Three-council Water Model ‘Only Viable Option’ For Ruapehu

Friday, 28 February 2025, 5:48 pm
Article: Moana Ellis - Local Democracy Reporter

Ruapehu District councillors have agreed on a three-council partnership as their preferred model for the future delivery of water services.

A joint entity with Whanganui and Rangitīkei district councils was the only viable option for Ruapehu District Council, councillors heard.

Chief executive Clive Manley said the approach was the lowest cost option for ratepayers and the greatest chance for efficiencies in the future.

It also offered maximum financial capacity to meet drinking and wastewater standards and maintain and improve services.

The Ruapehu council’s 30-year infrastructure strategy estimates that Ruapehu will need to invest around $293m in water infrastructure by 2054 to meet regulatory standards.

Without reform, this would lead to unaffordable cost increases for households.

Whanganui and Rangitīkei district councils have already backed the three-council model as their preferred option.

All three councils will now consult with their communities on the proposal to form a council-controlled organisation (CCO) for water services.

Under the Government’s Local Water done Well legislation, councils must submit a Water Services Delivery Plan by September 3.

The Ruapehu council approved the joint model at a meeting at Ngāpūwaiwaha Marae in Taumarunui on Wednesday.

A report to the council said the model would provide cost-effective services and be responsive to the needs of the community.

“This arrangement balances economies of scale with the ability to influence the priorities of the water services CCO,” the report said.

The Whanganui and Rangitīkei councils required a commitment from the Ruapehu council to the joint model by February 27 to adhere to the collective programme, the report said.

Ruapehu councillors also approved a recommendation that stormwater services would initially be kept in-house, noting that they could be transferred into the three-council CCO at a later stage.

Councillors heard that Ruapehu could retain stormwater assets in-house and contract the delivery of stormwater services to the three-council CCO.

Whanganui and Rangitīkei councils are proposing that the CCO should include their three waters – drinking water, wastewater and stormwater – and both plan to transfer their stormwater services and assets to the joint entity.

Councillor Lyn Neeson said a two-water entity would be “a great way to set the scene and see how they go”.

She strongly supported keeping stormwater in-house until at least 2028 so the council could understand what water delivery services under the new CCO would look like.

Councillor Fiona Kahukura Hadley-Chase questioned why stormwater services should be kept in-house.

“This council’s had 30 years to get stormwater right, another three or four years is not going to make it any better.

“If there’s anything that needs to be fixed, it’s the stormwater that’s poured into Te Awa Tupua without any consideration, and all you’re doing is delaying it.

“I don’t think it’s been justified by staff why [stormwater] should be left out. What is the reason apart from money?

“When you signed up to agreements to look after our awa, you have responsibilities as council and mayor to look after what goes into our river and you don’t care.”

Ruapehu mayor Weston Kirton said the points should be raised and considered for discussion as part of public consultation. He said the proposal to exclude stormwater from the CCO was not cast in stone and could change after consultation.

Ruapehu has said its preferred option was to work within a larger regional model with as many councils from the Horizons Regional Council area as possible. But decisions by those councils means the largest available arrangement is the three-council model.

“This option is of a smaller scale than we would ideally like but is within Ruapehu’s natural water catchment and maintains historical regional partnerships. While potentially less efficient than a larger entity, it provides closer alignment with local needs and iwi/hapū preferences,” the council’s consultation document states.

The Department of Internal Affairs has said it considers the three-council proposal to be a financially sustainable model, but the report said there was a possibility it might not meet the scale required.

In that event, councils might be instructed to discuss further consolidation with other neighbouring councils in the Horizons or Waikato area.

Ruapehu council officers were working with the Department to understand the requirements and mitigate this risk, the report said.

The CCO would be owned by the three shareholding councils with equal voting rights.

Iwi representation on the shareholding council has yet to be resolved.

Directors of the CCO would be professionals with the appropriate mix of skills, knowledge and experience.

The Board would not include council staff or elected members.

The initial work programme would be based on the councils’ 2024-2034 long-term plans and infrastructure strategies.

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