Water Services National Training Group

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Water Services National Training Group

• 10th Annual Conference
• 7th September 2006

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Water Services Funding Non-Domestic Capital
Contributions

• Jack Keyes
• County Manager
• Cavan County Council

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Strategic Issues

• Balanced Regional Local Development
• Increasing Population
• Political / Business / Farming
• Government / Local Authority Finance
• Efficiency of Delivery / VFM
• Partnership between Central Local Government

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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

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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

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Political

• Farming
• Business IBEC / Chambers Ireland

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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

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Typical Small Village
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• Incentivisation of water users
• Regulatory framework
• Shared services / national and regional bases
• Structural Informational charges (audit
  committees)
• Ongoing review of local authority services (DPGs
  and water)

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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

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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

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Capital Repayments
20 Year Loans at 3.5
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Impact On Rates
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Funding

• Water Charges (50) 29.3m
• Development Levies (50) 29.3m
• Small Schemes Contribution
• Serviced Land Initiatives

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Water Wastewater (m3)
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Water Wastewater Development Levy
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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

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• 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

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Future Challenges

• Water services runs like a business
• Enhanced technical and management excellence (25
  UFW/PPPs)
• 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

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• 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