Latest news with #ThreeWaters
Otago Daily Times
4 days ago
- Business
- Otago Daily Times
CCO preferred option for Three Waters
A recommendation for a council-controlled organisation (CCO) to deliver Three Waters services in the Queenstown Lakes district will go out for public consultation on Monday. Councillors voted 8-2 in favour of the recommendation at a full council meeting in Arrowtown yesterday, taking another step in revamping Three Waters delivery in line with the government's 'Local Water Done Well' reforms. In her report for councillors, council strategy and reform manager Pennie Pearce said compared to an "in-house" model, a CCO would provide the "greatest opportunity to deliver high-quality, resilient, sustainable and reliable water services". The council would transfer the district's drinking water, wastewater and stormwater assets — and associated liabilities — to the CCO, but would be its sole shareholder. The CCO would operate independently from the council, with its own specialist board and management. It would not need to consult with the community, but the council would set its expectations and priorities through a statement of expectations. The report said average annual water charges for households would increase significantly under either model, but were estimated to be 10% lower under a CCO in the long-term. The council's debt would significantly decrease, giving it more "headroom" for non-Three Waters capital spending. Mayor Glyn Lewers said he strongly backed a CCO, saying the litany of Three Waters failures the current council had been forced to deal with were the outcome of poor decisions by previous councils. The 2023 Cryptosporidium outbreak, the Shotover wastewater disposal field failure, and the need to truck waste out of Hawea were all the result of "political interference", and had led to households having to pay more for water services. The council was investing nearly $1.5 billion on Three Waters infrastructure over the next 10 years, and he wanted a professional board overseeing that, Mr Lewers said. Cr Gavin Bartlett said the projected reduction in council debt under a CCO would allow the council to "focus on the other services we provide". The two councillors to vote against the recommendation expressed scepticism that a CCO would result in better decision-making. Cr Quentin Smith said it did not guarantee a higher level of expertise, and he favoured an in-house model. Cr Niki Gladding said keeping Three Waters delivery inside the council ensured transparency and accountability. "I think we're going to lose something with a technical board that meets quarterly." The four-week consultation period will end on June 29, with the council expected to make a final decision on July 31.
Otago Daily Times
5 days ago
- Business
- Otago Daily Times
Three Waters services to be kept in-house
The Invercargill City Council has accepted a recommendation from one of its committees to establish a council-operated enhanced service for Three Waters delivery. Infrastructure and projects committee chairman Cr Grant Dermody said the recommendation represented an important step in addressing the future needs of Invercargill. ''How we deliver Three Waters services is a once-in-a-generation decision, and its impacts will span our entire community for many years to come,'' he said in a statement. The provision of Three Waters services was one of the key issues outlined in tandem with the council's draft annual plan 2025-26. A council-operated enhanced service was the council's preferred option. It also consulted on two other options: establishing an Invercargill council-controlled organisation, and a Southland-wide council-controlled organisation. Of the 495 submissions the council received on the draft plan, 188 were about Three Waters. Three-quarters of them agreed with the preferred option. Consultation was required under central government's Local Water Done Well legislation, introduced to ensure water services nationally are finanically sustainable and effectively managed. While Invercargill was in a better position than many other local authorities, having regularly maintained its Three Waters network and invested in associated infrastructure, maintaining the status quo was no longer viable, Mr Dermody said. ''Council must draw a line in the sand, to make sure that the future of Three Waters delivery within our community is practical and fit-for-purpose for future generations,'' he said. ''As a council, we believe the most important outcome is to provide an efficient, effective service that is the most practical for our community in the long term. We also strongly believe in local decision-making.'' The council-operated enhanced service represented the second-least costly option for water services delivery for ratepayers to 2034, and in the long term was the lowest-cost option considered, Mr Dermody said. With this option, the average annual water services rate increase between 2027 and 2034 would be 6.26%, or $150 per household. All councils are required to submit their water services delivery plan to the Department of Internal Affairs by September. — APL
Otago Daily Times
7 days ago
- Business
- Otago Daily Times
Council to decide on setting up water CCO
Queenstown Lakes households may face higher water charges for the next nine years if the district council agrees to establish a new council-controlled organisation to deal with Three Waters. However, council property and infrastructure general manager Tony Avery said, based on modelling, the proposed water services council-controlled organisation (WSCCO) would lead in the long term to "lower charges on average" for the 10 years from 2034. At a full council meeting in Arrowtown on Thursday, elected members will be asked to agree to consult on the proposal to establish the WSCCO. If they agree, consultation would begin on Monday. Mr Avery said as part of central government's Local Water Done Well Plan, to address New Zealand's water infrastructure challenges, the council had carefully assessed options for the future delivery of water services. The other shortlisted option evaluated was for the council to continue to deliver water services in-house, which would be subject to the Commerce Commission's regulatory requirements. Mr Avery said the council needed to be confident the model chosen would be capable of delivering financially sustainable water services to meet the increased financial requirements in legislation intended to be passed by central government. "Under all scenarios, including council's current long-term plan, water charges are projected to increase substantially." If agreed, the WSCCO would manage and deliver drinking water, wastewater and stormwater services in the district, and own the council's current water assets and their associated debt and liabilities. The proposed organisation would operate independently from the council. The Local Water Done Well reforms are underpinned by the Local Government (Water Services) Bill, expected to come into force later this year, which will require councils to transition to a separation of water charges from their general rates. At a workshop early this month, council strategy and reform manager Pennie Pearce told councillors the internal assessment found the district's households would face slightly cheaper annual Three Waters charges for the first 10 years under the in-house model, but those costs were projected to be lower under a CCO after that. — APL
Scoop
22-05-2025
- Business
- Scoop
Just Five Submissions Drip In On Tasman's Water Plan
Three Waters reform dominated headlines and generated public backlash for years but now only five Tasman residents have had their say on the future of the district's water. The previous Labour Government's scrapped water policy, which would have rolled Tasman into larger regional water entities, received stiff opposition and 'Stop Three Waters' banners can still occasionally be seen across the wider region. Tasman is now undertaking the necessary work to determine how its three waters services will be delivered under the Coalition Government's replacement policy, Local Water Done Well. Consultation has been open on Tasman District Council's proposal for four weeks and closes at 4pm on Friday, but just five people have had their say, as of Monday morning. Currently, the council is looking to manage its water in an internal business unit. That approach would keep the council in control of its water infrastructure but wouldn't take advantage of the potential economies of scale that could be achieved if Tasman teamed up with its neighbours. Despite the low engagement and importance of water services, the council's group manager for community infrastructure wasn't worried and thought the 'silent majority' had given the plan the thumbs up. 'I feel as though there's been no kind of angst in the community because, essentially, council's still running it,' Richard Kirby said. Whatever option the council chooses will have a financial impact on residents when they receive their water bills in the future. A multi-council organisation with Buller and Marlborough would be the cheapest option for water users, but financial modelling of the different options showed yearly water fees would only vary by $335 after a decade and so the council opted to retain direct control. Reduced costs became more evident beyond 10 years under a combined approach, but Kirby said there are other opportunities to share services and reduce costs across the region in the future. 'We're still going to be having discussions with our neighbours.' The proposed in-house approach will place 'a bit of stress' on the council as it upgrades its systems and changes its procedures, and water will no longer be subsidised by the hundreds of thousands in dividends from Port Nelson, he added. Council's preferred approach will require Governmental approval and is expected to be implemented on 1 July 2027. Nelson City Council only received 12 responses to its own Local Water Done Well consultation.
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.
