the engineering capital works will not be known until the studies have been complete. An additional $10 million has been sought and granted by the Council to fund the likely capital development for new pipeline works. The exact nature of the works is yet to be determined and the spend profile is indicative only. Budget Item ( 2,015, ) 2(016, ) 2(017, ) 2(018, ) 2(019, ) 2(020, ) 2(021 , ) 2(022, ) 2(023 , ) 2(024 , ) 2(025, ) Design & Overhead 321,301 321,020 331,156 340,516 343,762 346,388 352,174 359,447 366,595 375,732 384,108 Additions: Instrumentation Additions: Vested assets - MDC Extnl VstdAssts 150,000 200,000 205,000 210,207 215,988 222,143 228,697 236,015 243,709 252,190 261,244 Pipelines New 1,069,000 20,000 1,044,582 21,021 1,102,501 1,133,922 22,927 1,206,601 2,836,090 5,084,293 2,648,044 Connections New 51,000 51,000 52,229 53,603 55,125 56,696 58,465 60,330 62,345 64,502 66,857 Additions Engineering 83,095 7,053 47,258 19,039 46,789 59,789 13,362 168,575 252,924 506,864 224,498 Renewals: Pipelines 811,814 69,000 70,663 72,521 74,581 76,707 79,100 81,623 84,349 87,268 90,453 Capital expenditure is categorised to growth, improvement to the level of service or renewal. The expenditure for new pipelines in Blenheim has been apportioned 50% to improved level of service and 50% to renewal. 5.2 Funding Strategy Local authorities are obliged to take certain matters in to consideration when determining how the water activity is funded: • Contribution to the achievement of Community Outcomes. • Beneficiaries of the activity. • The period over which the benefit will be achieved. • The extent to which individuals contribute to the need for expenditure. • The costs/benefits of funding water activities relative to other Council activities. • The impact of the cost on the activity on the wellbeing of the community. The stormwater activity contributes to the Community Outcomes of Living by providing a safe and sanitary environment through the removal of urban stormwater and urban flood management. The control & monitoring of the quality of urban stormwater discharges to the natural environment also helps to manage the quality of aquatic ecosystems. Limiting the interruptions to commercial activity and industrial production through the effective management of floodwaters contributes to the economy of the region. The beneficiaries of the urban stormwater systems are identified in the Revenue and Financing Policy in the following way. “Owners of developed properties require that there are systems for the collection and disposal of stormwater. Developers who are adding to the demands placed on schemes which require the Council to undertake new capital works related to growth will contribute to these costs.” The overall costs of providing the stormwater service must be traditionally distributed between the day-to-day operational expenses and the capital costs of developing, improving and renewing the infrastructure. 5.2.1 Operational Expenses There are many potential sources of funding for the activity - general rates, targeted rates, lump sum contributions, fees and charges, interest and dividends from investments, borrowing, Page 53