Local Water Done Well update
Rotorua Lakes Council has committed to working with willing neighbours to develop a joint water services CCO.
Water services will remain in-house until 2028 while options for the potential establishment of a water services CCO (council-controlled organisation) are explored, elected members have confirmed today.
Mayor Tania Tapsell says the decisions made today will give the council sufficient time to properly investigate the Council Controlled Organisation (CCO) option and to engage with the community and iwi before a final decision in three years about whether that is the most appropriate model for the district.
“We need time to take the community on the journey and to consider the potential benefits.
“We are just one natural disaster from needing extra help and I would be very concerned about our community’s ability to afford to renew, repair and potentially replace damaged infrastructure. We need to ensure we continue to deliver the basics and do that well.
“We need to keep an open mind and the steps approved today provide a pathway to ensuring a well-informed and well-considered decision ahead of the next long-term plan,” Mayor Tapsell says.
Change to the way councils manage water, stormwater and wastewater services is required under the Government’s Local Water Done Well reform programme.
The intention in Rotorua is to maintain an in-house water services division for now and move to a Water Services CCO from July 2028. If the Council ultimately decides against a multi-council WSCCO, the fallback position will be an in-house business unit.
The decisions were made at today’s Council meeting following public consultation and a recent hearing.
Council also resolved to establish a working group to engage with Kawerau, Opotiki and Whakatane councils to consider a multi-council CCO and to welcome Western Bay of Plenty, Taupo and other interested councils to also join the discussion. Progress will be reported back to Council at least quarterly and the public will be progressively informed about the work of the group, ahead of councils making their final decisions.
Under Local Water Done Well, councils must meet new financial and regulatory requirements, including ring-fencing all funding for water services, must invest in infrastructure to address long-standing issues and set fair prices that reflect the cost of delivering water services. Councils must develop a fit-for-purpose water services delivery plan that covers 10 years and outlines how they will meet Local Water Done Well requirements. This plan must be submitted for approval by 3 September 2025.
Rotorua Lakes Council staff have been working on a water services delivery plan on the basis of an in-house model while CCO options are explored since last year, at the direction of Council. This was done to ensure the council meets the September 2025 deadline with the plan able to be adjusted to align with whichever service model Council ultimately decided to go with.
Council Chief Executive Andrew Moraes has also been working with other councils in the Bay of Plenty to find arrangements that meet the long-term needs of the Rotorua district.
Councils were required to consult their communities about their proposed service delivery model (not the services delivery plan) before making a final decision.
Council’s 2024-2034 Long-term Plan is based on water services remaining in-house until July 2028, enabling a decision on a future model to be incorporated into the 2027-2037 Long-term Plan.
Timeline
- Council will be asked to approve a Water Services Delivery Plan within the next two months so it can be submitted by the September deadline.
- Water services will continue to be delivered in-house and all finances for water services will be ring-fenced, as required under the Local Water Done Well reforms.
- Oct 2025 – Oct 2026: A working group consisting of elected members of a number of councils will be set up to look at WSCCO options and will report back to RLC and other councils involved. Engagement will begin with iwi.
- Nov 2026 – June 2027: Council/s decide whether to enter a joint WSCCO.
- July 2028 onwards: Water services delivered via new model, as determined by Council.
About our water services
- Water services currently account for 34% of council’s total assets.
- Day-to-day water-related expenses make up approximately 26% of operating costs.
Key information about Water Services CCOs
Ownership: Council/s will retain ownership via shares in the WSCCO and only council/s will own shares. Privatisation is not possible.
Influence: A professional board based on skills will oversee the WSCCO rather than elected members. Elected members will provide direction to the board annually via a statement of intent.
Relationships: The WSCCO will adhere to relationship obligations with mana whenua. Existing formal agreements between council/s and iwi and hapu will be honoured.
Customers: The WSCCO will set the price and invoice customers directly and prices will be subject to regulation by the Commerce Commission.
Go to p7 of this document to view the report on this matter: Late Items Agenda of Council Meeting - Wednesday, 25 June 2025
Go directly to this part of today's meeting recording via the following link: https://youtu.be/tj_wEIEctwI?t=1016
Find out more about Local Water Done Well at the following page on Council's website: Local Water Done Well - Rotorua Lakes Council
See Local Water Done Well consultation information here: Local Water Done Well | Participate Rotorua Lakes Council
