Council facing a budget blow out
A multi-million dollar blowout caused by waste, road and water infrastructure changes has raised red flags on the South Wairarapa District Council balance sheet.
Wastewater works across the district and emergency work in Featherston have seen capital budgets increased.
The closure of the overseas market for paper and cardboard recycling has upped costs in disposal, with costs set to increase by as much as $250,000 rise in costs per year.
In August, NZTA signalled a one per cent reduction in its payments to SWDC.
It will also halve its contribution to maintaining Cape Palliser Rd, as it phases out its Special Purpose programme for coastal roads. .
Risks on two sewage projects, at Papawai and Martinborough, have seen costs increase.
A major sewer failure under the rail tracks crossing Featherston’s main Fitzherbert St had added a further $400,000 in costs.
An electrical upgrade not included in the original project scope has added more than $650,000 to work on the town’s water supply.
Lake Ferry’s wastewater system, damaged by contractors in July, is to undergo further work, with costs not yet known.
The council's finance, audit and risk committee will receive the report today [Wednesday October 21] at 2.30pm at Martinborough's Waihinga Centre.
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