Wellington City Council Draft Annual Plan 2008/09

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WELLINGTON CITY COUNCIL DRAFT ANNUAL PLAN 08/09

14 OVERVIEW

OVER

VIEW

E E

CAPITAL SPENDING

We�re continuing to invest in the infrastructure

of the city.

Capital spending pays for property, plant and equipment. This includes buying,

building, developing and upgrading assets such as buildings, roads, bridges,

water and stormwater pipes, and so on.

We fund capital expenditure from depreciation, borrowings, reserves

and bequests, Land Transport NZ and other subsidies, and development

contributions. For asset renewals, the main funding source is depreciation.

For new assets, the main funding source is borrowings.

We aim to manage our borrowing within the following targets:

� total Council borrowing is less than 10% of equity and less than 150%

of income

� net interest is less than 15% of income and less than 20% of rates income

� liquidity is greater than 110%.

We�re forecasting capital spending (excluding carried forward expenditure and

loans to other organisations) of $120 million for 2008/09. That�s an increase of

$21 million from 2007/08, but compares favourably with our previous forecast

for 2008/09 of $145 million. This change reflects the reprioritisation of some

capital works we�d budgeted for in our long-term plan � further information is

provided in the �Our Activities in Detail� chapter.

VARIANCES FROM LONG-TERM PLAN

Each year we review the underlying assumptions and costs that make up

each activity. For each activity we consider the impact of a number of

factors, including:

� changes in direct costs

� updated forecasting assumptions

(including changes to the forecast timing of projects)

� the allocation of indirect and organisational costs/efficiencies

� the appropriateness of inflation and CPI adjustments

� changes affecting our opening position (e.g. updated borrowings forecasts)

This means that the proposed costs for each activity may differ from those we

had originally forecast for 2007/08 in the long term plan.

Further information is provided in the �Our Activities in Detail� chapter.

CONSULTATION

What do you think of our proposals?

You can make comments online or write to us.

Comments can be made online at www.Wellington.govt.nz. Or you can

write a submission, send a letter or email, or use the comments form in

this annual plan or our Absolutely Positively Wellington newspaper.

Send comments to:

� Annual Plan, Wellington City Council, PO Box 2199, Wellington

� Annual.Plan@wcc.govt.nz

You also have the opportunity to present your submission in person to

a subcommittee of councillors.

We need to hear your views before 5pm on 19 May.

Come to a meeting.

You can find out more about our proposals and the thinking

behind them by coming to a meeting. We have the following

public meeting scheduled:

� 2008/09 draft annual plan meeting � on Tuesday 6 May at 7pm.

The meeting will be held in Committee Room One in the Council

buildings at 101 Wakefield Street.

If you are a member of a resident association, sports club or any

other organisation or group and would like to talk about the draft

plan at one of your meetings during the consultation period please

contact 499 4444.

Your views do matter.

Every year, we change or confirm our plans in response to public input.

We appreciate the submissions we get, and we do take them seriously.

The Mayor and councillors will get copies of every submission.

A subcommittee will listen to oral submissions in late May and they�ll

report to our Strategy and Policy Committee in June. The committee

will discuss your views and start finalising the work programme for

the year. Then, on 27 June, the full Council will meet to finalise the

programme.

If you�ve made a submission, we�ll write to you and let you know what

was decided. Our annual plan will be published in July.

COPIES OF THIS PLAN

You can get extra copies of this annual plan from libraries, service

centres, or Council offices. If you phone 499 4444 we�ll send you a

copy. You can also download copies from www.Wellington.govt.nz.

CAPITAL SPENDING

Urban Development 9%

Transport 24%

Economic Development 2%

Environment 25%

Cultural Wellbeing 3%

Social and Recreation 28%

Governance 9%

25%

24%

28%