Response
I refer to your LGOIMA request of 22 October 2024 (highlighted) above, specifically:
- Why was there no subsidy or funding from the $144.2M funding commitment, allocated towards the Lake Okareka and Lake Rotoiti/Rotoma reticulated sewerage schemes? In particular, the $72.1M government major one-off investment.
- Why did the Rotorua District Council have to get additional funding from the central government for 50% with a maximum of $4,600,000 for the cost of the Lake Okareka reticulated sewerage scheme, with RDC contributing $1,500 plus GST per household, and ratepayers contributing $11,048 plus GST each?
- Why did the Rotorua District Council have to get a $10M loan from the Ministry of Environment to be repaid over 10 years from the Lakes Enhancement rate for the cost of the East Rotoiti/Rotoma reticulated sewerage scheme, with RDC contributing $2,700 incl GST per household, and ratepayers contributing $22,486 including GST each?
- Why wasn't the $72.1M government funding divided by the seven lakes requiring sewerage reticulation, as per the failed Council application for government subsidies from the previous year in 2007?
In answer to each question:
1. Why was there no subsidy or funding from the $144.2M funding commitment, allocated towards the Lake Okareka and Lake Rotoiti/Rotoma reticulated sewerage schemes? In particular, the $72.1M government major one-off investment.
As advised in a previous LGOIMA response, Deed funding (part of the $72.1m) was allocated to 4 targeted lakes – Lake Rotorua, Lake Ōkareka, West Rotoiti/Okere and East Rotoiti/Rotomā.
2. Why did the Rotorua District Council have to get additional funding from the central government for 50% with a maximum of $4,600,000 for the cost of the Lake Okareka reticulated sewerage scheme, with RDC contributing $1,500 plus GST per household, and ratepayers contributing $11,048 plus GST each?
No additional funding was received. The Deed funding contributed 50% of the final actual costs.
WW Reticulation Programme | Date | Gross
actual costs | “Deed” Funds | Local funds ratepayer |
Lake Ōkareka
| 2007-2009
| $8m
| $4m
| $4m
|
3. Why did the Rotorua District Council have to get a $10M loan from the Ministry of Environment to be repaid over 10 years from the Lakes Enhancement rate for the cost of the East Rotoiti/Rotoma reticulated sewerage scheme, with RDC contributing $2,700 incl GST per household, and ratepayers contributing $22,486 including GST each.
Council (RLC) did not get a loan from the Ministry for the Environment. RLC sought to ensure that the “Deed” principle of 50% contribution to actual final costs of a scheme was adhered to.
The Rotorua Te Arawa Lakes Strategy Group (RTALSG) partners agreed that $10m was to be reallocated from other water quality projects to East Rotoiti/Rotomā.
The RTALSG partners also agreed that other nitrogen reduction programmes must be completed and the $10m must be reinvested through the Lakes Enhancement rate.
4. Why wasn't the $72.1M government funding divided by the seven lakes requiring sewerage reticulation, as per the failed Council application for government subsidies from the previous year in 2007?
This was a decision of the Government of the time when the Deed funding was allocated.
