Over the next ten years the Thames-Coromandel District Council will spend $580 million on core infrastructure around the region.

Rates for the next decade will increase by an average of 2.08 per cent yearly, but in 2015/16 there will be an average 2.88 per cent rate rise alongside a draw on council's wastewater reserves.

To address the cost impact of the three eastern seaboard wastewater plants, the Thames-Coromandel District Council says rates for the 2015/16 year will crease by an average of 2.88 per cent. Photo: TCDC

'That's because in the 2015/16 year,” explains council, 'we are addressing a major cost impact. The three eastern seaboard wastewater plants, completed in 2009, cost approximately $93m.

In the planning phase, before the global financial crisis, it was assumed that 66 per cent would eventually be paid by development contributions via future growth.”

With the recession this assumption was dashed and in 2015 some $46.6m of unpaid debt will need to transfer to existing ratepayers.

Council says this is because future growth will not be enough to repay all of this debt within the 50 year life of the plants.

'In fact, 1.8 per cent of this average 2.88 per cent rates rise in the first year is attributed to that unpaid debt. If the situation changes favourably in the future, we will review this.”

The indicative average rate rise of 2.88 per cent in 2015/16 will lower to 1.03 per cent in 2018/19, while council's external debt is reducing to a level of some $4.5m.

These figures are still awaiting final sign off from Audit NZ and the council and potentially still subject to change. council will sign off the final version at its meeting on Wednesday, June 24.

Where will the $580m be spent?

• Roads and Footpaths – 23.49 per cent
• Wastewater – 17.67 per cent
• Community Spaces and Development – 15.55 per cent
• Water Supply – 11.40 per cent
• Planning and Regulation – 9.26 per cent
• Solid Waste – 6.01 per cent
• Representation – 5.73 per cent
• Stormwater – 4.51 per cent
• Protection of the People and the Environment – 3.19 per cent
• Economic Development – 3.17 per cent

Average District Rate*

• 2015/16 - $2,576
• 2016/17 - $2,643
• 2017/18 - $2,746
• 2018/19 - $2,774
• 2019/20 - $2,829
• 2020/21 - $2,883
• 2021/22 - $2,916
• 2022/23 - $2,949
• 2023/24 - $3,007
• 2024/25 - $3,074

*At the time this went to print all figures were still awaiting final sign off from Audit NZ and Council and so final figures could still change.

Budget Highlights:

i-SITEs and Information Centres:
District-wide funding has been retained. Information centres in Tairua, Pauanui, Whangamata and Coromandel town will be governed by local area office contract management, while the Thames and Whitianga i-SITES will be operated by Destination Coromandel.

Kauri dieback:
Funding has been allocated over the next financial year for signage and cleaning facilities to protect significant kauri on TCDC land from Kauri dieback.

Holiday Homes:
The proposed $200 annual fee for anyone renting their home as short-term holiday accommodation will not be introduced this year. This has been delayed for a year to give us time to work with accommodation industry stakeholders to explore alternative solutions.

B&Bs:
Bed and Breakfast accommodation providers with four or more bedrooms will be rated in the commercial category.

Rates rebates:
Those with "licence to occupy" units in retirement villages will now receive a local rates rebate equivalent to the central government rate.

Stormwater
This will become district funded for those within council's stormwater areas of service as it is considered as an essential service.

Infrastructure:
Council's 30 year infrastructure has been prepared which plans $633m of capital projects and $1.86m of operational expenditure to 2045.

For more information visit Thames-Coromandel District Council Long Tem Plan webpage at: www.tcdc.govt.nz/ltp