Ōpōtiki District Council has voted to defer any community consultation on forming a shared water services organisation with Whakatāne, Kawerau and Rotorua Lakes councils.

The Ōpōtiki council was the first of the four district councils to decide whether to take the idea to the community, discussing it at a meeting yesterday.

Whakatāne faces the same decision tomorrow, followed by Rotorua Lakes on September 23 and Kawerau on September 30.

The Ōpōtiki council agreed to defer any consultation until it had a clear direction about whether the Eastern Bay councils’ Head Start proposal would be accepted by the Government as part of its local government reform process.

Mayor David Moore described the water service issue as a “massive consultation piece”.

“It is a big kaupapa,” he said.

“I don’t know whether we want to do a consultation on this now and then another consultation on Head Start in a few months. I think they’re two things that are joined together.”

A recent report by Martin Jenkins Consultants, commissioned jointly by the four councils, showed that a multi-council-controlled organisation to deliver three waters services would be the best long-term solution to all four districts’ growing infrastructure needs.

Although establishment costs would swallow any savings in the first 10 years, within 30 years it would deliver a combined $185 million in capital savings and $145 million in operational savings across the four councils.

It would also increase the councils’ borrowing capacity to make necessary investments in water infrastructure and provide access to greater expertise, both in staff and governance.

Like many councils in New Zealand, Ōpōtiki needs significant investment over the next 10 years to meet new drinking water and wastewater standards.

The Martin Jenkins report showed water charges per connection in the district rising to about $5000 by 2034.

Martin Jenkins consultant Nick Davis told Ōpōtiki councillors at the meeting that Ōpōtiki’s water debt to revenue ratio would grow from an already high level of over 400% to around 570% by the end of the 2029 financial year.

This was higher than the other three councils.

It would reduce savings for Ōpōtiki district water users considerably compared to the other three districts.

“On the flipside of that, Ōpōtiki would see the greatest debt relief,” he said.

The Martin Jenkins report also looked at a three-council model excluding Rotorua Lakes, which is by far the largest of the four councils. While this would still offer benefits, they would be less than if Rotorua Lakes joined.

The mayor and councillors agreed it seemed unlikely that Rotorua Lakes would choose to be part of the water services organisation if the three Eastern Bay councils were amalgamated into a single unitary council.

This was another reason to defer consultation until the council had a better picture of the available options.

LDR is local body journalism co-funded by RNZ and NZ On Air.