Landfill surplus 'a success story'

Omarunui landfill is proving just how successful shared services between councils can be. Photo / File

In what can only be a boon for the council shared services model, Omarunui landfill has come in at almost $1 million over its budgeted surplus.

The landfill is run by both Hastings and Napier council's and is overseen by a joint committee.

Committee chair Hastings Councillor Wayne Bradshaw said the common venture is the most successful shared service in Hawke's Bay.

He said the Omarunui joint landfill proves that shared services cannot only succeed but thrive when all parties set the community's interests as their first and only priority.

"For too long we have been told that shared services are not able to deliver real outcomes for our communities and that we need to amalgamate," he said.

"This year's bigger than expected surplus is evidence that amalgamation was not needed to produce such results.

"The landfill produced a surplus of $2,178,547, which is in excess of budget by $994,752."

Mr Bradshaw said, in the past five years, operating costs per tonne have reduced by two per cent, there were no increases in the gate rate for the past three years, and the comparable average gate rate for similar council-run landfills was more than $30 per tonne higher than Omarunui.

"This has created an annual direct savings to the community of over $2 million," he said.

He noted the result has allowed some $2.3 million after capital costs to be distributed back to our council stakeholders.

"This is equivalent to a rates savings of nearly three per cent for the Hastings ratepayers alone," he said.

"This positive result has come about by controlling our operating costs and working closely with our customers and stakeholders."

The committee's deputy chair Napier Councillor Michelle Pyke echoed these sentiments, saying Omarunui landfill was the front-runner when it came to shared services between the councils.

"It is a great example of both our councils working together and working for the betterment of everybody," she said.

"It has always been a really good model of shared services."

Mr Bradshaw said the financial result was even more impressive when the fact that gate charges at the landfill have stayed the same since 2013 - and will do so into next year - are taken into account.

Ms Pyke said the committee would not be looking at increasing the gate fees any time in the near future.

"No," she said. "Not when we are in this position."

Not only has the landfill netted a surplus, Ms Pyke said the amount of rubbish that goes into it has been reduced significantly.

This is despite the challenges the committee faced in regards to the waste from a number of buildings demolished in the districts.

"But there is still huge room for improvement for Joe Citizen to do better," said Ms Pyke.

"So we really do still need to spit out our recycling and get people recycling more so there is stuff not going into that landfill." This news comes in the wake of a $250,000 central government injection into the Waste Futures project.