Rotorua Lakes Council to consult on two water service delivery options

Rotorua's council has approved water service delivery options to be included in consultation documents. Photo / Laura Smith

Rotorua residents will have a say on two options for the city’s three-water services, as well as the city’s proposed work for the next year.

The council is preparing consultation documents for its draft Annual Plan and proposals under the Government’s Local Water Done Well reform programme for water, stormwater and wastewater services.

In a workshop earlier in the month, elected members indicated a preference for in-house delivery of water services, but for a joint-council CCO (council-controlled organisation) option to be explored.

Councillors signed off on including those options in the consultation document at a council meeting on Wednesday.

Infrastructure and asset group manager Stavros Michael said the council must take longer-term considerations. Its ageing three-waters assets had a replacement value of $1.2 billion, and it had constrained borrowing headroom.

Affordability and sustainable funding also needed to be considered, he said.

The preferred option was in-house delivery until mid-2028 when it would switch to a CCO delivery, either by itself or with other councils.

This option would enable a higher borrowing limit for water services and balance sheet capacity for other council services.

Local Water Done Well replaced the previous Government's Three Waters. Photo / Laura Smith

It would undertake a detailed study of a joint-council option with a decision on which way it will go in late 2026 or early 2027.

The second option was to continue in-house delivery and not investigate a CCO.

Michael said the preferred option provided flexibility to act prudently and maintain credibility in fitting Government expectations while exploring the merits of a future possible multi-council agency.

The council’s water service delivery plan needed to identify the present level of services, meet quality standards, be financially sustainable and support housing growth and urban development. It must be submitted to the Government for review by September 3.

Consultation will be held from April 4 to May 5 if the final consultation document is approved on April 2.

Public consultation on draft Annual Plan approved

Councillors also voted to approve the draft Annual Plan 2025/26 for consultation.

The draft outlined the proposed work programme, budgets, key projects and the anticipated rates increase.

These included a proposed capital works programme of $145 million, anticipated net borrowings of $41m and a draft rate increase of 7.95% for the 2025/26 financial year.

This was down from 9.8% in the Long-Term Plan.

Topics will include additional funding options for the Tarawera Sewerage Scheme and whether the Rotorua Night Market should move, become seasonal, or have someone else run it.

The Rotorua Night Market and how to pay for Lake Tarawera's new sewerage pipe will be highlighted in Annual Plan consultation. Composite photo / NZME

The market costs the council about $200,000 to operate a year.

Consultation would be held from April 4 to May 5.

The council will mainly seek feedback online, including via its new platform to be launched on April 4.

It will also have face-to-face sessions at the Kuirau Market and the library.

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist since 2019.

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