Council stores, treats and delivers water to those on the reticulated system. For this service it charges a targeted rate calculated on a per cubic meter used by each customer. Council is charged under the 2002 Local Government Act to do this in an effective and efficient manner.

It can be seen that they are effective at doing this as is evident in the lack of need to enforce water restrictions in the recent years of drought. It is the efficiency, that is, the cost of the service that is of concern.

Over a number of years, the surplus of revenue remaining after taking into account operating and capital costs has steadily grown until at the end of 17/18 financial year the cumulative surplus will have grown to approximately $33 million dollars.

Council says that it needs this money for the future. However, if one was to examine the long term plan for water, one would see that council recently has been granted a long-term consent to take water from the Wairoa River at Titoki. It also has a land-holding to the south-west of Whangarei if there is a need for future water storage. The Whau Valley treatment plant is expected to cost approximately $20 million. We are well placed to meet future needs.

 This surplus of water funds has allowed council to spend an extra $5m on roading this year without exceeding the external debt limit. We paid for water, not to bankroll other council services. This has been going on for 5, 6 or 7 years.

The council’s reaction to the surplus has been to keep on increasing the targeted rate.

The WDC's 2015-2025 Long Term Plan explains on page 23 the concept of inter-generational equity. "Council has a responsibility to consider the interests of the community now as well as in the future. As a result, we try to ensure that, as far as possible, today's ratepayers only pay for services they are likely to consume, and not for benefits that will be received by the new ratepayers in the future...

"When we build new assets we need to consider how much of the expenditure required should be funded through current ratepayers (via rates) and how much should be funded through future ratepayers by borrowing now and replaying debt later when future ratepayers become consumers.

"Council has always, and will continue to, consider inter-generational equity when assessing who should pay in a bid to ensure fairness between current and future ratepayers. It will achieve inter-generational equity by balancing the mix of funding from rates and debt..."

If we compare the transport activity with $80 million of debt, to the water activity account, with $33 million credit, it is clear that this intergenerational policy is not being adhered to. All ratepayers contribute to the roading fund, but only those who live where their properties are connected to the water pay the targeted water rate.

Council's reaction to the surplus had been to keep on increasing the targeted water rate. Charge a fair rate. Stop over-charging the water rate as it is not needed.