Infrastructure Capital Works Underspent
Deferral of projects and savings - due to closer scrutiny by staff - are two key reasons the Queenstown Lakes District Council district-wide infrastructure capital works is $6.37 million under budget for the 2009/10 year, QLDC capital works manager Ken Gousmett said.
“That is a budget underspend of 15.4%,” Mr Gousmett said.
Staff were required to make a 10% saving, which had been achieved but other factors had seen the underspend increase.
“All projects have been carefully reassessed for need at each key stage and where we can we have deferred projects, or parts of projects. A reduction in growth has been another factor,” Mr Gousmett said.
A significant amount of the under-expenditure had been in wastewater projects. Projects where there were savings included:
- Closed Landfills Queenstown $216,000
- Refuse Bins $215,489
- Project Shotover Stage 1 $104,482
- Aubrey Road East Reticulation $ 767,732
- Allenby Farms Reticulation and Pump Station $408,577
- Bremner Bay Pump Station $420,856
- Gordon Land Sewer Upgrade $215,635
- Arrowtown Bore Field Upgrade $823,812
- Peninsula Bay Water $135,403
- Hawea Water Supply Upgrades Stage 1 – Falling Main $145,152
- Gorge Road Stage 3 – road reconstruction $142,039
- Humphrey Street Extension $489,298
The reduction in New Zealand Land Transport funding had also seen several capital works projects postponed.
“The key advantage here is that this flows into less borrowing on the part of the Council and therefore less debt,” Mr Gousmett said.
There were several aspects to the under expenditure:
- Short term deferrals.
- Long term deferrals (where a project may be set back for 5-10 years or more).
- Savings (where a project or part of a project is not needed or the scope can be reduced without changing the level of service).
“All of these are positives towards addressing the Council’s long term debt and an indication of the Council’s commitment to delivering value for money to the ratepayer,” Mr Gousmett said.
The information would be reported to the QLDC utilities committee on Tuesday (31 August).
For further information please contact Ken Gousmett 03 441 0499.