Hamilton City Council is the largest waters service provider in the Waikato and, if involved, would be the major contributor to economies of scale in an aggregated Waikato entity.
Hamilton has previous experience in considering aggregation of water services in the Waikato. In 2014/15 In November 2014 a study identified a CCO model provided significant cost savings for customers and councils. Progressing a CCO model for the region failed after Waikato withdrew, and Waipa elected not to continue to seek a joint model with Hamilton.
Waters currently accounts for around 30% of the Council’s annual operating expenditure, 54% of the proposed capital expenditure over the life of the 2024-34 Long-term Plan, and 30% of the assets owned by the Council. Solving the funding challenge for waters assets is critical for the financial sustainability of the Council.
At its meeting of 12 September 2024, Council confirmed its preferred long-term solution would be a multi-council regional asset-owning waters company which provides stormwater services to its shareholders.
Noting that Watercare is ending its contract with Waikato District Council (WDC), Council requested staff consider an option to supply water services to WDC. Work on this option was subject to WDC formally endorsing collaboration with Hamilton City Council, which it did later in the month.
In a first step towards a regional approach, at its meeting on 12 December 2024, Council approved an asset-owning joint-CCO with Waikato District Council as its preferred option for consultation on the future of waters services delivery.
- The joint-CCO is the preferred option because:
- It enables Hamilton to build critical infrastructure, faster. This is vital for new housing and new industry
- It is better for the Waikato River
- It allows us to balance costs and better respond to climate change
- It provides for faster and more effective responses to emergencies.
Under the Local Government (Water Services Preliminary Arrangements) Act 2024, Council must also consult on the status quo. For Hamilton, this is an internal business unit. The business case, jointly prepared by Hamilton City Council and Waikato District Council staff, clearly outlines why this is not the preferred option.
The design of the joint-CCO will enable other regional partners or shareholders to be able to join in the future.
For complete transparency of waters-related financial activity, Council will need to separate waters related charges from the General Rate and Uniform Annual General Charge and change the Development Contributions policy. To achieve this, Council is proposing to introduce targeted rates for drinking water, wastewater and stormwater from 1 July 2025 based on capital value (CV).
Click below to read more:
News release 12 December 2024
Council report 12 December 2024
Local Water Done Well business case
News release 6 December 2024
News release 29 October 2024
News release 24 September 2024
News release 12 September 2024
Previous Water Reform and Council submissions
Find out more about the water services we provide to Hamilton