Draft Revenue and Financing Policy on drinking water out for consultation

Published: 6 April 2023

Council has today released a draft Revenue and Financing Policy on drinking water for consultation, aimed at bringing residents on the Methven-Springfield water supply into the District Water Group.

The Methven water treatment plant is being upgraded to supply both Methven and Methven-Springfield schemes, but Methven-Springfield scheme currently fund their own scheme and sit outside the group.

The District Water Group includes Methven, Rakaia and Ashburton drinking water schemes and ratepayers connected to a Council water supply all pay the same amount to maintain or improve infrastructure.

Democracy and Engagement Group Manager Toni Durham said the Methven-Springfield supply needed to be included in the treatment plant upgrade so its drinking water met new national standards.

“The draft policy out for consultation tries to strike a balance between affordability for Methven-Springfield ratepayers and fairness for ratepayers already in the group.

“Spreading the cost of the multi-million-dollar upgrade over the entire group will have a small impact on everybody, rather than a massive impact on a few.”

The consultation document will ask if people support Council’s desire to have Methven-Springfield in the District Water Group, and how the new members should pay for their extraordinary water use.

Residential D ratepayers, some businesses and Rural A users currently pay for water use over a daily allocation of 1.2 cubic metres. Council proposes that the same funding formula should also apply to Methven-Springfield ratepayers.

Mrs Durham said while Methven-Springfield is a rural-agricultural water supply scheme it is still required to meet the Drinking Water Standards New Zealand as some of the water supplied households.

“It’s fair that those households have clean and safe drinking water like everybody else, but Council is proposing that they should pay for using more than their allocation.”

The consultation document shows other funding options for larger base allocations before charging for extraordinary use kicks in.

To read the full consultation document, go to our website ashburtondc.govt.nz/haveyoursay

Submissions close Sunday 7 May, 5pm.

What is the Revenue and Financing Policy?

This policy sets out how the Council plans to fund its activities and includes all operational and capital expenditure. In this review, we are only considering changes to the Drinking Water section to find an acceptable funding approach for Methven-Springfield consumers on the new Methven drinking water treatment plant. The full Revenue and Financing Policy will be reviewed next year in conjunction with the Council's Long Term Plan consultation.

About the District Water Group

In 2018, Council introduced a District Water Group (DWG) which includes all the township water supplies in the district.  Every household on a township supply pays a uniform targeted rate. This helps keep water supply affordable in smaller communities and reflects our desire to provide a consistent level of service across all our townships.

The District Water Group also has policies that deal with higher usage by some consumers, like businesses, industry and lifestyle blocks.

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