Local Water Done Well: Rangitīkei District Council wants sub-regional water services delivery model

Rangitīkei Mayor Andy Watson says there is a chance the Government may force councils to work together on water delivery. Photo / NZME

Rangitīkei District Council is aiming for a joint water delivery model with Whanganui and Ruapehu but the community can still have a say.

Elected members chose a multi-council-controlled organisation (CCO) as its preferred option at a meeting on December 12. The council’s second preference was a CCO with as many councils in the Manawatū-Whanganui region as possible, with the third an “enhanced status quo” with services delivered in-house.

In a statement, Rangitīkei Mayor Andy Watson said the council was small and needed to be “smart and realistic about how we move forward”. According to the 2023 Census, the Rangitīkei District had 15,663 residents, with Ruapehu at 13,095 and Whanganui at 47,619.

“The long-term sustainability of partnership with other councils cannot be underestimated,” he said. “Central Government has strongly indicated that collaboration is a vital component of Local Water Done Well, and we as council recognise working together will achieve the greatest efficiencies for the Rangitīkei.”

Councils have 12 months to develop, adopt and submit a Water Services Delivery Plan to the Government as part of its Local Water Done Well legislation, which replaced the previous Government’s Three Waters legislation.

A report from Rangitīkei District Council chief operating officer Arno Benadie said Manawatū District Council preferred a single council Water Services CCO and Horowhenua District Council wanted to join with Kāpiti Coast District Council. Debt headroom was acceptable for all models except the in-house business unit, the report said.

“To mitigate this would require a reduction in capital expenditure and this is not desirable.” A Water Services CCO would be able to borrow debt at up to 500% of annual water income but an in-house business unit at the council could only borrow up to 175%.

At a Whanganui District Council meeting this month, its Three Waters transition manager Kathryn Stewart said according to their 10-year (long-term) plans, total water debt was about $90 million for Whanganui and $40m for both Ruapehu and Rangitīkei.

Whanganui council’s borrowing capacity is 280% of annual water income and its preferred option is to join with Rangitīkei and Ruapehu.

Earlier this month, Ruapehu Mayor Weston Kirton said options included joining with Rangitīkei and Whanganui “or looking north to Waikato”.

Watson told the Chronicle his council would go out for public consultation in February and March with as much data as possible. While there had not been a final decision, going it alone would be incredibly difficult, he said.

“That’s in terms of our staffing, our debt levels and the borrowing platform central Government is giving in regional CCOs,” he said.

“On top of that, you really want to be makers of your own destiny. “[Local Government] Minister Simeon Brown has said councils need to work together and aggregate ‘and if you don’t do it, we [Government] will’.”

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.