Although we say status quo, a few changes would still be required. Legislation requires Councils to ‘ring-fence’ all money spent on water services. This means separating all water-related revenue and costs from other council services. This isn’t much of a change to the way MDC currently manages our water services and budgets.

This option would continue to allow decisions to be made that best suit the Manawatū District and its ratepayers. Option one gives greater weight to the voices in our District and ensures conversations with local communities, iwi / hapū, and stakeholders remain local.

Extensive modelling has been completed and determines that option one is financially the best option for our ratepayers. The dramatic financial benefit to Manawatū District ratepayers is the primary reason that this is Council's preferred option.

The graph below compares the MDC’s base water rates against the other consultation options and illustrates that the MDC base consistently sits lower across the length of the modelling.

This means that a stand alone model allows water rates to be lower, yet have a greater impact as they will be applied solely and directly within the Manawatū District.

Although water rates will still be lower in the projected modelling within option one, government levies and regulatory requirements are being applied by the Commerce Commission and the Water Services Authority, which are beyond our local control.

This is estimated to be $187,000 per year charged to Manawatū District and will apply to all options. These increased regulatory requirements will apply regardless of the chosen model.