Whanganui ratepayers will pay more for water services regardless of delivery model

Wastewater, stormwater disposal and water supply made up 33% of the average Whanganui residential rates bill for the last financial year. Photo / 123rf

The Whanganui District Council continues to weigh its Three Waters options but, whatever the outcome, costs will rise for end users.

If new legislation is signed off, the council will be expected to deliver a water services plan (WSP) by July next year, with options to remain independent or amalgamate water delivery with other regions still on the table.

The Government can appoint a water services specialist if a WSP is not submitted or does not comply, with the council picking up the bill.

The Government repealed Three Waters reform legislation in February, ending the move to 10 water entities across the country.

The council’s Three Waters transition manager, Kathryn Stewart, told the strategy and policy committee three options were being explored - going it alone, joining with Taranaki or joining with Manawatū-Whanganui.

According to her report to the committee, remaining independent would cause the average cost per connection to rise rapidly in years two to four (2025-28) of the council’s Long-Term Plan, by about $200 per connection in addition to current forecast rates. It would then stabilise.

Stewart said joining forces with other councils in Manawatū-Whanganui was “marginally cheaper” but there was no financially compelling reason to join with Taranaki.

“There are 500-plus waters-related contracts across the Manawatū-Whanganui region. A lot of those must duplicate themselves,” Stewart said. “Instinctively, it feels like there are some efficiencies to be had there.”

Whanganui Mayor Andrew Tripe said securing financial sustainability around water delivery could mean raising the council’s debt cap or finding other revenue opportunities.

“Does that invite a conversation around water metering?” he said.

Councillor Rob Vinsen says water meters are not required in Whanganui. Photo / NZME

Stewart said councils which recently introduced metering had seen use drop off.

“Less water consumption means you don’t have to build your pipes as big,” she said. “You’ve got better information with which to plan your infrastructure need and your infrastructure investment.”

In the Horowhenua district, an estimated 20% of the water supply is lost through leaks, with all 13,600 properties expected to have new meters by the end of 2025.

Private property owners will be responsible for fixing leaks.

Councillor Rob Vinsen said any regional model would require governance.

“There will have to be policies set on how they charge for their services, which will vary across the region according to the quality of assets.

“I’m willing to be convinced there is a better option but at this stage, the default position for me is to go it alone.”

He said there was no need for water meters in Whanganui because the district only used 11% of its aquifer.

Tripe said there were 14 councils within two hours’ drive of Whanganui.

“I don’t think that’s sustainable. Finding ways to have a joint approach, not just with Three Waters, but how we collaborate and do things with other councils, I think, invites a conversation at this stage.

“How can we be more efficient in how we deliver our community across the board?”

Wastewater, stormwater disposal and water supply made up 33% of the average Whanganui residential rates bill for the 2023-24 financial year.

Stewart said it would be helpful for the council to have a conversation with the community early in the WSP process, potentially in late August/early September.

At this stage, the Government was not offering any financial incentives for councils to complete the work, she said.

“The Government is changing the rules about how we will do water services delivery in the future and we have got choices to make. But, they are quite tough choices.

“All of those rule changes mean it’s going to cost us more in the future.”

Mike Tweed is an assistant news director and 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.