March 13, 2025
Consultation on the future of water service delivery in Carterton begins today [Thursday].
Earlier this week, councillors agreed to consult on a preferred option - a Wairarapa-Tararua model - and an enhanced status quo model.
Modelling for both options showed the average uninflated cost per Carterton connection would be $2814 in Year 1 of a Wairarapa-Tararua model, $2843 by Year 10, and $2567 by Year 20.
The council’s status quo approach would cost $2721 in Year 1, $3239 in Year 10, and $3782 in Year 20.
Both options would meet the Government’s financial sustainability requirements, but the Wairarapa-Tararua option would have access to more loan funding.
Concerns were raised about potential price harmonisation but the consultation document said standardised pricing across the districts was not required and that the focus was on operational improvements and financial sustainability first.
In the introduction to the document, Mayor Ron Mark said Carterton’s water assets were resilient and that much of the district’s water supply and wastewater services had been “upgraded and reinforced in recent years”.
“Our council has been future-focused, and ratepayers have seen a rise in costs, but have also seen improved services.
“However, we must again look to the future to be resilient and double down on our financial prudence.”
Mark said costs were rising due to compliance and infrastructure needs and that partnering with other councils could improve efficiency and increase funding access.
At Wednesday’s extraordinary council meeting, chief executive Geoff Hamilton said each of the four participating councils - South Wairarapa, Carterton, Masterton, and Tararua - would bring to the table “different quality assets at a different stage of life”.
He said compared to Carterton, South Wairarapa’s assets had “reached end of life and need significantly more investment”.
“We need to consider carefully how we join together to make sure there is equity across our district,” he said.
Currently, each district council sets its own water charges which can include charging through General Rates and not ring-fencing water revenues.
Under Local Water Done Well legislation, councils were required to cease using property-based water charges by June 30, 2028, and all revenue generated for waters services would need to be ringfenced for waters activities.
Carterton and Tararua’s consultation would run from March 14 to April 22.
Consultation in South Wairarapa would run from March 7 to April 6, and Masterton’s consultation would run from March 21 to April 22.
– LDR is local body journalism co-funded by RNZ and NZ On Air.