Water meters back on the cards for Hamilton, continued rate hikes mooted in ‘worst news for ratepayers’

Thursday, 8 February 2024

Water meters appear to be back on the agenda for Hamilton - and Mayor Paula Southgate has described the mooted rate rises needed for water infrastructure as “the worst news for ratepayers in the last two decades”.

“It’s massive,” she said.

Southgate was speaking at a meeting of Hamilton City Council’s long term plan workshop on Wednesday, where rate rises of 25.5%, followed by yearly increases of 14.1% were mooted.

Councillors were told the rate hikes are largely a result of the failed Three Waters proposals putting the cost burden of water infrastructure squarely back with ratepayers.

The issue of paying for water infrastructure has been placed back in front of councils up and down the country after new Minister of Local Government Simeon Brown announced the repeal of the previous government’s Three Waters legislation.

“No matter how you peel this orange it’s going to be bitter,” Southgate said.

Councillors were told by James Clarke, long-term plan programme manager, that when it comes to water infrastructure, “the funding model is broken and we need different solutions”.

He said current data showed “just how unsustainable the status quo is”.

Councillor Ewan Wilson said this put water meters back on the agenda - nearly a decade after mayoral hopeful Dave Macpherson warned rolling out water meters across the city could lump Hamilton ratepayers with a $20 million debt.

“You start looking at water and you don’t address the issue of water meters, you’re creating a false economy,” Wilson said.

“I look forward to that discussion because the time is now right.”

He also claimed that when it came to reducing water use, “the data is clear, water meters give you that”.

Councillors were also told that at present, Hamilton’s water leakage stood at 14%, though councillors were warned there was “a high level of uncertainty around that figure”.

The city has $2.67bn worth of water assets, council water infrastructure engineer Jackie Colliar told councillors, and that while water meters have many benefits, “it won’t be an instant fix”.

Councillors were also told installing water meters across the city would come with a $53m bill.

Deputy Mayor Angela O’Leary said she didn’t want to wait for central government direction on the issue as “we spent six years doing that and we got nowhere”.

“I’m not prepared to do that again. We need to determine the fate of water for our residents. Can we afford it and, if we can’t, how do we afford it?”

Unsurprisingly, Southgate said she was concerned “meters always become a big story”.

She said the public had “not seen this coming and will have a million questions”.

Blair Bowcott, council general manager for strategy, growth and planning, told councillors the demands of water funding, and requirements to balance council books, were behind the mooted rate hikes.

“Waters investment is so big we need to create large cash surpluses. . . that’s what’s ultimately driving the rates increases,” he said.

Southgate conceded “nobody is going to like this, 15%, 15% [rate hikes] going on forever” and she also said council was facing the consequences of previous underinvestment in water infrastructure, “and now the hens are coming home to roost”.

She admitted too that the public would be “alarmed” by the rate rise figures, and that council would need to embark on “a really massive exercise on our part about why this is the way it is”.

“Communications is going to be a big part of this.”

Colliar told councillors it would take between six to 12 months to develop a business case for water meters.