The Local Government Commission's decision to keep Waihi Beach in the Western Bay of Plenty District is 'hugely disappointing”, says electors representative Brian Hepenstall.

Waihi Beach.

'I have probably formed the view that an electors petition is impossible to win,” says Brian.

'The criteria that they have to apply just are totally impossible to ever achieve.

'For example, one of the issues is that if the council you are proposing to leave is financially worse off as a result of that, then that's grounds to not allow the move to take place.

'It's pretty logical if a ward moves out from one council irrespective of what that is, they are going to take rates with them so that council's going to be worse off.

'The problem is in the case of the Western Bay of Plenty, who are up to their eyeballs in debt, that that rewards bad financial behaviour – rather than punishing it.”

He's disappointed and sceptical of the system and says he needs to sit down and review the situation to best determine how to move forward.

The law allows for another electors petition three years after the original December 2009 petition that had the signatures of 1006 Waihi Beach residents.

In the decision, the commissioners say they are not confident that leaving the Bay of Plenty will deliver a significant demonstrable benefit for Waihi Beach ratepayers.

The likely positive financial impact of the proposal on Hauraki District ratepayers would be more than counter-balanced by the likely negative financial impact on Western Bay of Plenty District ratepayers including transitional costs and associated disruption.

Independent advice suggests the move may reduce Waihi Beach rates by $100-$150 per property because of differences in the way roading is funded in the Hauraki District.

HDC roading costs are met by way of a general rate based on capital value, whereas the Western Bay roading rates are predominantly sourced from general rates based on land value.

The move would overall have a detrimental impact on the balance of Western Bay of Plenty District ratepayers and while likely to have a positive impact on Waihi Beach ratepayers and to a lesser extent Hauraki District ratepayers, the benefits are not considered sufficient to outweigh the negative impacts of the proposal overall and the transitional disruptions that would occur.

Brian also argues a shift to the Hauraki District would result in better political representation for the Waihi Beach ward constituents.

The ward's near 3000 permanent residents represent seven per cent of the population of the Western Bay district, but 17 per cent of the Hauraki District.

'Our view is that, given communities of interest are shared with both Hauraki and Western Bay of Plenty Districts, the proposal does not reflect distinct communities of interest better than existing arrangements,” say the commissioners.

'Based on community of interest, and the other information and views presented to us, we believe that the existing Waihi Beach Community Board offers greater potential to provide for the effective representation, advocacy and governance of the Waihi Beach Ward community.”

The commission's reply to strong and mixed opinions about the governance relationship between the Waihi Beach community and the Western Bay of Plenty District Council is that the relationships were affected by a recent controversial issue, which polarised some, and impacted on effective ongoing communication.

Some of the examples presented of perceived poor governance practice, the commission sees as relationship issues better resolved through other means.

The commission says it is required to consider whether shifting Waihi Beach to the Hauraki District will result in improved local government arrangements in the area.

'Overall, we do not believe that the proposal, including a possible Waihi Beach Ward committee, will necessarily provide for more effective future representation of the Waihi Beach Ward community,” say the commissioners.

The 'mature collaborative relationship” between the Bay of Plenty Regional Council, Tauranga City Council, the Western Bay of Plenty District Council and tangata whenua, observed by the commissioners during the process, impressed the commissioners – and helped seal Waihi Beach's fate.

'This collaboration has developed in response to shared pressures that overlap jurisdictional boundaries and responsibilities, including providing for, and managing the impacts of, population growth and integrated harbour management.

'We believe that this collaboration enhances efficiency and effectiveness in the exercise of local government functions and responsibilities,” say the commissioners.

'We agree with these agencies that the proposal is unlikely to result in the same level of collaboration with the Hauraki District Council.

'This is based on the different characteristics of Hauraki District and therefore the different focus and priorities of the HDC.

'We believe the proposal would result in increased, ongoing transactional costs between agencies.”

Western Bay Mayor Ross Paterson says he is pleased to retain the governance of Waihi Beach and is satisfied that the commission has reached its decision on the basis of the sound reasoning presented by council and other submitters opposed to the proposal.