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Water Bills – non-metered homes paying too much – ‘It’s complicated’– is not an answer

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Written by

Pauline Stewart

Published on

August 12, 2025

The discussion with Council about the water metre charges.

We have set out responses regarding a resident’s concerns over her water rates. In 15 July issue of The Informer, an article was published recounting the journey of another resident’s account of the unfairness relating to the way TCDC calculates unmetered residences. The TCDC response to that is set out below. Water rates calculations are not equitable. There is acknowledgement of this by some in Council, (see below) but it has been put in the ‘too hard basket.’

TCDC’s response to The Informer Article July 15

TCDC would like to exercise its right of reply to the water rates article in 15 July issue. (The Informer held back publishing for two weeks.

TCDC clarification of Informer water rates article

The article in the 15 July 2025 issue of the Informer about water rates and charges was written without input being requested from TCDC. Some of the ideas presented warrant clarification, so that Informer readers gain a full picture of the situation.

The meters for Whitianga and Whangamatā townships were purchased in 2020 with the central government’s Three Waters Stimulus Grant funding. Meters and manifolds were purchased and installation in Whitianga began in 2021. There was sufficient funding to replace basic existing toby (valve) installations. This would typically be at locations where we were replacing a single toby with a new single meter/manifold. More complicated toby installations (e.g. one toby isolating two or more properties) were identified and included in a list for future unbundling. We did not have the funding to unbundle these more complicated toby installations as part of this project. Currently, 3,471 water meters in Whitianga are being read. There are 544 properties identified as either requiring unbundling, or currently being checked or still to be assessed.

We now have Long Term Plan capital funding to undertake this unbundling work in Whitianga starting in 2027/28 financial year. We will also look at retrofitting smart meter technology onto the installed meters to allow them to be read remotely. Two systems are being investigated. The objective is that over a period of time all of TCDC district will be metered and usage will be recorded using smart meter technology.

Currently, about 11,500 properties in the district are metered, and about 9,500 are not. The properties metered in Whitianga pay the volumetric charge per cubic metre (1,000 litres) of water used -$1.71 (not $1.62 as the Informer article states), plus the fixed amount per separately used or inhabited part of a rating unit of $577.73 (not $580.86 as the article states). Editor: We calculated on the proposed figures rather than the actual figure which was not available to us at the time. What a big deal to point out a difference of $3.13 when we are speaking of hundreds of dollars. This is the fixed amount for the 2025/26 year, as set in the Annual Plan. The volumetric charge per cubic metre of water use is also set by our Council through the Annual Plan.

We understand and recognise the concerns around how our rates are set. This was something brought up by our Councillors when our Annual Plan 25/26 was adopted last month and we are considering ways to address this.

The way we set our (water) rates is complex and involves a significant process. Editor: Significant or not, it can be done it seems the source data is not correct followed by a lack of robust checking and an unsubstantiated differential ratio. When was there a review and who did that review?

The setting of our rates was legally reviewed prior to adoption on 24 June and adheres to all aspects set out under the Local Government (Rating) Act 2002. Editor: Does not mean it is correct – legally reviewed means nothing. There should be declaration of review of ratios.

We don’t expect people to necessarily understand the intricacies of this process but a good place to start is our Long Term Plan 2024-2034, in particular the Revenue and Financing Policy, and the Rating Funding Impact Statement of the 25/26 Annual Plan – both are on our website www.tcdc.govt.nz. We would be happy to break this complex subject down in more detail if this helps to clarify matters.

From TCDC Communications

Council has to do more

The council adopted its Annual Plan 24 June, 2025.

Quote from that council meeting:-

Once the Annual Plan is adopted, the system of water rates assessment is locked in. The Council acknowledged there was devil in the detail but was assured it was all legally correct.

Councillor Rekha raised concerns about the way unmetered sites are being rated. She was asking for clarity around the fairness of the way that has been established.

Disquiet at Council meeting from some re fairness of water rates system:

Thank you very much to the council as we can see by the above response that the problem is starting to be fixed – water meters have begun to be installed. Human error perhaps has initiated it. How good it is that Auckland Council has admitted human error in their calculation of their rates. It will be heartening to see what can be done to enable a fairer and more equitable rating system by the next Annual Plan 26/27.

Staff explanation at Council meeting

“There is a process followed whereby council establishes the budget requirement going through all expenditure line items, and the additional costs that have been added in.

A number of additional costs have come into the water space.

The expected level of revenue from those volumetric sources and fees and charges is then forecast and taken off that expenditure amount as the rates revenue requirement.

For water supply, that has generally been at a .5 differential on those properties that are connected and metered. For properties that are connected and unmetered, the differential is 1.

So the increase you have seen in the water space is a consequence of the rising costs sitting within that space, and the amount that we increase that forcast revenue is only increased generally by CPI which has not moved at the same level as Council’s costs.”

Council was informed that to change those differentials is something the Council can look at going through a process and a consultation if that change is significant.

“There isnt the scope to be looking at it right now. But if that differential is considered unfair, then it can be looked at in time.”

One is left wondering just how much time? Some Councillors were still not convinced.

Councillor Deli Connell: Regarding Matarangi, as a community, they are seeing a $300 plus in their basic rate when their water consumption is quite low. They want meters now. They are not going to be happy with that explanation. They are mildly horrified by the jump in water service charges.

Mayor Len Salt: “There isn’t anything we can do in terms of this resolution but it has been flagged as something we can have further discussions on.>

Councillor Terry Walker: The jump is quite large. We have had meters sitting in a shed for three years and we are asking for this job to be done.

Councillor Rekha Giri-Percival: I’m not sure I’m okay with the explanation and it is unfair. it is unfortunate we have had meters sitting in a shed for all this time. This needs to be a priority.”

Councillor John Grant: Re Mercury Bay – I do remember the setting of rates and the roll out in MB of water meters and the impact it would have. I can see we are charging an average amount for those who are unmetered. Having two different structures is an uncomfortable thing.

If we can ask staff to put this on the agenda for further discussion so as to accelerate this process. Editor – to state ‘average’ is an understatement by Councillor Grant.

The situation for Matarangi (referred to by the Councillors at 24 June meeting)

There are 1512 connections in Matarangi – unmetered. There are only a few metred properties in Matarangi. People are charged a set amount. They are charged two line fees. The problem is the rate of increase in water usage is much less than the cost of servicing water. The cost of metered water usage is $1.71 per cubic metre. Matarangi people are paying $577 for the fixed charges as everyone does across the district. But those with no metre, $577. 73, as stipulated in the article 15 July – this amount is added across all unmetered properties on the Peninsula. This was also stated in the article 15 July. The amount of water you can buy for $577 needs a family of five with long showers every day to use that amount of water.

Conclusion

The person in an unmetered residence is being seriously disadvantaged by the way TCDC is setting the rates.

To say, “we don’t expect people to necessarily understand the intricacies of this process but a good place to start is our Long Term Plan – Revenue and Financing Policy, and the Rating Funding Impact Statement.”is a little high-handed, encourages a person to give-up and does not address the fact that some are being overcharged. It is simply not the ratepayers fault that they do not have a water meter, particularly as there have been a stack sitting in a shed somewhere.

The current councillors, some of whom are standing again may need to reassure the voting residents and ratepayers that they do have some say in fixing this debacle and that it will not wait until the 27/28 financial year when water meters are planned to be installed. For 544 residences or complexes in Whitianga, the water rating system is wrong. There could be grounds for these rate payers to demand a refund based on the average usage of a household that is being metred over the period of time they have been extortionately charged. That’s a lot of money paid which was rightfully the ratepayers.

We get excited about new developments such as The Esplanade in Whitianga or a new recycling transfer station but the basic matter of very few smart meters in the entire region and 9,500 residents with no water metres at all, needs to be addressed now.

The 15 July article referred to above can be viewed here.