Latest news with #LocalWaterDoneWell
NZ Herald
7 hours ago
- Business
- NZ Herald
Kaipara councillor warns Northlanders face $4000-plus water rates
Affordability for users was the big elephant in the room, Paniora said. She said financial metrics for the new CCO meant user charges within 2.5%-3.5% of household income. Paniora said that meant Northlanders paying between $2888 to $4430, based on Infometrics' average $115,536 annual household income. Drinking water and wastewater assets, debts and services for about 100,000 Northlanders will shift from the three councils to the CCO. KDC yesterday voted to become part of the region's Local Water Done Well (LWDW) plan at a meeting in Mangawhai. WDC kick-started the councils' move toward the regional three-council CCO on July 24. FNDC councillors will decide on whether to step into the plan today. Whangārei's strong drinking water and wastewater asset position has become a hot potato amidst the changes. KDC chief executive Jason Marris said his council had won the inclusion of cross-subsidisation in the new CCO. This had meant concession from Northland's two other district councils. The new CCO's agreement says cross-subsidisation, which it calls harmonisation, will be considered within three years of the company's 2027 establishment. But KDC will be pushing for it to happen as soon as possible within that timeframe. KDC general manager corporate services Sue Davidson said the CCO's initial principles required ring-fencing of debt and pricing, with a pathway to harmonisation to be considered within three years of establishment. 'However, KDC will work towards including harmonisation as early as possible in the implementation phase,' Davidson said in meeting agenda papers. This means Whangārei ratepayers will likely be subsidising those in Kaipara. If KDC didn't move on to the regional CCO, it faced a potential Local Water Done Well financial crisis, she said. KDC could not achieve financial sustainability delivering water services, if it adopted an in-house business unit to do so. The council is still carrying debt from the controversial Mangawhai sewerage scheme and has little financial room to move for required drinking water and wastewater services fixes to meet tougher new water reform requirements, which are monitored through regulator Taumata Arowai. KDC initially wanted to shift its council water services into Auckland's Watercare instead of joining with a Northland CCO. But Auckland Council turned that move down, before the September 3 deadline for regions to get their water services plan to the Government. Financial contributions to KDC from developers operating in Kaipara's Mangawhai, New Zealand's fastest-growing coastal settlement, have been significantly factored into the new Northland CCO meeting LWDW financial sustainability requirements. Davidson said there was significant risk around the amount of development contribution money factored into the new model's financials. 'The initial calculations were considered too aggressive and were moderated on request of elected members. The numbers remain ambitious and continue to carry significant risk of being achieved,' Davidson said. Paniora said the new arrangements did not regard water as a taonga as had already been established by the Treaty of Waitangi. She said Māori as tangata whenua had been left out of the conversation regarding the new plan. Paniora said the only hope for consideration of this aspect lay with FNDC. She said she couldn't vote in favour of today's KDC decision and wanted to wait for the outcome of tomorrow's FNDC decision. The new three-council CCO plan for Northland allows an off-ramp for FNDC not to sign up. In that case there would be a two-council CCO. Kaipara Mayor Craig Jepson, Deputy Mayor Jonathan Larsen and councillors Mike Howard, Gordon Lambeth, Ash Nayyar, Mark Vincent and Rachael Williams voted to be part of the Northland plan. Paniora and councillor Eryn Wilson-Collins voted not to be. ■ LDR is local body journalism co-funded by RNZ and NZ On Air.
NZ Herald
2 days ago
- Business
- NZ Herald
Central Hawke's Bay Council considers halving $201m water plan amid rates concerns
Central Hawke's Bay District Council is considering halving $201 million of essential water infrastructure work as a trade-off for more affordable rates. Water rates were forecast to double by 2034 under modelling to comply with the Government's Local Water Done Well.
NZ Herald
3 days ago
- Business
- NZ Herald
How outgoing Whanganui council boss David Langford reflects on his tenure
'In the words of Leslie Knope from (NBC sitcom) Parks and Recreation, when they shout at me, it's just them caring really loudly.' Langford said the past five years for local government had been intense, mostly due to the amount of change imposed on the sector, such as Three Waters and Local Water Done Well reforms and the Government's plans to replace the Resource Management Act and Building Control Authority. 'Councils that come out the other side are going to look very different, and they are going to have to figure out their purpose and role in supporting the community,' he said. 'As New Zealand, we are one of the most centralised systems of government in the whole of the OECD (Organisation for Economic Co-operation and Development). 'Our Government spends 93% of all taxes, and I think the average across most high income countries is more like a 70 (central) 30 (local) split.' He said Government conversations around rates capping and focusing on the basics sounded good, but 'what does that mean?'. 'Almost all our rates' money is spent on core services already, and the bits that aren't are the bits people really care about and fought to keep. 'We fund the Christmas Parade, and give $100,000 a year to surf lifesaving to help them patrol the beaches and keep our kids safe. That's not core services. 'If we put caps on rates, these are the things that will get hit.' The council achieved an average 2.2% rates rise for 2025/26, the lowest in the country. David Langford (left) with Sarjeant Gallery director Andrew Clifford. That was the culmination of the past 3.5 years of work, he said. 'The foundations we've laid here are going to serve the community well. 'Whoever comes in to replace me will like some things I've done and change some of them as well, but, hopefully, they'll keep the momentum going.' Langford said he would be disappointed if the district did not have the lowest rates increase next year as well, while still increasing investment in core infrastructure. There was an 11% increase in the council's infrastructure spend for 2025/26. A major part of the council's role was 'building things', whether it be fixing potholes or putting pipes in the ground, he said. 'There are a lot of armchair engineers out there, but it comes with the territory. 'Anybody who's watched an episode of Bob The Builder thinks they know how to do my job better than I do. 'Like I said before, if you're not up for the criticism, and you're not prepared to rise above it, this job is not for you.' Langford said challenges still lay ahead, such as the future of the NZ International Commercial Pilot Academy. The facility is under investigation by the Civil Aviation Authority, although four planes have returned to service. 'It delivers around $10 million of GDP into our economy, but the goal was also to get a business paying landing fees at the airport, so the ratepayer doesn't have to subsidise it as much. 'The intention was always to get it set up as an investment, and once it's running, sell it. 'Now's the time to hand it over to the private sector, but make sure we keep those benefits.' He said his proudest achievements was forming a citizens' assembly - 'a bold move' - to tackle the future of outdoor swimming in the district, including the Whanganui East pool. The assembly presented two recommendations at a council meeting this month, although the issue was left on the table until August 12. 'There's a heap of lessons we've learned and when council does the next one, it'll be a bit slicker and even better,' Langford said. 'For me, it was seeing the community step up and make the most of the opportunity, and really get engaged with an issue they care about.' Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.
Otago Daily Times
4 days ago
- Business
- Otago Daily Times
‘Scary' 30% rates rise on cards
Councillors hear an update on Local Water Done Well proposals at a workshop this week. PHOTOS: ANDREW ASHTON Ratepayers could face a "scary" 30% rates rise in just two years if the Waitaki District Council's plans for an in-house water services unit are accepted. That was the stark reality laid out for councillors at a workshop this week to plan how to move forward from a decision two weeks ago to opt out of a joint water entity with three other Otago councils. Mayor Gary Kircher said he and the rest of the council were committed to making the best of that decision, which now involved sending a draft plan to the government by the end of July, before a full water services delivery plan (WSDP) was presented to the Department of Internal Affairs in September as required by the government's Local Water Done Well legislation. "We have to make sure that we do set up our in-house option as best as possible and I won't tolerate anyone undermining that." However, the size and cost of that was put into perspective by two Department of Internal Affairs (DIA) representatives at the workshop. They reiterated their points from a previous meeting that the in-house model would have to meet the government's financial stability rules for a period of 10 years, even if the plan involved a joint venture with other authorities before then. The in-house model would have to stand on its own merits for a 10-year period for assessment purposes. If those rules were not quite met, a facilitator could be appointed to work alongside the council to help the plan meet the targets. Department of Internal Affairs representatives Marlon Bridge (left) and Warren Ulusele at the workshop. The other, "more intrusive" option was to send in "the specialist", DIA representative Warren Ulusele said. "That person is appointed in the council, they make decisions on behalf of the council. They can look up across the council finances, potentially look to redirect funding from other purposes and redirect it back into Three Waters investment. "They can look at the revenue streams and determine that they need to go up. So I point that out, not in a threatening way, but just to be absolutely clear about this conversation around control and that's concern, again, not just this council, consultation across the country and it's understandable. "That person is appointed by the minister with one objective and that is to develop a financially sustainable plan. They will look to do that as quickly as possible and their focus is meeting growth. So they're not looking across the range of responsibilities you have, the range of considerations you have." WDC chief financial officer Amanda Nicholls then laid out the council's finances saying they would look "scary" at this stage of the process, pointing out external debt per rateable property would significantly exceed the benchmark of $4000, while debt continued to grow over the years. However, it would require a rate rise of about 25.61 % in the 2028 LTP year to fund the in-house unit, and then rate rises of about 4% for each of the following years. All those rises and the 2028 rise could also increase by a further 5% if the council, as was likely, was required to fund depreciation of water assets. When it came to council debt, the workshop heard the WDC would breach its debt cap in 2035 and every year thereafter, potentially requiring further rate rises to lower it. Two weeks ago, Waitaki district councillors voted to exit the Southern Water Done Well partnership with Clutha, Central Otago and Gore in favour of an in-house water services delivery unit. The joint arrangement was previously the council's preferred option before it was put to public consultation. Public consultation across the four councils drew in over 1000 submission with the in-house business unit model the preferred option in Waitaki (54%) and Clutha, while only 26.7% supported the joint entity, most popular in Gore and Central Otago. Prior to that the Department of Internal Affairs said joining a four-way, multi-district water company was the "only viable option" for the district. The DIA representatives this week said they had heard nothing to allay their "concerns" over the council's chosen path, saying they could not see a pathway for the council to develop a plan that was credible. "Hopefully, it'll come to light as you uncover more of what information discloses as you put more of the facts into the equation." The council intends to hold weekly public workshops, videos of which will be posted on its website, every Tuesday this month to keep people up to date with progress. A recording of this week's meeting, with chapter points for each section, the presentation given by the council's finance team, and the letter from the DIA are all available on the council website. "Council encourages the community to watch the videos, read the presentation and the letter from the DIA to be fully informed about the development of the WSDP," a council statement said.
Scoop
6 days ago
- Business
- Scoop
Ratepayers Win In Collaboration Over Local Water
Minister of Local Government Hamilton City and Waikato District Councils have delivered the first multi council water services delivery plan, an achievement that will be welcomed by all ratepayers, says Local Government Minister Simon Watts. 'We have been very clear that local government needs to focus on core business and I am delighted that these two councils are the first to embrace the benefits to ratepayers of collaboration under Local Water Done Well. 'Not only does this mean safe and reliable drinking and wastewater, it means cost increases necessary to fund vital infrastructure are more affordable for ratepayers. 'This collaboration means 280,000 New Zealanders served by the combined local organisation will be assured of the ongoing financial sustainability of their water services at affordable cost. 'Investing in infrastructure is critical for our communities' success and critical for growth. This plan significantly boosts investment in Hamilton and Waikato District's water services infrastructure over the next decade, supporting new housing, businesses and improved service quality. 'The cost of delivering water services has been a driver of higher rates across the country. By getting water services on a stable footing and making critical investment now, councils keep rate increases down.' This increased investment is supported by better access to finance from the Local Government Funding Agency. 'Mayors Paula Southgate of Hamilton and Jacqui Church of Waikato District have done a great job in getting this result and I congratulate them on working in the best interests of their respective ratepayers to establish this new joint water services organization,' Mr Watts says. 'I am also pleased that both councils are willing to consider forming a larger regional model with other Waikato councils over time. 'I look forward to other councils following the example of Waikato and Hamilton in delivering excellent locally-directed services that benefit their communities.'
