Water Services Information Disclosure

Dividends policy

As a territorial authority established under the Local Government Act 2002, Gore District Council does not have shareholders or other equity holders. Accordingly, the Council is not permitted to pay dividends and does not maintain a dividends policy.

Funding of Growth and Additional Demand

The funding approach for growth-related investment in water and wastewater infrastructure is set out in the Gore District Council Revenue and Financing Policy adopted on 30 June 2025 and effective from 1 July 2025. The policy distinguishes between:

• replacement and renewal of existing assets; and
• capital investment required to accommodate growth, increased demand, or higher service levels.

For water supply and wastewater services, the Council has determined that the costs associated with the replacement of existing assets are primarily recovered through targeted rates, supplemented where appropriate by fees and charges. The policy provides that renewal expenditure is funded by targeted rates of between 80% and 100%, with fees and charges contributing between 0% and 19%.

In contrast, capital expenditure required to provide an increased level of service or to meet additional demand generated by growth is funded through borrowing. The Funding Needs Analysis contained within Appendix Two of the Revenue and Financing Policy specifies that for both water and wastewater activities, expenditure associated with "increased level of service or additional demand" is funded by borrowing at 100%.

The Council's rationale for this approach is based on the principle of intergenerational equity. The Revenue and Financing Policy states that borrowing is generally used to fund long-life assets so that the costs are shared between current and future users who benefit from the infrastructure over its useful life. The policy notes that debt servicing and repayment are subsequently funded from rates, targeted rates, fees and charges, and other revenue sources as appropriate.

The policy further recognises that water and wastewater services provide a direct benefit to the properties and users connected to those services. Accordingly, the Council's preferred funding mechanism for the ongoing operation, maintenance and renewal of these activities is targeted rates and user charges, reflecting the beneficiary-pays principle.

At the date of the policy, Gore District Council does not operate a Development Contributions Policy under the Local Government Act 2002. The Revenue and Financing Policy expressly notes that the Council does not currently impose development contributions, although it may consider such a policy in the future depending on the outcome of resource management reform.

Consequently, the Council's current approach to funding growth-related water and wastewater infrastructure can be summarised as follows:

1. Growth-related capital expenditure is initially financed through borrowing.
2. Borrowing enables the cost of long-life infrastructure assets to be spread across the periods in which benefits are realised.
3. Debt servicing and repayment are recovered over time through targeted rates, fees and charges, and other relevant revenue sources.
4. No development contributions are currently collected to fund growth-related water or wastewater infrastructure.

Accordingly, Gore District Council's adopted Revenue and Financing Policy reflects a growth funding model whereby water and wastewater growth investments are debt funded upfront, with costs subsequently recovered over time from service beneficiaries through the Council's established revenue and financing mechanisms.

Connection charges information

Council requires property owners seeking a new connection to a water supply or wastewater network to obtain the necessary approvals and meet the costs associated with establishing that connection as outlined in the fees and charges schedule.

Where a development requires infrastructure works or network extensions to enable servicing, Council may require those works to be undertaken or funded by the developer as part of the subdivision, resource consent, building consent or connection approval process.

Connection charges recover costs associated with providing or enabling an individual connection to Council's water supply or wastewater networks.

Details of applicable connection fees and charges are published in Council's Fees and Charges Schedule and are reviewed periodically through Council's annual planning and budgeting processes. Gore District Council Fees and Charges Schedule is available from Council offices and on Council's website here.

The Gore District Council does not collect any IFF levies at this time.