Becoming part of a multi-council organisation to deliver three waters services is the preferred option selected by Whakatāne District Council as it goes out for public consultation today on its Water Services Delivery Plan.

This option was found by consultants to create the greatest cost efficiencies over the next 10 years and beyond.

All councils must adopt a Water Services Delivery Plan by September as part of the current Government’s Local Water Done Well programme, brought in to replace the previous Government’s Three Waters Reform programme.

Fundamental to the development of the plan is the decision of whether to join with other districts to create a multi-council organisation to manage stormwater, wastewater and drinking water; create a separate council-controlled organisation on its own; or manage its own three waters service with an internal business unit with ringfenced funding.

The Whakatāne council has previously ruled out the option of forming a council-controlled organisation on its own, as being the most expensive option.

At a meeting of the council’s infrastructure and planning committee last week, the council approved a consultation document with the multi-council organisation as its preferred option and signaled that it intended to begin its consultation period today.

Options assessed in a report by consultants Martin Jenkins included forming an Eastern council-controlled organisation with Kawerau and Ōpōtiki district councils or joining forces with Western Bay of Plenty councils and possibly others.

Advantages included lower long-term costs, economies of scale, improved borrowing capacity, and enhanced service delivery.

Disadvantages included less local control, transition challenges, and potential stranded costs.

Advantages of forming an internal business unit included retention of local decision-making, seamless integration with other council responsibilities, and straightforward community accountability.

Disadvantages included higher long-term costs, limited economies of scale, and challenges in meeting regulatory requirements.

According to Martin Jenkins, while the estimated cost per connection for these different plans were similar up to 2034, past that date a multi-council organisation, particularly one which grouped with councils to the west, would have a much lower cost per connection.

Kawerau District Council is also currently consulting with the community on its delivery plan, which has an internal business unit as its preferred option.

Ōpōtiki District Council is yet to select a preferred option. It is due to approve its plan for consultation at its meeting scheduled for April 29, and intends to consult its communities from May 6 to June 3.

At last week’s meeting, Councillor Andrew Iles questioned what sort of certainty the Whakatāne council could give ratepayers over their concerns about the multi-council organisation when they didn’t have a partner at this stage.

“We’re assuming that we would have a partner in a multi-council-controlled organisation. To me it’s too pie-in-the-sky.”

Chief executive Steven Perdia said for the process to be legally safe, the decision to form a multi-council organisation needed to be made before looking into who to partner with.

However, he said he would bring further information about the pros and cons of various multi-council groupings to the council in time for its deliberations on the delivery model on June 26.

Councillor Nandor Tanczos said it was important when going out for consultation, to explain that although there would be only a small difference in the projected cost of the different options up to year 10, big gains could be made in a multi-council-controlled organisation after that.

“I think we need to be really clear to people ... we’re talking about decisions for future councils and future ratepayers.”

Regardless of which option is selected, the costs of water services are projected to rise significantly in the next few years.

The Martin Jenkins report showed the average cost per connection for the in-house model was currently around $2000 a year. That was projected to increase to up to $3330 by 2034.

With a Western Bay of Plenty council-controlled organisation, this would be up to $3120 by 2034 and efficiencies would continue to accumulate over time. With an Eastern Bay of Plenty council-controlled organisation, efficiencies would be less but still better than with the in-house model.