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Earthquake lays more solid foundations for Kaikōura’s infrastructure assets
A council report says Kaikoura is in a better position than most regions when it comes to the cost of restoring old pipes and roads – largely due to the 2016 earthquake.
Kaikoura Council’s annual costs will be stable and below depreciation for at least 20 years, in stark contrast to other local authorities facing massive capital expenditures. Photo: 123RF
Kaikoura County Council employees work on the infrastructure strategy for the next 30 years as part of the long-term plan process.
Many councils have failed to put in place adequate plans to restore old water and sewage systems or assets like roads and bridges, and the government is now asking them to look ahead to what needs to be done and how they will finance it.
The Kaikoura Council has concluded that its infrastructure costs will rise over the next three years, to pay for the costs of renovating roads and pavements, and building the new Clarence River Bridge.
Thereafter, annual council costs will be stable and below depreciation for at least 20 years, in stark contrast to other local authorities facing huge capital expenditures during the same period.
Council Operations Director Dave Clipper said there were three reasons for this.
Kaikōura’s water and road assets were built later than many other areas and have a longer life.
The rebuilding work that followed the 2016 earthquake has replaced or upgraded many assets, particularly the older ones that are most at risk.
Kaikoura’s oldest water pipes have been replaced since the 1920s, and most of the other piping infrastructure is from the late 1950s and late 1980s in middle age, without major problems.
As the population stabilizes, there is no looming need to increase the capacity of those assets.
The council’s road, water and wastewater networks account for 95 percent of the council’s total assets, Claibri said, and was key to future financial requirements.
“This profile strongly indicates that if the board properly manages these assets (especially not delaying the renewals), then they should be within the community’s reach during this period.”
This does not support previous suggestions that Kaikoura County Council is not sustainable, even in the relatively long term, Claibre said.
One of the challenges the council faced was getting good value for money for major infrastructure work as it was small by local authority standards.
“The region’s relative isolation also has the potential to reduce competition and inflate costs. These are fundamental challenges that cannot be easily overcome.”
An interim budget allocation of $ 2 million was made in 2042 to support the overall water metering of the community and possibly the development of a new water source in Kaikoura if necessary to support growth.
Claibre said that while infrastructure costs will be generally stable over the next three decades, challenges await future generations.
In about 40 years, an intense period of replacements would likely begin.
“The wise management strategy may include building large (financial) reserves in the period prior to this peak, but it is recognized that this need is remote in the future and that many other factors may change in the meantime,” Klebrey said.
The Infrastructure Strategy was adopted unanimously and is now a part of the KDC’s proposed Long Term Plan.
Local Democracy Reporting is a public interest news service supported by RNZ, News Publishers’ Association, and NZ On Air.
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