Note: The above information needs to be interpreted with care. The work that was done for the preparation of this report raised a number of consequential questions that indicate some of the answers provided may be incomplete or not strictly correct Table 4.4A shows the forecast renewals expenditure v depreciation comparison. Table 4.4A Forecasted Renewals Expenditure As a Proportion of the Depreciation Provision - 2012/2022 (%) Stormwater/ Authority Roads Water Supply Wastewater Control Hawkes Bay Regional Council 74% 74% Napier 42% 43% 50% 44% 44% Hastings 92% 36% 47% 0% 65% Central Hawkes Bay 84% 88% 78% 90% 84% Wairoa 139% 50% 13% 40% 97% TOTAL 80% 47% 48% 22% 65% National Comparison 91% 72% 58% 32% Note: See Sections 10.2 11.2 (Water Supply), 12.2 (Wastewater) and 13.2 (Stormwater/Flood Control) for details. During the 2012-22 period the four territorial authorities are intending to depreciate their assets by $617m but only spend $398m on renewals :viz Table 4.4B - Planned Renewal Expenditure Vs Depreciation 2012/22 Depreciation Renewals Activity % $m $ m Roads 377 300 80% Supply 53 25 47% Wastewater 126 60 48% Stormwater 61 13 22% 617 398 65% The Comparison’ figures are the 10year averages identified in Funding ‘National Management and Roads- Funding and Management Challenges’ November ‘Water – 2014 a report by the Office of the Controller and Auditor General about New Zealand – local authorities’ asset management practices (page 32). Napier road lives are to be extended based on a report by Waugh Infrastructure Ltd. The effect of this will be to reduce the annual depreciation requirement and therefore produce a higher percentage. As at 30th June 2014 the councils had the following amounts in reserve funds for renewals. In their replies to the questionnaire the Councils indicated that these funds are
Note: The above information needs to be interpreted with care. The work that was done for the preparation of this report raised a number of consequential questions that indicate some of the answers provided may be incomplete or not strictly correct Table 4.4A shows the forecast renewals expenditure v depreciation comparison. Table 4.4A Forecasted Renewals Expenditure As a Proportion of the Depreciation Provision - 2012/2022 (%) Authority Roads Water Supply Wastewater Stormwater/ Control Hawkes Bay Regional Council 74% 74% Napier 42% 43% 50% 44% 44% Hastings 92% 36% 47% 0% 65% Central Hawkes Bay 84% 88% 78% 90% 84% Wairoa 139% 50% 13% 40% 97% TOTAL 80% 47% 48% 22% 65% National Comparison 91% 72% 58% 32% Note: See Sections 10.2 11.2 (Water Supply), 12.2 (Wastewater) and 13.2 (Stormwater/Flood Control) for details. During the 2012-22 period the four territorial authorities are intending to depreciate their assets by $617m but only spend $398m on renewals :viz Table 4.4B - Planned Renewal Expenditure Vs Depreciation 2012/22 Activity Depreciation Renewals % $m $ m Roads 377 300 80% Supply 53 25 47% Wastewater 126 60 48% Stormwater 61 13 22% 617 398 65% The ‘National Comparison’ figures are the 10year averages identified in Funding Management ‘Water and Roads- Funding and Management Challenges’ – November 2014 – a report by the Office of the Controller and Auditor General about New Zealand local authorities’ asset management practices (page 32). Napier road lives are to be extended based on a report by Waugh Infrastructure Ltd. The effect of this will be to reduce the annual depreciation requirement and therefore produce a higher percentage. As at 30th June 2014 the councils had the following amounts in reserve funds for renewals. In their replies to the questionnaire the Councils indicated that these funds are