Sources of Capital

It is important to record and to understand the organization's capital investment responsibilities and sources of capital. For each of the capital expenditure categories, either the organization or their customers or developers are responsible for funding the capital works. For example, the growth of new assets for utilities is often funded by developers under the organization's subdivision policy. Works in this area have no financial implications for the organization, except in the long term operations and maintenance/depreciation of that infrastructure. This is generally funded by the income streams generated from these new assets. However, for augmentation the organization may need to contribute to the overall cost of these assets, as developer charges may not met the full expenditure required. For utility-initiated capital works, it is generally the case that all capital will need to be funded by the organization through savings. These aspects are shown below: