Central Hawke’s Bay Council considers halving $201m water plan amid rates concerns

With CHB rates forecast to double by 2034 under modelling completed to comply with the Government’s Local Water Done Well framework, the council is considering halving $201m of essential work on its water infrastructure.

Central Hawke’s Bay District Council is considering halving $201 million of essential water infrastructure work as a trade-off for more affordable rates.

Water rates were forecast to double by 2034 under modelling to comply with the Government’s Local Water Done Well.

However, residents voiced their outrage and concern over affordability with one group accusing the council of causing “geriatric poverty”.

The council went back to the table to address the affordability challenges by substantially reducing the district’s capital works programme.

But it will come at a different cost.

The council’s chief executive, Doug Tate, said the aim was to create more affordable Three Waters rates.

“However, it has the potential to create the opposite and erode the positive progress we’ve made in addressing historic under-investment in our water assets,” Tate said.

Mayor Alex Walker said there were benefits and risks to the decisions facing the council.

“But we’re stepping up and providing a pragmatic option.

“What is important to me is that it’s not about remodelling everything that is in the regional plan because we know we need $201m worth of investment to set this community up for success.”

She said even though there was a bit of frustration that they might be downgrading aspirations, they were still providing options.

“What we are doing has turned out to be astute. We are headed in a good direction.”

She thanked her team, saying local government was often criticised for not being able to move, but “Central Hawke’s Bay had done just that”.

The approach to reduce the district’s Three Waters programme would be further developed by officers before being presented to council for endorsement at its August 21 finance, infrastructure and performance committee meeting.

The current water investment plan was developed for the 2021 Long-Term Plan as a short-term “bubble of catch-up”.

LDR is local body journalism co-funded by RNZ and NZ On Air.