Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY 1.11 FINANCIAL SUMMARY 1.11.1 Financial Plan The financial forecasts for the Routine Maintenance, Renewals and Capital works budgets for the next 10 years are shown in Tables 11.2 and 11.3. The summary is based on the costs associated with each asset or service as detailed in Section 6 of this plan. All expenditure and revenue is shown in terms of 2014 dollars and will need to be adjusted each year to reflect cost escalations. 1.11.2 Financial Strategy The first priority is to maintain, operate and protect the existing network. ppoxi ately 92% of expenditure is spent on this task with the remaining 8% spent on improvementso provide a ger evel oservice, addonal capacity and to address safety issues. The management and maintenance of the road network is funded from the road rate collected by Council and subsidy received from NZTA from the National Roads Fund. The Government has established a dedicated National Roads Fund into which all revenue received from Road User Charges, Motor Vehicle Registration and Licensing fees and a portion of the fuel excise duty on petrol, LPG and CNG is paid. This fund is used to firstly fund the safety expenditure of the LTSA and Police with the remainder paid to NZTA for funding NZTA and local authorities according to specified maintenance and capital project criteria. Funds received from NZTA meet approximately 51% of the cost of maintaining the road network and 56% of the cost of the road improvements which qualify for subsidy. Note that while this Activity Management Plan identifies funding sources, and items that are eligible for subsidy, it does not quantify the various funding levels from each source. This is due to NZTA varying subsidy levels, from time-to-time, and Council required to add its own management costs and overheads to service the asset. The LTP references Council’s funding Revenue and Financing Policy which provides a summary of Council’s funding policies in respect of both operating expenses and capital expenditures. Council reviews its funding policy at least every three years. The last review was completed in conjunction with the adoption of the 2012 Long Term Council Community Plan and proposed changes to the existing policy are detailed. Sources of funds available to Council are as follows: - General rates. Targeted rates. Fees and charges. Interest and dividends from investments. Borrowing. Proceeds from asset sales. Development contributions. Financial contributions. Grants and funding assistance. Other sources permitted by statute. The LTP notes that; ‘Roading, including footpaths, contributes to the Essential Services and Prosperity Community Outcomes and Council outcomes of a place where people enjoy living and a prosperous community and economy for all Marlburians by providing an efficient and safe transport network for the District to facilitate the movement of people and goods. The network also contributes to the Physical Activity and Environmental Sustainability Community Outcomes by enabling walking and cycling and as a conveyance for community services.’ Specific roading rates and charges are in place for; French Pass Road Kenepuru Road Cissy Bay Road In determining the capital to be undertaken the BCR is the governing criteria used with preference being given to projects which can be shown to be economically justified and attract subsidy. 30 September 2014 Page 164 of Section 1