Government mandated water reform means big changes are coming to the way our water is delivered and paid for.
One of the MOST IMPORTANT issues for Mackenzie District Council (MDC) to decide upon this year is our response to the Government’s Local Waters Done Well legislation.
Along with the other councils in New Zealand, MDC has to create a Water Services Delivery Plan, approved by the Department of Internal Affairs. This will detail how we will meet higher standards, future investment, and regulations.
Historically Councils across the country have tended to put off expensive infrastructure projects to keep rates bills down. Those days are gone. The government is holding our feet to the fire and we must respond.
As part of this reform, local councils have to look at alternative ways to deliver water services and develop a Water Service Delivery Plan.
While we are still crunching the numbers, what we do know, is that regardless of the service delivery model, it is highly likely that the rates paid for water will need to increase significantly to meet the requirements set down by Government.
There are a number of reasons why this needs to occur in our District. These include increasing regulatory standards (particularly for wastewater treatment and disposal) which will cost more to meet, historic underfunding of the water network to keep rates low, and the effects of rapid and ongoing population growth. These are issues that are being seen across the country, as all councils grapple with Government driven water reforms.
We are currently looking at the numbers on how we can best deliver three waters services across the district into the future. At present we are analysing two options – a standalone internal business unit, or a Council Controlled Organisation (CCO).
When we have defined the possible models for the future delivery of three waters across the district, we will undertake a phase of public consultation – this is likely to happen in March or April this year.
We are currently working through the financial and non-financial implications of these options in the context of the wider reforms. The first thing MDC must demonstrate is the financial sustainability of any future delivery model.
You can find out more about our water network, the Government’s reforms, and MDC’s response online at - letstalk.mackenzie.govt.nz > Water Reform.