Under any delivery model, water bills will need to increase to meet the needs of our ageing network. The key thing is that we adopt a water service delivery model that allows for increasing investment into the network in a manageable and sustainable way while also balancing affordability for the community.

Yes. The proposed water organisation would have a direct relationship with customers. Property owners will no longer pay for water services in council rates bills and instead the new water organisation will invoice property owners directly, much like gas, phone or power companies do.

Yes, the water services component would be removed from your council rates bill, and you would be charged directly by the new organisation.

While Wellington Water manage the day-to-day water supply on behalf of shareholding councils, Greater Wellington Regional Council (Greater Wellington) is still ultimately responsible for collecting, treating and distributing safe and healthy drinking water to Wellington, Hutt, Upper Hutt and Porirua City Councils. Greater Wellington owns the assets associated with supplying this water – that’s 187 km of distribution pipework, four treatment plants, 9 km of tunnels, three water storage dams, 15 pump stations, 45 km of roads and tracks, 2,688 raw water intakes and wells, 18 aquifer wells, plus all the catchment lands (land where water collects and drains into bodies of water like rivers). The water provided by Greater Wellington goes to reservoirs owned by each city. From there, the water moves from the reservoir to local homes and businesses through council-owned pipes.

This large network of water collection areas, treatment plants, pumping stations, and pipelines that supply drinking water to the whole region is referred to as bulk water supply. Providing the water to the city councils involves managing a network of infrastructure, ensuring safe, high-quality, secure, and reliable water sources, and ensuring that our freshwater is sustainable. The councils fund Greater Wellington’s supply of these water services through a charge (called the bulk water levy) which is calculated based on each city or district’s water usage.

Yes. The Local Government Funding Agency (LGFA) has confirmed that it will provide financing to water organisations that are CCOs and are financially supported by their parent council or councils. LGFA will consider financing up to the equivalent of 500% of operating revenues with the provision of parent council support.

Under either of option 1 or two, Council (or Councils) will need to apply to the LGFA to secure the new borrowing arrangements.

The LGFA has noted its “indifference” to the shareholding arrangements of a water organisation but have noted the “potential financial and non-financial benefits from achieving scale” via a multi-council organisation.

The approach for the proposed new organisation has been developed jointly by the five councils working in partnership with our iwi / Māori partners Ngāti Toa Rangatira and Taranaki Whānui ki Te Upoko o Te Ika.

Ngāti Toa Rangatira and Taranaki Whānui ki Te Upoko o Te Ika have confirmed a joint council-owned water organisation as their preferred option. The primary drivers for this are that water sources across Wellington are connected and for Māori are considered as one, from the water source of Te Awa Kairangi / Hutt River through to Te Whanganui-a-Tara / Wellington Harbour, Te Awarua-o-Porirua Harbour and the south coast.

The water organisation will have a range of relationships with mana whenua which will be confirmed through foundational documents such as the constitution and shareholders’ agreement. The Board would also need to have suitable competencies and skills in relation to te ao Māori and the Treaty of Waitangi.

No. Under Local Water Done Well the Government has committed that water services will remain in public ownership. Councils and water organisations will not be able to privatise water services. The Local Government (Water Services) Bill states that a water organisation must be owned by a council (or councils) and/or a consumer trust.

Additionally, the Bill introduces a range of restrictions against privatisation. For example, it is proposed that a water service provider may not use water assets as security on a loan.

WCC would need to enter into contractual and service arrangement agreements with the relevant organisations where WCC’s requirements would be specified and ideally agreed to. A monitoring and reporting regime would need to be introduced to give Council assurance that our requirements are being met. These arrangements are likely to introduce additional cost and will also add layers of contractual complexities.

Under the Preliminary Services Arrangements Act all councils are required to consult on Existing Arrangements and one other (alternate) option. Councils may choose to consult on more than one alternate option.

Each Wellington council involved in the preferred option has considered the options available and which one(s) are likely to be most beneficial for their communities. For Porirua City, Hutt City, Upper Hutt and Greater Wellington the respective councils each worked through a decision making process to identify their consultation options.

WCC recognise how important this decision is – not just for today but for generations to come. Council wants to ensure that ratepayers have the opportunity to consider the full shortlist of options that enables access to better borrowing arrangements (over and above what councils can access), focus on community outcomes through robust governance arrangements and that minimises impact to councils ongoing financial position.

Water meters are expected to be introduced across the region over the coming years (read the latest update on water meters). Until that happens, the new water organisation is likely to charge a fixed amount for water services regardless of usage or whether the property is occupied or not. If a property is tenanted, the landlord (owner) would be directly responsible for paying those charges.

If charges for volumetric water use (how much you use) are introduced in future (via water meters), landlords will be able to require those costs to be met by tenants.

It is critical that there is good governance in place for both the establishment and ongoing operations of the new multi-council organisation .

The government’s LWDW reforms have introduced new legislation, policy and tools that are expected to strengthen how water services are planned for, funded and delivered. This includes:

• An increased focus on financial sustainability: the costs, how the costs are funded and the overall performance of service delivery including the provider
• An oversight role by the Commerce Commission – their focus will be to ensure water charges are fair and cost reflective and that the revenue is sufficient to meet the community investment needs
• The expectation on organisations to demonstrate compliance with the new financial principles introduced in their planning and reporting, and
• A consumer protection improvements led by the Commerce Commission.

If a multi-council water organsiation is the confirmed delivery model, WCC would negotiate a shareholding agreement with the co-owning councils. The shareholders agreement would be expected to address key governance matters such as dispute resolution.

Under our preferred option of a multi-council organisation, most aspects of stormwater service provision will be transferred to the new water organisation. The new water organisation will own most water assets, including urban stormwater pipes and pumps. The revenues and liabilities pertaining to these stormwater assets would also transfer.

Council will retain accountability for overland stormwater flow paths, that is, any flow path taken by stormwater on the surface of public land eg, on roads and through parks. Private landowners will retain similar accountability for stormwater paths on their land.

Council will continue to have a strong influence on stormwater outcomes in their city or district via transfer and service agreements, statement of expectations and water services strategies.