Option 1: Preferred option – new water organisation

Co-owned with four other councils.

Option 2: Wellington City Council sole ownership water organisation

Solely owned by Wellington City Council.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

The shareholders are the individual councils.

Option 1: Preferred option – new water organisation

Assets are owned by the new organisation.

Option 2: Wellington City Council sole ownership water organisation

Assets are owned by the new organisation.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Assets are owned by each individual council.

Option 1: Preferred option – new water organisation

A decision by shareholder councils and iwi/Māori partners on an oversight group. The details of this are still being worked through as legislation is finalised.

For more information visit dia.govt.nz.

Option 2: Wellington City Council sole ownership water organisation

A decision by WCC with iwi/Māori partners. The details of this are still being worked through as legislation is finalised.

For more information visit dia.govt.nz.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

A unanimous decision by the Wellington Water Ltd shareholding councils.

Option 1: Preferred option – new water organisation

The Board of the new organisation will make decisions based on input from councils through a joint statement of expectation (i.e. no direct council control).

WCC will be one of five councils negotiating a joint set of expectations.

Stricter regulation on price and quality by the Commerce Commission and water quality and wastewater standards (the Water Services Authority – Taumata Arow).

Option 2: Wellington City Council sole ownership water organisation

The Board of the new organisation will make decisions based on input from WCC through a statement of expectation (i.e. no direct council control).

Stricter regulation on price and quality by the Commerce Commission and water quality and wastewater standards (the Water Services Authority – Taumata Arow).

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Individual councils make funding decisions based on the advice provided by Wellington Water, with the ability to set conditions on funding.

We consult through our planning – Long-term Plans/Annual Plans.

Stricter regulations on price, quality and water quality and standards would apply as outlined for options 1 and 2.

WCC are one of six councils who negotiate a joint letter of expectations.

Noting that debt pays for long-term assets to reflect the intergenerational benefits for these long-run assets.

Option 1: Preferred option – new water organisation

The Government and Local Government Funding Agency have agreed to higher debt limits for new water organisations based on funds from operations (operating surplus) as a proportion of debt. This enables water organisations to borrow significantly more.

Option 2: Wellington City Council sole ownership water organisation

The Government and Local Government Funding Agency have agreed to higher debt limits for new water organisations based on funds from operations (operating surplus) as a proportion of debt. This enables water organisations to borrow significantly more.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Currently we can borrow 2.8 times our revenue (or up to 280% debt to revenue ratio). That means that there is constrained funding available to make the necessary investments over the long term.

Option 1: Preferred option – new water organisation

Water services will be removed from council rates and the new organisation will bill property owners separately. There may be some interim arrangements for each council as the new organisation gets established.

Option 2: Wellington City Council sole ownership water organisation

Water services will be removed from council rates and the new organisation will bill property owners separately. There may be some interim arrangements for each council as the new organisation gets established.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Water services are paid through each council’s rates. This would continue.

Option 1: Preferred option – new water organisation

Based on our modelling, this option would be approx. 20% less costly than modified status quo.

It will mean an average increase each year of 7.5% across rates and water charges combined over 10 yrs.

Option 2: Wellington City Council sole ownership water organisation

Based on our modelling, this option will mean an average increase each year across rates and water charges combined of 8.4% over 10 years.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Early estimates are that the costs to customers will go up substantially.

Based on our modelling, this option will mean an average increase each year across rates and water charges combined of 9.2% over 10 years.

Option 1: Preferred option – new water organisation

The new organisation would be the single point of contact for all service requests.

Option 2: Wellington City Council sole ownership water organisation

The new organisation would be the single point of contact for all service requests.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

First point of contact is the individual council, which passes these to Wellington Water.

Option 1: Preferred option – new water organisation

Highly likely to be introduced.

Option 2: Wellington City Council sole ownership water organisation

Highly likely to be introduced.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Highly likely to be introduced.

From current arrangements excluding new regulatory requirements.

Option 1: Preferred option – new water organisation

Shared infrastructure ownership e.g. Porirua Wastewater Treatment Plant (WCC and Porirua City Council) would transfer to new water organisation as the sole owner.

Option 2: Wellington City Council sole ownership water organisation

Negotiate new contracts with:

• GWRC for continued water supply
• Porirua City Council for Porirua
• Wastewater Treatment Plant and stormwater discharge.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Continue with existing arrangements.

Option 1: Preferred option – new water organisation

Assumed establishment date 1 July 2026;

WWL will be disestablished;

WWL specialist and technical staff will transfer to the new water organisation;

Council would fund share of establishment and transition costs.

Option 2: Wellington City Council sole ownership water organisation

Estimated establishment date no earlier than 1 July 2027;

Council would exit from WWL shareholder agreement (if current arrangements were still in place);

Council would fund all establishment and transition costs;

Establish new organisation (recruit or contract specialist/technical water resources, recruit leadership team and board members; implement customer and IT systems and processes).

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

Council would fund a share of much needed investment to address current systems issues and future regulatory requirements.

Option 1: Preferred option – new water organisation

Will improve the ability to meet population growth through access to greater borrowing.

Option 2: Wellington City Council sole ownership water organisation

Will improve the ability to meet population growth through access to greater borrowing.

Option 3: Modified existing approach – Wellington Water modified to meet legislative requirements (‘status quo’)

May restrict new housing development. Without substantial investment to increase network capacity, some parts of Wellington city have limited ability to add new housing.