Kirton has previously warned that small communities like his faced massive bills to improve drinking water quality and renew wastewater treatment and stormwater networks.
Under the previous Government’s Affordable Water Reform (earlier called Three Waters), Ruapehu District Council hit its debt ceiling while awaiting relief from Three Waters cash.
The council increased borrowing to upgrade water infrastructure on the understanding that the debt would be transferred to a new multi-regional entity from July this year.
The legislation was scrapped by the new Government under urgency in mid-February, leaving the Ruapehu council with a debt problem.
It borrowed between $16 million and $20m to upgrade water and wastewater at its six plants, improving wastewater treatment quality and reducing the impact of overflows to achieve compliance.
Under the coalition Government’s Local Water Done Well reform, councils must develop a Water Services Delivery Plan (WSDP) for ministerial approval by September 2025.
The plan must outline how water services will be managed, meet required quality standards and ensure financial sustainability.
Kirton said council staff had been exploring a range of models to deliver future drinking, waste and stormwater services.
The Government had encouraged councils to form arrangements that suited their individual communities, he said.
This flexibility allowed councils to prioritise what was best for their ratepayers but it also created a “complex and uncertain” environment.
He said the Rangitīkei-Whanganui and Waikato options were the most likely to go to consultation, alongside continuing to go it alone.
“Before we can submit our WSDP for approval, we are required to consult with our communities on at least two options that meet the Government’s criteria,” Kirton said.
“One of these options must be the status quo, which for Ruapehu means continuing with our current arrangement of Veolia Water managing water services as detailed in our Long-term Plan.”
Kirton said each option had its pros and cons, and significant questions remained, particularly around multi-council arrangements.
Key issues included shareholding arrangements, price harmonisation, the role of iwi, debt and whether stormwater services will be included or retained by council.
“Under every scenario, there will be a shift to 100% targeted rates for water services,” Kirton said.
“Water revenues, assets, expenses and debt will be ring-fenced from other council services, meaning ratepayers will feel the direct impact of these changes.”
Consultation on the proposed Ruapehu models will take place in March and April next year.
“We want to hear your views,” Kirton said.
Last week, Whanganui councillors heard the cost to Whanganui ratepayers of a joint water services deal would be “almost negligible” but bring substantial benefits for the Ruapehu and Rangītikei councils.
Whanganui District Council’s Three Waters transition manager Kathryn Stewart told councillors an options appraisal had modelled what the cost savings and efficiencies could be if Whanganui joined up with one or more of its neighbours.
“The difference between those models is … a matter of dollars per year, compared to massive benefits for Ruapehu and Rangitīkei because of spreading out the greater costs that some of our neighbours have.”
Stewart said any decision to work with neighbouring councils would therefore be for the wider environmental and operational benefits it would bring.
“I strongly encourage you to consider those.”
LDR is local body journalism co-funded by RNZ and NZ On Air.
