Almost 80 ratepayers at Lake Okareka and Tikitapu (Blue Lake) will each be getting a $1700 refund after their new sewerage scheme was installed under budget.
In a report to the Rotorua District Council's corporate and customer services committee, councillors were told the sewerage scheme was estimated to cost $11.87 million. The final cost was $10.23 million.
Residents were given the option of paying a one-off lump sum toward the cost of the sewerage scheme or paying it as a targeted rate quarterly or annually over 25 years.
The report, written by Hydrus Engineering Consultants senior planner Mark Buckley, said savings had been made in the construction for the street lines, on property reticulation and Trunk Main.
The council's infrastructure services group manager, Nico Claassen, said 30 per cent of the 260 properties had paid a lump sum of $12,747 GST exclusive. That lump sum had now been revised and was $11,048 exclusive of GST.
Mr Claassen said letters had been sent to ratepayers at Lake Okareka and Tikitapu advising them of the new costs. If they had paid the lump sum they would be offered the option of having their rates credited or receiving a straight refund.
Mr Claassen said the council preferred to credit ratepayers' rates.
Mr Claassen said those who were paying a targeted rate quarterly or annually would now pay less - $217.71 quarterly or $870.83 annually compared to $252.81 quarterly or $1011.23 annually. All amounts are exclusive of GST.
Lake Okareka resident Mark Bannister paid the lump sum and was due a refund.
He said he had not yet received a letter from the council but would prefer the council pay him a cheque so the money is earning interest in his bank account and not in the council's.
Meanwhile, Blue Lake Holiday Park, which is paying the targeted rate on an annual basis, will now pay $13,146 a year as opposed to the initial $16,179.
Owner Jack Timmer said it was nice to get a reduction rather than an invoice to pay more money.
Rotorua Lakes Community Board member and Lake Okareka Community Association chairman Geoff Palmer said the cost of the sewerage scheme was a lot of money for a number of people, but they accepted the scheme was a "major step forward" to ensure the quality of the lake water will improve.
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