Queenstown Lakes District Council (QLDC) wants to hear from residents about a proposal to significantly increase its contribution to a new water scheme. 

A budget increase of almost $10M is being considered for the council’s investment in the proposed new Cardrona water supply scheme, which is a private-public partnership with the investors in the Mt Cardrona Station development.

The budget for QLDC’s contribution has been revised and previous estimates of $8.1M (plus a further $1.5M over ten years) have increased to $17.2M.

The proposed development contributions required on each new build and the targeted capital water supply rate on every dwelling have also roughly doubled, with the former up from $8,490 to $16,490 and the latter at $1,100 per annum for the next 30 years, up from $490.

Factors including increases in construction costs and regulatory changes have affected the budget, as well as detailed design plans which have more accurately estimated the cost of the project, QLDC said.

If QLDC chooses not to contribute to the scheme it will still go ahead, but it would only serve the Mt Cardrona Station development, leaving Cardrona’s ongoing water supply issues unresolved.

In 2020 QLDC entered into a development agreement with the Mt Cardrona Station development investors for a new community water supply scheme with a connection to the existing and future residents of Cardrona village. 

A 2016 business case had identified a need for QLDC investment in a community drinking water servicing solution for Cardrona, which is currently serviced by five small private water supply schemes which do not have enough capacity for long-term demand in the village.

However, councillors and members of the community have raised concerns about the cost and efficiency of the proposed scheme. 

See also: Cardrona’s proposed public water supply scheme: Does it stack up?

In a QLDC meeting earlier this month some councillors appeared uncomfortable with the agenda item, and mayor Jim Boult reminded councillors they weren’t approving the budget increase, only the consultation.

Councillor Quentin Smith was one of the councillors to bring up concerns.

“I do have concerns that we are heading down a road that is potentially unaffordable in the scale of what we are delivering here,” councillor Quentin Smith said.

The decision was made to proceed with the public consultation and a hearings panel, which includes Quentin as well as councillors Penny Clark and Glynn Lewers, has been appointed to hear submissions on the proposal and make a recommendation on the status of the investment.

A council spokesperson said residents would be able to have their say on the topic on the Let’s Talk webpage in the next few days.

PHOTO: Supplied