Horowhenua Water Services Delivery - Planning for the Future
We have to make some big decisions about how water services will be delivered to our community in the future. This is separate from our recent success in bringing water services delivery in-house, but rather is focused on how we align with new central government legislation.
This new legislation means that all city and district councils must meet new, stricter rules and regulations around financial management and the quality of their drinking water, stormwater and wastewater services – often referred to as 'three waters'.
We’re now on a tight timeframe set by the Government to decide our preferred option for the future delivery model for water services. We’ll be formally consulting with the community in early 2025.
What does the Government require us to do?
In August 2024 the Government passed legislation that sets a new direction for water services, called Local Water Done Well.
Local Water Done Well Legislation
What does this mean for our Council?
There will be new rules for investment, borrowing and pricing and new options for how we deliver water services.
We're required to develop a Water Services Delivery Plan (WSDP) within the next few months to demonstrate how we will deliver water services into the future. The WSDP must evidence our ability to comply with new water quality and infrastructure standards, and demonstrate that the delivery of water services will be financially sustainable in the future.
How will this affect the cost of water services for Horowhenua users/ratepayers?
While we've made good three waters investment decisions in the past, we expect it will cost our ratepayers more in the long run to meet the new rules and regulations put forward by the Government.
What are the extra costs?
- Increased costs to demonstrate our compliance to the new economic regulator
- Increased project and operating costs to comply with new water regulations.
What happens next?
The Government has set a tight timeframe for the changes. The new rules mean we’ll have to formally consult on our preferred delivery model in early 2025.
These are the options from the Government:
- In-house business unit (our current delivery model)
- Single council-owned council-controlled organisation (CCO)
- A council-controlled oganisation (CCO) owned by the council and one or more of our neighbours
- Mixed council / consumer trust - a consumer trust established as the majority shareholder with one or more councils owning a minority of shares
- Consumer trust - council assets would transfer to a consumer-trust-owned organisation
A regional approach
Work is at an early stage to examine reasonably practicable options, including continuing the status quo service delivery option, or establishing a new water services organisation with neighbouring Councils.
As part of exploring the options, we’re working with Councils in the Wellington Region, and to the north we're working with Councils in the Manawatū / Whanganui Region, to develop the concept for a joint-council water services organisation that will be workable, affordable, sustainable, and meet the needs of communities and the environment.
We're considering the pros and cons of all these options, but when we consult in 2025 we're only required to set out at least two delivery options. We have to take a range of factors into consideration when we make a decision on how to move forward – including the financial impact on water users, community views, and the strategic advantages and disadvantages of each option.
If we do decide to join up with others we will still get to make the decisions about how those joint arrangements will work.
Early next year we'll formally consult the community about the proposals in our Water Services Delivery Model and Plan before they're adopted.
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Community asked for views on future delivery of water services
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Horowhenua District Council is seeking early feedback from the community as it begins planning for how water services will be delivered in the future. Council wants to hear what’s most important to our community about how water services are managed – whether that’s retaining local control and voice in decision-making, ensuring services remain responsive to community needs, or keeping costs affordable.
This is separate from our recent success in bringing water services delivery in-house and focuses on how we align with government legislation passed in August this year, setting stricter standards for water management.
The Government’s Local Water Done Well policy requires all councils to meet stricter regulations on the quality, financial sustainability, and environmental impact of drinking water, wastewater, and stormwater services (the ‘three waters’).
In addition to the status quo, Council is exploring various delivery models for water services, including the possibility of joining with neighbouring councils in the Wellington and Manawatū regions to create a joint water services organisation.
Mayor Bernie Wanden says a range of factors must be considered when Council decides how to deliver water services in the future.
“While we’ve made significant progress in the three waters area, our key challenge remains understanding the full financial implications and exploring options that might reduce the impact of the new legislation for our community.
“The feedback from the community will help guide Council’s decision-making ahead of formal consultation in 2025. We’re on a tight timeline, and while this is just the beginning, it is important we hear from the community now before any decisions are made.
“This is your chance to tell us what matters most to you about how water services are delivered,” he says.
Feedback can be shared online via Let’s Kōrero, Council’s online community engagement platform, and closes at 5pm on Friday 22 November 2024.
To find out more or to have your say, visit Let's Kōrero Horowhenua.