Council Teams Up With Palmerston North And Rangitikei To Deliver Water Services
Horowhenua District Council will join Palmerston North City Council and Rangitikei District Council to deliver water services and recognises Whanganui District Council and Ruapehu District Council as potential willing partners.
Today's decision is projected to save the average Horowhenua household between $195 and $300 per year by 2027/28.
The Government's Local Water Done Well policy requires all councils to decide how they will continue to deliver safe, reliable water services sustainably into the future, either alone or in partnership with other councils.
Taking into account feedback from public consultation, elected members unanimously voted today to form a Joint Water Services Organisation with the two other councils, and leave the door open for Whanganui and Ruapehu to join if their respective councils vote in favour of this option.
The Water Services Organisation will manage resources across councils, enabling lower operating costs and improved efficiency which will generate the estimated annual savings.
It will also be able to borrow up to five times the amount it generates from water services charges through the Local Government Funding Agency, which is almost twice as much as Council can currently borrow.
This means that the cost of increased investment in water infrastructure can be spread across the lifetime of the assets.
'Scale does matter and I am confident we have made the right decision. It's important we take a long-term view of water services delivery and while I acknowledge while this is a crucial milestone, it is only the start of a challenging journey ahead,' says Horowhenua Mayor Bernie Wanden.
'I know some councils including Kāpiti and Manawatū have decided to go it alone rather than join forces with their neighbours.
'But our analysis – which was rigorous –convinced us that we can provide more sustainable water services by teaming up with other councils.
'And in the long term it will be cheaper for ratepayers too.'
The next step is for the councils to work together to produce a Water Services Delivery Plan, which must be submitted to the Government by 3 September 2025.
'I'd like to acknowledge our hard-working Local Waters team, which just celebrated its first six months operating and maintaining our water assets and services,' says Chief Executive Monique Davidson.
'They are doing an excellent job for the community and will continue to do so as we work through the many decisions, we need to make about how the new water services organisation will work. In other words, for now it is business as usual.'
Ruapehu District Council and Whanganui District Council will decide on their preferred Water Services Delivery Model at their respective Council Meetings on 25 and 26 June.
Modelling suggests that if all five councils formed a Water Services Organisation, savings of over $300m could be achieved over 30 years.
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