Fit for the Future - Waitaki's Long Term Plan 2025-2034

Let's talk more about our options for delivering water services in Waitaki

The Government’s Local Water Done Well legislation requires Council to create a Water Services Delivery Plan by September 2025 for the Department of Internal Affairs to review. This plan will outline how Waitaki District Council intends to provide drinking, waste and stormwater infrastructure for the district, both now and in the future.

Some of the Local Water Done Well legislation is still going through Parliament, but we have been provided by some models of how things could be run by the Government. Having reviewed five of them, we believe a new Water Services Company (WSC) will be the best choice for Waitaki.

A WSC would place Council’s water assets, and responsibility for delivering them, into a separate organisation. This new organisation will be able to focus on service delivery, and potentially collaborate with other councils; sharing resources, knowledge and combining to improve purchasing power.

How this is funded may depend on the second consultation topic, regarding water metering. Should a WSC be set up next year, and take over the water services delivery in 2027, your rates would no longer include water charges. Instead you’d pay a water bill, similar to how you pay a power bill. This would cover your drinking water, waste water and may include storm water as well if those services are part of the WSC.

The water infrastructure we’ve delivered in the last five-years makes up a large amount of Council’s debt. Funding big-ticket long term assets this way means that the cost isn’t front-loaded onto todays ratepayer. Instead the cost of the asset is paid off by all users, across its lifespan.

However, it does mean that increasing amounts of Council’s revenue goes towards funding water services, which reduces our headroom to take on other projects the District might need.

Last year we estimated we’d need to invest $426 million dollars in our water services over the next decade, just in capital expenditure. That is paying for pipes, treatment plants, reservoirs and getting the consents needed to continue to deliver safe drinking water, take away and treat wastewater and ensure that our stormwater network can cope with significant rain events when they occur.

There’s still some way to go with the Local Waters Done Well reforms, but we decided now is the time to talk to the community about the future of water services in the Waitaki District, and let you know where we are in the process. Your feedback will help Council make a decision on the Water Services Delivery Plan.

You can find more information in these supporting documents:

• Draft Water Supply Activity Management Plan
• Draft Stormwater Activity Management Plan
• Draft Wastewater Activity Management Plan
• Morrison Low Report on Local Water Done Well Financial modelling

Read the topic pages in our Consultation Document

Let's talk more about district-wide water metering

Over the past 30 years, many councils across New Zealand have rolled out universal water metering.

One of the main perks of this initiative is that it helps cut down on daily water use. By making people more aware of their water consumption by metering usage and charging the household or business for actual use. Water metering encourages better water efficiency and reduces unnecessary water use and waste.

With water metering, users pay for the exact amount of water they use, creating a fairer charging system. Instead of all ratepayers paying the same amount for their household water supply, individuals are charged based on their actual water usage. This means that households or activities that consume more water will pay more than those that use less. This system actively promotes and encourages more responsible water use.

Using less water could mean lower operational costs for the council in the future since there's less demand on water treatment and distribution systems. This can lead to savings in energy and maintenance for these systems (pipes lasting longer and our reservoirs staying in good shape). Plus, using less water means less wastewater, which could delay expensive upgrades to our wastewater treatment and collection systems.

Water metering is a great way to spot and fix water losses in the network. If you're on a metered system and notice a spike in your bill without using more water, it'll make you want to find out why. If the increase isn't due to things like filling a pool or having extra guests, it might mean there's a leak in the supply.

Water leaks can really mess things up for our community. They put extra stress on our water supply system and can cause serious damage to buildings, leading to expensive repairs and safety issues. Plus, the dampness from leaks is a perfect breeding ground for mould and mildew, which can cause health problems like allergies and respiratory issues. On top of that, leaks can waste a ton of water, making our water scarcity problems even worse. Fixing leaks quickly is super important to keep our infrastructure in good shape, protect public health, and save our precious water resources.

Having the meters installed and being able to identify the area of a potential leak through increased demand, this can help to detect and fix leaks faster, conserving water and reducing wastage.

Additionally, the data from meters provides valuable insights into the overall water balance, which is crucial for effective water management and planning.

One area that has installed meters and seen the benefits of these is Tauranga City Council. As part of installing the meters, they rolled out a comprehensive water demand management program that includes active leak management and public education. This has made people more aware of their water use and shown them how valuable water really is.

One of the standout results they have seen is a 30% drop in peak water demand. This reduction allowed the council to delay a proposed water scheme by at least 10 years, saving a lot of money on capital expenditure and other costs.

Since introducing metering and volumetric charging, there's been a 25% decrease in average per capita water consumption compared to pre-metering. Water restrictions used to be common during summer, but now they rarely happen, even with a population increase of about 27% during this time of year. This has led to more efficient water use, lower operational costs, and less water wastage.

In Waitaki, we already meter large water users and rural properties on a restricted supply. In Kurow, every property connection in the township is also metered for water use. This isn't a new idea – it's just something we need to think about more. Not only to create a fairer user-pays system to reduce costs for those who aren't big users, but also to protect one of our most valuable lifeline sources – water.

Overall, water meters lead to more efficient water use, lower operational costs, and reduced water wastage, helping councils manage their resources better and potentially lower rate payments for their customers.

We appreciate you taking the time to share your thoughts and preferences on how we manage the future supply of our water.

Let's talk more about Beach Road, coastal erosion and the cost of protecting our infrastructure

Coastal erosion is a significant issue along the northern Otago coast, particularly around Beach Road. NIWA (2019) has identified this area as an erosional hot spot due to the dramatic shoreline retreat. Approximately 60% of the coast in the Waitaki district is retreating at a rate of 15cm per year.

Even though Council doesn't own all the coastal land, we brought in a consultant in 2024 to check out the key spots in Waitaki that are at risk from coastal erosion. This gives us better information on the risks so we can figure out the best options for future coastal resilience work

While not all of the key locations in the report are Council assets, two areas were flagged as having more immediate risk with a bigger impact on Council assets. These are Beach Road and the Orwell Street Sewer Pumpstation.

We talk about the Orwell Street Sewer Pumpstation in our consultation document. This is critical infrastructure that is challenged in a heavy rain event – and is vulnerable to coastal erosion due to its proximity to the sea.

Council is exploring options on how to address the Orwell Street Sewer Pumpstation as part of a larger study of the Oamaru wastewater network.

We also talk about Beach Road in the consultation document and presented the options we have.

As a country we are lucky to be surrounded by a stunning rugged coast, enjoyed and accessed widely via local roads and state highways. However, while we are blessed with the beauty of our coastlines, we are challenged by coastal erosion which is occurring up and down the country.

We've already seen the serious impact of coastal erosion along Beach Road. A section was closed to vehicles in 2008 and then to walkers and cyclists in 2012 because the unstable land posed a risk to everyone in the area.

In 2024, Council started working on Project Reclaim which was focused on removing old landfills on two sites – one in Hampden and one on Beach Road (at two locations on Beach Road).

If we didn’t remove the landfills along Beach Road, the ongoing erosion would have continued to undermine the cliff faces, which could cause the landfill sites to collapse and expose hazardous waste resulting in contamination of the soil, ocean, marine life and ecosystems.

So, removing the landfills was crucial to mitigate these environmental risks and restore the natural coastal processes in the area.

That's why we started the significant environmental remediation project along the coastal cliffs off Beach Road near Oamaru. This section of Beach Road has been closed since August 2024 to allow for Project Reclaim to be completed.

The meticulously planned and reviewed remediation project involved excavating and removing waste material to the Palmerston Landfill. However, the excavation uncovered a much larger deposit of historic fly-tipped waste than the estimated 12,000 tonnes concealed under the road. The removal of this waste, totalling 19,000 tonnes—58% more than estimated—required larger earthworks at both sites.

With Project Reclaim undertaken on Beach Road at a much larger scale than initially foreseen, and the waste now successfully and safely removed eliminating the risk of an environmental disaster, the funds that were allocated to reinstate the road have been absorbed in the additional excavation and transfer of waste from the site.

This leaves our community with an important decision: do we want to restore the cherished road connecting Oamaru to Kakanui or transform the road into a recreational space?

We need to choose the best course of action from three options, each with its own benefits and challenges.

We invite you all to consider the options below and share your feedback on what you see is the best option for Waitaki now, and for the future.

Option A: Reinstate the Road

The first option is to rebuild the road in a new alignment around the holes left by Project Reclaim. This approach has several benefits.

The reinstatement will be cheaper than filling the holes left by Project Reclaim, costing $720,000.

This option preserves the existing levels of service that our community has come to rely on.

However, there is concern about the long-term viability of the road due to coastal erosion. Just shifting the road around the holes isn't going to make it last any longer. Right now, we're doing minor reactive coastal erosion protection, which is keeping the road intact, but it's a losing game. We really need to do some additional major work to keep the road open for good, otherwise the investment in realigning the road will shortly be wasted as Beach Road North slips into the ocean.

Protecting the road in the long term comes with a hefty price tag as it requires the installation of 42,000m³ of rock armouring to protect the 2.8km stretch of coastline to remain open in the long term. We are currently undertaking small amounts of rock protection work to keep the road open, at an average cost of $50,000 per year, but this won't work long term as the coastline is creeping closer and closer to the road. This means we need to increase the amount of rock armouring, which is estimated to cost a whopping $11,930,000 over 30 years.

Expected costs for maintaining the road in its current location range a great deal as it is highly dependent on the rate of coastal erosion. Using rates for works undertaken recently at Katiki Straight by NZTA indicate it would cost $11,900,000 to properly armour the road over a 50-year period. The road would also need to be closed for a significant period during the installation of rock armouring.

The estimated total cost for this option is $12,650,000 (debt Funded).

Option B: Leave the Road Closed

The community could see this as a chance to transform the area into a recreational space, allowing people to enjoy the beautiful coastline.

There is potential to enhance the area with native plants, seating, and tracks for walking and cycling. We would be preserving Oamaru's natural beauty and ensuring the safety and well-being of its residents and wildlife.

This option is the simplest and most cost-effective - we would leave the road closed and maintain the current detour indefinitely.

This option would cost only $50k in 2025/26 for the establishment of a walking/cycling track giving direct access to the beach.

Option C: Close Beach Road North to Awamoa Road and realign the intersection.

Close a section of Beach Road North, reinstating the connection between Kakanui Beach Reserve and Awamoa Road intersection at a cost of $353,000.

Protect the 900m section of road from erosion in the same manner as Option A with rock armouring estimated at $3,847,000.

The estimated total cost of this option is $4,200,000 (Debt funded).

When complete, this option is projected to cost $30k less in annual maintenance and depreciation than it has been costing to maintain Beach Road, which will have a minor positive long-term rate impact.

We are committed to making an informed choice that balances cost, safety, and public satisfaction.

The story of Beach Road is far from over, but with careful consideration and community involvement, a solution will be found.

Let's talk more about the Ōamaru Blue Penguin Colony and Tourism Waitaki.

Supporting sustainable and inclusive economic growth for our district and communities.

The Ōamaru Blue Penguin Colony (ŌBPC) is a real gem for the Waitaki District. It gives visitors a chance to see and learn about our little blue penguins (kororā) in their natural habitat. People love watching the penguins come back from their day out at sea every evening. These adorable blue penguins are a huge attraction for Ōamaru and play a big role in boosting our local tourism and economy.

But the colony isn't just about tourism, it's also heavily focused on research and conservation. At its heart is a long-term conservation programme that protects the penguins, ensures their population stays stable, and shares these insights both nationally and internationally. The colony’s Science and Environmental Manager is one of New Zealand’s top experts on kororā little blue penguins.

The Waitaki Destination Management Plan and the Uplifting Waitaki: Hāpaitia te Waitaki Economic Development strategy both emphasise the need to create new products and experiences to encourage more overnight stays and visitor spending. This includes developing and promoting the Ōamaru Blue Penguin Colony.

We're looking at two proposals for the future of economic development in the district.

One idea is to turn Tourism Waitaki Ltd into an Economic Development Agency (EDA) that focuses on the district's economic growth, including tourism.

The other idea is to make the Penguin Colony its own separate company, still owned by us on behalf of the community.

Tourism Waitaki Ltd is currently – 100% owned by Council but operates as a separate company, reporting annually to Council on its performance. While Council will own the EDA, the intention of the EDA is to expand the focus on growth through economic development across all industry – rather than just focusing and investing in Tourism which contributes 2.6% to our GDP. (Infometrics January 2025)

The EDA would operate independently from the Council and manage key programmes focused on long-term sustainable economic growth. This would include marketing and promoting Waitaki as a destination. EDA, separate from the council, would be more agile and flexible in implementing new opportunities and accessing different funding sources (like grants and partnerships with private investors), reducing reliance on ratepayer contributions over time. The EDA’s finances would be audited separately to ensure accountability and transparency.

We are a proud community with huge potential as a district, and we want to establish the means support, develop and lead opportunities for economic growth right across our district to which we believe we can do through the formal establishment of an EDA.

Right now, the ŌBPC is part of Tourism Waitaki Ltd, and its profits help fund marketing and promotion for the district.

We've made it clear that there are no plans to sell the Ōamaru Blue Penguin Colony (ŌBPC) and we reiterate that statement.

Making the ŌBPC a standalone company would let the colony focus more on growing environmental tourism and conservation. This would mean developing new offerings and investing in research and conservation to keep it a key attraction for the district.

As a separate company, the colony could see the benefits from more focused management, investment, development, and promotion. Over time, as a Council Controlled Organisation (CCO), the ŌBPC could generate new income streams and dividends for the Council.

With the proposals that have been presented in the consultation document, both organisations would have the freedom to operate more flexibly and take on managed risks outside of Council mandates.

By creating an EDA and making the ŌBPC a CCO, Council aims to stimulate sustainable economic growth and tourism and foster partnerships that benefit the Waitaki district and its residents.

Let's talk more about some Council-owned property that's not doing a lot for us or you.

During our community engagement for the 2024-25 Enhanced Annual Plan, we sought your feedback on potential areas to explore for cost savings and rate reductions. The feedback we received supported the idea of reviewing the land and buildings we own to identify assets that could be considered for sale.

We talk about this topic on pages 34-35 of our Consultation Document.

Selling Council properties can not only help to reduce overall property debt – selling non-strategic properties also has the potential to free up funds that can then be applied to generate better returns or be used for other purposes.

Our Council's Property Strategy says we should manage our strategic property assets in a way that's financially sustainable to cut costs and maximise community benefits. If we have surplus properties that don't meet these goals, we should sell them to get the best financial or community value. The money from these sales (from selling land and buildings) can then be reinvested to improve our remaining properties or buy new ones to meet our objectives.

In the consultation document we identified a list of assets that we would like your feedback on whether you are comfortable with us putting these on the market for sale.

• Take a look at the full list of properties.
• Read our Property Strategy

It should be noted that some of these assets are currently leased. If we decide to put them on the market, we'll definitely talk to the lessee first!

At this stage, we are asking for your feedback as to whether you support us taking the assets to the market.

We do not intend to take all Council owned properties to the market, nor will we take all properties to the market at the same time, as this is not likely to get the best sale outcomes that we want for our community. This will be a staged process, determined by your feedback, strategic outcomes the property delivers to Council, existing leases, land constraints, and the market in which we will be selling in.

One of the main challenges is with endowment properties. We have to look at each one individually, following best practices, legal requirements, and the terms of the endowment. The properties we've proposed to sell don't have these constraints.

We have other land and building assets that we'll review for potential sale. However, these other assets might have more strategic value, offer a better return, or be limited by endowments that restrict their use or future sale. The current list is just the first one to consider. We'll need to do more work before we can present another list to the community for sale options.

By involving our community, the Council can better identify which properties are surplus to requirements, the level of community interest in these assets, and how best to utilise the proceeds from their sale whilst ensuring transparency and accountability in the process.

The feedback that we will receive from the community will ensure that the disposal of property aligns with the needs and values of our local population.

Let's talk more about your Community Hall.

We have 28 Community Halls across the Waitaki District that were built between 1890 and 1960. These Halls were established within the communities at a time when life as we know it, was very different to how we live, travel, socialise and keep in contact with one another today.

When the Halls were built, they were the heart of the community. They were places where people gathered and socialised. Whether it was a ball or just a good old-fashioned "shin-dig," these buildings played a big part in bringing the community together. They hosted all sorts of events, from dances and parties to meetings and get-togethers, making them a central part of community life. The Halls were where friendships were made, memories were created, and the community spirit was kept alive.

The Halls are managed by Hall Committees. Some members have approached the Council to talk about the challenges they face. These include limited use of the halls, which means less income to invest beyond rates contributions; rising costs like insurance and electricity; and the difficulty of finding active and engaged members willing to take on the increasing responsibilities of the Committee.

We appreciate the challenges the Hall Committees are facing – we are facing the same challenges.

If your Community Hall is still a valued asset to your community, as many of them are – that's great! Just let us know that you love your hall.

If you're thinking about options for the future of the Hall, let us know which Hall you're contributing rates for, or which Hall is your Community Hall. We can then start working with the Hall Committee and the wider community to come up with ideas and options that will benefit everyone and make sure the community is ready for the future.

Let's talk more about if we're getting long-term benefits from short-term rentals.

Airbnb and other short-term rentals have been popping up in the Waitaki District, especially around Ōamaru and the little towns up the Waitaki Valley. This boom is thanks to regional efforts to draw visitors to New Zealand’s Deep South, along with the development of our valued Alps 2 Ocean Trail running from Aoraki Mt Cook to Ōamaru.

This surge in short-term rentals has its pros and cons for the Waitaki district.

On the plus side, these rentals bring in valuable tourism dollars, boosting local businesses like cafes, restaurants, and shops. But on the downside, they can enhance a housing shortage by taking away long-term rental options.

In Waitaki, Airbnb and Bookabach listings include whole homes, apartments, and private rooms. This means up to 200 homes might be off the market for long-term rentals, which contribute to our housing shortage and higher rent prices. (Airbnb & Bookabach websites January 2025)

What started as a way for homeowners to make some extra cash by renting out a spare room in their house, is now turning into a business model where investors are buying multiple properties just for short-term rentals.

This shift can create inequality as it reduces the availability of long-term rental housing, drives up rent prices. This hits low-income residents the hardest, who are already struggling with rising costs of living.

Our local traditional accommodation providers (hotels and motels) might also find it tough to compete with other short-term accommodation options, leading to financial challenges and job losses in the industry.

Local councils set the rules for short-term rentals based on commercial activity, so the regulations vary depending on where you are. For instance, Auckland and Queenstown Lakes District Councils have specific rules for properties used for short-term rentals for more than 28 days a year.

In Waitaki, we could, like other districts, apply a Commercial fee to properties rented out as residential short-term accommodation providers through platforms like Airbnb or Bookabach.

Funds raised through fees could be used to support tourism and manage the impacts of visitor numbers on the district.

We need a fairer system for everyone. These regulations aim to balance the impact on the housing market with the benefits of tourism. We need to get the balance right to ensure that there’s enough accommodation for everyone living in and working in Waitaki.

What are your thoughts on Airbnb’s? Should we introduce a commercial fee on properties used for private accommodation? We welcome your feedback.

Let's talk more about the projects and proposals in the draft Long Term Plan

Our projects and proposal list highlights the Council's dedication to community projects, including increased funding for facilities and exploring alternative sports venues. However, balancing spending and funding remains a challenge due to rising costs in infrastructure and services, such as inflation, interest rates, and insurance, alongside growing community expectations for the Council to deliver more with less.

Council is working on a Water Services Delivery Plan to upgrade water infrastructure, which has bumped up costs for all Councils across New Zealand. Central Government's pushing for higher standards but isn't giving much funding, making it tough to balance spending and funding. Rates are the main income source, and we can't keep hiking them up every year. So, Council has had to prioritise the most critical projects, meaning some might get delayed or scaled back due to limited resources.

The Waters projects aim to improve water infrastructure and services, with funding lined up for the next two years. After that, we have assumed that our water services will be delivered by a Council Controlled Organisation (CCO). Managing the 3 Waters (water supply, wastewater, and stormwater) comes with challenges like environmental rules, financial pressures, climate change, asset info, and community expectations. Climate change, especially with more intense weather events, needs big investments and adjustments.

Our roading network and assets require continuous maintenance, with projects scheduled over the next nine years. The New Zealand Transport Agency Waka Kotahi (NZTA) funds 58% of these initiatives, enabling the Council to budget and plan for community-benefiting projects, such as the Kakanui Bridge, which had reached the end of its operational life.

The Network Waitaki Event Centre project continues with the goal to be completed by the end of 2027.

The Better Off Funding Program financial support package from the Government has advanced initiatives and projects aligned with the Council’s strategic outcomes. This includes providing healthy, affordable homes and developing integrated health partnerships, contributing to a better natural and built environment, sustainable economic development, and enhanced health services.

Council is always planning ahead, which means keeping up with Government regulations. One of these was to standardise urban household recycling by 2027 and food scraps by 2030. With this in mind, Council agreed to start kerbside recycling and cover the costs over the next nine years. But last December, the Government put these policies on hold to cut extra costs for Councils. So, this project might be reconsidered and reviewed because of these changes.

Read the full list of proposed projects