All project costs shown within this document are the full estimated projects cost, including inflation.
This is a significant increase on prior LTPs. The majority of this investment is in core infrastructure renewals and upgrades, like water and sewer pipes, roads and footpaths, and our landfill, and will ensure Council can continue to maintain and improve our levels of service, based on its Activity Management Plans
Council also recognises how important our community facilities, like the Aigantighe Art Gallery, the Theatre Royal and South Canterbury Museum, and Aorangi Stadium, are to supporting community wellbeing. This Strategy enables Council to fund the upgrades and development of these facilities over the next ten years, and enhance the lifestyles of our communities. The graph show our Planned capital expenditure (100%) across our groups of activities.
90% Delivery Assumption
The planned capital work programme is an ambitious work programme. A critical element to help deliver this programme is the change in our delivery model. The ‘head start’ project initiative is a change from the ‘do it all in one year’ as has been past practice. For example, we are awarding construction work contracts over multiple years and designing projects and awarding construction work contracts in the previous financial year for immediate start in the year allocated.
Despite this we recognise that risks outside of Council’s control can impact on our ability to deliver some projects, regardless of the size of our capital work programme. For example, this includes the availability of contractors, disruption to supply chains, legislative change, resource consent delays and further project investigations that expose unknown issues. To reflect those external risks, it is assumed that Council will deliver and fund 90% of its planned capital works programme in any 12-month period and over the 10 year plan period. Council believes it is not fair to rate for more than it reasonably expects to deliver. Projects planned but not delivered in any one year are deferred to future years or re-prioritised (e.g. where an asset like a bridge is going to last longer or new technology provides a better solution), potentially beyond this LTP period.
The graph below shows how much we expect to spend on replacing assets, improving levels of service, and meeting additional demand, based on the 90% delivery assumption. As demonstrated in our Activity Management Plans, our assets are being enhanced over the 10-year period, which enables the levels of service to be maintained at 90% expected delivery.