Tea Tree Gully Council to charge more for community wastewater management system

Thousands of northeastern residents will pay more for septic tanks as a council seeks millions needed to keep a community wastewater management system operational.

The Community Wastewater Managememt System (CWMS) operated by Tea Tree Gully Council

Thousands of northeastern residents will be charged more for septic tanks as a council seeks millions needed to keep an ageing wastewater system operational.

Tea Tree Gully Council staff have recommended an immediate increase of $55, with further price hikes likely over coming years.

Executives also have met with SA Water to discuss the future of the council’s Community Wastewater Management System (CWMS), which was built in the 1960s as northeastern Adelaide expanded.

The council has engaged consultants to examine how millions in maintenance and upgrades can be funded after requests for federal and state government assistance were rejected.

Financial advisors BRM Holdich presented a report to the council’s audit committee last month which recommended an immediate price increase of 28 per cent, followed by annual increases of 5 per cent for 40 years.

Staff instead have decided to seek the support of elected members for an initial increase of $55, which will take the annual charge from $595 to $650 – rather than $761 suggested by BRM Holdich.

Council staff are continuing to work with BRM Holdich to determine a strategy to raise millions which needs to be spent on the CWMS.

An asset management report last year identified serious problems with the system, which operates 4645 septic tanks and 112km of pipes across Banksia Park, Tea Tree Gully, Redwood Park, Ridgehaven, Vista, Fairview Park, Yatala Vale, Surrey Downs, St Agnes, Hope Valley, Modbury North and Modbury.

The Community Wastewater Management System (CWMS) operated by Tea Tree Gully Council.

These included:

RISKS to public health and environmental pollution, particularly groundwater contamination, due to “leaking assets and privately owned septic tanks”.

FAILURE of “critical assets such as trunk mains, disrupting services over extended periods”.

POOR understanding of buried assets “leading to poor planning of asset renewals”.

INCREASING urban infill “placing increased demand on the CWMS network”.

The report said there would be an adverse financial impact on the council if the system was not adequately maintained or upgraded.

It recommended funding for the system needed to be increased in the short term to alleviate the problems already being experienced. The current infrastructure backlog was estimated to be $3.8 million.

The report said a funding strategy needed to be developed for a capital works program, especially for the renewal of assets.

This included “charging for service that ensures full cost recovery of assets and taking into consideration appropriate charging for cost of risk of the scheme”.

The report also called on the council to apply for grants to help pay for the maintenance and upgrading of the CWMS.

A council spokesperson said the proposed $55 CWMS increase had been released for community consultation as part of the annual budget process.

“CWMS users are required to cover all costs for the system rather than general ratepayers,” he said.

“Part of the increase will fund the review (by BRM Holdich) of the assumptions in the current asset management plan which indicates the system needs significant investment over the next five to 30 years.

“This is essential prior to commencing such a significant upgrade and investment.”