In Kaipara rates bills this year are a hot topic in every sense, recently reports show the scale of the problems unfolding at Kaipara, spiraling debt and large rate increases (some 1000% in one year) resulting from a Mangawhai Heads sewerage scheme, the estimated cost started at $34m based on continued growth that has not happened, actual cost $62m.
Kaipara is considered 'tiny' but has huge debts as a result, add to that $20m of rate refunds due and the debt will be $100m, end result: Commissioners appointed and likely bankrupt.
Meanwhile in Tauranga many things 'sewerage” look the same: - Our sewerage scheme with an estimated cost in 2004 of $19m and $260m in 2011(13x bigger). BOP Councils have paid $10+m to Smartgrowth who predicted large future growth but there's none.
Many questioned this Council accepted idea that eventually it wouldn't work. Now Council have been advised that 'the growth may not be there” yet the spending goes on to build the pipeline costing $260m. TCC is now 'looking for growth” to justify it all?
Tauranga's ratio of debt/income ($460m/$168m is 274%, threshold 250%), Kaipara@232%, but then add to that another $190+m of borrowings to complete the pipeline then total debt would be $650m@390% in 3-4 years or so.
The Sewer project needs to stop now before Kaipara's fate befalls Tauranga?

Ian Stevenson, Tauranga.