Hauraki District Council has signed a $35 million contract for the upgrade of its Paeroa Wastewater Treatment Plant.
Mayor Toby Adams said it was the single largest infrastructure project undertaken by the council since it was formed. The plant upgrade is needed to meet national discharge standards and cope with growth.
"We didn't want to be a council that was waiting for information on which way governments were going to go with three water infrastructure. We wanted to ensure our community needs were met so we pushed ahead with this."
Adams said the council prepared a business case for the district's wastewater systems in 2017.
"Covid-19 significantly interrupted the flow of the planning in 2020 and the delays escalated associated costs. Added to that was the uncertainty of the proposed changes to three waters."
Adams said the plant would be paid for through rates and development contributions and it was not a hard decision to make.
"While the numbers are very very high, and the conversations were very very thorough and robust, the decision was relatively easy because it's 100 percent the right thing to do," Adams said.
The Paeroa Wastewater Treatment Plant upgrade is part of a 10-year, $100m investment in wastewater infrastructure across the district that started three years ago, in line with the commitments from council's 2021-31 Long Term Plan.
The upgraded plant will move away from the traditional pond-based system to a "mechanical system" to meet the high national environmental water discharge standards set by the government.
The building site will be raised and levelled to future-proof against unexpected natural disasters such as flooding and sized to provide for the projected growth in Paeroa.
Work is expected to start by late 2024, and for the new plant to be fully commissioned by mid to late 2026, all going well.
Toby confirmed that council would look at all avenues for other funding and the council had decisions to make on how this spend was reflected in the rates over the next 10 years.
"Like every other council in New Zealand, everyone is getting hit with rate increases for just the pure cost of doing the exact same work you are doing, plus interest costs and depreciation on new assets."
Hauraki District Council is currently finalising its 2024-34 long-term plan and is expecting public consultation to begin mid-March.