The council recognised for having the country’s best-tasting tap water is at “step one” of how it will respond to looming Three Waters rules.

The Government enacted the Local Government (Water Services Preliminary Arrangements) Act this week, which required councils to provide transparent information on their water services and set out proposals to achieve financially sustainable services that met standards.

The Local Government Water Services (Transitional Provisions) Bill, expected to be introduced in December, will make structural and financing tools available for councils to use.

Rotorua Lakes Council, whose council-controlled organisation InfraCore won New Zealand’s best-tasting tap water title in May, provided elected members with the options it had at an infrastructure and environment committee meeting on Wednesday.

It announced in July it would bring the services, assets and staff of InfraCore back in-house.

It has a year to develop a water services delivery plan and its preferred option was to keep services in-house, which was seen as being the least disruptive option.

It would need to separate water activities and revenue from other activities, however.

Chief executive Andrew Moraes said: “We believe that is the sustainable and right decision for our community.”

Conversations with other Bay of Plenty councils were ongoing, with one option being to create a water organisation owned by multiple councils or one owned a mixed council/consumer trust.

The council’s discussion would help to inform its position in those conversations, he said.

Councillors would get to have a “close review” as the water delivery plan was developed.

Rotorua Lakes Council chief executive Andrew Moraes. Photo / Andrew Warner.

Māori ward councillor Lani Kereopa did not rule out working with other councils.

While a joint-council approach would potentially be further removed from mana whenua, Kereopa said she did not believe the status quo worked either.

Mayor Tania Tapsell supported retaining in-house delivery, given Rotorua’s “good position”.

“Audit NZ have signalled Rotorua’s financial plan is prudent.”

The council forecasted staying below its internal limit of 250% debt-to-revenue ratio, or the Local Government Funding Agency (LGFA) limit of 280% debt-to-revenue ratio.

The consumer trust option was seen as the most financially independent. Councillor Don Paterson worried about its affordability for customers, however.

He also wanted to consider a more collaborative approach.

Māori ward councillor Rawiri Waru said it was “step one” and understood it did not “cut off opportunity” for collaboration.

LDR is local body journalism co-funded by RNZ and NZ On Air.