Wellington residents face 15.4 % rates increase as water shortage bites

Wellington residents are facing a potential 15.4 per cent rates increase as the city council tries to find more money to pour into leaking pipes and avoid a drinking water emergency.

Councillors were briefed this afternoon on possible options for their upcoming 10-year budget as pressure mounts for the council to do more about the city’s looming water crisis.

Wellington Water, the region’s water services provider, has recommended that, in an ideal world, the council would spend about $2.5 billion on its water infrastructure over the next decade. This includes $1.7b of capital expenditure (capex) and $660 million in operational expenditure (opex).

The region is in Level 2 water restrictions, meaning residential sprinklers and irrigation are banned. A state of emergency is planned if further efforts to conserve water fail.

There is growing frustration among residents who are being told to conserve water but are seeing the visible result of 44 per cent of their drinking water being lost through leaks.

Local Government Minister Simeon Brown says his focus is on ensuring councils are taking their responsibilities around water service delivery seriously. Photo / Alex Cairns

Wellington City Council officials’ preferred option is to spend $1.1b in capex over the next 10 years on water infrastructure and more than $600m in opex.

This would push next year’s forecast rates increase from 13.8 per cent up to 15.4 per cent.

Mayor Tory Whanau said it would be a significant increase in investment that would also include rolling out water meters as soon as possible.

If this option is approved, capex spending on water would increase by 65 per cent, or $440m, compared to the last time the 10-year budget was set in 2021.

Whanau said the council would need to reprioritise projects and find savings to accommodate the spend and avoid higher rates increases.

“It’s a tough process and we may not all like some of the proposals, I know I don’t, but that’s the tough decision that we have to make.”

Wellington Mayor Tory Whanau says some tough decisions are required to free up more money to spend on water. Photo / Mark Mitchell

Cost savings on the table include completing the council’s plan to pedestrianise the Golden Mile in two phases.

This would mean prioritising Courtenay Place over the next two years and doing work on Lambton Quay in 2026 and 2027.

Other proposed cost savings included reducing library hours or closing one of the temporary pop-up libraries early while the central library remains closed for redevelopment.

Discontinuing the council’s New Year’s Eve signature event, canning annual fireworks, closing Khandallah Pool, and stopping the live monitoring of council CCTV cameras were also proposed.

Wellington City Council chief executive Barbara McKerrow said the council could not afford to fund the full $2.5b that Wellington Water outlined in its unconstrained budget advice.

“For this local authority and all of the other shareholding councils of Wellington Water, the unconstrained option is unaffordable within the current constraints of our balance sheets and ability to rate our community.

“But what we do want to do is put to you the greatest level of investment that we can achieve.”

Simeon Brown pours cold water on Crown observer speculation

Whanau and Upper Hutt Mayor Wayne Guppy met Local Government Minister Simeon Brown on Monday, after the pair failed to provide more information about their plans to address the water shortage.

Brown has subsequently requested these details using special powers available to him under the Local Government Act, which some have seen as being the first step towards appointing a Crown observer.

However, Brown said that was not his focus.

“My focus is ensuring that, at this stage, Wellington City Council and Upper Hutt City Council are taking their responsibilities around water service delivery seriously.

“There is significant leakage from their pipes and I want to have assurances that everything is being done to avoid a water emergency here in Wellington.”

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.