Mayoral Column - Local Water Done Well

10 February 2025

The question of how three water services will be delivered in the future continues at pace.

The Wairarapa plus Tararua Advisory Oversight Group for Water, comprising four councils, is now meeting weekly to prepare a consultation document for our community.

Each district needs to discuss either a proposal for a joint water services council-controlled organisation or a variation on the status quo water model.

Both options will comply with new regulations and standards and must be financially sustainable. The intention of these models is to deliver water services to the standard and level expected.

Enhanced access to long-term borrowing for water infrastructure investment is crucial, noting that only a Council Controlled Organisation has access to Local Government Funding Agency (LGFA) borrowing limits of 500%. Access to this borrowing is critical to achieve future sustainability.

These models are expected to make it easier for councils to achieve cost savings, improve efficiency, and affordability of costs for consumers.

The proposals will cover the effect on rates, debt, levels of service, and water service charges.

Stormwater will remain a council responsibility as it is too difficult to separate from other assets such as footpaths, kerb and channels, roading design, and state highways. However, specific stormwater assets can be transferred to a new water organisation.

Residents will be able to make submissions, and we look forward to discussing these options with you in March.

We must start planning now to meet deadlines set by the government for a Water Delivery Services Plan, which outlines how councils will deliver water services into the future and how we will invest in infrastructure and finance this.

There is a tight deadline of September 3rd to have these plans to the government.

This is the most significant change since the 1989 local government reforms in how we carry out services to improve our infrastructure and service delivery for water, wastewater and stormwater in New Zealand. It is an intergenerational decision that will set in motion the future of our most basic human needs: water.