Mayor Kirton Calls For Council To Support Largest Possible Water Services Partnership To Minimise Future Water Rates
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: ruapehudc.govt.nz
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