Kingston Park

Council is closely monitoring all the financial affairs relating to this project. All actual costs are attributed to the project – including project management, internal loan repayments and staff costs.

A series of financial scenarios based on many different assumptions has been developed. Council has chosen the most likely and most advantageous scenario as being the basis for moving forward. This took into account:

  • the economic and market reality over the long term;
  • catalyst project and infrastructure delivery timing;
  • Council’s peak debt (borrowing facility) capacity;
  • Council’s final net financial position; and
  • the proposed land uses described in the Development Plan (accommodating some relatively minor changes).

This chosen scenario is being constantly updated as further expenditure occurs and tender information becomes available. The current (and initial) expectation is that the final net result, by the end of the project (say, by about 2028), is that Council is likely to incur a financial loss of about $5M. However, this loss should be viewed in the context that it has provided for an increase in rate revenue for Council in the long-term, as well as significantly contributed to the revitalisation of central Kingston, provided a new Community Hub facility and installed a major playground with extensive public open space for the whole community to enjoy.

As noted above, the project expenditure also includes the amount of staff time and other related project costs (including an interest charge for internal borrowings) on top of the actual construction costs for each component. Additional income is expected from the future land sales and this is to be received from the end of 2019 onwards.

The latest, comprehensive finance information can be found in the most recent Kingston Park Implementation Report, which can be found on bottom of the Kingston Park page.