection Improvements, 1.6 On-going Bridge Renewals, Jetty Replacement Walking & Cycling - Grove Rd to Westwood, Waikawa Rd, Scott St 1.3 On-going Blenheim Sewerage - McLauchlan St, Budge St and Bomford St 9.8 29.8 Picton Sewerage - Waikawa Trunk Sewer Upgrade 5.2 19.1 Blenheim Stormwater - Redwood St, Town Branch Drain, Casey’s Creek 4.3 8.1 Renwick Water 4.4 15.7 Havelock Water 1.5 6.9 Multi-beam seabed mapping - Pelorus Sound/Te Hoiere 1.0 3.0 Flaxbourne Irrigation Scheme 7.0 15.0 What does this mean for the What does this mean for amount of Council Debt? Reserve Balances? In the 2018-28 LTP, Council set itself a cap on Net Debt of While I acknowledge that Council has used Reserves to remove the $140M. Just as it did for the LTP, Council expects to remain impact on rates for one-off projects, the forecast balance of Reserves just within that cap for the next ten years. Net Debt is forecast in 10 years time is better than forecast in the LTP. Following recent to peak at $138.8M in 2024 before decreasing to $112M in 2029. events, we are conscious of the need to hold a prudent level of This is a very low level of indebtedness given the $1.6Billion Reserves, a position clearly supported by the community according value of Council’s total assets. to your feedback on the 2018-28 LTP. Council is one of only seven local authorities in New Zealand to be awarded an “AA positive” long-term credit rating from S&P 2019-20 Operating Expenditure - $M Global Ltd (formerly Standard and Poor’s). That should provide you, our community, with confidence. It also means that Council enjoys very favourable borrowing terms. Roads and Footpaths 22.0 Sewerage 12.2 Community Facilities 12.2 Water Supply 10.6 Summary Solid Waste Management 9.2 I believe that Council has taken a financially prudent Regional Development 6.3 approach to this year’s budget. It has Flood Protection and Control Works 5.2 • increased levels of service where needed; Environmental Science and Monitoring 4.4 • continued to invest not only in core infrastructure Democratic Process 4.2 but the community facilities that make Marlborough Building Control 3.5 a great place to live and visit; Resource Consents 2.8 • reduced the forecast rates increase for 2019-20 by Library Services 2.8 1.76% to 3.96% Stormwater Drainage 2.6 • kept net debt within prudent levels; and maintained Community Housing 2.2 Reserves at a prudent level. Environmental Policy 1.7 Now we need you to tell us whether the Draft 2019-20 Harbours 1.6 Annual Plan and Budget reflects your wishes and Other (includes: Environmental Protection, 7.7 priorities. I look forward to receiving your comments. Emergency Management, Animal Control, Culture and Heritage, and Environmental Health)