Ōpōtiki District Council is forecasting almost $70 million of capital investment will be needed to meet Three Waters regulatory requirements over the next 10 years.

This is $6 million more than set out in its current long-term plan.

The council adopted its Water Services Delivery Plan yesterday, to be sent to the Department of Internal Affairs by September 3 for approval.

The plan is a statutory requirement for council under the Government’s new Local Water Done Well legislation. The plan must demonstrate how the council will meet future regulatory requirements for Three Waters and that it is financially sustainable and can support growth in the district.  

After consultation with the community, the council has decided to pursue the creation of an internal business unit to deliver Three Waters services. It also intends to continue exploring a joint water services organisation with neighbouring councils in the future, including Whakatāne, Kawerau and Rotorua Lakes district councils.

This option provided the Ōpōtiki district with the greatest control over its own water service delivery.

The plan shows the council is able to operate as a stand-alone business unit until July 2028.

“However, there were some long-term risks around affordability for the community,” said Ian Morton, the consultant who put the plan together for the council.

Councillor Barry Howe asked how the plan would be affected by Government plans to create a rating cap limiting how much councils could raise rates.

While the legislation was not yet drafted, Mr Morton said indications at this time were that any future rating cap would not include core services such as Three Waters delivery.

Mayor David Moore said that during consultation the community feedback was 71 percent in favour of the council keeping control of Three Waters delivery.

“The fact that we are in a position to even consider this is a testament to all the work that has gone on in previous councils. For many years they have always thought forward on this,” Mr Moore said.

Councillor Tom Brooks said the council was between a rock and a hard place. The increased cost in rates to pay for investment in water structure concerned him.

“You’ve got to do something because legislation means we’ve been told we’ve got to do it. It’s going to painful one way or another. All we can do is try to find a way to do it that will lessen the pain.

“That’s the challenge.”