Central Hawke’s Bay District Council’s considering halving $201m of essential work on its water infrastructure as a trade-off to make rates more affordable.

Central Hawke’s Bay’s water rates were forecasted to double by 2034 under modelling completed to comply with the Government’s Local Water Done Well framework. The framework does not provide a clear pathway to address affordability in small rural communities, like Central Hawke’s Bay.

In Central Hawke’s Bay we’ve chosen to address the affordability challenges many rural communities are facing by substantially reducing our district’s capital works programme, said Central Hawke’s Bay District Council Chief Executive Doug Tate.

“Our aim is to create more affordable Three Waters rates. However, it has the potential to create the opposite and erode the positive progress we’ve made in addressing historic underinvestment in our water assets," said Tate.

The approach to reduce the district’s Three Waters programme would be further developed by officers before being presented to Council for endorsement at its 21 August Finance, Infrastructure and Performance Committee meeting.

“There are both benefits and risks to the decisions facing us, but we’re stepping up and providing a pragmatic option,” Central Hawke’s Bay Mayor Alex Walker said.

“We know we need the entire $201m capital works programme but we’re faced with a situation where we have to move.”

The current water investment plan was developed for the 2021 Long-Term Plan as a short-term bubble of catch-up. Council has achieved a lot of what was needed in terms of leak reductions and critical renewals. This includes renewing 10.4 kilometres of water pipes, making major upgrades in water treatment in Takapau, Kairakau, Pōrangahau and reduced network leaks three –fold.

NOTES TO EDITOR

Early scenario modelling of trade-offs is on page 11 of this report

The international affordability benchmark for drinking water puts it in the range of 3% - 5% of median income. Central Hawke’s Bay’s median household income is currently $89,000.

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