Figure 20 Water Operational Expenditure Projection The budget projection for the water supply operations is shown in graphical form above (Figure 20 Water Operational Expenditure Projection. 5.1.1 Operational Maintenance Expenditure The issues discussed previously – levels of service, growth & future demand, life-cycle management and risk management all have financial consequences. The detailed budgetary expenditure projections from 2012 to 2014 are shown in the table in Chapter 4: Life Cycle Management Plan. The outline budget for the ten year period from 2015 is shown in Table 13 below. WATER SUPPLY 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Expenses 161,769 170,232 209,677 210,269 237,154 222,118 228,627 235,858 243,511 275,507 285,075 Backflow prevention 46,500 51,000 50,867 52,378 54,069 55,848 57,809 59,948 62,262 64,708 67,426 Meter Maint & Reading 53,080 53,080 54,875 69,379 111,091 189,768 244,454 250,899 183,966 189,450 195,266 Pump Station 537,980 538,980 559,154 578,749 600,292 623,788 649,562 677,313 707,962 741,018 777,045 Reticulation Mtce 777,270 760,270 789,236 812,677 838,926 866,527 896,942 930,129 966,032 1,003,997 1,046,165 Treatment Costs 697,500 726,500 837,744 976,596 1,009,532 1,044,893 1,225,908 1,432,851 1,502,327 1,564,430 1,632,527 Depreciation 2,792,980 2,793,956 2,946,469 3,065,495 3,062,107 3,019,946 3,149,969 3,285,463 3,268,695 3,251,358 3,216,554 Intrest Exp - Intl 1,388,947 1,308,932 1,224,331 1,146,278 1,074,973 1,007,102 936,357 860,573 779,391 695,671 607,562 Overhead 1,722,545 1,731,630 1,798,440 1,861,211 1,891,728 1,917,755 1,962,149 2,016,181 2,071,035 2,138,018 2,201,468 Table 13 Outline Operational Budget 2015 -25 5.1.2 Capital Expenditure In accordance with the Local Government (Financial Reporting) Regulations 2011 Schedule 10(3) capital expenditure budgets are apportioned between the primary drivers – renewal, improvement in levels of service and growth. The council’s strategy to apportioning these costs is to assess the expired/remaining life of an asset and to attribute the value of the life-to-date to ‘renewal’. This value is obtained from the annual asset re-valuation. Of the remaining cost an estimated assessment is made of any current or anticipated levels of service issues. If there are none the full estimated cost (less the renewal element) is apportioned to ‘growth.’ If there are level of service issues the value is estimated and deducted from the ‘growth’ portion. Page 73