Waikato councils grapple with getting waters back on the books

Monday, 29 January 2024

Without Three Waters rules, councils will keep ownership and control of their water assets - which comes with costs. Pictured is wastewater treatment in Hamilton (file photo).

Big Waikato councils are speedily reworking their finances now water service costs must fit back into their long-term budgets.

The Government plans to scrap old Three Waters rules that would have taken the assets - and expenses - off council balance sheets in a few years’ time.

But councils had made their budgets before that “game changer” news came and are now doing a significant financial rework.

For Hamilton, waters make up almost a third of council costs, the chief executive says.

Councils had previously been required to take water services off their books from year three of their 2024-34 long terms.

The changes “required a significant amount of rework when it comes to council’s finances,” says Waipā mayor Susan O'Regan.

But Waipā and Hamilton councils confirmed that the Government told them late last year that they should put them back.

Waipā said a councillor long term plan workshop planned for January 30 was now being deferred till the week after because of the need to study this requirement further.

Mayor Susan O’Regan said the Government requirement to put three waters back into the budgets for the next 10 years had been a “game changer”.

“Around 30% of council’s costs are related to water services,” says Hamilton’s chief executive Lance Vervoort.

“We were notified of the Government’s intention to repeal the three waters legislation late last year and that has required a significant amount of rework when it comes to council’s finances,” she said in a statement.

“We have made the decision to delay the workshop until the following week because we want to ensure the updated financial information is as robust as possible before we consider next steps.”

Hamilton councillors, meanwhile, will be updated by staff on the same day as Waipā’s workshop.

Chief executive Lance Vervoort said the new Government provided direction that councils should include water service delivery in their long-term plans, pending three waters repeal legislation expected next month.

“This direction means Hamilton is urgently revising its draft long term plan.

“Including water service delivery costs in years 3-10 of the long term plan is a significant piece of work, as around 30% of council’s costs are related to water services,” Vervoort said on Friday.