Marlborough will soon have a new organisation to look after its three waters. And that organisation has a plan.

The Marlborough District Council adopted its Water Service Delivery Plan on August 7. The plan is required under the Government’s Local Water Done Well policy.

In a statement the council said the plan “assesses the current state of waters infrastructure, existing service areas, regulatory compliance and identifies the future investment needed to support growth”.

While not everyone has the time or patience to read a 95-page document full of graphs and financial acronyms, we here at Local Democracy Reporting do. Let us boil it down for you.

1. Where Marlborough water infrastructure’s at

Your average pipe network has a lifecycle of 80 to 100 years. Marlborough’s pipes are on average 30 to 35 years old, so approaching the halfway point.

In 2023, 66% of drinking water, 52% of wastewater, and 70% of stormwater mains are in moderate to very good condition.

The network, particularly wastewater, is vulnerable to seismic activity and infiltration of sea water as a result of climate change.

While repairs are not urgent, the water network will need significant investment in the coming decades as pipes grow older and require renewal.

2. The bill for residents

The council says a standalone organisation is the second cheapest option for residents. A multi-council organisation would be cheaper.

Water charges will shift from land-value based charges within rates to water metering. Budget has been allocated for metering rollout in Picton in 2027-28 and Blenheim in 2028-30.

Average water charges per connection are projected to increase from $1858 in 2024 to about $3608 in 2034. Including inflation, that is an average annual increase of just under 7%.

However, council says this will be offset by lower rates, as water charges will no longer be part of rates.

Water charges will range between 2.6% to 3.3% of average household income over the next 10 years.

3. Havelock isn’t the only one with water quality issues

Stricter drinking water standards mean multiple water supplies need upgrades.

Havelock was last month issued a boil water notice due to a lack of UV treatment. The Awatere and Dashwood rural areas remain under a long-standing boil water notice for the same reason, as they don’t receive water from the Seddon water treatment plant which was opened in 2019.

The supply to Riverlands, and its industrial park, lacked both UV treatment and chlorination, but the council plans to seek an exemption as even trace levels of chlorine can affect quality for wine producers.

All water quality upgrades are targeted for completion between 2024 and 2028.

4. Significant investment needed

Marlborough’s water infrastructure needs $413 million of investment over the next 10 years.

Under the new plan, an estimated $255m will come from revenue brought in by the organisation through water charges, and $220m will be borrowed through the Local Government Funding Agency.

This debt will be on the organisation’s books, not the council’s.

Council plans for the organisation to be fully financially sustainable and independent by June 2028.

5. How the WSO works

The organisation will be 100% owned by the Marlborough District Council, however other councils can opt to buy into the organisation if they wish.

The organisation will eventually have its own board, but until it is fully operational in July 2026, it will be run by three groups.

At the top is the oversight and governance committee, made up of the mayor, the council chief executive, and committee chairperson. They will sign off on key decisions.

Beneath them is the project steering group, made up of senior council staff and the project director, who will make the day-to-day decisions.

The project team, made up of council staff and special advisers, will be responsible for implementing the decisions of the committee and steering group, and provide regular updates.

6. What could go wrong

The council says it is aware of a number of risks outside of its control that can send water charges above estimates. These include:

Higher-than-anticipated inflation. A rise in construction costs from increased material and labour prices.

Changes in interest rates could see debts become more expensive.

Unavailability of skilled contractors and engineers. Councils around the country will be on the hunt for skilled workers.

Changes in government policy could require unforeseen projects.

Governance risks. The system relies on communication and accountability, so any misalignment between groups could cause problems.

The council has confirmed it will submit the Water Services Delivery Plan to the Secretary of Local Government by September 3.

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

Home Page | Auckland | Previous Story | Next Story

Copyright (c) Scoop Media