While the council had historically provided untreated water, the outcome of the Government Inquiry into the Havelock North drinking water contamination could affect this approach and budget provisions had been made to move swiftly if the water treatment protocols across the urban network changed.
Meanwhile, additional operational funding of $480,000 was contained in the 2017/18 budget to ensure safe drinking water for the community (representing 0.7 per cent on rates).
This funding was largely for enhanced monitoring and testing along with continued chlorination of the water, until the council was legally able to do remove it, and had community backing for that course of action.
Once the outcome of the inquiry was known projected costs for infrastructure development and water treatment included network upgrades and exploration of a new water source to enable the Brookvale bores to be replaced and water to be moved around the network efficiently - at a cost of $5 million.
A further $1.75 million had been earmarked for UV treatment at the Wilson Rd and Frimley bores to deal with the water safety risk highlighted in the age testing results, and $100,000 was estimated to be spent on raising boreheads at Willowpark and Whakatu, and $400,000 for water treatment renewals at rural water supply locations including Waimarama, Esk valley and Whirinaki ($400,000).
Provision was also made for funding for additional treatment infrastructure that would be added to the Annual Plan if necessary.
This could include UV and filter treatment at the Eastbourne Street borefield. This project was provisionally budgeted at $4 million and would address further water age and safety issues raised during water quality testing.
If this went ahead it would add 0.45 per cent to rates.
In terms of meeting the costs of the water contamination event, the budget allocated from the 2015/16 rating surplus had been used for activities it had been targeted for including meeting increased water testing requirements, engineering and technical investigations, the remissions of the water supply targeted rate and assistance to Havelock North businesses, the report said.
Council officers had been working with the Ministry of Civil Defence Management to recover welfare costs associated with the gastro outbreak and an insurance claim was being prepared for the Hawke's Bay Regional Council prosecution costs.