Residents shocked by rates decision

Tokoiti residents say they are shocked and disappointed with the Clutha District Council's decision to split the cost of new sewerage systems in Benhar and Tokoiti, having 50% funded by the townships and the remainder shared across the district.

Tokoiti residents and pensioners Lynn and Gordon Smart have lived in their home for more than 50 years, and Mrs Smart said she and other residents were in shock after the council's decision on Thursday.

"We just don't know what we're going to do. I'm quite angry that we poured out our hearts to them [councillors] and they didn't listen. We were all so shocked [after the meeting]. This will affect our lives so greatly and there was so little discussion - they didn't even choose their preferred option."

Clutha Mayor Bryan Cadogan made an unsuccessful motion to adopt the council's previously preferred option which would mean 41% and 34% of the base capital costs for the sewerage schemes in Benhar and Tokoiti were paid for by those respective communities, 10% shared across the whole district, and the remaining 49% and 56% respectively funded by uniform costs spread across all sewerage connections.

Tokoiti resident Colin Child said he was disappointed with the meeting, and had expected more discussion of the options by the councillors.

"The outcome is pretty devastating for some people, who expected the council to vote for their previously preferred option."

Benhar resident Phil Barrett said he believed more people were frustrated with the process than with the funding proposal.

"The 50/50 split was not such a bad option; it's certainly better than paying 90%. In my view, 50% is better than nothing."

Council chief executive Charles Hakkaart said the district-wide contribution would increase between 50c and $4 on all residents' yearly rates, depending on their property's capital value, and between $10 and $11 on the rates of all those with sewerage connections.

The schemes are estimated to cost $1.1 million for Benhar, and $717,000 for Tokoiti.

Based on project estimates, Benhar residents could pay a lump sum of $11,542 or add $900 to their yearly rates, while also paying Balclutha's annual sewerage rates of $260, creating a total Benhar sewerage rate of about $1160.

Tokoiti residents could pay a lump sum of $12,804 or add $1075 to their yearly rates, while also paying Milton's annual sewerage rates of $295, creating a total Tokoiti sewerage rate of about $1370.

Contracts have yet to be awarded, however, as negotiations are still under way. Five tenders have been received for the Tokoiti scheme, and seven for Benhar. Final costings will not be available until tenders are awarded.

Mr Hakkaart said he hoped to announce tenders next week.

The running costs of both schemes would be shared across Balclutha and Benhar, and Milton and Tokoiti, as both townships would hook into the larger towns' existing schemes.

Pumps would be installed at Benhar properties, while Tokoiti would have a gravity system.

The council also adopted a policy allowing for the postponement of the capital sewerage rate for those Benhar and Tokoiti ratepayers facing severe financial hardship. Costs would still be recovered when a property was sold or circumstances changed.

Mr Hakkaart said the new funding principles would be included in next year's draft long-term plan, which will come into effect on July 1, 2012.

- helena.dereus@odt.co.nz