Lake Tarawera Sewerage Scheme Costs

Question 1:

From the agenda of the Council meeting on Wednesday 5/3/25, could you please itemise what expenditure has increased the current cost of the Lake Tarawera Sewerage Scheme from $29m in Table 1 to $32.3m in Table 2?

Answer:

The estimated changes in costs for the whole project from $29.3m to estimated $32.3m comprises:

• Contractor costs since January 2024 in setting up the site and stand-by of equipment (4 times delayed by protests actions) – in the order of $1.5 mil
• Legal, security, CCTV monitoring, land surveys, media, signage, court costs, etc since January 2024 of $1.5mil

These costs are based on estimates to fully complete Stage 1 of the project.

Question 2:

Have the Lake Rotokakahi protest costs been included in the the total estimated project cost? If so, how much?

Answer:

Yes as per above.

Question 3:

Could you please provide the calculation breakdown of the $45,000 (ex GST) for the estimated cost by property owners (for each of the 550 properties)?

Answer:

The estimated full costs are subdivided into two segments –

Stage 1 (mains and pump stations including Rotokakahi costs)

• 60% of Planning/Design (about $1.5m)
• Stage 1 mains (about $16.5m – includes $1.5m Rotokākahi)
• Rotokākahi portion of other costs (about $1.5m)
• Total above = $20.0m

Less

• MfE funds ($6.5m)
• RLC funds ($1.4m)
• BOPRC funds ($0.75m)

Net: $11.35m distributed to 550 properties = about $20,600 per connection.

Stage 2 (On property installations)

$12.3m less Better Off Funding is distributed to about 440 properties = approximately $23,400.

Note: The Stage 2 is based on tender sums and has not been completed yet. The sums of Stage 1 and Stage 2 comprise the rounded estimated $45,000. Council is still considering options to attribute these estimated costs during the Annual Plan of 2025/26.

Question 4:

Why does GST have to be added to the $45,000?

Answer:

Councils are considered to be offering a service and are required under Section 8(1) of the Goods and Services Tax Act 1985 to charge GST on all taxable supplies, including rates.

Question 5:

Do the amounts for the cost of the project, external subsidies, Council contribution, Diverted BoF include or exclude GST?

Answer:

The above amounts for the project include all costs of the project, external subsidies, Council contribution and diverted Better Off Funding, but does not include GST.