Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY 1.11.4 Financial Assistance Rate The financial assistance rate (FAR) is set by NZTA and has previously been determined on the basis of a regions ‘ability to pay’. However at the time of preparing this plan NZTA are reviewing FAR to ensure that the funding assistance rates are set, and applied, in a valid and appropriate way given the modern regulatory environment. The objectives of this review are to: determine the role(s) of funding assistance rates in achieving the purpose of the Land Transport Management Act 2003 and giving effect to the Government Policy Statement on Land Transport (GPS). and review both: the approach the Transport Agency uses in setting funding assistance rates, and the funding assistance rates themselves The most likely outcome of the review for the MDC will be: An increase in the normal FAR from 46% (current 2014 level) to 50% for 15/16 and 51% from then on. This increase is likely to be a progressive linear transition over the three years of this plan. 1.11.5 Key Assumptions The key assumptions used in the preparation of the financial forecasts were: The base financial assistance rate for MDC is going to increase over the next 3 yrs. The funding criteria and policy used by NZTA will remain relatively unchanged. Revenue from financial contributions will increase as forecast. The rate of deterioration of road pavements will remain relatively unchanged over that currently being experienced. An annual allowance of $0.5mil has been made under Work Category 140 to cover extraordinary natural events of less than $100k. 30 September 2014 Page 166 of Section 1