FAQs
What's our plan for water?
What is a Council Controlled Organisation (CCO) and why is Council proposing we create one?
A Council Controlled Organisation is usually a company set up by Council with Council as its shareholder.
A Council Controlled Organisation (CCO) would manage the delivery of water services on behalf of Council. A CCO could deliver water for one Council but could potentially provide water services for a group of councils in the same region. Conversations are still being had about the structure and governance of a Central Otago CCO. We will consult separately on this in the near future.
Council is interested in exploring the option of creating a CCO because of the large size of the district and the small number of people who live here does not generate the amount of money needed to deliver the infrastructure improvements that are required. Another benefit of this option includes greater access to debt funding, Board oversight and an opportunity to join with other councils to enhance collaboration and share resources. The increase in charges to consumers would slow under this arrangement when compared to managing water internally through CODC.
How would this change affect users?
Council would continue to have oversight of the water Council Controlled Organisation (CCO). For those with Council water supply, your water rates bill and water usage bill will no longer be billed by Council. Instead, this would be billed separately by the CCO.
Any questions about billing or service requests about leaks would be directed to the CCO. Council would retain ownership, but the day-to-day operations would be handled by the CCO.
Which other councils have CODC been in discussion with to explore opportunities for collaboration on a potential multi-council Council Controlled Organisation (CCO)?
Gore District Council, Clutha District Council, and Waitaki District Council
Will creating a CCO make water more affordable?
Not necessarily, but it would allow greater access to funding which would reduce the impact on customers in the short-term. Based on our financial modeling, this approach will be more affordable in the long-term.
Would creating a CCO have any impact on our ability to provide the necessary water resources required for fighting fires?
The CCO would have the same level of responsibility as Council currently has.
If a multicouncil CCO is created, would we be giving away our assets and paying for other peoples’ water outside of Central Otago?
No, Council will take an ownership stake in the new CCO equal to the value of the assets we contribute. We will no longer be directly responsible for the delivery of drinking water, wastewater and stormwater.
How pricing is set will be dependent on the new CCO board. At this stage we don’t know how they will handle pricing across districts and regions.
Volumetric water charges
What is a volumetric charge for water?
A charge for water that is based on the volume of water used. This is measured in cubic meters which equates to one unit.
How is water currently charged?
Water is currently charged based on a formula that combines a fixed annual charge for the water connection, with a volumetric charge based on the amount of water used.
Most of the water charge is a fixed price, with a small percentage based on the amount of water used. This proposal would decrease the fixed charge and increase the charge based on the amount of water used.
Will the proposed change to volumetric water charges affect everyone or only those on a Council water supply?
The change will only affect those on a Council water supply.
Where would I find my current volumetric charge based on my household water usage?
This can be found on your water bill.
How much water does the average household use in a year?
Approximately 225cm3 is the household median (removing the highest users and lowest users). This is 616 litres per day. The average, taking into consideration all users, is 340cm3. Seventy-five percent of households use less than the average.
What is behind the move to make a change to the way water is charged?
This change will help to make the connection between how much we use and how much we pay. The more you use the more you will be charged. Using less water will have more of an impact on reducing your water bill than it did before.
This will reduce our electricity use, delay the need for replacing pipes that have life left in them and delay further upgrades to our treatment plants. This is also a fairer system where the costs are borne by the heaviest users.
Community halls and facilities
What does divestment mean?
Divestment could mean a range of things, such as transferring ownership to a community group, selling it to a private entity, returning the property to the Crown, or demolishing the building and retaining the site for potential redevelopment.
What influenced the initial decision to consider certain halls for divestment and not others?
A range of things were considered, including frequency of use, operating costs, income from booking fees, the cost of earthquake strengthening, other maintenance costs, location and other nearby facilities.
If halls are divested, what will be done with those properties?
Every hall is unique, so there isn't a one-size-fits-all answer. The circumstances of the land and buildings for each hall vary.
A detailed document that reviews each of the halls will be available at all Council offices, libraries and copies will be available at Community Information Sessions.
If Council decides to retain any of the halls that are under discussion, will this increase rates?
Yes, this will affect future rates. The current rate is based on divestment of all halls and facilities that are under discussion.
Is the Riding for the Disabled facility on the list of buildings up for discussion, the old location (situated by the Alexandra Golf Course)?
Yes, the facility identified for discussion is the old Riding for the Disabled building situated by the Alexandra Golf Course. This building was vacated by the group last year and reverted to Council.
If Council decides to retain any of the halls that are under discussion, will this increase rates?
Yes, this will affect future rates. The current rate is based on divestment of all halls and facilities that are under discussion.
Is the Riding for the Disabled facility on the list of buildings up for discussion, the old location (situated by the Alexandra Golf Course)?
Yes, the facility identified for discussion is the old Riding for the Disabled building situated by the Alexandra Golf Course. This building was vacated by the group last year and reverted to Council.
Ida MacDonald Roxburgh Pool Punawai Ora
- Covering depreciation for long-term repairs and maintenance
- Meeting health and safety regulations, which if not met could pose legal and financial risk
- Difficulty recruiting and training staff
- Desire to allow those under 18 years old access to the pool without an adult
What prompted the request for Council to consider taking on the ownership and management of the Roxburgh Pool?
The pool committee requested that Council consider this proposal due to a range of challenges facing the committee, including:
Would Council own and manage the pool?
Yes, this proposal is for Council to both own and manage the Ida MacDonald Roxburgh Pool Punawai Ora.
If the Council proposal to take on ownership and management of the Roxburgh Pool, how will this affect Teviot Valley rates?
As a result of the shift to districtwide funding, if this proposal is accepted, Teviot Valley rates would increase by $260 per ratepayer per year. The rest of the district would see rates increase by $16.85 per year.
Will the cost of pool entry increase if Council owns and manages the Roxburgh Pool?
Entry costs will have a slight impact.
What would be the operating hours of the pool?
The Roxburgh Pool Committee has requested that the operating hours remain the same. Council performs a review of level of service to consider demand and will adjust accordingly.
Would the pool by staffed by locals or would staff from Alexandra drive to Roxburgh?
Council would bring in systems and training that will improve our ability to attract and retain local staff. Council prioritises employing locals. However, given the recent challenges employing lifeguards, that may not always be possible.
Does the solar heating unit in Roxburgh reduce the cost of heating the pool?
Yes, the solar panel heating unit in Roxburgh reduces the cost of running the pumps by about $20,000 per season.
Could winter/ice swimming be held in Roxburgh if the Alexandra outdoor pool is closed?
Unfortunately, the Roxburgh Pool will be drained over winter because of reduced use and costs associated with operating the pumps, so that will not be an option.
If Council decides to take on ownership and management of the Roxburgh pool, when would that take effect?
If this proposal moves forward, the transition will begin in July 2025.
Alexandra Outdoor Pool
How many people use the Alexandra pools?
Total attendance for the Alexandra Pool (indoor and outdoor) in 2024 was 65,442.
While historical usage data for the outdoor pool is unavailable, in 2024 there were approximately 4,000 outdoor pool swimmers. While this was the first year staff have tried to record numbers, we didn’t notice any considerable change in the usage of the outdoor pool from prior years.
How much money would we save by closing the outdoor pool?
Approximately $200,000 per year, plus an additional $10,000 a month if the water is heated.
Is the outdoor pool currently heated?
Usually, the outdoor pool is not heated and sits at about 20 degrees Celsius. CODC turned on the heating last year for a short period of time to see if it would make a difference in the usage of the outdoor pool, however the increase in use was marginal.
If the Alexandra outdoor pool is closed, will we have the option later to change our minds and reopen the pool?
No. The decision to close the outdoor pool is a permanent one that cannot be reversed. The existing pool will be filled in and the pool equipment will be repurposed and used elsewhere.
Could the costs of operating the outdoor pool be reduced by turning the pumps off in winter?
The pumps in the outdoor pool must run year-round even if the pool isn’t being used to keep the water from turning green. Once the pool water turns green it must be emptied and refilled, which is expensive and time-consuming process.
How much would it cost to decommission the outdoor pool?
The cost would be approximately $50,000.
If the outdoor pool is closed, what will be in that space?
In the short-term the pool will be filled. Future use of that space will be discussed with the community at a later date.
If the outdoor pool is closed, will the pool entry fee be reduced?
No. Our community facilities are funded 2/3 by ratepayers with user fees accounting for 1/3 of the cost. For example, for every $7 one pays to enter the pool, rates fund the remaining $14.
Manuherekia Valleys Community Hub
What is the Manuherekia Valleys Community Hub project?
The Manuherekia Valleys Community Hub is a proposal to build a purpose-built, multi-use facility at the Omakau Recreation Reserve. The new facility will replace the aging Omakau community hall and rugby clubrooms, which require major renovations. The aim is to create a modern community space that will serve Omakau and the surrounding areas.
Why contribute towards the construction of a community hall amidst discussion about closing other community halls?
In 2021, we consulted with the community on the Manuherekia Valleys proposal to develop a purpose-built multi-use community facility at the Omakau Recreation Reserve. The community supported this idea and $1 million was contributed. Over time, the costs to build the hub have increased. Despite significant fundraising efforts by the community, the build is up to $1.6 million short. Council committed to this project based on districtwide support in 2021 and has been approached by the Manuherekia Valleys Trust for further financial assistance in order to complete the project.
How much has the community contributed to this project?
To date, the community has secured $1,773,000 in grants and sponsorship and continue to seek out new sources of funding.
What are the Vincent General Reserves, and how would using them affect rates?
Vincent General Reserves are funds that have been collected in the past and set aside by the Council for specific purposes, including community projects. If the Council uses these reserves to fund the project, there would be no additional cost to ratepayers, as the money is already available in the reserves.
How will the Hub benefit the community?
The Hub will accommodate up to 200 people for events and will include a meeting room, function room, changing rooms, commercial kitchen, bar, stage for productions, gym and storage space.
What happens if the Council decides not to provide additional funding?
If the Council decides not to provide the additional funding, the Manuherekia Valleys Community Hub project may be delayed or scaled back. The project would rely solely on further fundraising efforts by the Trust, and the cost increases could result in the project being unaffordable or not progressing as planned.
How will this Community Hub benefit the local community?
The new community hub will provide a modern, multi-use space that can accommodate various community events, activities, and gatherings. It will replace aging facilities that no longer meet current needs, improving the quality of life for residents and visitors in Omakau and surrounding areas.
Who will fund the ongoing operational costs for the Community Hub?
Like any community facility, there will be ongoing operational costs such as maintenance, utilities, and staffing. Both the land and the building will be leased to the Manuherekia Valleys Community Trust who will be responsible for all operational costs.
What will happen to the existing hall and rugby clubrooms?
The Hall has been sold. The rugby clubrooms will be demolished, and the club will transfer to the Manuherekia Valleys Community Hub upon completion.
Supercars Championships at Highlands Motorsport Park
What is the Supercars Championships?
The Supercars Championships is the premier motorsport category in Australasia. Globally, it is recognised as the best touring car category in the world and a leader in motorsport entertainment.
Is Supercars a one day or multi-day event?
This is a multi-day event with racing over two days. Practice and setup are on Thursday and Friday prior to the weekend of racing.
At a time when money is tight, why should CODC help to bring this event to Central Otago?
CODC is seeking to secure the event long-term, primarily for its direct and indirect economic impacts for the region. The event itself is estimated to generate $18 million in immediate economic impact for the region - based on 2 nights, at $450 per day across 20,000 visitors. This is a conservative estimate; however, it is possible that up to 45,000 attend the event, which would increase the economic impact for the district.
Where does the proposed funding, $250,000 for supporting this event come from?
The proposed funding comes from tourism reserves, which can only be spent on tourism-related projects. After COVID, CODC received additional tourism dollars from the Ministry of Business and Innovation (MBIE), which was required to be spent in a short period of time. As a result, targeted tourism rates went unused. This proposal recommends that those unspent tourism rates be used to support the Supercars Championship coming to Cromwell.
What would the $250,000 grant be used for?
The grant represents the Central Otago bid to secure the Supercars event in Cromwell. Once secured, Supercars would use that contribution toward event management.
Could the $250,000 grant be used for other purposes, such as community halls or pools?
The proposed $250,000 grant to support the Supercars event comes from tourism reserves and can only be spent on tourism activities. Therefore, these funds are not available to be used to support other Council services.
How much of the $250,000 grant will go to Highlands Motorsport Park?
Highlands will not receive the $250,000 grant as it will be designated for the Supercars organisers to secure the event. Major events nationally and internationally are typically secured with local government funding. The reason for this proposed investment is the direct and indirect economic benefit that such events bring to communities.
If we secure the Supercars event, is that a one-off event or a multi-year commitment?
Should we secure the Supercars event, it would be a multi-year commitment (up to 10 years). While the longer-term benefit of events is hard to quantify, it is known that multi-year events have a net-positive impact on the host community.
How many people are projected to attend this event?
A conservative estimate is 20,000 people.
Would there be sufficient accommodation to host such a large event in Cromwell?
The event will rely on commercial, camping and short-term rental accommodation across CODC and QLDC to secure space for visitors. The timing of the event works perfectly in terms of being off-peak, so there will be more than enough accommodation options available.
Is Queenstown also contributing to bring the Supercars event to Cromwell?
There have been ongoing discussions between CODC and QLDC but at this point there has been no commitment by QLDC to contribute.
If there is support for this proposal and Cromwell won the bid to hold this event, when would the event take place?
May 2026 or May 2027
How much will a ticket cost to attend this event?
Ticket prices are unknown at this early stage but should be comparable to the event in Taupo, which was $130-$150 for a 2 or 3-day General Admission pass. Children 12 and under attend for free with a paying adult.
Artificial Turf at Maniototo Area School
How big is the proposed replacement multisport turf?
The school wants to extend the current turf footprint by 10m and include an asphalt court alongside.
How much is the proposed Maniototo Area School contributing to this project?
The school is contributing $500,000 from selling three Ministry of Education houses. The organising committee is requesting $200,000 from Council. The organising committee is currently fundraising for the remaining cost and will begin construction once this funding is secured.
What sports can be played on the turf?
The turf will be used for hockey, netball, pickleball, and for school P.E. The turf will be used by the school during school hours and will be available for community use after school hours and on holidays.
Who would be responsible for the ongoing maintenance of the turf?
The Maniototo Area School would take the lead in maintaining the turf, with support from the organising committee.
Artificial Turf at Dunstan High School
How much would Council contribute to this project?
The total cost would be $1.5 million, $300,000 of which has been requested from Council. The grant from Council would go towards construction costs only, with no commitment for ongoing operational costs.
What sports could be played on this turf?
Hockey (11-aside and 5 aside), football and rugby practice, futsal and cricket (pre-season).
Would the turf have lights?
The first stage does not include lights, but they could be added in future stages if there is community support. The addition of lights would require resource consent. The feasibility study estimates an approximate 20m setback from neighbouring properties to prevent light-spill
Fees and Charges
What changes can we expect in fees and charges?
Details about fees and charges are included in the Fees and Charges Schedule, which is available on Let’s Talk.
Rates
What is the proposed rate increase?
The average proposed rate increase is 13.01%, based on the preferred options in the Long-term Plan consultation. If Council makes different choices based on community feedback, the rate increase would be higher.
Why has the promotions charge increased on my rates?
This is not an increase in budgets but is the result of combining community grants with promotions grants into one line item.