Councillor update, June 2025

In case of interest, here is my most recent councillor report to the Katikati Community Board last week..

It covers some weighty subjects, including a progress report on the future of our waters infrastructure and the Katikati sewerage outfall issue.

Local Waters Done Well

The next step in the Local Waters Done Well process, after recent consultation, is the finalisation of a Water Services Delivery plan for our council in late July that outlines our planned approach. However, that is not the end of this very important matter. All councils have to submit their plans to the government, which will make the final decision on whether it approves (or not) each council’s plans.

The resulting decision will mark the start of the really hard and detailed work. If we do go with other partners, that is when detailed negotiations will occur about the shape of the new water services organisation. There will also be a strategic review of the rest of the Western Bay of Plenty District Council.

Note too that whatever system we set up, there is an increasingly detailed web of government regulations around fresh, waste and storm water from both the new economic regulator (under the Commerce Commission) and the health and environmental regulator (Taumata Arowai). Whoever runs our water system will have a much-reduced scope to make its own decisions.

It is also a very iterative process. The first new legislation to govern the sector has been passed only in recent months and there is more that is still in process in parliament.

Financial guard rails from the NZ Local Government Funding Agency have only arrived in the middle of consultation and the two new regulators are only now getting going on water and wastewater.

There have been consistent questions from the public asking why an inhouse model of waters delivery shows a much higher annual household cost than the corporate options under a council-controlled organisation (either alone or partnering with others).

It is the financing rules that make the most difference, as they dramatically affect how much the council can borrow and what income it can allocate to service that debt. One way of looking at this is by comparing it to a home mortgage. If your debt limit is lower or your income is constrained, you can borrow less so you must put in more of your own money.

People typically only buy one house as a time, but waters assets come with ongoing requirements for heavy capital investment (buying a series of houses, to stretch the metaphor) so a constrained lending regime means you have to pay off each investment much more quickly, forcing even higher ongoing payments.

It’s a bit like comparing the much higher monthly payments on a 15-year mortgage, rather than the lower payments on a 30-year mortgage, to take the metaphor even further. 

Sure, you eventually pay much less interest on a shorter mortgage, but can you afford the payments?

Another question from the public has been whether the consultation was genuine and whether the council really has options or is just going through the motions. There is no doubt that there is a big hand on our back from the government, which believes that a large, specialised water organisation is the best way to go. However, there are definitely a range of options that we are considering.

Urban stormwater, in particular, presents a range of options as the assets are thoroughly intertwined with roads and parks, for example. We need to determine how to manage that efficiently for residents and ratepayers. There is also not the same defined revenue stream that are present for the other two waters (e.g. volumetric water charges, trade waste charges).

Rural stormwater is not part of this reform programme.

You can read more about the council’s Local Waters Done Well programme here.

Katikati Wastewater

A lot of work is quietly being done on future options for the Katikati wastewater outfall, which is unlikely to last until its designed end-of-life a decade or so from now (no asset sweating involved). This is being done utilising a process defined by the Regional Council under our resource consent for the current outfall. It is sensitive as there are options around land-based disposal as well as renewing the outfall.

Unfortunately, the current 200mm diameter outfall pipe is not ageing well, leading to some leaks into the harbour, which is obviously distressing to the community and is also a breach of the council’s resource consent.

The goal is to tie down the future plans by the next council long-term plan in 2027, which will also be the time for formal public consultation. This schedule is subject to any changes under Local Waters Done Well, of course.

As well as working on the long-term solutions, council staff have made some changes to the way they operate the current outfall to minimise the risk of further leaks. The previousleaks generally occurred after heavy rain that forced the sewerage treatment plant to increase the flow of (and thus the pressure on the pipe) to ensure onsite storage did not overflow.

The operating model has now been changed to clear more of the treated wastewater during low-flow periods to ensure more storage is kept in reserve for storms. This does not guarantee no more leaks, but it does make them less likely to occur.

In the meantime, upgrades to the Katikati Wastewater Treatment Plant continue with the installation of a Moving Bed Biofilm Reactor. This $4.5 million system will reduce nitrogen levels to ensure the final treated water is as clean as possible and consistent with the council’s resource consent. This is due for completion in the next couple of months.

Annual Plan

The draft Annual Plan for the 2025-26 year has been published, showing a lower than forecast in rates compared to the Long-Term Plan 2024-34.

The plan is still being worked on (to take account of the representation review, for example) and will be finalised by June, ahead of the financial year starting in July.

The council has, for a change, been the recipient of some favourable winds from lower inflation and interest rates. As well, a number of projects have come in under budget and staff have been working to deliver operational savings.

The council has determined that this plan did not require public consultation as there were no significant changes from that set out in the 2024-34 Long Term Plan.

To see the projected rates for your property, see the rates calculator here.

Construction

Katikati has been a hive of construction in recent times, as long-planned projects come to fruition.

The Dave Hume pool is being upgraded with the addition of a new blue-coloured liner and the installation of a bulkhead that will make the main pool length 25 metres long (important for school swimmers). This bulkhead will also render more space for aqua walkers and the very important learn-to-swim classes that teach our children how to be safe in the water.

Much of the plant and equipment used to run the pool is also being upgraded.

Tetley Road is being rebuilt (“rehabilitated” as the road engineers term it), the new jetty is going in at the Landing on Beach Road, the new Katikati housing units are nearing completion and the timber seawall at Tanners Point is being renewed.

Black mould issues in the Arts Centre in the main street are being addressed, which is a major piece of work and shows that that “leaky buildings” issues are still a live issue in our community. Details are here.

In Ongare Point, work to renew the playground is just getting underway.

Why is so much getting done? I would put a lot of the credit on our Operations Manager, Cedric Crow, who has overhauled the project management at council and put in place systems and structures that enable council staff to get the most done (often for much less cost). Cedric is leaving the council next month, to go on to bigger things, but his time at our council has been well spent.

The recent Katikati/Waihī Beach ward expo was well attended and there was much discussion about these projects, and other matters.

You can always find information about projects in our community at the council’s Your Place / Tō wāhi page for Katikati: https://yourplace.westernbay.govt.nz/hub-page/katikati-aongatete

Representation Review

The chairman has covered much of this review in his report so here I will just record that this is a very pleasing outcome for Katikati, Waihī Beach and the district. The council is in the process of adjusting budgets to fit the new reality, as it always allowed for in this process.

Paeahi Wanakore Reserve

The reserve on the corner of Beach and Park Roads, near the schools, has been officially named the Paeahi Wanakore Reserve.

Paeahi Wanakore was a kaumātua who worked tirelessly over many decades to build and lift the mana of the people of Ngāi Tamawhariua. He was a true gentleman who held a lot of mana within the community and Māoridom.

Paeahi lived on Park Road with his wife Kerewai Wanakore, their home is just down from the Park Road/Beach Road Reserve, it is here that they fostered many children in addition to raising their own.

Paeahi was a longstanding and well-respected member of Council’s Tangata Whenua forums working alongside successive Mayors and Councillors striving to progress the work of Council for and on behalf of the community. As a representative for Ngāi

Tamawhariua he provided a significant contribution when working with Council and the community on various processes and plans to ensure the voice of the people was heard.

His whanau were on hand last month at Council to celebrate this naming of the reserve after their ancestor.

By-laws and highways

A number of bylaws have come up for periodic reviews, including those covering cemeteries, livestock movements and Easter trading. Among these, council has kept the Easter trading hours unrestricted in our district