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Water Services National Training Group

Water Services National Training Group. 10 th Annual Conference 7 th September 2006. Water Services – Funding Non-Domestic Capital Contributions. Jack Keyes County Manager Cavan County Council. Strategic Issues. Balanced Regional & Local Development Increasing Population

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Water Services National Training Group

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  1. Water Services National Training Group 10th Annual Conference 7th September 2006 WSNTG Annual Conference September 2006

  2. Water Services –Funding Non-Domestic Capital Contributions Jack Keyes County Manager Cavan County Council WSNTG Annual Conference September 2006

  3. Strategic Issues • Balanced Regional & Local Development • Increasing Population • Political / Business / Farming • Government / Local Authority Finance • Efficiency of Delivery / VFM • Partnership between Central & Local Government WSNTG Annual Conference September 2006

  4. Summary of Main Effects - Financial • Significant effect on Local Government Financing • Borrowing (Quantum / Approval) • Risk • Cash Flow / Overdraft • LGF Fund • Price/Dev. Contribution Increases • Social / Affordable • Rates Income WSNTG Annual Conference September 2006

  5. Socio Economic Planning • National Spatial Strategy • “To strengthen establishments of structured villages & small settlements” • “Alternative for those wishing to live in rural community” • Sustainable Rural Housing Guidelines • “Development of towns & villages… attractive & affordable housing options” • Regions currently lagging WSNTG Annual Conference September 2006

  6. Political • Farming • Business – IBEC / Chambers Ireland WSNTG Annual Conference September 2006

  7. Chambers IrelandWater Service Charges for Business 2006 Recommendations • Local Authorities should charge all water users • Compulsory metering in planning permissions • Reduce commercial rates in line with full cost recovery • Agree increases above inflation with business & farming community • Transparency (including all contributions from business community) • Increased funding of local government including a move to locally based sources • Charge all for everything WSNTG Annual Conference September 2006

  8. Typical Small Village WSNTG Annual Conference September 2006

  9. WSNTG Annual Conference September 2006

  10. WSNTG Annual Conference September 2006

  11. WSNTG Annual Conference September 2006

  12. WSNTG Annual Conference September 2006

  13. WSNTG Annual Conference September 2006

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  15. WSNTG Annual Conference September 2006

  16. Incentivisation of water users • Regulatory framework • Shared services / national and regional bases • Structural & Informational charges (audit committees) • Ongoing review of local authority services (DPG’s and water) WSNTG Annual Conference September 2006

  17. Chambers Ireland - Findings • Metering target end 2006 will not be reached by 11 Councils • Variation in costs for metering (zero to €680/annum) • Consolidated charges varying from €0.77 to €4.55 • Current expenditure of water services increased from 11.53% to 13.4% of overall revenue expenditure • Current income from water charges varied from an average of 3.64% to a maximum 6.51% of overall expenditure WSNTG Annual Conference September 2006

  18. Water Services Investment Programme 2006 - 2011 Water = € 64.9 million Wastewater = € 55.7 million Total = €120.6 million Council contribution = € 36.9 million Funding Source – Development Levy Water Charges Financed by – 20 year loans WSNTG Annual Conference September 2006

  19. Capital Repayments 20 Year Loans at 3.5% WSNTG Annual Conference September 2006

  20. Impact On Rates WSNTG Annual Conference September 2006

  21. Funding • Water Charges (50%) = €29.3m • Development Levies (50%) = €29.3m + Small Schemes Contribution + Serviced Land Initiatives WSNTG Annual Conference September 2006

  22. Water & Wastewater (m3) WSNTG Annual Conference September 2006

  23. Water & Wastewater Development Levy WSNTG Annual Conference September 2006

  24. Possible Responses Of Local Authority • Cease development of small towns & villages • Cease development of certain larger conurbations • Adopt shorter design periods / modular approaches • Significantly increase development charges / water charges in under developed regions WSNTG Annual Conference September 2006

  25. Also could: • Improve efficiencies, systems and VFM approaches • Increasingly involve private sector/other delivery mechanisms as appropriate • Improve transparency / dialogue with business & farming interests • Develop shared services approaches • Incentivise customers WSNTG Annual Conference September 2006

  26. Future Challenges • Water services runs like a business • Enhanced technical and management excellence (25% UFW/PPP’s) • Attitudes and systems re-aligned • Consistent and comprehensive cost centres (e.g. building depreciation) • Profit in all but name • Better mobilisation of Regional & National Networks • Deepened partnership between DEHLG & Local Government WSNTG Annual Conference September 2006

  27. Clarity of Integrated Strategic thinking at Central Government Level • Increasing population • Consistency of approach to water pricing • Borrowing CAP • Funding of Local Government • Linkage with River Basin District Management WSNTG Annual Conference September 2006

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