Ruapehu District Council is inviting community feedback on a new and potentially more beneficial opportunity to join a larger Water Services Council-Controlled Organisation (WS-CCO) than the three-council option consulted on in March.

The proposal would bring together Ruapehu with Palmerston North City Council and Horowhenua and Rangitīkei District Councils - and potentially Whanganui District Council - forming a larger entity than the three-council WS-CCO previously consulted on in March.

Mayor Weston Kirton said the proposed WS-CCO would exceed the key threshold of 50,000 water connections, unlocking improved funding arrangements through the Local Government Funding Agency (LGFA).

“The LGFA has made it clear that water entities with more than 50,000 connections are in a stronger financial position and better able to keep water costs down for users.

Combined with the efficiencies of scale in a larger WS-CCO, this could result in significantly better outcomes for Ruapehu water users - an opportunity we can’t afford to ignore,” he said.

Mayor Kirton said it was important to give the community a chance to have their say on this larger option, as it involves new partner councils and offers new benefits that weren’t available when Council consulted in March on the three-council model with Rangitīkei and Whanganui District Councils.

“While this new model differs from the previous proposal, it reflects our commitment to seizing better opportunities that deliver greater long-term benefits for our communities.

Our goal has always been to identify a model that:

• Involves the largest viable grouping of councils
• Delivers the greatest economies of scale
• Results in the lowest possible long-term costs for Ruapehu water users

This new model has the potential to meet all three objectives more effectively than the one we previously consulted on,” he said.

Since the March consultation several councils have reassessed their positions. This follows updated guidance from the Commerce Commission and the LGFA, along with feedback from their own communities. These developments have opened new doors for Ruapehu to explore more beneficial partnership options.

In addition to the three-council WS-CCO we now have a much larger four or five council WS-CCO now under consideration, which we believe provides Ruapehu with greater benefits.

There is also an option to join the proposed Waikato WS-CCO, currently made up of Hauraki, Matamata-Piako, Ōtorohonga, South Waikato, Taupō, Waipā, and Waitomo District Councils, should one of our regional possibilities not proceed.

“It should be noted that while these WS-CCO model present alternative options, they are still subject to change depending on the final positions of the councils involved,” said Mayor Kirton.

Next Steps – Community Engagement

Because this proposed new direction differs from what was originally consulted on, Council is now undertaking a short two-week engagement period from 28 May to 11 June to ensure the community can provide feedback.

A final decision is expected to be made at a Council meeting on Wednesday, 25 June.

Council encourages all residents to have their say during the engagement period and help shape the future of water services in Ruapehu.

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