Friday 16 December 2011

50% assistance for construction of Benhar and Tokoiti sewerage schemes

Clutha District Council yesterday decided that new sewerage schemes in Benhar and Tokoiti will be funded by way of a 50/50 split, which will see half of the construction costs met by ratepayers outside of the respective scheme areas.

Under Council’s existing rating policy (where only 10% of construction costs would have been met by other ratepayers), the cost of building the new schemes would have meant an annual sewer rate of around $1,856 for Benhar (including an annual operating rate of $260) and $2,206 (including an annual operating rate of $295) for Tokoiti. 

Yesterday’s decision means that the 10% district-wide assistance for capital costs remains in place, an additional 40% assistance will come from all sewerage ratepayers in the district, while the remaining 50% will be funded by a uniform charge on sewerage ratepayers in the respective Benhar and Tokoiti townships.

Based on project estimates, this will mean an annual sewer rate for Benhar of about $1,160, and an annual sewer rate for Tokoiti of about $1,370.

This will also mean an increase for other sewerage ratepayers across the district of about $11.

Benhar’s future annual operating rate will be the same as Balclutha’s, while Tokoiti’s will be the same as Milton’s.

Chief Executive Charles Hakkaart said tenders are now being evaluated and more exact costs would not be known until contracts had been awarded.

Mr Hakkaart said the new funding principles would be included in next year’s Draft Long Term Plan which will come into effect on 1 July 2012.

Council also yesterday adopted a policy which allows for the postponement of the capital sewerage rate for those Benhar and Tokoiti ratepayers facing severe financial hardship. The postponement would help to lessen their financial burden in the short to medium term, but these costs would still be recovered when a property is sold or circumstances change.

Yesterday’s decisions follow a public consultation process which drew over 800 public submissions on how the two sewerage schemes should be funded.

ENDS