If financial restraint is not exercised ratepayers could face significant rates increase, say Thames Coromandel District Council mayor Glenn Leach.

This message from the mayor is directed at the district's community boards as they plan capital projects for the next ten years.

Thames Coromandel District Council. Photo: File

Over the past three years council has successfully reduced the average rates and the district has reached the lowest operating cost per rateable property in the Waikato.

But Glenn says cost overruns from the building of the Eastern Seaboard Wastewater Treatment Plants will be passed on to ratepayers – even though they were completed in 2009.

TCDC has received a draft report calculating lower capacity in aspects of the plants than was modelled for council in previous 2009 and 2012 Long Term Plans.

This issue, plus later incorrect growth assumptions used before construction, and the overruns from additional capital works on these plants, is now coming home to the ratepayer.

A full report will be delivered to council before the end of the year.

'On the basis of emerging capacity figures, council has no legal choice but to transfer more of the remaining debt onto ratepayers.

'The growth projections given to the previous council by independent professional experts, to make decisions to build the treatment plants were flawed.

'So we are now having to deal with this.”

Glenn says council is working hard to soften the impact on ratepayers and more information and the history of the Plants and costs will follow.

In his briefing to the community boards Glenn used this example to remind elected members to concentrate on the must-haves when it comes to projects rather than the nice-to-haves.

'I'm preaching restraint. We need to keep doing what we suggested when we were first elected.

'We need to prioritise where our money is spent.”

Glenn has praised his team and staff for achieving a reduction of average rates over the past three years.

Thames Coromandel District mayor Glenn Leach. Photo: TCDC