Infrastructure Strategy 2024-54
Updated 10 Apr 2024Infrastructure Strategy
Download a copy of our 30 year Infrastructure Strategy
Download a copy of our 30 year Infrastructure Strategy
Infrastructure Strategy 2024-54
Updated 10 Apr 2024
While Timaru District has generally good infrastructure, much of
it is coming to the end of its expected life and will need replacing.
There is a need to put more money aside to ensure that we have
enough to fund renewing this infrastructure over time.
This page summarises the key issues facing our infrastructure and how we’re looking to address these, including some decisions, both current and future that might be required.
Developing infrastructure and maintaining our assets are vital to meet legislative standards, and community safety and environmental expectations. Upgrades and renewals are needed at water and wastewater treatment plants and pipe networks, roading networks and bridges, and waste management assets to improve safety and resilience.
Much of the district’s infrastructure is due for replacement over the next 30 years. We must borrow substantially for projects, and the current debt cap may constrain our capacity to do all we need to do.
Council anticipates potential variances in NZ Transport Agency Waka Kōtahi roading subsidies and may need to adapt its work program or increase rates after consulting the community through future Annual Plans.
Climate change mitigation and adaptation, as well as being in an area subject to natural hazards influences our infrastructure strategy. We need to work to reduce emissions while ensuring our infrastructure is built to handle a changing environment and is resilient enough to handle hazards such as flooding and earthquakes.
Solely relying on rates, grants and end-user charges to fund council services may not be a sustainable model over the long term, but for now they are our only options for funding infrastructure.
The risk assessment project is progressing to develop the Closed Landfill Management Plan in Years 1 and 2 at a total cost of $100k, with future remediation or removal of individual closed landfills to be considered as necessary in future Annual Plans.
Council faces rising community expectations over quality of services,
as well as stricter resource consent requirements, increasing regulations on water and land use, higher health and safety compliance standards, traffic management needs, and increased wear of roads from things like heavier freight vehicles.
Balancing these heightened standards against affordability poses an ongoing challenge for all councils, and Timaru District is no exception. Improving service levels must be weighed against the cost burden on ratepayers.
This approach increases operational costs and the risk of expensive asset failures in the future. The Council borrows up to 210% of its revenue to fund necessary capital work, but maintaining this status quo creates problems for future generations.
To fund the capital work programme, including upgrades to Aorangi Stadium and Theatre Royal/Heritage Centre, the Council can raise its debt cap to 250% and increase rates to eliminate the deficit and fully fund depreciation within four years. While this approach increases costs, it allows the Council to maintain emergency borrowing capacity and achieve its goals of delivering critical capital works, upgrading facilities, and reducing operational expenditure on ageing infrastructure.
The approach fails to address critical assets nearing the end of their life and relies on asset failure to drive capital works, which does not meet modern New Zealand standards. Although this option reduces debt and saves on interest costs, increased operational costs to maintain stressed assets may minimise the effect on rates. Adopting this option would require the Council to revoke previous decisions and discontinue key projects such as the microfiltration plant, water metering, or rebuilding community assets.
Increasing debt to the LGFA limit could accelerate water services upgrades but would limit borrowing capacity for other projects over 30 years. It also makes the Council vulnerable to emergency borrowing limitations and could negatively impact its credit rating and long-term interest rates.
Many of the District’s assets are getting to the point where
they need to be replaced as they reach the end of their useful
life, and we will prioritise renewals based on the greatest
need and risk.
Council invested heavily in updating all its information on
water, roading and waste which enables informed decision
making over work prioritisation.
Infrastructure assets are routinely evaluated whether they
are vulnerable to climate change impacts, and renewals are
planned accordingly.