Taupō District councillors have decided to retain the council’s water services in-house for now, and review the decision in two years.
The Government’s Local Water Done Well reforms required all councils to consult on at least two options for the future of their water services. Retaining the status quo was not an option.
The reforms replaced the Three Waters Reforms of the previous government and apply to drinking water, wastewater and stormwater.
Taupō District Council consulted on three possible options for its water services. They were: retain water services in-house but in a separate business unit and review in two years. The second option was to join six other councils to form Waikato Waters, a multi-council-controlled organisation. The third was to set up a single Taupō District Council-controlled organisation.
Council consulted and of the 220 submissions received, 74 percent favoured keeping council services in-house for the time being. Under this option council would continue to deliver water services, own all its water assets and make all water-related decisions.
The most common reasons given were: that council has invested in its water assets and should keep control of them; that people wanted to retain local accountability; and that council does a good job of delivering water services and should continue to do so.
As part of the decision, councillors also agreed to join Waikato Waters as a limited shareholder for some shared services, such as procurement. The terms of the draft agreement allow Taupō District Council to remain involved with Waikato Waters and safeguard the option to join later.
Under every scenario for the future of water services, the cost to ratepayers is expected to rise due to new economic compliance required by the Commerce Commission; and enforcement of higher water standards by the water regulator Taumata Arowai.
Deputy Mayor Kevin Taylor, a member of the council’s water services steering group, said he wanted to acknowledge the 220 individual submitters who had made the time and effort to engage in the democratic process.
“We wouldn’t be in the position we are in and having the options we’ve got had it not been for many, many years of prudent decision-making and wise investment. We’d be in the position of our fellow councils who have had no choice."
Cr Rachel Shepherd said while she favoured the in-house model, it had been “a really tough decision” because of the amount of information to absorb and because the government had made it clear that it wanted councils to adopt a regional water model.
“I’m very much in favour of the enhanced business unit (in-house model). It’s not the status quo, it is quite separate, it is being held at arm’s length, financial separation, the works. I’m in favour of that because I do believe we can offer good water facilities to our district and we are best placed to make those decisions locally.”
Following today’s decision Taupō District Council will now develop a Water Services Delivery Plan to submit to the Department of Internal Affairs by 3 September. It must also establish a separate business unit for its water services including the full financial separation required by the Commerce Commission.
Despite the work involved in developing the various options, the Water Services Delivery Plan and implementing an in-house business unit, there has been no extra funding from central government and the council has had to meet the extra costs of over $500,000 from its own budgets.
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