Fees and Charges
We are proposing some changes to our fees and charges that will apply from 1 July 2024.
Financial Update
Our updated capital expenditure budget proposed for 2024/25 is around $208 million, compared to $157 million provided for in year four of the 10 year plan 2021-31. This is an increase of $51 million. The increase reflects timing changes including an accelerated capital expenditure programme for 3 Waters.
The forecast financial statements show that by 30 June 2025, the debt will be around $707 million which is 188% of revenue. The debt limit in our Financial Strategy is 250% of revenue. This estimated debt is an increase of $118 million on the 2023/24 Annual Plan and is $168 million higher than provided for in year four of the 10 year plan 2021-31. This also reflects the timing of capital expenditure particularly the accelerated capital expenditure programme for 3 Waters.
Other changes compared to year four of the 10 year plan include:
- The value of our assets, due to asset revaluation and the accelerated capital expenditure programme.
- Higher depreciation costs reflecting the increased asset value.
- Interest expense, reflecting the increase in debt funding and increased interest rate.
As a result of the increased depreciation cost, everyday revenue does not cover everyday expenses. This is not sustainable in the long term so we will be looking at this as part of our 9 year plan.
You can find details about our proposed capital expenditure programme for 2024/25, our proposed operating budgets, draft financial statements and funding impact statements on our www.dunedin.govt.nz/2024AP-finances page