City councillors provided no firm indications yesterday of which approach could be favoured.
Options include setting up a water company, joining with other councils to set up a water company, sharing services, transferring assets to a consumer trust and continuing to run services in-house.
Some changes will be necessary, such as accounting for water separately and showing water services are run in a financially sustainable way by June 30, 2028.
Potential models, as well as a drive for regional collaboration, were discussed by city councillors at yesterday’s infrastructure services committee meeting.
Clear intent to veer sharply away from the status quo was not evident.
Other councils in Otago and Southland are also considering what approaches should be taken for delivering water services, including how they might work together.
All are confronted with significant costs.
The future shape of water services is to be discussed at a joint Otago and Southland mayoral forum scheduled for next Monday and it is hoped common ground might emerge there.
A working group overseen by the chief executives of the Otago and Southland councils arranged for consultancy Morrison Low to develop a "first principles approach" and a report is due in November.
More government legislation about water is due to be introduced in December and it is intended the city council will make an "in principle" decision on its preferred option in late January.
There would then be formal consultation with the community.
Infrastructure services committee chairman Cr Jim O’Malley said the council should have a clear understanding of where it was going by the time it produced the draft long-term plan next year.
It would be good if Otago and Southland councils were able to co-operate in some way, but this did not mean they would all need to sign up to the same model, he said.
"I think each council should shoot for what is best for its own," Cr O’Malley said.
Discussing commonalities and differences was helpful, he said.
Deputy mayor Cherry Lucas said the council’s planned deficit this year was mostly because of water.
She expected water charges would need to rise.
Council staff said the financial sustainability element would need to be in place for the 2027-37 long-term plan.
Cr Sophie Barker said the council needed to establish what was best for its communities and a lot of work was ahead.
"We certainly need to get our own house in order."
