LRCA Member March 24 Update
March 19, 2024
Attendance Record @ LTP Sewerage Meeting
April 15, 2024
Long Term Plan - Sewerage Cost Now Up To $45,000 Per Property!
The Council released its Long Term Plan Consultation document on Thursday 4th April.
With it came another bomb shell for our East Rotoiti property owners. With the uncertainty over $10m funding from the Ministry for the Environment the proposed cost to rate payers has now risen to over $45,500, if paid in a lump sum, and $88,000, if spread over 25 years!
This has 770 East Rotoiti and Rotoma property owners paying $35,000,000 versus all Rotorua’s 31,000 ratepayers paying just $1,500,000 to improve lake water quality for the whole district’s benefit!
We believe this is totally unjust.
And holding on to this LTP proposal risks seriously damaging the Council's LTP goal to "Build our Reputation"
Affordability
It has been acknowledged by Council that for many in our community $14 to $15,000, as was originally advised, is all they can afford and yet the LTP ignores this.
Throughout their public communication the council has frequently confirmed this commenting that “significant sections of our community cannot afford any more than $14 to $15,000”.
Proceeding, without consultation, with a project which the community can not afford is totally unjust.
Consent to Scheme based on $14 to $15k
No business or person in NZ can legally provide an estimate, which a consent is then based on, and accepted and then charge 3 times the estimate.
Most have agreed to installation based on an expected cost of around $14 or $15,000 originally advised.and have not provided advice to the contrary.
In updates to the community the council regularly advised that every effort was being made to keep costs per property close to the amounts originally quoted.
They also advised that if the Rotoiti system cost was "materially different to the planned cost that the community would be consulted".
It was not until March 2024, when we requested an update - well after most of the systems had been installed - that the Lake Rotoiti Community Association were finally advised by council officials that the projected cost for the project had now climbed from $35,500,000 to over $56,000,000 and the estimated cost per property would be around $30,000, based on anticipated external funding.
And now in early April, less than a month later, the Council has upped that again to over $45,000 in their long term plan, if a $10,000,000 loan is not secured from the Ministry for the Environment. Three times the original amount!
Even now, (Wednesday 24 April, 2024), the affected East Rotoiti and Rotoma ratepayer/property owner community have not received advice direct from the council, based on budgets produced since 2019, as to any significant change to the 2019 estimated cost to property owners. This is inspite of our specific request to the Mayor and CEO that they do so.
Property Owners Should Not be Responsible for Excess Costs beyond Their Control
Council officers have had the best intentions and have done their best on our behalf.
We are however concerned about being made responsible for possible Council mis-management.
As work on the Rotoma installations and waste water treatment plant progressed in 2019 the community were advised that $24,000,000of the $35,500,000 project was now under contract with just the Rotoiti section at $11,000,000 for reticulation and systems, to be let.
With the expected project cost now over $56,000,000 that suggests, contract mis-management, or a blow out of around $20,000,000 on the Rotoiti portion of the project. Council should be responsible for this blow out?
"A Better Rotorua For All"
Mayors LTP Message; "Our vision is to make Rotorua a better place for all".
As per the long-term plan - A Better Rotorua For All - improving Lake Rotoiti's water quality is for the benefit of all the Rotorua district and as such all who share in the benefit should also share the cost of improving it.
770 East Rotoiti and Rotoma property owners paying $35,000,000 versus the Rotorua’s 31,000 ratepayers paying just $1,160,000, or even the proposed $2,700,000 to improve lake water quality for the whole district’s benefit, is neither equitable nor consistent with the LTP's vision.
At least $10,000,000 should be spread across the community, meaning very least every one would pay an extra $400 including property owners who would also pay $15,000 if paying in a lump sum. This assumes the $10,000,000 loan is secured from the Ministry for the Environment.
LRCA and Community Response
It is important we all play our part to get the best result for our community - numbers of submissions matter!
Support for our LRCA Submission with your comments here.
Make your own Submission on the Councils Long Term Plan
We recommend that you use this on line form and if you can tick yes to: "I wish to present my submission publicly in front of your Councillors at a hearing".
(Note - submissions must be in by the 6th May)
Attend the Council’s Rotoiti Consultation Meetings:
* Pikiao League Club, 5.30 to 7pm Tuesday 9th April
* Rotoiti Sports Club, 6.00 to 7.30pm Monday 15th April
Read the section of the Long Term Plan that relates to Rotoma & East Rotoiti Sewerage Scheme here.
Read the full Long Term Plan for Consultation here.
Regularly check our LRCA web site for the latest information on our progress on this issue
.