Consultation begins on water meter charging

Masterton District Council wants the views of the Masterton community about plans to change how it charges for water services, by using water meters.

The Council does not make a profit from water but must recover the cost of providing water – estimated to be $6.16 million in 2024/25.

Water supply charges are currently part of rates - 30 per cent of costs come from a targeted charge of $180 per connection, and 70 per cent of the cost is paid through a rate based on the Capital Value (CV) of properties.

The CV has been used as an indicator of likely volume used – the higher the CV, the larger the property, the higher the assumed volume of water used.

With water meters now installed for around 87 per cent of properties connected to the Masterton urban water supply, it is possible to base charges on actual water used.

The Council’s Long-Term Plan 2024-34 signalled the development of a charging approach to start from 1 July 2025. The Council now wants feedback on the proposed charging approach.

Developing a charging model using water meters must take into account several variables.

Water is necessary for life, and the proposed model allows for all properties to receive an annual allocation of water, covered by a targeted service charge, before a charge-per-volume of $2 + GST per cubic metre (m3) applies. A cubic metre is 1,000 litres.

The annual allocation reduces over the proposed three-year transition period, from 1,600m3 (4,400 litres per day), to 600m3 (644 litres per day) to 225m3 (616 litres per day). This approach reflects the desire to encourage properties with large usage volumes (thought to largely be lost through leaks and other waste) to take action to reduce their water consumption.

The model must also take into account a likely reduction in consumption following the introduction of charging using water meters. Based on results in other districts, installing water meters could reduce water loss from leaks by up to 30 per cent, and reduce demand by 20 per cent.

The Council aims to follow its ‘user-pays’ policy when it comes to recovering the cost of water supply services. But it is also updating its Rates Remission Policy to reflect support available for those who feel they are experiencing hardship as a result of water charges.

The Council works hard to conserve water, and encourages property owners to do the same.

Given the likely need to make some adjustments to charging as the model is introduced, and community water use changes, it is intended to transition away from CV-based rate over a three-year period, General Manager - Infrastructure and Assets, Maseina Koneferenisi said.

“Water is a precious resource and water meters are an important tool to help conserve water. By measuring the amount of water used by individual properties, water meters help raise awareness of how much water is used and can also help detect where leaks may be occurring.

“The Council does not aim to make a profit from providing water but must recover the cost that comes from treating water, so it is safe to drink, and maintaining the network of pipes and equipment used to distribute water to Masterton residents.”

The water meter charging consultation runs from 14 November to 4pm on Friday 13 December, with hearings for those wanting to speak directly the Council scheduled to begin on 18 December.

Background information and Questions and Answers are on the Council website.

Feedback can be provided in a number of ways:

• complete the online submission form
• download a fillable pdf submission form from the Council website and email to: submissions@mstn.govt.nz
• pick up a hard-copy submission form from our Queen Street customer service centre or Masterton District Library, or print out our printer-friendly form from the Council website
• Post it to Masterton District Council, Freepost 112477, PO Box 444, Masterton 5840, or drop it off to our library or customer service centre at 161 Queen Street, Masterton.
• Phone the Masterton team on 06 370 6300 between 9am and 4pm Monday to Friday (excluding public holidays) and tell us what you think.

Hearings for those wanting to formally present their views to Council are scheduled to begin on 18 December.

All feedback will be considered by the Council at a deliberations meeting in December 2024. Finalised policies will be considered for adoption by the Council in February 2025.