Proposed Model For Future Delivery Of Water Services To Go Before Council
Queenstown Lakes District Council's (QLDC) elected members will be asked to agree to consult on a proposal to establish a Water Services Council Controlled Organisation (WSCCO). Consultation would begin Monday 2 June 2025, decision pending.
QLDC Property & Infrastructure General Manager, Tony Avery said as part of central government's Local Water Done Well plan to address Aotearoa New Zealand's water infrastructure challenges, Council had carefully assessed options for the future delivery of water services in Queenstown Lakes District.
'Given costs are already projected to increase significantly as outlined in the QLDC Long Term Plan (LTP) 2024-2034, we wanted to ensure the proposed model we plan to share for public consultation considered financial implications for consumers, amongst several other factors,' said Mr Avery.
'The assessments and modelling we have undertaken shows a WSCCO would provide the greatest opportunity to deliver high quality, resilient, sustainable and reliable water services and provide certainty for our communities on the provision of water services.'
A WSSCO would operate as a Council Controlled Organisation specifically established to manage and deliver drinking water, wastewater, and stormwater services in the district, and to own QLDC's current water assets and their associated debt and liabilities.
While the proposed organisation would operate independently from Council and have its own specialist board and management, legislation specifically prevents it from being privatised or paying a dividend.
Council would set the organisation's strategic priorities and establish measures to ensure it performs to expectations, while the Commerce Commission would use various regulatory tools to ensure water charges are fair, cost-reflective, and transparent.
The other shortlisted option evaluated was for QLDC to continue to deliver water services in-house, recognising that changes would need to be made to enable Council to respond to the new regulatory environment if such a model was progressed with. An in-house model would be similarly subject to the Commerce Commission regulatory requirements.
In addition to cost to households, the WSCCO and the in-house model were assessed on their ability to attract and retain staff, adapt to changing requirements, maximise value and minimise waste, effectively and efficiently manage water services, and deliver to community priorities.
Mr Avery said Council needed to be confident that 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. The modelling undertaken shows that when compared with the in-house model, the proposed WSCCO model would initially result in higher water charges for households through to 2034, but long-term would lead to lower charges on average from 2034 to 2044,' said Mr Avery.
The report recommending consultation on the proposed future water service delivery model is to go before Council on Thursday and details on the assessments carried out is available online at https://www.qldc.govt.nz/your-council/council-meetings/29-may-2025-full-council-meeting/.
Given the strong public interest in Local Water Done Well and the future delivery of water services in the district, those interested are encouraged to attend the Full Council meeting being hosted at Arrowtown Community Centre, starting from 1.00pm. The venue does not have livestreaming capabilities, but a recording of the meeting will be uploaded to QLDC's Youtube channel as soon as possible after the meeting has ended.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
19 hours ago
- Scoop
Progress On Rates Reform - But Only Half The Picture
Federated Farmers is welcoming the Government's moves to rein in soaring council rates but says key elements are missing from the reform bill announced yesterday. "The proposed legislation rightly refocuses councils on core services - roads, water, rubbish, and basic infrastructure - something we've long called for," Federated Farmers local government spokesperson Sandra Faulkner says. "New financial performance measures, benchmarking and more regular public reporting should help drive greater transparency and accountability." But Faulkner says while the Local Government (Systems Improvements) Amendment Bill also contains some regulatory relief tweaks, it fails to address a major pressure point: the constant loading of councils with new, unfunded mandates. There's also no sign of ditching the 30% cap on uniform annual charges, or direction to councils they should use this tool more to distribute costs more fairly, instead of relying on property value-based rates that hit farmers hard. "Federated Farmers is in no doubt that many councils need to show more financial discipline. "Data shows the average dairy farmer's rates in 2024/25 were $23,000, a 25% increase in the last five years. Rates for sheep and beef farms average $19,000, a 35% increase since 2020/21. "These are huge amounts to come out of farmers' budgets year after year and our rural families are really feeling the pressure," Faulkner says. Local Government Minister Simon Watt says the Government is working at pace to develop a rates cap model, expected later this year. "Federated Farmers supports the idea - but it has to be well-designed," Faulkner says. "A lot of careful thought will be needed to get this right. There needs to be off-ramps for councils facing legitimate cost pressures for essential infrastructure like roads. "Councils still need to be well-funded in the interests of maintaining robust infrastructure." She also warns a cap could affect Local Government Funding Authority credit ratings, potentially driving up borrowing costs for councils. "The last thing councils need are higher debt interest costs from LGFA, the principal lender at competitive rates to local authorities." Faulkner says the bill and upcoming select committee hearings are a good chance to finally tackle bigger questions about council costs and funding. "Minister Watts has ruled out new taxes or revenue tools for councils, with the Government saying there's still scope to get better value from current rates. But that ignores half the equation. "The bill acknowledges council rates rises are being driven by rising council costs, particularly for critical infrastructure." The Federated Farmers 'Restoring Confidence in Local Decision-Making' blueprint calls for local road and bridge maintenance and renewal costs to be funded 90% from road user charges, rather than the current situation where ratepayers fork out just under 50% of these costs. "And we think there should be local referendums for any large council commercial projects - such as stadiums and conference centres - if they cost more than $500 per rateable property."
Scoop
20 hours ago
- Scoop
Tauranga City Council Postpones Decision On Water Services Delivery
Tauranga City Council has postponed its decision to confirm a preferred delivery model for future water services. While Council was expected to make a decision on Monday, it opted instead to leave the report on the table to allow time for further discussions with the community prior to making a decision. The decision comes after Thames Coromandel District Council signalled it wished to progress alongside Tauranga City Council and Western Bay of Plenty District Council in a multi-council CCO at the end of April when Tauranga City Council's public consultation had already concluded. Tauranga City Council Mayor, Mahé Drysdale says Council has been very open to working with any Council that provides mutually beneficial outcomes. 'Western Bay of Plenty District Council has always been our preferred partner, but we have had conversations with a number of councils and worked through different scenarios. 'Off the back of that scenario modelling, we now have two councils that we could progress with, Western Bay of Plenty District Council, whom we consulted alongside in April, and more recently Thames Coromandel District Council.' 'The involvement of Thames Coromandel District Council is a relatively recent development and before making a decision, and moving to due diligence, we need to update our community about our potential new partner and ensure the community is fully informed,' Mahé says. 'Although a delay could compress the time required for submitting a Water Services Delivery Plan by 3 September, it is important that we get this right." 'We look forward to continuing to engage with all of our people and appreciate any feedback on how we can make Tauranga better.' A decision on Council's preferred delivery model is now expected on 5 August 2025. If a multi-council CCO was preferred, Council would also need to approve a Commitment Agreement, which would allow councils to work together and undertake a due diligence process that assesses a joint operating model. The establishment of any multi-council CCO would be subject to all parties being satisfied with the outcomes of the due diligence process, and any council could choose to withdraw if it was dissatisfied with its findings. Te Awanui Ward Councillor Hēmi Rolleston says it was appropriate to postpone the decision. 'This is one of the most important decisions this Council will make. Therefore, to leave this decision for a further three weeks is a practical decision, based on feedback from Iwi that they require more time, particularly with the relatively late inclusion of Thames Coromandel District Council.' Community event The Mayor and Councillors will be holding an information and Q&A session with the community about Local Water Done Well on Thursday, 24 July from 5-6pm at the University of Waikato in the Te Manawaroa Room. Free parking will be available from 4.30pm on the day at the council parking building on Spring Street. Notes: Local Water Done Well is the New Zealand government's plan to reform how water services are managed and to tackle the country's significant water infrastructure challenges. During public consultation in April 2025 a total of 726 people provided submissions addressing 'Why wai matters: Local Water Done Well', via council's online submissions form.
Scoop
a day ago
- Scoop
Earthquake-Prone Building Notice Confirmed For Embassy Theatre – But It's Business As Usual
The Seismic Assessment for Wellington's iconic Embassy Theatre has confirmed parts of the building are below the 34% NBS threshold for being earthquake prone, but the building can operate as usual. In October 2024, Wellington City Council – in its capacity as the regulator – requested a Seismic Assessment to give the Embassy Theatre a formal New Building Standard (NBS) rating. An earthquake-prone notice was issued and displayed on the entrance to the Embassy Theatre in lieu of the assessment. The findings of the assessment have parts of the building below the 34% NBS threshold for being earthquake prone. Under the NBS a building's seismic performance rating is given based on its seismically weakest part. The building's NBS rating is 30%. A review of the latest advice, in conjunction with the MBIE Seismic Risk Guidance for Buildings, indicates the Embassy Theatre can operate as usual, prior to the work being carried out. The assessment states there is a 1.8% chance an earthquake could cause damage and a 0.3% chance the building would be occupied should an earthquake occur. Strengthening work above the main auditorium and on the Marjoribanks Steet façade would bring the building up to standard. The notice gives the Wellington City Council – as the building's owner – 16 years to plan and carry out remedial works on the building. Council's Chief Infrastructure Officer Jenny Chetwynd says: 'The Embassy Theatre is a much-loved venue in Wellington's entertainment district. 'We have concluded, on reviewing the latest advice in conjunction with the MBIE Seismic Risk Guidance for Buildings, that there is nothing within either assessment that indicates the building cannot continue to operate as normal.' The Embassy Theatre, on the corner of Marjoribank Street and Kent Terrace, is Wellington's oldest and most iconic cinemas. It is one of the only pre-World War II large-screen cinemas remaining in the country. Originally known as the De Luxe Cinema, it celebrated its centenary in 2024. It has been strengthened twice before, most recently in 2009 to 80% NBS. Standards have become more stringent since those works were carried out. The Council will review its options for the building over the coming months. An EPB notice will be displayed at every public entrance to the building. Related links:
