Central Otago District Council (CODC) water services manager Julie Muir warned changes to Three Waters - drinking, waste and storm - had not been abandoned.
"Reform of the Three Waters has not been abandoned. There is still reform occurring and inevitable increased costs coming. It’s largely just the structure of the organisations that will manage Three Waters that has changed.
"Most of the underlying requirements that were leading to the cost increases are still occurring in the new ... legislation."
With a long-term plan to be devised this year, the CODC has two proposals going out for community consultation regarding water.
One, which was covered in the council’s November meeting, is who will deliver water.
Two options will be presented - as well as the status quo of the council running all water services itself, which includes contracting work to Fulton Hogan.
Both new options involve setting up a council-controlled organisation (CCO). The differences are whether the council 100% owns the organisation or joins with other councils in the region.
In November, the Central Otago and Gore District Councils said in a statement they had agreed to work together.
They asked other Otago and Southland councils to join forces after a report found a regional, multi-council model would deliver the best outcome for a large majority of ratepayers.
Gore District Mayor Ben Bell said water costs in his area were predicted to increase five-fold by 2034.
The second item up for discussion at the CODC’s meeting earlier in December was the cost of water.
All but deputy mayor Neil Gillespie agreed the price for water through council meters should increase from 60 cents per cubic metre to $2.40. It was also proposed to reduce the uniform annual charge from $756.45 per connection to an unspecified amount.
Following the meeting, Ms Muir said there would also be changes to stormwater rating as required by legislation.
Ratepayers connected to the council network pay a wastewater annual charge and from July next year, a stormwater rate, at present in the overall rate, will be charged separately as the government has said all water charges must be ring-fenced and not part of an overall rate.
The government required Three Waters to be financially sustainable from July 2028, which would result in a cost increase as depreciation would have to be fully funded then, Ms Muir said.
At the December council meeting, chief financial officer Paul Morris proposed funding 50% of water assets depreciation for the next two years to reduce rates increases assuming the assets, and the debt, would go to a CCO in two years.
Ms Muir said a CCO would be able to borrow more than the council to do the capital renewal and improvement work the government required as well as meeting demands from growth in the area.
