Affordability for households would ‘‘deteriorate’’ considerably during the next 10 years, councillors heard this week.
Joining the multi-district water entity, comprising Waitaki, Central Otago, Clutha and Gore district councils, is the ‘‘best path towards financial sustainability’’ due to the sheer amount of investment needed, a revised water services delivery plan presented to councillors this week states..
Councillors heard despite the expected savings from joining forces on water services with other districts, Southern Waters ‘‘still presents affordability challenges that will need to be addressed’’.
Water charges were still expected to need to increase by 130% by 2033-34.
Total water charges as a percentage of average household income would ‘‘deteriorate’’ from 1.6% in 2025-26 to 3.3% in 2033-34.
If Waitaki had gone alone, ‘‘significant debt’’ would have needed to be taken on, either breaking existing lending rules or requiring a major increase in council revenue.
Councillors discussed the draft delivery plan at a workshop on Tuesday.
It could be adopted as soon as next week, ahead of a looming government submission deadline this month.
Waitaki voted to keep its water services ‘‘in-house’’ last year, but had its plans rejected by the Department of Internal Affairs and was told it needed to submit a revised plan.
The district subsequently officially joined Southern Waters this year.
With the inclusion of Waitaki’s water assets, the utility company will manage assets worth $684 million and deliver water to 84,000 people across almost 25,000sq km.
Crown facilitator Amy Adams — a former minister who was drafted in at a cost of $1600 per day to help get a revised plan over the line — listened in to this week’s workshop.
‘‘I’m satisfied that the pieces required to be there are there.’’
Waitaki District Mayor Mel Tavendale said a ‘‘ginormous effort’’ was required to get things to this stage.
Councillor Sven Thelning asked council staff to spell out what the report’s identified affordability issues would mean for individual households over the next decade, ahead of next week’s council meeting.
‘‘It’s really important people understand that in the plainest terms possible.’’
The draft document will be amended to reflect annual plan information ahead of the meeting.
The council’s water assets are due to be transferred to the entity next July.
