Under this option, we would continue to manage and deliver water services on our own, without partnering with other councils. We would be fully responsible for all day-to-day operations, maintenance, planning for future water needs, and repaying any water-related debt.

Our mixed-use rural water schemes operate very differently to conventional urban schemes and require both specialist operational and technical knowledge. The appointment of independent experts to the Water Services Committee will ensure these needs are met.

To help meet new government requirements, we would set up a dedicated water services delivery unit within the Council.

We could share certain services with neighbouring councils or contract some operations to an external water services organisation. However, that may not provide the same cost savings as being part of a joint water services organisation.

We consider this the best option for the 10-year period, however, this may not be the long-term case, after which the community may need to revisit its future options to join with another water services organisation (or not).

Council will need to work closely with Timaru District Council and Mackenzie District Council in relation to the operation of the Downlands Rural Water Supply for inclusion in the Water Services Delivery Plan.

Key advantages

• Local decision-making: Our Council, which is familiar with local conditions, would decide on services and investments
• Seamless integration: Water services can be easily coordinated with our other responsibilities (such as district planning and roading)
• Community accountability: Communication with our community would continue to be straightforward, with us engaging directly with residents on water issues.
• Familiar structure: Day-to-day operations would continue largely as they are now, which can help minimise transition costs and confusion.
• Continuity for rural supplies: Continues existing management and operating arrangements for rural water schemes
• Opportunity to share services: We could share services with neighbouring water organisations to try to reduce costs or contract a water organisation to deliver services
• Opportunity to review pricing structure: We could look to review the current pricing structure and explore better ways to share costs among our urban and rural customers. An option is to look at a combination of set charges and other charges based on water use that suit our customer base to ensure affordability is managed
• Local knowledge: We would have control over how the unit is resourced, with more likelihood of retaining skilled staff with local knowledge

Key disadvantages

• Longer-term challenges need to be funded: We would need to fund major water infrastructure investment over the next 15 to 30 years, and those costs are likely to become more expensive over time. This could require substantial borrowing and limit our ability to invest in other important areas like roads, parks, and recreation
• Increasing requirements: We would need to meet tougher Government regulations on our own, and this could lead to higher rates or more borrowing
• Limited opportunity for efficiencies: We would not benefit from economies of scale that might come from partnering with other councils, potentially increasing our long-term operating costs
• Competition for staff and contractors with larger water organisations which may be more attractive

Option 2 - Three-council Water Services Organisation

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