This option keeps water services ‘in-house’ under direct Council control.

We’ll manage operations the same way we do now, but with modifications to financial reporting and planning.

Funding for all water services will be ‘ring-fenced’ – separated from other Council operations – to show transparently how funds are exclusively used for water services.

Water charges will be removed from the general rate and instead appear on rates bills as a targeted rate.

Only those who use or access water services in the reticulated boundary will pay for them and Council will need to decide on introducing water metering for rating based on usage.

Some properties will see an increase (compared to rates forecasted for 2024-2027) while others may see a decrease if they are not connected to certain water services.

• Local decision-making remains with Council ensuring community input and direct accountability for services and investment decisions.
• Least disruption – Water services stay as they are, with minimal disruption to operations and no major changes to how things work.
• Lowest cost to set up – Avoids expensive transition costs, keeping rates lower in the short term.
• Financial transparency through separated water funding, reporting and planning.
• Simple and easy to implement and no complex set up or governance changes.
• Makes rate increases predictable, with the ability to smooth impacts of increases over time, avoiding sharp increases for properties.

• Less borrowing flexibility compared to a CCO, Council has less room to borrow for big water projects, which may slow down major upgrades.
• Limited by other Council needs – since borrowing is shared across all Council services, water projects might take longer to complete and cost more over time.

With both options replacements, planned improvements and resilience upgrades will go ahead. Under both options we have to do more so there will be cost increases and a move to user pays. The difference with a CCO is the initial higher set-up and operational costs, with the potential to complete projects faster.

We know affordability matters for our communities.

Our preferred option avoids the high set-up and transition costs associated with CCO, resulting in the lowest short-term impact on rates. It’s similar to what we have now and simpler to implement.

It maintains local control, ensures financial transparency and spreads the costs of gradual improvements over time, without front-loading or sudden increases in charges for ratepayers.

Borrowing capacity, capped at 280% of revenue, is sufficient for the region’s anticipated investment needs. As an in-house model, it offers the most predictable and stable financial approach.

This option also doesn’t lock us into one model forever, so we can adapt or change if another approach, like a joint arrangement with other councils or switching to a CCO if there’s a better opportunity in the future.