Latest news with #SouthernWaterDoneWell
Otago Daily Times
2 days ago
- Business
- Otago Daily Times
Joint CCO best water option: Infometrics
A leading economist has voiced strong support for Southern Water Done Well's preferred water services delivery model, saying it offers the best pathway to safe, reliable water services and long-term financial benefits for the southern region. At a recent meeting of Southern Water Done Well (SWDW), political leaders and senior staff heard from Infometrics chief executive Brad Olsen and his views on water reforms. Southern Water Done Well project leader Andrew Strahan said Infometrics was provided with documents to review. Those included the latest Morrison Low report, which included work last year for the group of eight Southland and Otago councils, a peer review of the benefits, briefings for elected members and consultation documents. SWDW's four partner councils — Waitaki, Gore, Central Otago and Clutha district councils — are consulting on three options for the future delivery of water services to meet the government's Local Water Done Well legislation. Their preferred delivery model is a jointly owned council-controlled organisation (CCO). The Infometrics chief executive and principal economist agreed, saying it provided a strategic, carefully considered approach to meeting future water services challenges. "Status quo is just not going to cut it any more. And if it does, it'll become so expensive that the community won't tolerate it ... the government clearly isn't tolerating it already. "So, effectively, things needs to change." One of the most compelling advantages of SWDW's preferred model was the leap in bargaining power it delivered. Individually, the four councils each represented just 1% to 2% of the South Island's population, placing them 13th to 18th out of 23 South Island councils, in terms of scale. By forming a jointly owned CCO, they collectively moved into the fourth-largest position, representing 6.6% of the South Island's population. "That shift in scale is transformative," said Mr Olsen. "It gives councils and their communities far greater influence when negotiating with contractors, accessing skilled staff and securing funding. In a tight infrastructure market, scale gives you options and leverage." Even greater efficiencies would be gained if other councils were accepted into a jointly owned CCO at some point in the future. Mr Olsen noted SWDW's deliberately conservative approach to financial modelling for the jointly owned CCO and emphasised the importance of looking long-term. While short-term financial gains might be modest, water assets were long-term (20 years+) and by year 20, modelling for other joint water services delivery entities had shown potential savings of up to 20% compared to going it alone, he said. Just as significantly, the joint approach improved resilience, attracted talent and helped councils meet more demanding compliance standards without overburdening local ratepayers. Mr Olsen believed there was potential for even greater gains beyond initial projections. "We've reviewed the assumptions, and they're conservative. That's appropriate, given the significant changes that have to happen, but even under these conservative assumptions, the numbers still stack up." The conservative modelling still projected 15%-16% operating and capital efficiencies being achieved over "roughly a decade", which was "a similar timeframe to achieve efficiencies as seen in other spaces". Morrison Low's modelling of the benefits of a jointly owned CCO shows SWDW consumers would save $44 million by 2033-34 compared to where costs would otherwise increase to. In its first 10 years, the jointly owned CCO would deliver $82 million in savings to consumers. Olsen also highlighted that the proposed model retained community ownership while delivering greater long-term benefits through scale and co-ordination. Southern Water Done Well's preferred delivery model gave councils the scale, flexibility and financial sustainability they simply could not get on their own while retaining community ownership and voice, Mr Olsen said. Southern Water Done Well consultation closes this Friday.
Otago Daily Times
21-05-2025
- Business
- Otago Daily Times
Frustration vented at ‘southern water' meeting
Clutha Mayor Bryan Cadogan. Photo: Richard Davison Residents and officials alike voiced their frustration with the "untenable" financial pressures expected to arise from the government's Local Water Done Well programme, at a public meeting in Balclutha last night. The Clutha District Council is holding three meetings across the district this week as part of public consultation on the National government's replacement for Three Waters. The meetings - in Milton on Monday, Balclutha yesterday and tonight in Tapanui - are taking place against the backdrop of Clutha's proposal to join Central Otago, Gore and Waitaki in a new "Southern Water Done Well" group. Consultation documents show the four councils collectively accruing $598 million of water infrastructure debt by 2034, as they spend $760 million on providing improved water services in line with more stringent government regulations. Clutha Mayor Bryan Cadogan said the proposal to join forces with neighbouring councils was the "least bad" solution, that could lead to modest efficiencies and savings for ratepayers. "Going alone consigns communities to further financial hardship. The almost decade-long chops and changes to these reforms have only weakened councils and cost ratepayers. It's imperative that this matter is brought to a head," he said. Audience members questioned both whether the level of anticipated debt was necessary or possibly underestimated. Mr Cadogan said the projected debt had been reduced recently, due to government changes to wastewater requirements, but remained necessary as it spread the rates burden for residents. Some expressed doubt whether joining forces with other councils would in fact reduce rates, citing the Auckland "supercity" amalgamation, which they said had failed to do so. Council staff said the proposal was expected to lead to reductions in bureaucracy, and existing debt would be ring-fenced within any new entity. These measures should lead to cost savings, and no unanticipated debt increase. The group's preferred option is to form a jointly-owned council controlled organisation (CCO). Other options include a stand-alone CCO, or an in-house business unit. Mr Cadogan warned these options could consign Clutha to insolvency during the next decade, due to mounting infrastructure debt. Submissions close on June 6, followed by hearings in Balclutha on June 18. The government will assess the council's resulting Water Services Delivery Plan and provide feedback from December. If approved, a jointly-owned CCO would begin operation in July, 2027. A final public meeting takes place at the West Otago Community Centre, Tapanui, at 6.30pm today.
Otago Daily Times
20-05-2025
- Business
- Otago Daily Times
Views heard at ‘southern water' meeting
Bryan Cadogan. Photo: Richard Davison Residents and officials alike voiced their frustration with the "untenable" financial pressures expected to arise from the government's Local Water Done Well programme, at a public meeting in Balclutha last night. The Clutha District Council is holding three meetings across the district this week as part of public consultation on the National government's replacement for Three Waters. The meetings — in Milton on Monday, Balclutha yesterday and tonight in Tapanui — are taking place against the backdrop of Clutha's proposal to join Central Otago, Gore and Waitaki in a new "Southern Water Done Well" group. Consultation documents show the four councils collectively accruing $598 million of water infrastructure debt by 2034, as they spend $760 million on providing improved water services in line with more stringent government regulations. Clutha Mayor Bryan Cadogan said the proposal to join forces with neighbouring councils was the "least bad" solution, that could lead to modest efficiencies and savings for ratepayers. "Going alone consigns communities to further financial hardship. The almost decade-long chops and changes to these reforms have only weakened councils and cost ratepayers. It's imperative that this matter is brought to a head," he said. Audience members questioned both whether the level of anticipated debt was necessary or possibly underestimated. Mr Cadogan said the projected debt had been reduced recently, due to government changes to wastewater requirements, but remained necessary as it spread the rates burden for residents. Some expressed doubt whether joining forces with other councils would in fact reduce rates, citing the Auckland "supercity" amalgamation, which they said had failed to do so. Council staff said the proposal was expected to lead to reductions in bureaucracy, and existing debt would be ring-fenced within any new entity. These measures should lead to cost savings, and no unanticipated debt increase. The group's preferred option is to form a jointly-owned council controlled organisation (CCO). Other options include a stand-alone CCO, or an in-house business unit. Mr Cadogan warned these options could consign Clutha to insolvency during the next decade, due to mounting infrastructure debt. Submissions close on June 6, followed by hearings in Balclutha on June 18. The government will assess the council's resulting Water Services Delivery Plan and provide feedback from December. If approved, a jointly-owned CCO would begin operation in July, 2027. A final public meeting takes place at the West Otago Community Centre, Tapanui, at 6.30pm today.
Otago Daily Times
15-05-2025
- Politics
- Otago Daily Times
Getting set to tackle water services myths
One councillor is hoping consultation on how water services are provided across Central Otago will deal to the many "myths" circulating in the community, while another has suggested the outcome of the consultation is already a "fait accompli". The Central Otago District Council is considering teaming up with three other local authorities to deliver and maintain Three Waters infrastructure. The council now wants to hear the view of residents and ratepayers. In a virtual meeting last Thursday, elected members signed off on a consultation document. Cr Cheryl Laws said it was a matter of "how we get our message out now to the public and avoid all of these myths that are out there". Branded as "Southern Water Done Well", the topic was canvassed in the just-closed long-term plan consultation. Collaboration with neighbouring councils and the status quo were among options mooted. Council Three Waters head Julie Muir told elected members at Thursday's meeting initial analysis of submissions received in response to the long-term plan showed close to a 50:50 split in sentiment regarding the creation of a new water entity versus retaining the status quo. However, much of the discussion at last week's meeting centred on the status quo being a red herring. "The word status quo implies that we can continue as we are, with the same costs, and we know legally that's not achievable," Ms Muir said. "There's no such things as status quo — it's 'status quo' that we continue to deliver in-house, but it's at a higher cost and higher level of service." Cr Sarah Browne said people she talked to were confused as to why any change was needed when, on the whole, the district was already delivering water services well. "I'd say the public feedback at this stage is that we absolutely should just be doing the status quo, keep it in house," Cr Browne said. "That's the crux of the conversation I've had with everybody that's interested in it." However, it was not that the council did not want to maintain the status quo; rather, it "can't do it". "I think that's the key issue ... the status quo isn't an option; it isn't sustainable." Mayor Tamah Alley said people needed to "wrap their heads around" the proposal. "There are challenges coming in this [Three Waters] space that we are aware of, but perhaps the general public aren't quite across," she told councillors. Cr Martin McPherson called the paper in front of elected members an "educational document" rather than a "consultation document". However, there was silence when he went as far as saying: "We're not really seeking any feedback, because this is a fait accompli. We're going ahead with this come hell or high water because we don't have a choice." Ms Muir said the latest consultation, zeroing in on water, would move the discussion on. She said the consultation document was "well put together" and "easy to read". "I think this gives people a greater depth of knowledge and understanding of what's proposed." Council chief executive Peter Kelly said the other three councils — the Clutha, Gore and Waitaki District Councils — signed off on similar consultation documents last week, with only minor amendments. According to the Central Otago document, combined debt for the four councils is projected to rise from $236million to $598m by 2034, with $760m invested in water services over the coming decade to ensure compliance with national expectations. The month-long consultation started late last week and will conclude on June 6. Public information sessions are planned.
