The re-phasing of projects has meant there is $115 million less capital required in 2017/18. This will reduce interest and depreciation expenses. It also means the Council is forecast to have less overall debt – $80 million less – than was forecast in the Long-term Plan. Details of these projects are contained in the Annual Plan 2017/18 supporting information document.
Lower costs and improved efficiency
As well as re-phasing our capital expenditure, we have also looked closely at our spending to ensure it is focussed where it can do the most good, lower costs and improve efficiency.
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 Council buildings and lowered costs. We have also achieved efficiencies through improved procurement processes, the better use of energy, and increases in Council revenue.
Lower costs, rephased projects, and improved efficiency have allowed the Council to achieve a total savings for 2017/18 of $11 million without affecting service levels.