Gisborne’s annual water levy amounts to $211,555, which exceeded its current budget for 2025/26.
Councillor Debbie Gregory asked during the meeting what the levy would pay for.
“Does it pay for them to have a building in Wellington to employ some people and wave a stick – or is it something extra that we are going to get here?”
Councillor Rawinia Parata questioned how the levy would improve the water quality for people on their own domestic tank system rather than the reticulated system.
“We already test the water that’s been sent out to the town supply,” Parata said.
“My understanding is that Taumata Arowai have absolutely no plans to improve the water quality anywhere else.”
Councillor Nick Tupara wanted to challenge the Government and not pay the levy, however, Deputy Mayor Josh Wharehinga reminded councillors where “they sit in the chain”.
“We exist because of the Local Government Act, which was passed by the central Government.”
Larry Foster backed the levy as the water regulator was set up in response to water contamination events in Havelock North and Queenstown.
“We don’t want to go backwards [to] where a lot of councils were before, where they weren’t compliant and the only way anybody knew was in those councils ... now we have a regulator that makes sure all councils comply.
“It’s a small fee that is going to save us having to do that ourselves.”
Taumata Arowai was set up under the Water Services Act in 2021 to oversee water services across the country.
Council director of community lifelines Tim Barry said that according to the legislation, Taumata Arowai only regulates those who provide water to people outside of their home of residence.
“If you are standalone entities in our townships with your own water supply, you do not qualify for regulation. However, if you have a pipe to your neighbours, you would.”
Taumata Arowai, head of systems, strategy and performance Dr Sara McFall told Local Democracy Reporting in a statement that the functions the authority delivers have “a significant public good”, including supporting community-owned drinking water suppliers, public reporting and setting national standards for the environmental performance of networks.
The authority is also expected to reduce the consenting costs associated with public wastewater and stormwater networks, she said.
“Case studies estimate that councils could save up to 40% in consenting costs under the proposed standards – potentially saving councils and their communities hundreds of thousands of dollars – while protecting the health of the public and the environment," McFall said.
Taumata Arowai will progressively develop guidance and how-to information for home owners who supply their own water over the coming years.
“This will enable these home owners to take appropriate steps to ensure their drinking water won’t make themselves, their families, or their visitors sick.”
McFall said that for those who provide water to other community members and need to register as a drinking water supplier, the authority provides different compliance options tailored for small supplies and is working to improve these to make them more straightforward.
“These seek to provide cost-effective options for suppliers to meet their obligations and ensure the drinking water they supply others is safe.”
Councillors were given the choice to either absorb the shortfall within existing budgets and commercial water metering charges (likely an increase of five to seven cents per cubic metre) or cover it through a combination of water-related fees and raising rates from 9.95% to 10.15%.
However, they opted to vote for an alternative option not on the meeting agenda – absorbing the cost within existing budgets – as councillors did not want to raise rates or place an extra burden on businesses.
Speaking with Local Democracy Reporting, council chief financial officer Pauline Foreman said that with the option councillors chose, the additional costs will be absorbed from the overall water services budget, which includes water supply, wastewater, and stormwater activities.
The regulatory service will be funded through a combination of 18% Crown contributions and 82% levies on councils and council-controlled organisations, apportioned on a population basis, according to the council report.
Correction: The headline and parts of an earlier version of this article reported a $146,000 budget shortfall. This was incorrect; the final shortfall absorbed was $211,555 after councillors decided against higher water metering fees. The article has been updated to reflect this.
