Waikato councils have budgeted nearly $5 billion for capital works across drinking water, stormwater, and waste water - but the total cost of water services is estimated to be more than $7.5 billion. File photo Photo: AFP
A new report has found Waikato councils could save $338 million over the next decade if they joined together to deliver critical water infrastructure.
The report, commissioned by the Waikato Mayoral Forum, urges Waikato mayors to take steps into forming a joint entity for capital water works.
It's findings show that over the next decade, Waikato councils have budgeted nearly $5 billion for capital works across drinking water, stormwater, and waste water - but the total cost of water services is estimated to be more than $7.5 billion.
Joining together won't make up the full shortfall, but it could save Waikato councils $338 million.
Matamata Piako District council chief executive Don McLeod said ratepayers would be better off if councils worked together.
"Our ratepayers simply cannot afford to pay for the water infrastructure we need to build, yet we must build it. And we are required by law to meet increasing levels of compliance which is only going to get more expensive," he said.
"The current system is fundamentally broken - our contractors, our staff, the water experts, the ratepayers ... are all telling us that. Something must change."
The report said an individual council approach to water services will lead to yearly water rates ranging from $1,652 in Otorohanga to $7,921 in Waikato.
"We cannot expect ratepayers to stump up with that sort of cash, and not consider more cost-effective ways of providing services. We have a duty to try and do better," McLeod said.
Legislation is needed for councils to make a firm commitment to any regional waters entity, which is not expected to be introduced into mid-2025.
In the meantime, the report recommends councils negotiate a non-binding agreement in good faith to get closer to a joined-up approach to water services.
"Not all councils need a fully aggregated entity now, but it is highly likely all councils and communities will need and benefit from one at some point," the report reads.
"However, doing nothing is not a cost-effective option. There is an opportunity now for councils to take a first, sensible step towards unlocking the opportunities of a joined-up approach to water infrastructure."
