We have about $2 billion of assets in generally good condition and big enough to cope with significant city growth. The 10-Year Plan forecasts we to spend $337 million renewing present assets, and $1,147 million building new assets over the 10-year period.
Our debt levels are moderate for a regional city. To fund existing services and the new projects proposed in the 10-Year Plan, debt will need to increase from a forecast $164 million to $860 million. Under present funding arrangements it is highly unlikely the Council will be able to borrow this sum. Something needs to change to make this possible. We plan to review the position once there's more certainty about government water reforms and the best practicable option for Nature Calls.
The proposed plan means rates will increase by 6.9% in 2021/22, 8.3% in 2022/23, 8.2% in 2023/24, 9.2% in 2024/25, 11.0% in 2025/26 and increases of between 2.6% and 6.5% in each of the following five years.