The Clutha District Council is holding three meetings across the district this week as part of public consultation on the National government’s replacement for Three Waters.
The meetings - in Milton on Monday, Balclutha yesterday and tonight in Tapanui - are taking place against the backdrop of Clutha’s proposal to join Central Otago, Gore and Waitaki in a new "Southern Water Done Well" group.
Consultation documents show the four councils collectively accruing $598 million of water infrastructure debt by 2034, as they spend $760 million on providing improved water services in line with more stringent government regulations.
Clutha Mayor Bryan Cadogan said the proposal to join forces with neighbouring councils was the "least bad" solution, that could lead to modest efficiencies and savings for ratepayers.
"Going alone consigns communities to further financial hardship. The almost decade-long chops and changes to these reforms have only weakened councils and cost ratepayers. It’s imperative that this matter is brought to a head," he said.
Audience members questioned both whether the level of anticipated debt was necessary or possibly underestimated.
Mr Cadogan said the projected debt had been reduced recently, due to government changes to wastewater requirements, but remained necessary as it spread the rates burden for residents.
Some expressed doubt whether joining forces with other councils would in fact reduce rates, citing the Auckland "supercity" amalgamation, which they said had failed to do so.
Council staff said the proposal was expected to lead to reductions in bureaucracy, and existing debt would be ring-fenced within any new entity.
These measures should lead to cost savings, and no unanticipated debt increase.
The group’s preferred option is to form a jointly-owned council controlled organisation (CCO).
Other options include a stand-alone CCO, or an in-house business unit.
Mr Cadogan warned these options could consign Clutha to insolvency during the next decade, due to mounting infrastructure debt.
Submissions close on June 6, followed by hearings in Balclutha on June 18.
The government will assess the council’s resulting Water Services Delivery Plan and provide feedback from December.
If approved, a jointly-owned CCO would begin operation in July, 2027.
A final public meeting takes place at the West Otago Community Centre, Tapanui, at 6.30pm today.
