Local Waters Done Well
Update: Friday 13 December 2024
Thames-Coromandel District Council confirms options for future water services delivery
After a thorough and independent assessment process, our Council has narrowed down the following two options for future water services delivery for our community.
- An internal business unit or division within TCDC, and
- A regional/sub-regional asset-owning water organisation.
In its meeting this week, Council also confirmed that Thames-Coromandel District Council won’t be signing the Waikato Waters Done Well (WWDW) Heads of Agreement at this time. Council also confirmed its willingness to keep our options open regarding potential partnerships with other local government entities to provide water services – as long as it’s of mutual benefit and complies with the relevant legislation. WWDW is a group of Councils in the Waikato District (except Hamilton City Council which exited recently) that have been exploring future water service delivery through an aggregated Council Controlled Organisation (CCO) service delivery model. Our Council has been participating in these discussions.
Our Council currently provides drinking water, wastewater and stormwater services to our community through an asset base of approximately $0.55 billion dollars.
Earlier this year the government introduced new Local Water Done Well (LWDW) legislative requirements and set higher expectations for councils to ensure their water services are financially sustainable and compliant over the long term. This new legislation replaced the previous government’s Three Waters Reform.
The new legislation requires councils to identify at least two options (status quo and joint water services delivery) for future water services delivery to take to public consultation. Thereafter, every council across the country is to develop and submit Water Services Delivery Plans (WSDPs) by September 2025, based on their preferred option. The WSDP requires councils to design the structure, delivery method and funding and financing arrangements for their future water services delivery.
“It’s important to note that no final decisions have been made on how we will deliver water services in the future,” says Mayor Len Salt.
“Final decisions won’t be made until after we’ve consulted with the community, probably around April next year,” says Mayor Len. “For now, we’ve opted not to sign the Waikato Waters Done Well Heads of Agreement. Our independent review shows us we are in a relatively good position with reasonable assets and lower relative debt compared to some other councils in New Zealand. This means we are able to meet the government’s immediate new requirements in the short to medium term. So, we’ve decided to maintain a ‘keep options open’ position and not to fully commit to Waikato Waters Done Well at this stage, while keeping it a viable option for the future.”
“In the longer term we may face affordability constraints, so we need to keep exploring regional and sub-regional partnerships to see if they are likely to deliver better overall value,” says Mayor Len. “That’s what Council’s decision this week puts us in a good position to do.”
Staff will now explore opportunities for working arrangements, where possible, with Hauraki District Council as well as opportunities with Hamilton City Council and Tauranga City Council for a potential joint council-controlled organisation (CCO) with either in the longer term. The outcomes of these discussions will be factored into the preferred option selection process.
Update: Tuesday 3 September 2024
Council open to all options regarding future of three waters services
Our Council has been discussing with other councils in the Waikato region on what the future of water services arrangements could look like.
At its meeting today, our Council decided that all options should continue to be investigated, ranging from banding together with other councils in a Council-Controlled Organisation (CCO) to deliver water services, or going it alone. Our Council considers it too premature to make a commitment right now on the shape of future service delivery arrangements.
It is a legislative requirement that future water services delivery is separated from other council business and all councils are required to develop a Water Services Delivery Plan on how this will be done.
There is more new water legislation to be enacted, with one new piece of legislation expected by the end of the year and another early next year.
Our Council wants to fully understand the requirements of the new legislation before formulating the most suitable future water services delivery model. The Crown does allow councils to go it alone so long as they can demonstrate that water service revenues, investments and borrowings can be managed in a financially sustainable and ring-fenced manner.
Or, we could look at forming a CCO with other councils to deliver water services.
No matter what the final shape, we’ll be going to the community to find out what people think will work best for them.
For the time being, we’ll develop our Water Services Delivery Plan in accordance with the legislation and Department of Internal Affairs guidance until the options study and community consultation have been completed and then reassess the service delivery model.
Read more in the report to today’s Council meeting