Local Water Done Well update
Clutha District Council agreed to pursue three options regarding how it could potentially deliver water services under the new Water Services Preliminary Arrangements Act 2024.
The act sets out the requirements for a Council to develop a Water Services Delivery Plan (WSDP) that must be submitted to the Department of Internal Affairs (DIA) by 3 September 2025.
The WSDP must set out the model for delivery of a Council’s water services with 10 years of supporting financial information, demonstrating that the activity is financially sustainable no later than 2028.
It requires each Council to consult with the public on their preferred option and at least one other option and formally adopt the WSDP before it is submitted.
The three options approved at the Council Meeting included the status quo (managed and run by Clutha District Council), a single Council Controlled Organisation or multi Council Controlled Organisation.
Morrison Low were engaged to work on a business case to explore regional delivery models.
The review clearly demonstrated that without change, delivery of future water services and infrastructure investment will become progressively more unaffordable for our ratepayers. 76% of residential water users across the Otago and Southland regions will see their current bills doubling within the next 10 years.
In addition to the affordability issues, the need for a skilled workforce and contractors who can deliver the considerable infrastructure programme that is currently forecast will require careful planning and rationalisation across the region to avoid competition and inefficiency, something that a single water entity is better placed to tackle.
The report explores a range of options, but clearly demonstrates that a joint asset owning entity is the best solution for the issues that the Otago and Southland regions face.
Their report “Local Water Done Well Review” can be read on Council’s website ww.cluthadc.govt.nz/water-services-future
Construction of the Bruce Community Facility to proceed
Clutha District Council will proceed with the construction of the Bruce Community Facility, a new community library and pool facility including a six-lane swimming pool.
Council also agreed to the “Direct Appointment” of Calder Stewart as the contractor for the Bruce Community Facility Detailed Design and Build.
To ease some of the financial burden on ratepayers, for the $15.5 million that would have been funded by rates, Council approved providing a $2.5 million grant from Council’s Investment equity, which is consistent with the same amount applied to Te Pou Ō Mata Au, and an interest-only loan of the balance for a period of 2 years.
The 2 year period is aligned to the next Long Term Plan and is consistent with several submissions that supported the project but considered it wasn’t the right time.
While the decision had been consulted on previously the updated total budget for the facility came in at around $20 million and triggered the need for further consultation.
Over 600 submissions were received with 49.7% in favour of the new facility and 50.3% were against.
63% from the Bruce rating area supported the new facility.
The next stage is to commence the detailed design including updating the cost estimates.
Council looks forward to working with the Bruce Communities Facilities Trust who are also raising funds to help financially support the project.
Deficit to be addressed
Council approved and will address a Uniform Annual General Charge deficit of $801,311 and an overhead deficit of $1,748,574 as part of the Annual Plan 2025/26 process.
There were a range of known direct and indirect overspends relating to bringing Three Waters Operations in house, increased salary costs, consultant costs for filling essential positions and increased IT licensing costs.
In addition, Building Control and Resource Consent revenue was below what was expected contributing to deficits in those activities.
I-site & Community Libraries was overspent due to paying additional staff hours to keep facilities open because of staff absence and unavailability.
This will be something where additional control will be applied this financial year, and facilities may have to close occasionally rather than overspend.
Council staff are working on cost savings to present to councillors at a workshop to be held in January 2025.
Funding approved to support CCTV in Clinton
Council agreed to fund $9,751 from Investment fund and $947 from Parks and Reserves towards the purchase of CCTV cameras for Clinton.
The Clinton Community Committee requested 50% having raised the rest of the funds themselves.
Councillors were supportive and noted it was very deflating for community groups who work hard for their areas and then have their work vandalised. CCTV cameras are a useful deterrent and not a cost but a saving.
The committee have been working on community plan projects and improvements as part of the Our Place Clinton Community Plan.
However, they did not want to use their allocated funding for the cameras as they intend to use their Our Place funding to facilitate walking & cycling initiatives, residential development, and improvements at reserves and other community facilities.
Solid Waste bylaw to be reviewed
Council have initiated the statutory process to review its draft updated Solid Waste Management and Minimisation Bylaw which will include public consultation and a submissions process.
Council currently operates under the Solid Waste Management and Minimisation Bylaw 2019.
However, changes in the regulatory framework had improved areas such as landfill management, making some aspects of the bylaw potentially redundant.
Despite this, the revised 2025 bylaw remains necessary to address specific local needs, including:
• Ensuring the correct use of fixed on-street and reserve waste and recycling bins.
• Specifying types, locations, and presentation times for collections, including requirements to remove bins from the roadside if they cannot be collected, especially during extreme weather events.
• Extending the bylaw to cover temporary accommodation such as camping and motorhomes.
• Specifying acceptable types of waste and recycling for kerbside collection and landfill.
• Aligning transfer station and landfill operations with the WasteMINZ Technical Guidelines for Disposal to Land.
• Addressing overall non-compliance under the Local Government Act 2002 and Waste Minimisation Act 2008.
A key area not addressed in the current bylaw was the management of additional bins already possessed or requested by residents.
Whilst Council charges for waste services based on a set number of properties, feedback from our contractor suggests that the actual number of bins in use is higher than what council receive rates funding for.
To effectively minimise landfill contributions and maximise recycling, the bylaw update includes controls over the types and quantities of bins used by residents, extending these provisions to transfer stations to promote consistency across the district.
The financial impact of uncontrolled additional bins extends beyond lost income.
Each extra bin of waste sent to landfill incurs costs through both the waste disposal levy and emissions trading scheme charges.
This creates a double impact where Council not only misses potential revenue but also bears increased disposal costs, effectively subsidising additional waste disposal whilst working against waste minimisation objectives.
Council also agreed to include in the updated bylaw that the unauthorised bins be stopped immediately once the bylaw takes effect.