Becoming part of a joint council-controlled organisation for water services could save the average Whakatāne household about $5500 over 30 years, according to a consultant’s report.

In the short term, establishment costs for the organisation would swallow up any savings.

The report by MartinJenkins consultants was commissioned by a joint working group for Whakatāne, Rotorua Lakes, Ōpōtiki and Kawerau district councils.

Since December, the four councils have been working together to assess the benefits and disadvantages of forming a Multi-CCO for drinking water, wastewater and stormwater services.

On Thursday, the Whakatāne council decided this was its preferred option over continuing to deliver in-house services.

Before it can act on this decision, however, it needs to hear what the community thinks.

It approved a consultation document which will be available for the community to read and make submissions about from October 7.

Whakatāne Mayor Nandor Tanczos said it was one of the most important decisions the council would make for future generations.

“I encourage people to take the time to read the information, consider the options and have their say,” he said.

The decision was about making sure communities continued to have safe, reliable and affordable water services for generations.

“Across the country, councils are facing growing pressure to invest more in water infrastructure.

“We need to replace ageing pipes and facilities, meet stricter health and environmental standards, and prepare for the impacts of flooding and climate change.

“The reality is that significant investment is needed, whichever option we choose.

“The question is which model gives us the best chance of delivering that investment while keeping services affordable for future generations.”

According to Whakatāne District Council’s Water Services Delivery Plan, submitted to central Government in August last year, average charges for drinking water, wastewater and stormwater, per connection, were expected to rise from $2041 a year to $4411 by 2035 if kept in-house.

The more recent MartinJenkins report commissioned by the joint councils’ waters working group predicts a lower average figure of about $3660.

By forming a Multi-CCO between the four councils, this was projected to be $3460.

A Multi-CCO would see long-term operational water service decisions made by an independent board of directors hired for their decision-making skills.

The board would be guided by expectations set out by the participating councils, with assets remaining publicly owned. This public ownership is protected by law.

The joint service would not require charging to be harmonised across the four districts, with each district paying only for the services delivered to it. Nor would residents of one district be taking on the debt of the other councils.

The report showed that, besides being more affordable long-term, a Multi-CCO would also perform better under criteria such as the ability to meet future regulatory requirements due to increased borrowing power and attracting greater expertise in both governance and staffing.

Consultation will run until November 9 and will inform the council’s decision later that month.

The three other councils also need to carry out their own consultations to decide whether to form the Multi-CCO.

The report showed that, while the Multi-CCO would still deliver benefits if only three councils were involved, these would be less than if all four joined.

Ōpōtiki last week deferred the decision until learning more about whether the Eastern Bay councils’ Head Start proposal to amalgamate into a single unitary council would be accepted by the Government.

Former Ōtorohanga Mayor Max Baxter.

An independent adviser to the joint waters working group for the four councils – and former Ōtorohanga Mayor – Max Baxter said he was disappointed at the Ōpōtiki decision.

Baxter was invited to speak at the Whakatāne District Council meeting.

He urged the council not to conflate the decision about the water services with other reforms. He also urged them to think beyond the next 10 years.

“If we look at the work that MartinJenkins has done, the best proposal for Whakatāne is to go with the CCO rather than a stand-alone unit. All the evidence is in front of you to make that decision.”

He described the Multi-CCO decision as “mokopuna decision-making”.

“We’re making decisions that are going to affect our districts in 50-100 years’ time.”

Rotorua Lakes District Council is expected to decide today, and Kawerau on September 30.

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