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Long Term Plan 2024 - 2034. How much will it cost?
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Consultation has concluded
In the next 30 years we are expecting our population to increase from 60,000 to 73,000.
While a growing population creates incredible opportunities, including increased prosperity, economic investment, community vibrancy and diversity, it also presents challenges.
To accommodate this growth, we need to invest in new projects like the Te Puke Wastewater Treatment Plant ($73m) and Ōmokoroa Roading and Structure Plan investment ($87m). Our overall capital programme, of which 27% is growth related, impacts our overall debt levels in this Long Term Plan.
We have a strategy in place to manage this.
We also have one eye on the continued uncertainties of government reforms - Three Waters, resource management and the future for local government legislation.
Our debt
We are strategically using debt to be able to deliver key projects that smooths and reduces the financial burden on people. Debt spreads the costs of an asset across its lifetime, meaning that all those who benefit from it contribute - today’s communities and tomorrow’s communities both pay their share. This is key to intergenerational wellbeing.
We're lucky as we’ve got some financial headroom to borrow. Our debt levels have increased, and the key driver is our continued investment in infrastructure. In this Financial Strategy we have increased our debt limit from 180% to 200% (based on net debt to revenue ratio). This is prudent and remains significantly lower than the 380% current limit imposed by the Local Government Funding Agency (Council’s lenders).We continuously monitor the economic situation and are prudent, only drawing down when we need to. You should have confidence in us managing things. It’s extremely important to us that as many people as possible understand our proposed approach and the reasons for it.
In the next 30 years we are expecting our population to increase from 60,000 to 73,000.
While a growing population creates incredible opportunities, including increased prosperity, economic investment, community vibrancy and diversity, it also presents challenges.
To accommodate this growth, we need to invest in new projects like the Te Puke Wastewater Treatment Plant ($73m) and Ōmokoroa Roading and Structure Plan investment ($87m). Our overall capital programme, of which 27% is growth related, impacts our overall debt levels in this Long Term Plan.
We have a strategy in place to manage this.
We also have one eye on the continued uncertainties of government reforms - Three Waters, resource management and the future for local government legislation.
Our debt
We are strategically using debt to be able to deliver key projects that smooths and reduces the financial burden on people. Debt spreads the costs of an asset across its lifetime, meaning that all those who benefit from it contribute - today’s communities and tomorrow’s communities both pay their share. This is key to intergenerational wellbeing.
We're lucky as we’ve got some financial headroom to borrow. Our debt levels have increased, and the key driver is our continued investment in infrastructure. In this Financial Strategy we have increased our debt limit from 180% to 200% (based on net debt to revenue ratio). This is prudent and remains significantly lower than the 380% current limit imposed by the Local Government Funding Agency (Council’s lenders).We continuously monitor the economic situation and are prudent, only drawing down when we need to. You should have confidence in us managing things. It’s extremely important to us that as many people as possible understand our proposed approach and the reasons for it.
