Residents in Blanket Bay and Curles Point, in Dunedin, will be asked to pay up to $6760 each towards the $370,000 cost of installing a new pressure sewer system.
The Dunedin City Council - responding to years of complaints about strong odours from ineffective septic tanks in the two areas - is proposing to install the new sewer system to deal with wastewater from the properties.
The new system would cater for seven properties in Blanket Bay and another five in Curles Point, with costs totalling $370,000, a report by council appraisal engineer Ian Dimmendaal said.
The report was considered at a recent meeting of the council's infrastructure services committee meeting in Dunedin.
A letter to be sent to residents, contained in the report, showed the costs included $21,300 per property to connect homes at Blanket Bay, and $33,800 per property for those at Curles Point.
However, councillors last year approved a proposal to split the costs, with the council paying 80% and residents 20%.
The decision came after council staff found problems with septic tanks in the area created a "clear and demonstrated need" for a new system.
The funding split meant Blanket Bay residents would be asked to pay installation costs of $4260, and Curles Point residents $6760, while both groups would pay annual operating and maintenance costs of $363, the letter said.
The council's share of operating and maintenance costs would be $2000 at Blanket Bay and $1500 at Curles Point.
Councillors last week voted to accept Mr Dimmendaal's report and consult residents on the proposed costs.
Plans were expected to be finalised as part of the 2011-12 annual plan process and, once confirmed, it would become compulsory for all residents in the two areas to connect.