
‘All Options On The Table': Whanganui Gears Up For Crucial Call On Future Of Water Services
'This decision will help shape how our district's drinking water, stormwater and wastewater services will be delivered into the future.
'I think I speak for all councillors when I say no one is taking it lightly.'
Under the government's Local Water Done Well reforms, councils around the country must submit a water services plan by September.
Tripe said councillors will consider four viable options at a meeting on Tuesday.
'Importantly Whanganui is in the enviable position of having all options on the table because we have invested well in our water infrastructure and have strong future investment.'
Three of the water service delivery options were shared with the community during public engagement earlier this year. They are:
• A standalone Whanganui District Council-owned Council-Controlled Organisation (CCO)
• A larger multi-council CCO involving as many councils as possible
• An in-house business unit (status quo)
A three-council model formed by Ruapehu, Rangitīkei and Whanganui councils was no longer viable following Rangitīkei's decision to join Horowhenua and Palmerston North.
However, the council would consider a fourth option – a Ruapehu and Whanganui CCO model.
Tripe said following community consultation in March, councillors and staff had continued discussions with all neighbouring councils.
'The good news is that we are fortunate so many partners want to work with us, allowing us to have multiple credible options to choose from, each with real benefits.
'What's most important to our council is choosing the path that delivers for our community now and into the future.'
Potential partners had agreed that any water services delivery model should be based on a non-harmonised (local) pricing approach.
'We heard loud and clear that our community wants us to consider local pricing, and we are pleased our neighbours are on the same page,' Tripe said.
Local pricing would see residents within each district charged on the same basis as currently, while sharing savings. Customers would pay costs that relate only to the delivery of services in their district.
Tripe said deferring the decision to July had allowed more time to appraise each proposed model from the perspective of Te Awa Tupua legislation and values.
'Ultimately, we are putting the health and wellbeing of the community and our awa over and above what could be the best outcome for the council or the final entity – whatever structure that may take.'
Last month, Tripe told Local Democracy Reporting each of the four options had their merits.
He said the council's general direction at that time was the Ruapehu-Whanganui partnership, but that was not set in stone.
The council expected to meet the Government's requirement for a plan by early September, Tripe said.
If Whanganui's preferred option is approved by central government, implementation will begin later this year. If a new water services CCO is selected as the preferred option, it could be established by mid-2026 and fully operational by mid-2027.
On Wednesday, Ruapehu District councillors voted down a mayoral motion to join Rangitīkei, Horowhenua and Palmerston North in a multi-council water services body in favour of a two-council CCO with Whanganui.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

RNZ News
10 hours ago
- RNZ News
Whanganui backs new water services body with Ruapehu
Whanganui District Council is the last among neighbouring councils to choose a new delivery model for water services. Photo: Tuakana Te Tana Whanganui councillors have voted 8-5 to form a new entity with Ruapehu to manage the delivery of water services. Whanganui and Ruapehu district councils will be the shareholders of the new council-controlled organisation (CCO) that will own the water assets. "This is a big moment in this council's history," Mayor Andrew Tripe said. The entity will include drinking water, wastewater and possibly stormwater assets and services, and operate on non-harmonised or 'local pricing'. This means residents will be charged only for the cost-of-service delivery in their own district, while still benefiting from a share of the savings gained through scale. Whanganui was the last among neighbouring authorities to choose a delivery model. At a meeting on Tuesday, councillors debated balancing cost efficiencies gained in a larger grouping with the opportunity for local voice and the council's obligations to Te Awa Tupua legislation. Following the decisions of other councils, Whanganui weighed up four options: Council staff recommended a joint entity with Ruapehu. The council's Local Water Done Well transition manager Kathryn Stewart said the joint models were projected to outperform an in-house business unit. The two-council model would save water users an estimated $620 a year or $18,000 over a 30-year period. A five-council model would deliver customer savings of $870 a year. Chief executive David Langford told councillors that cost efficiency modelling did not set precise savings but was a mechanism for comparing options. "The numbers are there to help you compare options, they're not predictions for the future. Hanging your hopes on exactly $620 per year for 30 years is an erroneous use of the model." Langford said joining a bigger grouping of councils would likely provide greater savings for households but "bigger is better" was a misnomer. He cautioned councillors against making a decision on cost savings alone. "It's not cost efficiency at any cost. As you get bigger, your ability to influence and the size of your voice gets smaller. [It is] a trade-off between how much you make in savings and how much voice you retain." Much consideration had been given to Te Awa Tupua legislation, Langford said. The two-council model with Ruapehu would create a water service delivery entity that was exclusively focused on the Whanganui catchment. It would ensure governance remained close to the community and was not consumed by a larger entity. Stewart said all joint options would bring opportunity, including increased collaboration, resilience, and staff and technical capacity. But the two-council model would also preserve local voice and influence and put Te Awa Tupua and the wellbeing "of all our connected communities" at the centre of decision-making. The CCO would manage the delivery of water services for about 24,000 connections. The councils would appoint a board of independent, professional directors who would be responsible for making decisions. The board would be informed by expectations set out and agreed upon by the two councils. Advantages included improved ability to fund infrastructure investment, maintenance and compliance costs and improve environmental outcomes, and greater ability to respond to emergencies, manage risks and adapt to future challenges like climate change. In favour of the two-council partnership were: Tripe, Glenda Brown, Josh Chandulal-Mackay, Jenny Duncan, Ross Fallen, Kate Joblin, Charlotte Melser, Peter Oskam. Against were: Deputy mayor Helen Craig, Charlie Anderson, Philippa Baker-Hogan, Michael Law and Rob Vinsen. The Ruapehu council voted 6-4 in favour of the two-council model last week. Chief executive Clive Manley welcomed Whanganui's decision and said it was an important milestone that enabled both councils to begin work on detailed planning and implementation. While Whanganui voted to include stormwater in the new CCO, Ruapehu was still considering whether to transfer its stormwater services or retain them in-house. This decision would not affect setting up the new CCO, Manley said. "We'll make a decision on stormwater in due course, but it doesn't prevent us from moving forward with the rest," Manley said. "Both councils are committed to continuing to explore opportunities that improve efficiency and reduce costs for our communities." Whanganui council officers will now finalise a Water Services Delivery Plan for adoption at the next council meeting in August. The council will then submit its final Water Services Delivery Plan to central government by the early-September deadline. If approved, implementation will begin later this year. The new water services CCO could be established by mid-2026 and fully operational by mid-2027. LDR is local body journalism co-funded by RNZ and NZ On Air


Scoop
12 hours ago
- Scoop
How Whanganui Achieved Lowest Rates In The Country
Article – Moana Ellis – Local Democracy Reporter Whanganui's average rates increase of 2.2 percent for the year ahead is the lowest in the country. Whanganui's average rates increase of 2.2 percent for the year ahead is the lowest in the country. Mayor Andrew Tripe says the low figure is the envy of the country and the payoff in a sustained drive to adjust how the council operates. '[It] didn't happen by accident – it's the result of a deliberate strategy to keep costs under control,' Tripe said. 'Many of the savings are structural and will flow through to future years. We expect there will be opportunities to reduce the 2026/27 rates increase as well.' In a survey by Local Democracy Reporting on average rates for 2025/26 throughout the country, Waitomo District Council had the next lowest rates at 2.9 percent, and Bay of Plenty Regional Council was third lowest in the country at 3.0 percent. Five councils – Upper Hutt City, Waipa District, Hamilton City, Hastings District and Clutha District – were looking at jumps of 15-17 percent. The average rates hike is about 8.7 percent, compared with last year's 14 percent. In his first tilt at local government in 2022, Tripe's successful campaign for the mayoralty included driving efficiencies to reduce the rates burden. A six-point plan was developed early in the electoral term to reduce costs and ease reliance on rates. As well as improving efficiency, the plan looked at reducing services, finding alternative funding for projects, identifying non-rates sources of revenue, and growing the population so there were more households to pitch in on rates. 'The plan has taken a while to get some traction, however the benefits of that approach are now starting to show,' Tripe said. The savings drive led to works and services being deferred, scaled back or cut but Tripe said investment in infrastructure had been prioritised. Variations to the long-term plan included Tripe's push to ditch a planned food scrap collection, reducing rates by $1 million or about 1.5 percent, he said. Council restructuring saved $1.2m a year. Deferrals Deferrals included pushing out by a year a $1m grant for Whanganui Surf Lifesaving Service's rescue centre. The project was not at the stage where funding was needed, Tripe said. An $8m of planned spending on an opera house upgrade was delayed to await a business case. The Waitahinga Quarry development project was deferred while the council focused on other projects, and all council vehicle replacements have been deferred for the year. A planned full review of the district plan has also been deferred, saving $700,000. Tripe said the council was no longer required to conduct a full review of the plan following central government's decision to make changes to the Resource Management Act. Non-rates income was expected to increase by almost 20 percent in the year ahead. 'We are expecting higher fee revenue in some activities such as parking and aquatics. 'We have moderated our property renewals budget down for affordability and to ensure we can deliver the planned programme. 'Three waters capital programmes have been moderated to ensure that they are deliverable in the 2025/26 financial year.' The council had also made minor reductions to venues improvement budgets and optimised corporate budgets for items like IT hardware replacements. It was committed to 'investing solidly' in core infrastructure, with more than 80 percent of capital spending earmarked over the next 10 years for the likes of footpaths, roading, and stormwater. There was also an 11 percent increase in infrastructure spending from 2024/25. The council also tightened spending on insurance cover by taking a risk-based approach on property and removing some assets from its insurance schedule. Unbalanced budget The council has forecast an unbalanced budget of $5.5 million for 2025/26 due to increased depreciation costs from inflation and large new assets like the redeveloped Sarjeant Gallery and wastewater treatment plant. 'While we are repaying debt on these long-life assets, we believe it's not fair for current ratepayers to also fund future replacements. Running an unbalanced budget is prudent in the short-term.' Tripe said the council's balance sheet was strong, debt was under control and additional repayments were being made to loans. Asked how these decisions would affect long-term planning, Tripe said the council was looking beyond the short-term and planning for the future. 'We're creating a strategy for Whanganui with five goals: to grow, build for, protect, celebrate and activate Whanganui.' This included plans to establish a standalone entity to improve housing stock and allocating an extra $590,000 toward debt repayment, on top of existing repayments. Paying down debt more quickly would benefit future generations, Tripe said. 'This equates to 0.7 percent of the 2.2 percent average rates increase.' Asked if he was confident the council was investing adequately in the district's future, Tripe said Whanganui was faring well in a difficult national economy. 'We should be excited about our future. Whanganui has a fantastic range of facilities for our community and the council is committed to maintaining these and ensuring that the infrastructure is in place for Whanganui to continue to be a great place to live, work and visit.'


Scoop
13 hours ago
- Scoop
How Whanganui Achieved Lowest Rates In The Country
Whanganui's average rates increase of 2.2 percent for the year ahead is the lowest in the country. Mayor Andrew Tripe says the low figure is the envy of the country and the payoff in a sustained drive to adjust how the council operates. "[It] didn't happen by accident - it's the result of a deliberate strategy to keep costs under control," Tripe said. "Many of the savings are structural and will flow through to future years. We expect there will be opportunities to reduce the 2026/27 rates increase as well." In a survey by Local Democracy Reporting on average rates for 2025/26 throughout the country, Waitomo District Council had the next lowest rates at 2.9 percent, and Bay of Plenty Regional Council was third lowest in the country at 3.0 percent. Five councils - Upper Hutt City, Waipa District, Hamilton City, Hastings District and Clutha District - were looking at jumps of 15-17 percent. The average rates hike is about 8.7 percent, compared with last year's 14 percent. In his first tilt at local government in 2022, Tripe's successful campaign for the mayoralty included driving efficiencies to reduce the rates burden. A six-point plan was developed early in the electoral term to reduce costs and ease reliance on rates. As well as improving efficiency, the plan looked at reducing services, finding alternative funding for projects, identifying non-rates sources of revenue, and growing the population so there were more households to pitch in on rates. "The plan has taken a while to get some traction, however the benefits of that approach are now starting to show," Tripe said. The savings drive led to works and services being deferred, scaled back or cut but Tripe said investment in infrastructure had been prioritised. Variations to the long-term plan included Tripe's push to ditch a planned food scrap collection, reducing rates by $1 million or about 1.5 percent, he said. Council restructuring saved $1.2m a year. Deferrals Deferrals included pushing out by a year a $1m grant for Whanganui Surf Lifesaving Service's rescue centre. The project was not at the stage where funding was needed, Tripe said. An $8m of planned spending on an opera house upgrade was delayed to await a business case. The Waitahinga Quarry development project was deferred while the council focused on other projects, and all council vehicle replacements have been deferred for the year. A planned full review of the district plan has also been deferred, saving $700,000. Tripe said the council was no longer required to conduct a full review of the plan following central government's decision to make changes to the Resource Management Act. Non-rates income was expected to increase by almost 20 percent in the year ahead. "We are expecting higher fee revenue in some activities such as parking and aquatics. "We have moderated our property renewals budget down for affordability and to ensure we can deliver the planned programme. "Three waters capital programmes have been moderated to ensure that they are deliverable in the 2025/26 financial year." The council had also made minor reductions to venues improvement budgets and optimised corporate budgets for items like IT hardware replacements. It was committed to "investing solidly" in core infrastructure, with more than 80 percent of capital spending earmarked over the next 10 years for the likes of footpaths, roading, and stormwater. There was also an 11 percent increase in infrastructure spending from 2024/25. The council also tightened spending on insurance cover by taking a risk-based approach on property and removing some assets from its insurance schedule. Unbalanced budget The council has forecast an unbalanced budget of $5.5 million for 2025/26 due to increased depreciation costs from inflation and large new assets like the redeveloped Sarjeant Gallery and wastewater treatment plant. "While we are repaying debt on these long-life assets, we believe it's not fair for current ratepayers to also fund future replacements. Running an unbalanced budget is prudent in the short-term." Tripe said the council's balance sheet was strong, debt was under control and additional repayments were being made to loans. Asked how these decisions would affect long-term planning, Tripe said the council was looking beyond the short-term and planning for the future. "We're creating a strategy for Whanganui with five goals: to grow, build for, protect, celebrate and activate Whanganui." This included plans to establish a standalone entity to improve housing stock and allocating an extra $590,000 toward debt repayment, on top of existing repayments. Paying down debt more quickly would benefit future generations, Tripe said. "This equates to 0.7 percent of the 2.2 percent average rates increase." Asked if he was confident the council was investing adequately in the district's future, Tripe said Whanganui was faring well in a difficult national economy. "We should be excited about our future. Whanganui has a fantastic range of facilities for our community and the council is committed to maintaining these and ensuring that the infrastructure is in place for Whanganui to continue to be a great place to live, work and visit."