Number of properties connected:                   1,386
Depreciated Replacement Cost:                     $5,120,627
(as at 30 June 2006)

In September 2006, the new secure ground water source began supplying the Kaikoura township.  The water from this source is of exceptional quality, needing no treatment whatsoever, however some chlorination continues to be added to eliminate contamination from any residual matter in the pipework infrastructure.  This ground water source will provide a secure, quality supply of water for a permanent population of up to 5,000, and cater for up to 2 million visitors.

Significant works have been completed in relation to upgrading the pipework, particularly on Torquay Street and Killarney Street, where major leaks had been identified.

Maintenance and Operating Issues

Currently Council contracts out the maintenance of its water supplies to Fulton Hogan, and has Connell Wagner as consultants for upgrading requirements.  Our own Asset Managers manage the day to day operations.

With the development of the new ground water source has come increased costs of supply, these are in relation to pumping the water from the ground, whereas previously the water supply was from a gravity fed intake gallery.  Electricity costs, loan interest and depreciation costs have each increased.

Significant Negative Effects

Council is conscious that population and visitor growth is placing significant demands on the water and wastewater infrastructure and water resources.  Water conservation is essential to preserve these resources for the future, and through the Green Globe benchmarking and certification process, Council is monitoring water consumption not just on a residents basis, but on a residents plus visitors basis, to accurately assess the affects of tourism on our water resources.

Proposed Future Capital Works

The most significant capital works that are required to meet the demands of projected growth are going to have to be undertaken within the next three years to provide the same (or better) level of service to the additional developments proposed during this time.

Current upgrade reports suggest that work will be done in stages, with the resulting infrastructure having a capacity of more than double the existing.

The main focus for the Kaikoura Township supply now is the development of adequate pipe infrastructure, and increasing storage capacity.

The Waimangarara intake gallery and chlorine treatment system, which used to supply the township, will be diverted to supply the Kincaid rural water supply and the irrigation needs of the previous ground water source owners.

How Capital Works are to be Funded

The Council proposes to fund the cost of these new capital works first by utilising the proceeds received from development contributions, then by raising loans.  There are expected to be significant contributions received within the next three years.

In addition to the above-mentioned new capital expenditure, the cost of renewal work (replacement or development of an existing asset to its original capacity or condition) is estimated to cost $2.6 million over the next ten years.  The cost of all renewal work will be funded by the annual depreciation provision.

Any depreciation balance each year will be used to repay debt, and therefore reduce the annual loan servicing costs.

Who pays for the cost of Water Services?

Presently, the owners of all separately used or inhabited properties that are connected (or able to be connected) to the Kaikoura Urban public water supply pay a flat uniform annual charge for the annual net cost of providing this service.  They also pay a flat uniform annual charge to service the cost of debt.  

Some properties have been identified as “extraordinary consumers” due to the nature of the property (e.g. commercial or tourist accommodation), and these properties have water meters installed and are charged on a user pays basis in addition to the standard uniform annual charges.

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