Part A: Introduction

Annual Plan Budget – key changes

Overview

This section outlines the main changes to the Long-term Plan 2015–25 (LTP) included in the Annual Plan 2017/18. Changes made as a result of community engagement are outlined in Part B, with further details included in Part C.

Overall, lower costs, re-phased capital projects and improved efficiency have allowed savings of over $11 million for 2017/18 without affecting service levels. The re-phasing of the projects has meant that there is less capital required in 2017/18. This means that, compared to what was forecast in the LTP, the Council will have:

Savings and efficienciesTop

We have carefully reviewed our spending to ensure it is focussed where it can do the most good, lowered costs where practicable and improved efficiency.

For example, the earthquake has undermined the usability of some of the Council’s buildings, which means we have had to assess how we use available space.
The result is a better utilisation of the available space and lowered costs. We have also achieved some efficiencies through improved procurement processes, better use of energy and increases in Council revenue.

Rephasing of the capital works programmeTop

The capital works programme outlined in the LTP included a substantial investment in a variety of projects. In 2017/18, a portion of this programme will be rephased to later years or carried out over a longer period of time.

The drivers for this include the local body elections and November 2016 earthquake, which shifted the Council’s focus to the challenges facing Wellington (housing affordability, transport, sustainability, resilience).

Many of the larger projects in the LTP involved collaborative partnerships and co-investment from external stakeholders. The timing of these projects needs to be flexible to accommodate this change in focus and re-phasing of a number of other LTP projects.

Rephased projects

Project Spending re-phased out of 2017/18
($000)
  Details
Movie Museum -31,591   Final designs are being progressed with partners and the project will not require capital funding for 2017/18.
Convention Centre -23,195
Civic Campus property -20,431   Improvements to the civic campus are being delayed. Once the remediation feasibility process is completed on the Civic Administration Building a decision will be made on its future use.
Town Hall EQS -14,346   Council is negotiating with Victoria University on the establishment of a Music Hub in the Town Hall. Preliminary work on the Earthquake strengthening has begun with the majority of physical works scheduled for 2018/19.
Museum of Conflict -10,000   The timing of this project has been deferred out of the current LTP.
Johnsonville Library upgrade -5,900   The scope has changed to optimise community benefits and this has increased costs and has impacted on delivery timeframes. This will be reflected in the 2018 Long-term Plan.
Northern Growth roading projects -5,200   Northern roading projects are contingent on developments and NZTA works. The timing of these has changed and no Council funding is required for 2017/18
Cycling improvements -3,187   This programme of work includes further community engagement which has required the programme to be rephased over a longer period.
Kumutoto Public Space and Frank Kitts Park -3,000   Frank Kitts park redevelopment requires further planning and is consequently being reprogrammed to 2018/19
Social Housing renewals -2,700   The on-going redevelopment of the Arlington site has delayed the need for renewals. These were planned for 2017/18 in the LTP.
CBD speed limit -1,300   This programme of work has been delayed to 2018/19 to facilitate the LED street light upgrade programme.
Project New spending into 2017/18
($000)
Details
LED street lighting 15,253 This is an accelerated programme to replace all the remaining sodium bulbs with LED infrastructure. This has been accelerated to allow access to one year funding available from NZTA for 2017/18.
Prince of Wales reservoir 2,000 This project for a 35 million litre reservoir has been brought forward as a resilience priority.
Rephased transport programme 1,867 The renewals programme has been re-programmed and some money has been brought forward to deal with resilience issues.
Taranaki Street sewer upgrade 1,784 This project has been brought forward as a resilience priority.
South Coast Resilience 976 Stage 2 of programme of work to restore and strengthen the South Coast after damage caused by a succession of high-intensity storm surges in recent years.

Notes to table:

The budgeted capital programme for 2017/18 is $182 million. In addition, there is $64 million of ‘carry forward’ capital projects to deliver that were funded in the Annual Plan 2016/17, and $23 million of ‘carry forward’ capital projects that were funded in 2015/16 but delayed until 2017/18. The budgeted and additional works result in an capital programme of $269 million. The resulting debt forecast of $570.2 million, however, includes a ‘carry forward’ from the 2017/18 year of $65 million. The resulting capital programme to deliver in 2017/18 is forecast to have a budget of $204 million.