Cautious decision on wastewater
Matamata-Piako District Council debated the pros and cons of whether to future proof a replacement section of wastewater pipe in Morrinsville.
The catalyst for the discussion centred on an area servicing 100,000 square metres of industrial land in Morrinsville’s Avenue Rd.
Council heard assessments of the costs and risks, which looked at installing pipes sufficient to service the area, or installing a larger pipe to cater for future demand.
Under consideration is a block of land with the prospect of future development in the area.
To accommodate, council has to determine whether to install a stormwater system sufficient to meet the existing demand or to future-proof.
Three options for Avenue Rd to accommodate the existing, the potential and future growth were put to council ranging from $610,000 through to $1.2 million.
The financial risks before council surround both development and the effects of climate change in the area.
‘‘The financial risks before council surround both development and the effects of climate change in the area.’’
The risk for the council is in installing a larger draining system to cope with future developments.
In what becomes a catch 22 situation, developers will only contribute to the impact of their development.
If council were to only accommodate the current need, they would possibly face criticism from future developers for a lack of foresight.
To over capitalise and spend $1.2m on capacity which may never be used, council would likely face a ratepayer backlash for investing in the proverbial ‘‘white elephant’’.
Matamata-Piako Mayor Jan Barnes said costs are recovered by development contributions.
‘‘But if we go further, there is a cost to ratepayers.’’
The spending of a further $250,000 on a larger pipe could be considered to be an acceptable risk because of the potential use in the future.
But that figure would increase to $388,000 over a 10 year period based on an interest rate of 4.5 per cent if not used.
Council voted not to take the risk but agreed to an option costing $860,000, accommodating the new development and a portion of Charleston St.