Latest news with #WS-CCO
Scoop
15-07-2025
- Business
- Scoop
Ruapehu And Whanganui To Form Joint Water Services Entity
Ruapehu District Council (RDC) will join with Whanganui District Council (WDC) to form a two-council Water Services Council-Controlled Organisation (WS-CCO) to deliver future water services under the Government's Local Water Done Well reform programme. RDC had voted to support the two-council WS-CCO model at its meeting on 9 July, with the decision contingent on WDC confirming its preference to partner with Ruapehu. That confirmation came today, with WDC elected members voting 8–5 in favour of the joint model. Chief Executive Clive Manley welcomed the confirmation and said it was an important milestone that enables both councils to begin work on the detailed planning and implementation. 'This has been a long and complex process, and a significant amount of work has gone into getting us to this point,' said Mr Manley. 'Now that we have clarity and agreement from both councils, staff can progress the necessary steps to implement the new water services delivery model. Until we had confirmation of our partner council, there were key aspects we simply couldn't move forward on.' The immediate priority will be the development of a joint Water Services Delivery Plan (WSDP) with WDC. This plan must demonstrate how the proposed two-council WS-CCO meets the Government's legislative requirements - particularly around financial sustainability - and must be submitted to the Minister of Local Government for approval by 3 September 2025. 'Given ministerial approval of the WSDP, Council staff will be working closely with Whanganui to operationalise the new WS-CCO as quickly as possible,' said Mr Manley. 'The target is for the WS-CCO to be fully operational by mid-2027. In the meantime, water users in Ruapehu will continue to be serviced by our existing provider, Veolia, with no change to service levels.' Mr Manley noted that WDC had also voted to include stormwater services in the new WS-CCO. Ruapehu is still considering whether to transfer its stormwater services or retain them in-house. This decision will not impact the establishment of the WS-CCO. 'We'll make a decision on stormwater in due course, but it doesn't prevent us from moving forward with the rest of the WS-CCO implementation,' he said. Mr Manley added that this partnership builds on the strong history of collaboration between the two councils. 'This new water services partnership adds to a growing list of shared services between Ruapehu and Whanganui. Both councils are committed to continuing to explore opportunities that improve efficiency and reduce costs for our communities.'
Scoop
05-06-2025
- Business
- Scoop
Mayor Kirton Calls For Council To Support Largest Possible Water Services Partnership To Minimise Future Water Rates
Press Release – Ruapehu District Council Mayor Kirton said that while some residents attending recent public meetings continued to advocate for a standalone model Council had already resolved that standalone options are not financially viable for Ruapehu. Ruapehu Mayor Weston Kirton is urging Council to support joining the largest possible water services partnership with Palmerston North, Horowhenua, Rangitīkei – and hopefully Whanganui – to secure the lowest cost water services for Ruapehu water customers. Mayor Kirton said that while some residents attending recent public meetings continued to advocate for a standalone model Council had already resolved that standalone options are not financially viable for Ruapehu. 'I listened carefully to those calling for Council to go it alone,' said Mayor Kirton. 'But I do not believe people promoting this view fully appreciate the scale of water rates and set-up costs that would result – increases that would be simply unaffordable for most Ruapehu ratepayers, and something I am not prepared to support.' Financial modelling has estimated that adopting a standalone model would see water users paying a massive $3,955 in annual water charges with an in-house Business Unit or $3,543 for a Water Services Council Controlled Organisation (WS-CCO) model on top of other rates. This compares to an annual water charge of $1,611 for a four-council Water Services Council Controlled Organisation (WS-CCO) or $1,483 if Whanganui joins based on Palmerston North's calculations. Joining the larger WS-CCO would see water customers would save $2,344 with a four-council WS-CCO model or $2,472 with the five-council model in the first year alone. In addition, the rates increase required for 2025/26 would need to rise significantly from the currently forecast 9% to cover the set-up costs associated with an inhouse standalone model. 'These levels of increase are not only unaffordable – they're unnecessary,' said Mayor Kirton. Mayor Kirton stressed that the Government has made it clear that councils must work together, especially rural and smaller councils, and that all Water Services Delivery Plans must meet the new regulatory and financing standards. 'Besides the financial risk, if our plan doesn't meet Government requirements, a Commissioner will be appointed to rewrite it – removing Council from the process altogether. The Minister has written to councils reinforcing the need to collaborate regionally. Ignoring that guidance is not a real option – we don't set the timeframes or rules, but we must operate within them.' He acknowledged concerns around the loss of local voice, jobs, or control over catchment areas but said robust safeguards are in place. 'There will be protections for local input and identity through legislation, regulatory oversight, a commitment to one vote per council, and a Statement of Expectations to reflect Ruapehu's needs. It should be noted that the Regulator will decide on water standards and when work needs to be done while the Commerce Commission will determine water costs removing these issues from Council control whatever model we end up with. We will retain ownership of our assets, and because of our geography and response needs, we'll continue to require a locally based workforce. Mayor Kirton said joining the larger WS-CCO will provide access to greater scale, financial resilience, lower long-term costs, and protect Ruapehu's ability to sustainably deliver compliant water services into the future. 'The largest possible WS-CCO is the right long-term choice for our district. It offers strategic and financial advantages that cannot be matched by any standalone or smaller-scale approach. I'm calling on Council to show strong leadership and support the model that gives our communities the best outcomes at the most affordable cost.' Council is scheduled to decide on its preferred water services delivery model on 25 June, ahead of submitting a formal Water Services Delivery Plan to the Government by 3 September 2025.
Scoop
05-06-2025
- Business
- Scoop
Mayor Kirton Calls For Council To Support Largest Possible Water Services Partnership To Minimise Future Water Rates
Ruapehu Mayor Weston Kirton is urging Council to support joining the largest possible water services partnership with Palmerston North, Horowhenua, Rangitīkei – and hopefully Whanganui – to secure the lowest cost water services for Ruapehu water customers. Mayor Kirton said that while some residents attending recent public meetings continued to advocate for a standalone model Council had already resolved that standalone options are not financially viable for Ruapehu. 'I listened carefully to those calling for Council to go it alone,' said Mayor Kirton. 'But I do not believe people promoting this view fully appreciate the scale of water rates and set-up costs that would result – increases that would be simply unaffordable for most Ruapehu ratepayers, and something I am not prepared to support.' Financial modelling has estimated that adopting a standalone model would see water users paying a massive $3,955 in annual water charges with an in-house Business Unit or $3,543 for a Water Services Council Controlled Organisation (WS-CCO) model on top of other rates. This compares to an annual water charge of $1,611 for a four-council Water Services Council Controlled Organisation (WS-CCO) or $1,483 if Whanganui joins based on Palmerston North's calculations. Joining the larger WS-CCO would see water customers would save $2,344 with a four-council WS-CCO model or $2,472 with the five-council model in the first year alone. In addition, the rates increase required for 2025/26 would need to rise significantly from the currently forecast 9% to cover the set-up costs associated with an inhouse standalone model. 'These levels of increase are not only unaffordable – they're unnecessary,' said Mayor Kirton. Mayor Kirton stressed that the Government has made it clear that councils must work together, especially rural and smaller councils, and that all Water Services Delivery Plans must meet the new regulatory and financing standards. 'Besides the financial risk, if our plan doesn't meet Government requirements, a Commissioner will be appointed to rewrite it – removing Council from the process altogether. The Minister has written to councils reinforcing the need to collaborate regionally. Ignoring that guidance is not a real option – we don't set the timeframes or rules, but we must operate within them.' He acknowledged concerns around the loss of local voice, jobs, or control over catchment areas but said robust safeguards are in place. 'There will be protections for local input and identity through legislation, regulatory oversight, a commitment to one vote per council, and a Statement of Expectations to reflect Ruapehu's needs. It should be noted that the Regulator will decide on water standards and when work needs to be done while the Commerce Commission will determine water costs removing these issues from Council control whatever model we end up with. We will retain ownership of our assets, and because of our geography and response needs, we'll continue to require a locally based workforce. Mayor Kirton said joining the larger WS-CCO will provide access to greater scale, financial resilience, lower long-term costs, and protect Ruapehu's ability to sustainably deliver compliant water services into the future. 'The largest possible WS-CCO is the right long-term choice for our district. It offers strategic and financial advantages that cannot be matched by any standalone or smaller-scale approach. I'm calling on Council to show strong leadership and support the model that gives our communities the best outcomes at the most affordable cost.' Council is scheduled to decide on its preferred water services delivery model on 25 June, ahead of submitting a formal Water Services Delivery Plan to the Government by 3 September 2025. People can provide feedback on their priorities for a future water services delivery model via an online survey on Council's website:
NZ Herald
26-05-2025
- Business
- NZ Herald
Bigger may be better: Late advice shake-up forces councils to rethink water reform plans
At a meeting on Thursday, Rangitīkei District Council confirmed its preference to establish a multi-council water services council-controlled organisation (WS-CCO) under the Government's Local Water Done Well reforms. The three-council proposal remains on the table, but Rangitīkei unanimously resolved to progress 'newly ignited conversations' with Palmerston North City Council and Horowhenua District Council. The surprise move comes after new guidelines from the Department of Internal Affairs, the Local Government Funding Agency, and the Commerce Commission on achieving economy of scale and financial sustainability requirements. Rangitīkei Mayor Andy Watson said the Rangitīkei, Ruapehu and Whanganui councils were newly approached in early May about collaborating with the Palmerston North and Horowhenua councils to form a larger entity. A key element of the new guidance was that a WS-CCO servicing 50,000 connections would achieve the greatest cost efficiencies for bill payers. 'The understanding that 50,000 connections would unlock greater savings for all those involved has absolutely contributed to other councils re-entering discussions about a wider model,' Watson said. A three-council entity with Rangitīkei, Ruapehu, and Whanganui councils would service about 31,000 connections. Rangitīkei consulted with residents in March on three models for the future of water services delivery: A multi-CCO with Whanganui and Ruapehu district councils (the preferred model). Keeping the status quo of in-house delivery. A multi-CCO with as many councils in the Manawatū-Whanganui region as possible. At the time, the third option was not viable because other councils had indicated they preferred alternative models. Following the latest advice, talks have reopened on a wider regional approach. Rangitīkei was now awaiting the decisions of its potential partners, Watson said. Staff would finalise the water services delivery plan by September 3. 'We will inform Rangitīkei residents as soon as the final grouping of councils is clear,' Watson said. 'This is one of the biggest decisions councils will make for their communities in decades.' A decision in Whanganui was deferred on Tuesday to an extraordinary council meeting in early July. Mayor Andrew Tripe said four viable delivery options remained on the table: a multi-CCO with Ruapehu and Rangitīkei, a Whanganui District Council CCO, a multi-CCO with as many councils as possible, and an in-house business unit. Most community feedback showed residents felt Whanganui had invested well in its water assets and did not want to 'cross-subsidise' other councils. 'However, we are looking at a joint council proposal which could include a non-harmonised model, ring-fencing costs for each council but giving the benefits of scale – otherwise known as local pricing.' The council was continuing to back a three-council model as the best level of scale to achieve cost benefits, but Tripe said the possibility of achieving 'greater scale' would be investigated. Under local pricing, residents within each district would be charged on the same basis as currently, but any savings were shared. Advertise with NZME. 'All three councils' customers in this case benefit from these savings, while paying costs that relate only to the delivery of services in their district. So customers pay less than they would have if councils were to go on their own.' The cost benefits could be around $18,000 per Whanganui connection over 30 years, or $588 a year. 'Local pricing may also offer further savings to Whanganui if there is a greater scale, something which requires further investigation.' Tripe said councils took their preferred options to consultation before the new guidelines were received. 'It is pertinent that we consider them now, as considerations such as public liability and ring-fencing of assets, even with an in-house model, do come at a cost. 'The adoption of a water services delivery plan for our district is one of the most significant changes to local government in decades. 'It is vital that we do not rush this process.' On Wednesday, Ruapehu district councillors decided to ditch a standalone option in favour of the three-council CCO and investigating a wider regional entity to reach the 50,000-connection threshold. The decision brings potential collaboration with Waikato back to the table. The Ruapehu council will engage with its community on the new information and options available. No new preferred option will be offered. The council will meet on June 25 to make a final decision.
Scoop
24-05-2025
- Business
- Scoop
Bigger May Be Better: Late Advice Shake-Up Forces Councils To Re-Think Water Reform Plans
Plans for the future of water services in the Whanganui, Rangitīkei and Ruapehu districts are in disarray after late advice from government agencies. The district's three councils have been weighing options for drinking water, wastewater and stormwater reform after identifying and consulting on a joint water services entity as their preferred model. But the eleventh-hour advice is shaking up proposals by smaller councils to continue providing standalone services or with small clusters of neighbours in joint models. In the central districts, councils are scrambling to re-open talks on forming bigger regional collectives. At a meeting on Thursday, Rangitīkei District Council confirmed its preference to establish a multi-council water services council-controlled organisation (WS-CCO) under the Government's Local Water Done Well reforms. The three-council proposal remains on the table, but Rangitīkei unanimously resolved to progress 'newly ignited conversations' with Palmerston North City Council and Horowhenua District Council. The surprise move comes after new guidelines from the Department of Internal Affairs, the Local Government Funding Agency and the Commerce Commission on achieving economy of scale and financial sustainability requirements. Rangitīkei mayor Andy Watson said the Rangitīkei, Ruapehu, and Whanganui councils were newly approached in early May about collaborating with the Palmerston North and Horowhenua councils to form a larger entity. A key element of the new guidance was that a WS-CCO servicing 50,000 connections would achieve the greatest cost efficiencies for bill payers. 'The understanding that 50,000 connections would unlock greater savings for all those involved has absolutely contributed to other councils re-entering discussions about a wider model,' Watson said. A three-council entity with Rangitīkei, Ruapehu and Whanganui councils would service about 31,000 connections. Rangitīkei consulted with residents in March on three models for the future of water services delivery: • A multi-CCO with Whanganui and Ruapehu district councils (the preferred model). • Keeping the status quo – in-house delivery. • A multi-CCO with as many councils in the Manawatū-Whanganui region as possible. At the time, the third option was not viable because other councils had indicated they preferred alternative models. Following the latest advice, talks have re-opened on a wider regional approach. Rangitīkei was now awaiting the decisions of its potential partners, Watson said. Staff would finalise the Water Services Delivery Plan by September 3. 'We will inform Rangitīkei residents as soon as the final grouping of councils is clear,' Watson said. 'This is one of the biggest decisions councils will make for their communities in decades.' A decision in Whanganui was deferred on Tuesday to an extraordinary council meeting in early July. Mayor Andrew Tripe said four viable delivery options remained on the table: a multi-CCO with Ruapehu and Rangitīkei, a Whanganui District Council CCO, a multi-CCO with as many councils as possible, and an in-house business unit. Most community feedback showed residents felt Whanganui had invested well in its water assets and did not want to 'cross-subsidise' other councils. 'However, we are looking at a joint council proposal which could include a non-harmonised model, ring-fencing costs for each council but giving the benefits of scale – otherwise known as Local Pricing.' The council was continuing to back a three-council model as the best level of scale to achieve cost benefits, but Tripe said the possibility of achieving 'greater scale' would be investigated. Under Local Pricing, residents within each district would be charged on the same basis as currently, but any savings were shared. 'All three councils' customers in this case benefit from these savings, while paying costs that relate only to the delivery of services in their district. So customers pay less than they would have if councils were to go on their own.' The cost benefits could be around $18,000 per Whanganui connection over 30 years, or $588 a year. 'Local Pricing may also offer further savings to Whanganui if there is a greater scale, something which requires further investigation." Tripe said councils took their preferred options to consultation before the new guidelines were received. 'It is pertinent that we consider them now, as considerations such as public liability and ring-fencing of assets, even with an in-house model, do come at a cost. 'The adoption of a water services delivery plan for our district is one of the most significant changes to local government in decades,' Tripe said. 'It is vital that we do not rush this process.' On Wednesday, Ruapehu district councillors decided to ditch a standalone option in favour of the three-council CCO and investigating a wider regional entity to reach the 50,000-connection threshold. The decision brings potential collaboration with Waikato back to the table. The Ruapehu council will engage with its community on the new information and options available. No new preferred option will be offered. The council will meet on 25 June to make a final decision.
