Invercargill residents are being urged to share their views on the future of the city’s Three Waters services: one of the key issues outlined as part of the Invercargill City Council’s Draft Annual Plan 2025/2026.

Options for water service delivery in the city are included alongside the draft plan, which is now open for public consultation. Central Government’s Local Water Done Well legislation has been introduced in a bid to ensure water services are financially sustainable and effectively managed in the future.

The Local Water Done Well reforms include a raft of strict legislative changes to how water services are managed, including transitioning to operate similarly to independent utility businesses.

The legislation also gives councils a push to collaborate, by allowing jointly-owned Council Controlled Organisations (CCOs) to borrow more money to invest in water infrastructure. The reform requires all councils around the mōtu outline their water services delivery plan by September.

Council is consulting on its preferred option, establishing a Council Operated Enhanced Service to retain water delivery in-house, as well as two other options: establishing an Invercargill Council Controlled Organisation, or a Southland-wide Council Controlled Organisation.

Councillor and Infrastructure and Projects Committee chair Grant Dermody said elected members considered a number of factors when discussing what options could best meet the community’s needs, from assessing financial and legal implications, asset needs, organisational structures and staff impacts.

“While this is an extremely complex issue, the future of Three Waters is one of the biggest decisions our community has faced for decades. The choice we make together will have  lasting impact for the generations that follow us,” Dermody said.

“We’re fortunate in that previous Councils had the foresight to ensure Invercargill’s water infrastructure was managed well, and because of that it is in much better shape compared to many other regions around the country. That is evident in infrastructure investments Council has continued to make, such as the Branxholme Pipeline Upgrade, which is one of the most significant projects currently under way in the city and is now nearing completion.

“However, the reality is that costs are rising across the board, and delivering water services under the current model is no longer financially viable for communities, including ours,” he said.

The Government’s reform programme required Council to make changes to how it funded and delivered the service. For 2025/2026, that would mean:

• Ringfencing internal costs to deliver Three Waters, and funding these through the water, stormwater, and sewerage rates and relevant fees and charges. This transfer of $2.3 million administrative costs would have an impact of increasing waters rates by 8.52 percent, and reducing the non-water rates increase by 4.51 percent
• Paying three waters levies to Taumata Arowai and the Commerce Commission, which will increase waters rates by 1.12 percent
• Stepping up depreciation funding for sewerage and stormwater assets from 80 percent to 90 percent, which would add 5.13 percent on water rates
• Allocating funding to allow for implementation and audit of Council’s new approach would add 1.35 percent on water rates.

Council would also make additional savings through delaying some water renewals works, however investment would need to increase to bring delivery rates up in the future, Dermody said.

“How our three waters services are managed has a tangible effect on every single person in  our community: whether it’s drinking water, stormwater, or wastewater,” he said.

“The decision we have to make will shape the community our children and grandchildren  call home – so it is crucial that people take the time to understand the issue, and share their feedback on what they see as the best way forward for us all.”

For more information about the Draft Annual Plan, to view supporting information and documents, or to make a submission, visit www.letstalk.icc.govt.nz

Supporting information and documents, as well as submission forms, were also available at  Te Hīnaki Civic Building, Invercargill City Libraries and Archives, Murihiku Marae, and the Bluff Service Centre.

Consultation will close on 13 April. Hearings will take place throughout April, with Council’s elected members set to deliberate on the draft plan in May. The Annual Plan 2025/2026 will then go up for adoption in June.