Formal consultation on key issues impacting Pōneke is now open with Wellington City Council asking for feedback on water reform, an amendment to the 2024-34 Long-term Plan and the 2025/26 Annual Plan.

The Council needs to make decisions about its water services delivery model, how insurance and investment risk is managed, and any changes to rates, fees and charges.

“This year, our Council faces key decisions that will shape our city’s future,” says Mayor Tory Whanau.

“We’re committed to ensuring these decisions reflect the voices of Wellingtonians, and we’re inviting you to participate in the consultation process. Your voice matters and will help us deliver the best outcomes for Wellington.”

The future of water

Feedback on the Council’s approach to the Government’s Local Water Done Well reform, which covers the future of drinking, waste, and stormwater services, is being sought. Government reform requires every council in the country to meet stricter regulations for water services quality, financial sustainability, and environmental impact.

Community feedback is sought on three options:

• A multi-council water organisation co-owned by Wellington City, Upper Hutt City, Hutt City, Porirua City and Greater Wellington Regional councils (preferred option)
• A Wellington City Council sole ownership water organisation, and
• Continuing with existing arrangements where Wellington City Council owns water assets and contracts services out to Wellington Water Limited.

All three options cover drinking water, wastewater and stormwater.

Under the preferred option, the new organisation would own and operate public drinking water, wastewater and stormwater assets and would have access to increased borrowing capacity to meet the investment needed across the network.

The need to address the challenges of water infrastructure means it is inevitable the cost of water services will increase. The multi-council water organisation approach will help to keep increases lower due to its scale and the ability to borrow more money.

Following consultation, elected members will be asked to make their final decision on a delivery model ahead of submitting a water services delivery plan to the Department of Internal Affairs by 3 September 2025.

Options for investment, insurance and capital spending

The City Council is also consulting on options to address the insurance and investment risks the city faces. There is an under-insurance gap of between $1.8 billion and $2.6 billion and a lack of investment diversification.

Some 89% of the Council’s investments are tied up in Wellington-based ground leases and airport shares which means they are all vulnerable to the same risks, threatening the ability to access funds in the event of a natural disaster.

The Council is considering three potential options.

Its preferred proposal is to increase borrowing capacity by reducing capital spending (by $385 million) and creating a small investment fund (of $68 million) with the proceeds from the sale of nine ground leases.

Other options include reducing capital spending (by $200 million) and selling either 50% of airport shares or the majority of ground leases to create a medium-sized investment fund (of $202 million–$314 million).

There is also an option to create a large ($560 million) investment fund by selling all council airport shares and nine ground leases, while maintaining current capital spending.

Changes to fees and charges proposed as part of Annual Plan

The 2025/26 Annual Plan contains the proposed budget and outlines the impact on rates and the Council’s debt. The proposed average rates increase in the budget is 12.2% (including the 1.4% sludge levy).

The Council is seeking feedback on this and several other smaller changes as part of the Annual Plan update.

These include establishing a new reserve on Miramar Peninsula/Motu Kairangi, clarifying our current policy to enforce commercial rates for short-term accommodation providers, and other changes to fees and user charges.

Information about the proposals, including the consultation document and submission forms, is available on the website www.wcc.nz/haveyoursay

Residents can also pick up a copy of the consultation document and submission forms from city libraries.

Consultation is open until 21 April 2025.

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