Metrowater charges to be reviewed

From City Scene, published on 16 March, 2008

Deputy Mayor David Hay says the council will review Metrowater's charges to ensure water prices remain affordable for people.

The money Metrowater provides the council (charitable payments) helps fund the nearly $40 million the council invests each year on the city's stormwater infrastructure.

If the council stops taking the payments, these improvements would need to be funded by increasing rates or deferring or stopping other projects.

"Removing the charitable payments in one fell swoop would have a negative impact on ratepayers and require an extra 6.6 per cent overall rates increase in the 2009/2010 year," Mr Hay says.

"It's also important to remember that water pricing enables the council to receive an annual payment from organisations that do not pay rates, so they still contribute to the running of the city via their water bills."

The future of Metrowater's water prices, including the option to remove charitable payments completely, will be consulted on as part of the council's draft annual plan.