Option 2: 'The up to six'

We believe there are two potential groupings under this option.

Palmerston North City Council, Whanganui District Council, Ruapehu District Council and Rangitīkei District Council

Whanganui, Ruapehu, and Rangitīkei District Councils are looking at forming a water organisation together. As of the date our consultation document was adopted, all three had stated on their websites that they would also consult on an option that includes working with other councils within the Horizons Regional Council area. We haven’t had specific discussions about a water organisation involving all four of us, but since we are all considering a regional model as an option, it remains a possibility. There has been some indicative modelling of potential costs for all councils within this wider region.

Whanganui has a larger population and well-established water infrastructure, meaning this option could include two major urban areas. This can help manage costs by having more water connections per kilometre of pipe.

This grouping does, however, present some challenges due to the distance between our councils. This could make it harder to create efficiencies in areas such as operational centres, staff coverage, and equipment storage.

While we’re all within the Horizons Regional Council boundary, Palmerston North isn't neighbours with the other three councils. This means we don’t know each other as well as Horowhenua and Manawatū District Councils. Not sharing a boundary between us could provide a challenge in an emergency response. If there was a need for a particular piece of equipment or specialist staff member, the response could be delayed due to travel times between boundaries. Under this grouping, there are a number of combinations that could work to meet government requirements.

Palmerston North City Council, Horowhenua District Council and Manawatū District Council

Our three councils are part of Option 1, along with Kāpiti, showing that we're open to working together in the future. Manawatū and Horowhenua have decided not to join a full regional model but are still considering smaller partnerships, as seen in Option 1.

Under this option, we could collaborate with all three councils, just one other council – or together join with some of the other councils in the cluster above.

An advantage to working with Manawatū and Horowhenua is that our councils and communities are closely connected—people often cross boundaries for work, visiting family and friends, or leisure. In a civil defence response, we have alternate routes to access each other too. Being geographically close means we could achieve some efficiencies, but the savings wouldn't be as significant as if we partnered with a council that had a larger population to help share the costs.

A couple of councils are not included in potential combinations

Option 1 includes Kāpiti Coast District Council. As they’re not in the Horizons Regional Council boundary, we haven’t included them in Option 2.

Tararua District Council sits within the Horizons Regional Council boundary. However, in December, it voted to exit any further discussions regarding a regional water organisation. It is only consulting on its status quo, and a collaboration with Wairarapa Councils. As it has not signalled an interest in working with any councils in the regional boundary, it is not included in this option.

If either council (Kāpiti or Tararua) had a desire to join a water organisation with councils named in this option, we would be open to that.

We also haven’t looked at the two mini clusters combined. That’s because Horowhenua and Manawatū District Councils ruled out a full regional model, so we don’t know what their appetite may be for joining with Whanganui, Rangitīkei or Ruapehu. We would be open to working with all five of these councils if they desired.

If you’re wondering why some councils in the region have signalled they don’t want a full regional model, the main reasons are a desire to work with their immediate neighbours, within a catchment, or that they are considering a single council water organisation.

Notes about this map:

• Palmerston North City Council is open to collaborating with other councils.
• Horowhenua and Manawatū District Councils aren't consulting on a full regional model but through option 1 have indicated an interest in working with us and some other councils.
• Whanganui, Ruapehu and Rangitīkei District Councils have indicated they're likely to consult on working with other councils in this region. However, it's not their preferred option.
• Tararua District Council is not consulting on an option involving councils in this region.

This isn’t our preferred option as there is too much uncertainty. None of the councils involved have any of the groupings we have discussed as preferred options at this stage. That doesn’t mean they’re out of the question, but they’re just more unlikely to occur than Option 1.

With this level of uncertainty proposed costs could change significantly. If some councils aren’t part of the organisation, it affects the number of water connections, the scale, and therefore the number of people paying.

Despite the current uncertainty regarding how many councils could be involved, we think it’s important to present this option to you in its entirety showing you potential scenarios. All councils will consult with their communities at slightly different times. But we wanted to ensure you have an option that might involve some or all of these councils in case their communities have different views, or those councils choose to extend discussions.

Every other aspect of this option is the same as Option 1.

Depending on the combination of councils, within 10 years residents could be paying up to $2,700. 

There is a very small chance it could cost less than that but that would rely on a number of councils being involved (at least four or five) and at this stage we think that is highly unlikely. Within 30 years, residents could be paying up to $1,800.

With more councils involved, the cost is lower. We have modelling on our website that shows you a range of potential cost scenarios if some councils were involved, and some weren’t.

These numbers are in today’s dollars and don’t include inflation.

These costs assume all councils named are involved. If there were fewer councils, that would impact cost.

The potential cost in 10 years is more realistic than in 30 years. That’s because councils are using their Long-Term Plans to determine the work. It’s hard to know what may change in 30 years so that number has less certainty.

Read the independent modelling report(PDF, 487KB)

Read the independent modelling report for scenarios for water CCOs in Manawatū-Whanganui(PDF, 624KB)

Who owns the water assets?

Under this option, the assets for water and wastewater would be owned by the water organisation but council remains a shareholder.

It is likely council continues to own all stormwater assets and be responsible for the work programme, but contract the day-to-day management to a water organisation.

Who makes decisions?

The board of the water organisation.

However, this would be informed by a statement of expectation from the shareholding councils.

Iwi involvement

Needs to be confirmed, but we expect it would be discussed prior to setting up the organisation.

We believe iwi should play a role in water management and our council would expect similar involvement to what Rangitāne have with us at the moment.

Civil defence response

Councils and water organisations would work this out during the setting up of the water organisation. Based on how civil defence works with other vital services, we expect the organisation would look after the water, and we’d look after our community. You can be assured looking after our community will always be a top priority for councils.

Legal compliance

Meets legal requirements.

Community affordability

Affordability will depend on the number of councils involved. The fewer councils there are, the more the costs are likely to increase.

Scale

Depending on how many councils are involved, there could be improved scale. However, if there are few councils, we may not have the scale needed to achieve as many positive benefits.

This option could create efficiencies through things like procurement, such as buying pipes and treatment chemicals, software, vehicles etc.  

Water service

Would meet legal requirements. It’s also likely that water services could improve. As there is a larger customer base and an increased ability to borrow, the water organisation could invest in this work sooner than councils can.

Impact on other council services

It’s unlikely to have the negative outcomes on all other council services that Option 3 has. Council also may still choose to look at services we provide through subsequent long-term plans and seek public feedback.

Growth and development

Again, the scale means the water organisation would have a better ability to prepare for and manage future growth needs for water.

Climate change mitigation

With the advantage of scale, improved efficiencies and an increase in borrowing capacity, more climate change mitigation could be likely.

Environmental outcomes

With the advantage of scale, improved efficiencies and an increase in borrowing capacity, better environmental outcomes could occur.

Social impact

Improved social impacts compared to Option 3 as we can continue to invest in other areas and help create connectedness.

Interest by other councils

This option is not any council’s preferred option, which means it comes with risk as it may not eventuate.

Horowhenua District Council, Manawatū District Council and Tararua District Council have ruled out a regional model including all seven councils in the Horizons Regional Council boundary. However, both Horowhenua and Manawatū District councils have showed they’re open to working with us.

Ruapehu, Rangitīkei and Whanganui District Councils are consulting on a potential regional model, however, it is not their preferred choice.

This uncertainty means a version of this option could be less likely to occur than Option 1. We’re open to having conversations with councils in our region about how we could work together and get the best outcomes for our communities.

Geography

This varies depending on which councils are involved. It’s easier the closer we are all together. With the potential for such a large area this could create operational challenges. This could impact on the cost of these services for our community.

Governance 

This also varies depending on how many councils are involved, and what our existing relationships are like with those communities. With councils closer to us it’s easier as we know each other well already. With more councils, it could be more complex to reach consensus on the governance structure of the organisation.    

Community involvement in decision-making

There is unlikely to be direct involvement in decision-making. There could be consultations from time to time. The community would need to advocate for services if they had concerns, like you do now with power and phone services etc. However, councils can also influence the organisation as shareholders.

Council’s role

Councils would have no day-to-day involvement in water service delivery. But the shareholding councils would be creating a statement of expectations, which would give them the ability to add specific details.